Holding Fees?

Hi,

I am just wondering what i would do for a family that isnt looking to start till sept-dec of this year? Its a friend of a family i currently have.

any help would be great because im stuck on what i would tell this family. ive held a spot before for 4-5 months and i was way to nice and didnt ask for anything and then a week or so before they were to start backed out. and i turned a few families away and lost $$ for those months.

thanks

I require a two week deposit that is applied to the last two weeks of already commenced care as well if the families start date is more then 4 weeks in advance then I required $250/month to hold the spot ... All is non refundable .... Fees are also due on Fridays by 5 pm for the following two weeks of care .... That way I always have a two week buffer which is my required notice.

Countrygirl, are you saving a space all the way until the end of the year? Or do you have a child leaving at that time? I would not promise anyone a space that far away unless I knew it was the case of one child taking the place of another. Why should you make a promise like that and forgo an entire year's income? That is not feasible at all. A holding fee for every month for them is a lot of money for them to pay out and not enough income for you.

Keep interviewing and you will find someone who wants a space sooner. When someone writes to me asking about a space in the future I always write back and ask them to contact me again a few months before they need the space and tell them I will keep their name on my waiting list and contact them if any surprises occur at the daycare and I have an unexpected space.

I don't charge a holding fee for this reason.

If I have a request for a 1 year old starting in September and I'm going to charge a fee, let's say 200 a month, for 6 months. That's 1200 dollars the clients giving me. What happens when that client starts and I don't want to keep the child. What if they're not a good fit? Am I going to feel obligated to keep them on because I already have 1200 bucks from them?

Another reason... no matter which way you look at it, a fee for holding a spot is always less then a full time client in that spot. Loss of income either way.

I take a 2 week deposit that pays for their first week of care. It's non refundable. And really, the only reason I take it is because a client isn't going to take the space seriously unless theres money on it.

If a client wants a spot that badly and it's months away I simply tell them that I wil put them on my wait list and if a space comes up or if it's not filled by then, it's theirs. I don't even talk to a parent until we're in the 3 month before start zone.

I have held spots four different times ..... The first two without a holding fee because I never knew any better ... One spot for 3.5 months and the other for 5.5 months with only a two week deposit and they both stiffed me less then a week before starting the other two spots were for three and four months each and both paid the $250/month holding fee and both worked out perfectly and are still in my care the first ones been a year now and the second One since oct ..... I think parents who pay the fee are more committed .... They prepare their kids for group care according to my suggestions and schedule. I would not hesitate to do it again .... Just my experience

What percentage of your full rate do you charge for a holding fee?