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Retainers
IF someone wanted to hold a space for a baby to,start in May 15 how much of a retainer would you charge for the 4 months of not earning before hand. I normally charge £55 a day (London ). TIA
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If I had a space and no one else enquires I don't charge a retainer until someone else wants the space I would then inform the person who wanted it saying a retainer now payable as someone else wants the space . It's up to you what you charge as a retainer some charge half fee. Or you could charge 4 weeks fee as a deposit non refundable if they don't take space and take it off their first or last bill
Tess1981
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I agree with Tess. I only charge a retainer if someone else enquires about the space, I then charge 50% fees, I inform parents of this when they agree to take the space.
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I agree with Tess.
I don't really do retainers. But I've also been stung by a parent, having reserved 2 places for over a year and she walked away 2 weeks into the arrangement. (In truth, a lucky escape, but an expensive one nonetheless, and I always feel bad about all the genuine people I turned away in between. )
I'd do a non-refundable deposit, but pitch at a level they can afford to give you but not afford to lightly throw down the toilet, IYSWIM.
Not sure what you'd do about the contract. Pacey ones are not recommended to be signed more than 12 weeks before care commences.
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I do 30% but this is the first time I have ever done one because like others I just say come back nearer to the time and if someone else enquires I will let you know. This time though I have children leaving and I will be advertising and actively want more work so have told mum she does need to pay the retainer. Mine wants to start in sept! My spaces are from April so she's going to pay 30% between April and aug.
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A retainer can be whatever you want it to be, but is generally not more than 50% of the expected fees.
Two things to be aware of:
1st: You must stress to parents that a retainer is unrefundable. It does not get used to cover the first weeks fees or the last ones, it is to cover 'your losses' for retaining the space for them prior to the contract starting. If the parent decides to not use your services prior to the start date, they also say goodbye to all retainer fees paid.
2nd: Should you get a better offer/change your mind and choose to not start the contract on the agreed start date, you must refund ALL retainer fees paid to date.
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To me, 4 months is a sensible time ahead to be looking for and securing childcare. So I would not penalise parents for being well organised.
If I was advertising a space available now and had an enquiry for May from a nice family wanting just what I can offer then I'd be happy to take a deposit (refund against 1st months fees) and sign contracts now and just enjoy a few quiet months until they start, and benefit from being able to do a few settling in visits too (which I like to do).
All my successful enquiries have been for a start date of 2-4mths' time- shows they are well organised, the type of families I like!
I would only do a retainer if it was 5-6mths ahead, like reserving a place for a new sibling where I am losing out by not filling sooner.
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Now I take a 4 weeks fees Deposit and hold it until the end of the Contract and then use it to cover the four weeks Notice if all fees are paid up to date.
If I had a space now and parents wanted it kept open and not offered to anyone else I would charge a 1/2 fee non returnable retainer. If they didn't want to pay it then they would run the risk of the place being filled before May and not being available.
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I would charge a half fee retainer, I work out the full cost of place then half it so parent can see you are meeting them half way. I also explain that the sooner child comes the better for everyone you can do a longer settling in especially if it's first baby as parents need to build up trust. My last baby settled over 9 weeks and I started with 3hr slots lengthening to 2x half day then 1 full day plus 2 half day and so on until full time. We very easily worked together to establish mixed feeding bottle/breast and it worked really well for mum and baby, me and my other minded children all got used to each other In a very gentle way.
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I agree with Moggy and Tess. I don't charge a retainer until someone else wants the space. I've only done it once and the parents booked me 2 months in advance. I charged £50 and knocked it off the first bill. Everyone was happy and I'd not had other enquiries at the time. I would probably charge 50% retainer now.
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The reason I ask is I had an inquiry for a start date in May full time this would be @£55 a day so over £250 a week , I said I couldn't keep a place that long as I have recently started , and would in effect lose 4 months possible income so I asked for a retainer of £400 to ensure the space was kept , this money would be spent on things I would need place for the newborn , mum said she would risk it !! And asked how much nearer the time to check .
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Originally Posted by
Jenny2
The reason I ask is I had an inquiry for a start date in May full time this would be @£55 a day so over £250 a week , I said I couldn't keep a place that long as I have recently started , and would in effect lose 4 months possible income so I asked for a retainer of £400 to ensure the space was kept , this money would be spent on things I would need place for the newborn , mum said she would risk it !! And asked how much nearer the time to check .
I had one recently like that .. 6 months ahead.. Couldn't keep space for so long. Mum said they would risk it and Lo and behold I filled space .. She wasn't too happy but what can you do?!
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I find with enquiries, that those that are happy/are ok with parting with money to secure a space, are generally more serious and committed than the ones that are prepared to 'risk it'
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Originally Posted by
Kiddleywinks
I find with enquiries, that those that are happy/are ok with parting with money to secure a space, are generally more serious and committed than the ones that are prepared to 'risk it'
Absolutely.
I'm currently having to be very hard on the "cash = commitment" aspect.
Even though school applications have only just gone in, and won't be decided upon until April, I've already had several enquiries since the New Year for September reception class children. One parent even wanted to secure a place for a reception child, plus a sibling who won't start until 2017. The school is popular, heavily over-subscribed (3-4 times over) and there is only a handful of registered CMs serving the school runs.
I've told all enquirers they can call me again when the place is confirmed, and even then I'll be giving 3 existing clients a full 2 weeks to confirm if they need me for their lo's who start school this year. The enquirers keep insisting and arguing or phoning me repeatedly. I therefore said I'll arrange visits and contracts for anyone who will stump up my usual £50 reservation deposit, plus an additional £50pcm as an additional deposit, making a total of £450: all non-refundable if they don't take up the place. At this point, the caller who "definitely wants the place" goes very quiet or protests about how "unreasonable" that is.
Thankfully, nobody has taken me up on this, since those stoopid pacey contracts won't support any arrangement signed for more than 12 weeks in advance of the start date.
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