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View Full Version : Retainer, deposit or other?



mumofone
09-02-2016, 09:50 AM
I have a family who would like to send their child to me when my current mindee starts school later this year. I am happy to keep the space for them but should I charge for doing this? As, if they don't end up using me I would have kept the space and possibly lost other business.
Do I request a retainer, a deposit or do something different?

AliceK
09-02-2016, 10:36 AM
I have a family who would like to send their child to me when my current mindee starts school later this year. I am happy to keep the space for them but should I charge for doing this? As, if they don't end up using me I would have kept the space and possibly lost other business.
Do I request a retainer, a deposit or do something different?

As the space is not actually available yet I would just charge a deposit which is non-refundable against the parent changing their minds. I do this quite a lot. I charge 2 weeks money and then refund it against their first months invoice although a lot of childminders keep the deposit until the notice period when the new child leaves.

xxx

moggy
09-02-2016, 01:31 PM
You can only charge a retainer if the space is currently available, not for a space that'll come in future, according to Pacey contracts.
I would take a deposit, refunded against 2nd month's fees, equal to 4 weeks of fees. Non-refundable if parents change their minds + signed contracts.

bunyip
09-02-2016, 06:10 PM
As Moggy says, you cannot charge a retainer for any time at which you could not actually have the child there with you.

A 'reservation deposit' would therefore be more appropriate. This is to ensure they take up the place when it does become available. This differs from the deposit most CMs take which is to ensure they don't give immediate notice and walk away leaving a debt for not paying for the notice period.

I guess if the space is available that bit earlier than they wish to take it, you could look at a combined deposit/retainer, but I suspect that might be asking for trouble. It's hard enough explaining one of these to a parent, never mind a combination of both. :p I'd be tempted to just go for a larger deposit.

There's no set formula for a reservation deposit. It is part compensation if they let you down, and part deterrent to make sure they don't, but should not be so big that it puts them off and drives them into the arms of another provider. Ideally, the figure you're looking for is something they can afford, but something far more than they can afford to lose. Go figure.......

mumofone
09-02-2016, 09:09 PM
Thanks guys! Super Helpful as always :-) x