Retainer Confusion

[sukicorn]

Can I get some advice/opinions from some of you lovely people on here? I have had two meetings with a couple who want childcare 4 days a week from mid-August. As I'm new to childminding I followed the general advice about retainers and said that there would be a retainer of half fees for the period of time up to the start date. I already stated that I would waive a month of this as it seemed a lot of money but I'm still worried that I've put them off. What does everyone else do? Should I have just asked for a month's deposit to be used against the first month's fees? Can I go back to the couple now and change my mind about the retainer without looking like a right idiot??!!

HELP!!!

[nessynoodle]

Right you are new to childminding - does this mean you really need their business? And does it mean that the chances are there will be a space available in August regardless or do you have limited spaces already? In this situation I tend to say to parents that if they want 100% gaurantee the space will be available they do need to pay half fees until the date, and i explain to them that during that time I will be sacrificing a space for them and therefore my income will be limited. By paying half you promise not to fill that space. If they are not comfortable with that give them the option of ot paying a retainer but being aware that this does not guarantee them a space, and you will have t continue to seek other business in order to earn a living. Be honest with them if you think the space is likely to go - tell them that you have people interested and you cannot hold a space for free as you are running a business. However if you are in need of their business and think that the space will be available and dont want to scare them away, just tell them that you cannot say for sure but you think it is quite likely the space will still be available. They can then make a decision on whether or not they want to risk it. I would say if you have just started childminding you need to be flexible and August is not too far away, chances are you will have space and will be grateful to fill it to get you going. If you were already very busy you could afford to be more firm.

Hope that makes sense. You are still adhering to your policies and not just 'letting them off' (which you must not do!! start as you mean to go on) but you are making it more appealing to them.

xx

[appleblossom]

In this situation I would take a non refundable deposit of four weeks fees. Then when they start coming in August you can either set the amount already paid against the first four weeks fees, or, as a lot of CM do, you could hold onto the deposit to be used against the four weeks notice payment when they leave. The latter option gives you security against them leaving without paying notice.

The other option would be to say you can't hold the place without either a retainer or a deposit and you continue to advertise the space. You can keep this couple's contact details and say you will let them know if anyone else is interested in taking the place. Then they can decide if they want to pay a retainer/deposit to secure the space at that time.

TBH I don't do retainers. I wouldn't want to pay it if I was a parent. I always take a deposit unless they are starting almost straight away.

[Mouse]

I'm sure that I've read somewhere that retainers are not recommended for more than a 6 week period. As a parent I wouldn't pay one to keep a space open for 4 months and would just look for someone else who didnt charge one. And as a childminder I wouldn't be willing to only have half fees coming in for that amount of time.

In a case like this I either take a non-refundable deposit and save the space or tell them I will contact them if someone else wants the space and give them the option of taking it up earlier.

[cathtee]

I don't take a deposit, I take them on trust that come back, also if I get enquiries nearer their start date I contact the mom and ask if they still require the place, if not then I offer it to the person enquiring.

Hope this helps :thumbsup:

[lollipop kid]

Hi, another way you could go would be to take the retainer of 50%, but tell the parents that they could bring their child during that time up to a half day each across their contracted 4 days, and use it for settling in. (Then take the 4 weeks' deposit on the date the child is due to start on their full days, probably when the mum is due to go back to work, so she has the peace of mind that her child is already settled by the time she goes back.) I've found this works well with my parents. When calculating holiday, make the parent aware that it starts from the first settling in day and give them the same list of holiday dates (if you have one) that you use for the other parents, which they still pay, as you're essentially working with a brought forwards start-date, albeit for only half of the time on the contracted days. Just be careful to charge the 50% while you're on holiday during this time, and not a full day. (I have done this, so think it's fine as it was a tip I picked up early on from my childminder mentor, who always gets Outstanding.)

In addition, when any parent signs a contract, I take the four week's deposit, but offer to phase it 50% on signing, and 50% after the first two weeks (which is particularly useful if they're starting soon, so that I can also offer a two week settling in period and, if they child doesn't settle, then I don't take the 2nd half). Once the settling in period has elapsed, then I keep the deposit and offset it against the last 4 week's fees once notice has been given, if the parent wants to do it that way. (They may choose to pay the last four weeks, but get the deposit back at the end of the notice period - could make it their choice if not too complicated. Basically, I play this bit by ear then write their choice into the contract.)

Hope that helps. :thumbsup:

[sukicorn]

Thanks for everyone's advice and as I thought, everyone does it differently. In the end after worrying for hours, I went back to the couple and said I was new and that I thought the retainer was too steep and offered them a deposit of half a month's fees which would be used to pay for half the first months fees. This felt much better to me because in their shoes, I wouldn't pay a retainer for months.
I just wish I'd thought it through better in the first place because by the time I contacted them with the deposit suggestion, they had already made up their minds to go with someone else :(
Although I don't know for sure it was the retainer, I suspect it was - I've learnt my lesson.

[Bridey]

Oh bless you. its so nerve-wracking when you start out and, to be honest, even us seasoned minders get confuddled sometimes. Every parent is looking for something different so never take it to heart when someone chooses to go elsewhere :)

[lollipop kid]

Hi, it's really hard in the early days, but don't feel bad. Try to have more faith in yourself for next time, and decide in advance which way you'd like to go. Personally, I find that first time parents tend to want to secure a place way in advance, but don't like the thought of the money side, but it's got to be covered as you can't turn away business in the hope that they'll come back to you. I find the "work the retainer for settling in" offer goes down well for an advance situation, as they then have loads of time to settle their little one in, and also feel that they're not giving you 'money for nothing'.

It gets easier. I remember having to stand at my gate and start conversations with every pregnant woman who went past my door. (I got my first 2 kids this way!!) Don't forget to ask the people in your area who are also childminding to pass on any enquiries to you if they're full. You could always invite them round to see your setting and they might even have some really helpful tips for you.

Also, find out what other childminders charge in your area, how they work deposits and even how the nurseries do it. You may be surprised!! Just try to stay competitive, but don't undersell yourself as I'm sure you've put your heart and soul into it and need to pay your bills like everyone else. Don't let yourself get stressed - hug your own kids and you'll feel much better.

Good luck - it does get easier.

[Chatterbox Childcare]

In this situation I would take a non refundable deposit of four weeks fees. Then when they start coming in August you can either set the amount already paid against the first four weeks fees, or, as a lot of CM do, you could hold onto the deposit to be used against the four weeks notice payment when they leave. The latter option gives you security against them leaving without paying notice.

The other option would be to say you can't hold the place without either a retainer or a deposit and you continue to advertise the space. You can keep this couple's contact details and say you will let them know if anyone else is interested in taking the place. Then they can decide if they want to pay a retainer/deposit to secure the space at that time.

TBH I don't do retainers. I wouldn't want to pay it if I was a parent. I always take a deposit unless they are starting almost straight away.

I would do this too just to secure the place and you would have the summer hols off too...

[Baildon bears]

Never mind, I have found when this has happened to me in the past, soon enough some one comes along who fits in better anyway. Wish you Luck :thumbsup: