Retainer Fees

[LMC76]

Advice needed please.

I have a lady coming to see me regarding having her little boy, starting in Feb. If she decides to sign up, should I charge a retainer fee and if so, how much do other people charge? I was thinking of saying bring your little boy one day a week until feb (then the days she wants as from feb) so I i'll only receive payment for the time I have him, rather than a retainer fee. What do others think?

[Pipsqueak]

The way I would do it is:
sign up contracts and take an advance (non-refundable) deposit - 2-4 weeks which would be deductable from final fees at the end of the contract.
You then have a choice - as the space is available now -
charge a retainer - which is normally half normal fees and no I wouldn't be offering to have child now. I would be starting settling in sessions towards very end of Jan (start for Feb)
or charge a further (non-refundable) deposit which is not deductable from fees as the advance one is which secures their place - work out between now and Feb what the fees would be - compare to retainer fees if you were to charge and come up with a figure that you are happy with

[Anacrusis]

Hi,

I'm a new childminder, and I've got a similiar situation. I saw a family today who's baby is lloking for a place in April and I'm looking to fill my last place in February. The times they want fit in really well with my routine but I don't want to potentially miss out on two months work/pay, and of course if their plans change and they then don't want me after all in the April I might have missed out in taking another child on. I'm not sure about asking for two months worth of retainer - that'll be quite a lot of money.... can anyone give me any advice/what do others do in this type of situation?

[LMC76]

Hi, I asked for advice on this cos it happened to me before, a parent said she wanted me to have her little girl in two months time (I didn't charge any retainer fees, etc) and then her circumstances changed and I was out of pocket. When the lady came on Monday, I told her I would charge a retainer/deposit of £50 to hold the place and this would only be refundable once the child started. If her circumstances changed and she no longer needed me then the £50 is non refundable. Parents were fine with this. This was to start in early Feb, and I didn't have a place available until Jan anyway. April is 5 months away and that's a long time if you have no money and depending on a place. Do you have other mindees or would this be your first? As a new (ish) childminder myself, I find it hard as you don't want to scare people away but you don't want to be taken advantage of. I think I would either charge a larger deposit, or charge a retainer fee (depending on how much you need the money and what you are comfortable with). Sorry, I'm not a bigger help but if parent's like you, they will pay for the place if reasonable.

LMC76

[LMC76]

Hi, I spoke to a lady today, who is the chair person of childminding association and she said the majority of childminders charge a retainer fee or charge a deposit (both non refundable).

Most childminders retainer fee charge is between 10-50% of the cost of the care once the child comes to you (depending on the childminder-each has different charges). So if they want you 20 hrs per week at £3.50 p/h - 10% would be £7 per week. 50% per week would be £35. - this is to hold the place. This is a weekly charge.

If you charge a deposit, it depends on how long they want you to hold a place - the longer the wait, the bigger the deposit (as you can't fill the place while you are waiting for them to start).

If the parent thinks you are worth it, they will pay.

I hope this makes sense.

Regards,

LMC76

[madmamma]

A 4 week deposit - non refundable if the child doesn't start, goes towards the last weeks fees if they do
A 50% retainer from February when the space becomes available till the start date, non refundable.