Advice on retainer fees.

[cloud9]

I hate trying to figure this out and am hoping for some advice.

i have 1 vacancy available from 21st July.

I have a parent coming for the place but she is still on maternity and wants the place to commence in october. (11 weeks basically). The place she wants amounts to £135 week.

i am on holiday and unavailable for 2 weeks in august so this leaves 9 weeks.

I usually charge 1/2 fees for a retainer (non refundable) but this would amount to a whopping £607.50 because it is for such a long period.

The retainer doesn't usually count towards child minding fee's as it is in effect holding the place and i can't afford to lose the income for this period otherwise when the place is actually available to her.

What does everyone suggest i do????

I was thinking of saying that maybe on completion of the settling in period i would allow 1/2 to be offset against the next bill.?

Any ideas she is coming wednesday morning.:D

[Trouble]

i would charge 200.00 none refundable to hold the place, for the child

[katickles]

I think that it depends on different situations with retainers.

If she wants to secure the place, is willing to pay the retainer then great. However that is alot of money.

What about talking to her if she's not willing to pay the retainer, suggest that she pays a deposit to secure the place. You will be short of an income I know but you will have the place filled iyswim?

She could always leave it & contact you nearer the time to see if you still have the vacancy?

I charge retainers during holidays for my term time only contracts but take deposits for those not wanting to start imediate.

Sorry thats probably not the answer you were wanting, but others may do things different.

Your business - your rules I guess.

[cloud9]

i would charge 200.00 none refundable to hold the place, for the child

But that in effect would mean that i would only have a £200 income for 9 weeks? when another person wanting to immediately take the place would be paying full fee's.?

[Trouble]

i dont know them

[sue32]

As it is going to a deposit and not a retainer then I would only charge 2 weeks fee as a deposit and take that off there first months money, you have to think do you or can you afford to wait until October or do you look for work now. I would only use a retainer when they have been with me not to hold a place. Sorry if its not that helpful

[yummymummy]

As is such a long time away and unfair to you if you can get a child to start quicker how about you say that you will still advertise the place and should someone want it immediately you will give her first option BUT only if she pays a retainer to keep the place open until she needs it. It is a hard one I know as parents generally don't want to pay for weeks and weeks for places they don't use but if you need the money and she is unwilling to pay perhaps this could be a compromise? Good luck with whatever you decide.:)

[Sarpix]

Hi there,

I think what I would do would be to explain to her that I would be losing out on money if I held the space open to her and that I can't afford to do that (even if I can)

I would suggest that she rings me nearer the time that she needs me to see if any spaces have become available.

I feel it would be too much to ask her to pay the full 9 weeks fee upfront as its lots of money, but you do have to think about whats right for you.

Hope this helps xxx

[littletreasures]

I have just taken on somebody due to start in September. When they came to see me the first time, I give them a booklet which includes a bit about me and my setting and also includes fees, retainers, deposits etc. They can take this away with them to read properly at their own leisure.

I give them a folder to look through here which includes my polices, permission forms, certificates, ofsted report etc.

Mum phoned back to see if Dad could come and see me and then a couple of days later said they would like me to look after G and did I want them to send me a cheque.

I worked the retainer out as 1/2 fee which would be just over £500. When they came to sign contracts I gave them the sheet, thinking I would let them know how much it should be, but was prepared to say I will take 1/2 this as part of the first months payment. They were more than happy to pay it upfront.

So I say I think it depends on each parents situation, some will pay a retainer some a deposit.

Good luck with what you decide.

littletreasures

[cloud9]

thanks guys its always helpful to know what others do in situations like this.

[Rainy]

I did this once, a lady came to see me in June wanting child to start in January. My place was actually available from September but i also had a holiday booked for 3 weeks in October. I charged her half fee retainer for all of Nov and Dec and she was happy to pay.
If they really want to use you, then most people are happy to pay a retainer if they can afford too.

[arrmickk]

I did this once, a lady came to see me in June wanting child to start in January. My place was actually available from September but i also had a holiday booked for 3 weeks in October. I charged her half fee retainer for all of Nov and Dec and she was happy to pay.
If they really want to use you, then most people are happy to pay a retainer if they can afford too.

Just wanted to say with regards to this one...I co-childmind with my sister and she had a similar situation but was not quite so lucky! Mother of child came over a period of 6 weeks to settle child in as she was still on maternity leave. Mum was due to move jobs as she went back to work and wanted somewhere closer to home for care. My sister did not charge a retainer for the place as mum was unwilling to pay so she held place anyway as wanted the guaranteed income. Once the child started in March after a lot of stalling from mum, within one and a half weeks her mum said she didn't think it was working out. At this point she has already signed contacts and paid a months fees up front. My sister said this was fine but as per her contract she requires 4 weeks notice (as there was a 6 week settling in period which she received no payment for she felt a trial period with contracts was not needed). The mother of this child then said she was going to complain to OFSTED and NCMA as she didn't think that was fair!! Basically we have found out since that she did not take up her new job and has placed her with a childminder in an area close to her old job that charges a lower hourly rate! The thing I am trying to get across here is to be very, very careful and clearly point out everything that your charge for fees and why. A parent might sign the contract but not be taking it in at all.

As above give them all the info to go home and look at and clearly write down the fees in a letter that they can see and explain why you have to charge the retainer. If the parent wants the place guaranteed until October then she will have to pay the retainer fee. As you say, 9 weeks without full fees is a lot to lose.

Hope you get it sorted

marie :)