How do you go about holding spots??

Within the last year I have held childcare spots for a few families who either left on mat. leave or interviewed me when they were pregnant. All 3 of these families ended up not needing care. For the one family I held the spot for the woman's entire mat. leave. How do other daycares deal with this? It is so frustrating! They talk like they want the spot really badly but then they don't. Help! I have another interview next week for a child in 2013. Perhaps I shouldn't take interviews so early? It's just that some parents want to get things sorted out before the baby arrives. They get my name from current daycare families recommending me. :no:

In my contract I have it that if the start date is more then 1 month but less then 3 months away then a 3 week tuition Is required but if the start date is more then 3 months away then a tuition of $250/month is required .... This money goes to holding the spot only and is non refundable if they choose not to start. This way at least I am getting something for the spot that I am holding ..... So for a family holding a spot for four months pays $1000 that's a lot of money to just walk away from and chances are they won't .

I have done holding a spot for 5 months. I got a non refundable deposit and signed contract although that doesn't obligate them to start with me.
I guess you have to be sure about the family and whether you are willing to wait and whether you will be okay financially if it doesn't happen or the family backs out at the 11th hour.
I also wanted to make sure the child seemed to have a good temperment from the get go. Nothing sounds scarier than holding a spot and then it doesn't work out because the parenting style and the child's temperment are not a match.
I am not sure about this whole securing a daycare before the baby is even born though. That seems a little far out there. lol

Hello,

I charge a 300.00 deposit , and 200.00/month after the deposit is paid to a max. of six months.

Ginger

I'm glad to see this thread because this is about to happen to me. I have a Mom about to go on mat leave and she's keeping her son here until he goes to JK in Sept. Then there will be a 4 month span with an empty space while I wait for her to start her new baby here. I asked her already if she would pay the equivalent of one week pay per month to hold the space and she said she thinks that is fair. Now I am just going to have to budget for the lower income next Sept.-Jan.

I have also held spots for a couple of months when new clients signed their contract but didn't want to start until they went back to work after their mat leaves this past fall. I asked them to pay $100/month as a holding fee plus the regular deposit. I wouldn't do this for more than a couple of months though.

Personally, I would not even consider talking to people looking for care in 2013, except for the Mom who is my client already of course. I always answer queries for people looking for care in a year with the response that they should wait until 4-5 months before they need a home daycare to start looking but they should put their names into daycare centres a year ahead.

So far, everyone I have dealt with was looking to start virtually immediately, or at least within a month or so.
I would never hold a spot for free, because of exactly what you had happen to you. If someone already in care is looking to hold a spot (mat leave, etc) I would charge half the monthly fee, with the allowance that their child could come on a P/T basis if required (10 days per month). For someone looking to hold a spot for a future start date, I would charge a set monthly fee that is non-refundable, and does not get applied to their fees. It is also completely a judgement call for me, as to whether I feel like I can swing it, financially.
I would not even interview for a spot a year in advance. The most I would do is 6 months, and even in that case, I would require a second interview within 2 months of care beginning. I would answer any questions over the phone, etc or via email, because I understand that they want to "plan". But I am not going to put time and energy, and carve out a precious couple hours from my off-time to do that type of interview!

I wouldn't hold a spot unless it is within a month or I am full until the start date when another child will be leaving. I haven't had this happen yet, but if it does, they will have to either start earlier or pay full fees (although if it is within 2 months, I may consider a holding fee as others have mentioned as it is a gamble whether I would find someone to fill the spot). I guess it depends on how easy it is for you to fill your spots...how long it normally takes. I usually don't have too much trouble, so I am not willing to take a cut in income like this. Right now I have a family who has asked me if I would consider letting them stay home or go part time for the summer (the mom is a teacher)...this wasn't part of our original agreement and I have two kids from that family. I think I am going to tell her that she has to pay for the spots if she wants them held...I have had people contact me for summer already...I could fill the spots and although I don't want to lose this family as I like them a lot, I have to make the best business decision and can't afford to give away money like that.

I charge a $200/month holding fee for anyone who wants to hold a space for more than 1 month. They pay me a $200 reg. fee and then the holding fee. I've been burnt in the past and won't be burnt again. You need to charge something to hold a spot for that long...that is a lot of income lost! I also don't even look/interview a family when the baby isn't even born yet. That's just crazy/stupid on the parents part. So much can change in a year and first time parents can be crazy and you might not even want them in care.

I started charging teachers more for a Sept-June contract with the holding for the summer which balances out to them paying for 3 days a week for the summer. I allow them to use up to 2 days a week in the summer free (from fees from the year) and any more they pay for. Generally they get sent one day a week so mom gets things done. I have been burned too many times in the past with them saying yes we will pay a fee for the summer etc and then come June don`t want to and are hoping you like them enough to give in and by June I have already turned down everyone wanting July/Aug start so the earliest I would be interviewing for is Sept anyways so they come out the winners. With the higher fee I come out the winner if they decide not to come in the summer or to return in the Fall.

I charge half rate for the summer, so they give me $90 per week and keep their kids integrated part-time to a schedule that works for them. They also have a weeks holidays that they save for the summer plus my week off, so that helps a bit. I have been burned before, but even with a higher rate they can still choose to leave come June. I just keep my waitlist handy and interview potentials that need care starting at the end of the school year and contact them right away should they give notice.

Thank you all for your responses. I have decided to share a holding fee as well. It makes sense and I think that some parents will take advantage if they can. It's just not fair to the daycare provider. Thanks again and I a enjoying this forum already. Cheers!

