Deposit vs retainer

[singlewiththree]

OK I could do with your wisdom. Deposit vs retainer

The family starting in Sept (unborn baby will be 6mths and also a 4yr old after schoolie) want to pay a deposit.

Deposit - 4 weeks would be £880!
Retainer 1/2 fee until Sept (minus holidays) - £1540

Both I feel are too much money to ask for. I know its not my problem but they are currently paying a childminder already. What do you think I should do?

[Hebs]

i'd take a months deposit

[Jules27]

If they want you then they will have to pay SOMETHING until september!! You can not afford to keep the spaces open for nothing/next to nothing. HAs their current childminder not got space come september? I personally would go for retainer as is money coming in each month for those spaces.:)

[Helpinghands]

Retainers should only be a maximum of 6 weeks, so I'd say deposit.

[Daftbat]

I would go with the deposit too perhaps you could come to an arrangement where they pay the deposit in installments if ok with you and would help them

[Tily Bud]

What about charging a £500 deposit , it just depends if you will have to turn others away then they should pay you something x

[singlewiththree]

If they want you then they will have to pay SOMETHING until september!! You can not afford to keep the spaces open for nothing/next to nothing. HAs their current childminder not got space come september? I personally would go for retainer as is money coming in each month for those spaces.:)

Their current childminder is nearer work while I am nearer school and their son starts in reception in Sept. Also their current childminder is expecting and therefore would have to apply for a variation for 2 babies and I've spoken to the childminder and she doesnt want to do that so rather than put the older one in the after school club and the baby with a childminder they have decided to keep them both together and come to me :) I think £500 sounds a good amount because it comes off the fees for the first month anyway so its like getting a month up front.

[rickysmiths]

I ask for 4 weeks fee deposit I then keep this until the end of the contract and it forms the last monthe fees. I never take it off the first months fees. It at least insures that should there be payment issues you have money in hand. I have never had any parent refuse to pay it. Remember you are in business and you have to safeguard youself.

If you dont have a place available now you should sign contracts and take a deposit and indicate on the contract when the place will be availabe. From that date if you are holding a place for them they should pay a retainer because you have said you will not give the place to anyone else so you cannot earn money on it.

I have never heard of a six week rule on a retainer. I have children at private schools who have 8 week summer holidays and pay a 1/2 fee retainer in the holidays!

If the parents want a place held and you are prepared to hold it then it is up to both of you how long. It must be made clear in the contract though that if they then decide not to use the place the retainer paid is not returned. If you decide you cannot offer the place you would have to return the retainer.
The same applies to the deposit.

[ChocolateChip]

I could be wrong but I'm sure I've read something on here that said you can't take a deposit/retainer for an unborn child, will try to be more specific later!
It's up to you how you lay out your charges, so you can take a retainer for as long as you like.
With deposits, I don't give mine back until the end of the placement, that way you are covered if they decide not to give you proper notice, but again it's up to you.

[rickysmiths]

Chocolate Chip is right, you should not take a deposit for an unborn child. Take a deposit and sign a contract for the older child and then the baby is born.

[Heaven Scent]

I am a bit of a softie and I wouldn't feel that I could ask for a retainer for an unborn baby I have had an enquiry for a similar situation a baby to start in Sept - I think I would be more inclined to ask these people (mine not yours) for a small non refundable deposit as I have never been asked to pay a retainer or large deposit to hold a childcare place open for my child. Nor has any nursery I have ever worked for ever asked any parent for a huge deposit or retainer to hold a place open. I don't feel its ethical to ask people for money for a service I am not providing. I do however ask for a small non-refundable deposit - if I am holding a place open and if I'm not I still ask for a deposit but even smaller and I take it off the final payment at the end of the contract. Rightly or wrongly thats me and I'm just giving you my experience - I'm not saying its what I think others should do.

[singlewiththree]

I agree with the unborn baby I was planning on starting the deposit when the baby is born and sign contracts then as mum only starts maternity leave in Feb.

I thought if I charged £500 and calculated the additional hours used in the settling in period (I offer 8hrs for the baby free) then took it off the start up hours until it runs out and then start the standing order as they want to pay monthly.