retainer or reservation deposit?

[notts]

Just reading through the notes on the back of the NCMA contracts and I can't understand how these differ?

My query, I have a prospective parent possibly wanting to sign but doesn't need the space until September

I then read on to payment deposits.... confused!

so what are retainer fees, reservation deposits and payment deposits? how/when would they be used and how do they differ........

Thanks in advance

[Kiddleywinks]

Not sure how anyone else does it but....

if a parent wants me to hold a space that they're going to use within the next 30 days I charge a deposit (4 weeks fees) to hold the space, and then keep to the end of the contract

if the same parent wanted me to hold a space between now and September, I wouldn't be able to fill that space between now and then as the space would be reserved, i'd not be happy about losing potential income so would take the deposit (which again would be used at the end of the contract), and then charge a retainer to continue holding the space for them over a period of more than 30 days

If parent isn't happy to pay a retainer and a deposit, I explain that I am unable to hold a space indefinately so they can always enquire again nearer the time and if I have spaces still, we can take it from there

[The Juggler]

hon a retainer is charged for a space you have available now as you are losing money by holding the space open for a parent/child. you choose how much you charge, 3/4, 1/2 or a flat fee for the period.

a deposit is to hold a place that you WILL have available in the future OR can be charged alongside a retainer fee. Make it clear to parents that it is non-refundable if they do not take up the space. This protects you in the case they don't wish to take up the space and gives you a months money.

Some offset the deposit against first months fees, others keep it until the end of the contract and use it as the last months fees.

[notts]

Thank you - so many different ways of doing things

[miffy]

If you charge a retainer then the place must be available for the child to use (parent would then pay the full cost of the hours used) so if you are on holiday or ill during that time you shouldn't charge

Miffy xx

[notts]

Thank you