Fee's Policy, Retainer & Deposit

[Tinkerbell1979]

:confused:

Hi,

Would someone please, please, please be kind enough to help me with my fee's policy and how I word it about retainers and deposits as I am so confused about the two of them?

Would really appreciate it as have a potential mindee for October start.

Many, many thanks

Jen x

[The Juggler]

do you have the NCMA contracts hon.

Basically a retainer is to pay for a place which you have available now which a parent wants to use in the future. So they would pay full, 75% or 50% of normal full time fees to hold a place (whatever you decide).

A deposit is a sum charged to guard against a parent not taking up the place they contracted to take up. It can be charged as well as a retainer fee, in place of a retainer fee (if you can afford not to charge the retainer) or can be charged regardless of the place starting in 1 week, 1 month, 3 months.

You can offset the deposit against first months fees OR hold it until the end of the contract as the final months fees.

You need to have a think about how you would use the deposit first but for your policy keep it simple

Deposit: 1 months fees charged on signature of contracts. Deposit is non-refundable in case of place not be taken up.

Retainer fee: a fee charged to hold a vacant place for a period of time. % charged will depend on individual circumstances.

HTH

[Tinkerbell1979]

Thank you.

So if I had someone ask me now about keeping a place for say September - do I charge a deposit or retainer.

If I have someone only in term time, how do you get paid out of term time ? Is that a retainer too?

Sorry for the stupid questions I just find it so confusing lol

[miffy]

Thank you.

So if I had someone ask me now about keeping a place for say September - do I charge a deposit or retainer.

If I have someone only in term time, how do you get paid out of term time ? Is that a retainer too?

Sorry for the stupid questions I just find it so confusing lol

If someone wants a place in September and you have a vacancy now then you can charge a retainer for every week from now until September to reserve (retain) the place for them. But if the place would not be available because you are on holiday then you should not charge a retainer for those weeks. You can choose the amount you charge - 50% of the weekly fees is the usual amount. You could also charge a deposit if you wanted - this would usually be the first month's fees and is paid to guarantee you some income if the place isn't taken up (parent changes mind, doesn't go back to work etc).

If you are working all year round and someone wants term time only then you can charge a retainer for the school holidays (usually 50% of normal fees but again up to you) which is to keep the place until they need it again.

HTH's
Miffy xx