Sam

But if you charge 200 a month to hold a spot do you give them that money back? That would be an awful lot to give back once they start? How do you work that out?

No you don't give the money back .... It goes to hold the spot only and is non refundable if they choose to go somewhere else ....

I agree! I write non-refundable and that the money is hold a space right on the receipt.

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Originally Posted by Momof4

I agree! I write non-refundable and that the money is hold a space right on the receipt.

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Yup, exactly this!

I don't receipt the money till they start care. It is added to their first payment.

I am another who does not 'hold' a spot and my parent handbook clearly stats that for clients .... my written policy is that if you want the spot you pay for the spot to secure it and it also indicates that clients cannot just 'drop down' from full time and part time - unless I have an opening for them to move into - I only ever like to have ONE part time spot and the rest I prefer full time!

That said I have on occasion because it suited ME to have a space open for a month or two over the warm months to allow for field trips or because I did not WANT to enroll another child cause I needed some 'quiet time' with the group I had refrained from filling it right away and instead pre-booked it with another client - but they had to sign the contract and pay the non-refundable security deposit equal to two weeks fees and if they did not end up enrolling than I kept the deposit and filled the space with someone else - but that is not THEM asking me to hold it that is me choosing not to advertize the spot being available until X date ;)

Sorry but IMO it is not fair to ask a provider to 'forgo' their income for a YEAR for the 'privilege' of maybe having you return to the spot cause a lot can happen in a year to change your well laid 'plans' .... if you were to vacate your home for a YEAR because you were going on sabbatical - you would still have to pay your rent or mortgage to ensure it was there for you when you came back OR you would have to give notice or sell it or arrange for someone else to pay for it but the landlord is not going to forgo payment for a year just because they 'like you' they are running a business and need to put dinner on their famlies plate to!

A 'space' in a child care program is no different - and sorry but unlike other businesses my income is already limited to the five children I am legally allowed to provide service to, the unexpected fluctuations due to clients getting laid off or moving before the child is old enough to go to 'school' and end care anyway - no matter how much I LOVE a client it is not always feasible to choose to take a pay cut on the off chance they might return to you - does not make sense to me :(

I can't believe that any parent who thinks it through logically would actually expect a caregiver to just take a decrease in pay. I would hope that most understand, that if you leave you take the chance on losing that spot.
Silly people... use your brains. :blink:

I have had a similar experience where someone decided last minute they were going to pull their child for the summer. When I told her she'd still have to pay for the space through the summer if she wanted it back in September - she refused saying she was hopefull that I would have the space available in Sept again for her and if something else came up she wanted me to call her to let her know. It really makes you feel undervalued...

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Originally Posted by Caring

I have had a similar experience where someone decided last minute they were going to pull their child for the summer. When I told her she'd still have to pay for the space through the summer if she wanted it back in September - she refused saying she was hopefull that I would have the space available in Sept again for her and if something else came up she wanted me to call her to let her know. It really makes you feel undervalued...

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It does and I find everything comes down to dollars and cents with most parents. They nickel and dime you to death. I offer 1/2 fees for those who want to pull their kids out for summer. Those on mat leave have to pay for at least 2 days a week care to guarantee a spot when they return. Its their choice if they want to send their child for those 2 days. The ones who just pull their child out and 'hope' you have a spot I would never take back into care even if I did have a spot available. I would feel used. Just my 2 cents though :)

I charge a $50/month holding fee for spaces more than one month away. For example I am holding a space for a family for September, so they can either pay me $350 up front or $50/month.

Oh that's low! $50/month is too low! I have a family who will have a 4 months gap between the time their little boy goes to JK and the baby starts in his space. I'm happy to hold the space because I love the family, but I'm still debating whether I'm going to charge them $200/month or 1 week's fees per month which will be a little lower. I have to really weigh out my budget and I'm sure they will pay the higher amount but I always want to be fair.

bumping this old thread ...

I am starting to hear from people who need care starting in the summer, as late as August! It is frustrating since I want to have a spot filled by next month, but at the same time I dont want to just turn them away. I'd consider holding a spot with a holding fee but have never done this before.

For those of you who have held spots I'm wondering at what point did you discuss the holding fee? Do you tell them during the initial convos to give them a chance to back out if they don't like the idea, or wait til the interview so you can sell them on your program first?

When someone tells me they need a spot in a few months and I have a spot open now I tell them:

"I will not know until closer to the date you are looking for if I will have a spot open. However I do have a spot open now and if you would like that spot, there is a $100/week non-refundable holding fee."
This way if they don't want to pay the holding fee I don't have to waste my time interviewing them.

I had my first request for June of 2014! The baby won't even be born until this summer. When I opened, I was happy to hold spots at no charge because I wanted to ease into this business. So I started three children in September, added one in January and have the last one coming in April. I didn't charge them anything beyond the deposit. However, all other inquiries about holding spots have been asked to contact me closer to the time they need me. I don't want to hold a spot. If I do end up getting an opening, I plan to just fill it with someone on the waiting list right away. I'm also not sure at what point to cut off the waiting list. I don't want to give people false hope that there might be a spot for them? Right now I have 5 people hoping to get a spot in the fall, and it doesn't look like I'll have a spot yet. I've referred people to a friend of my daughter who just opening, but it still seems that there are a large number of parents in this area needing daycare. Not sure what it is about Peterborough, but the woman wanting to book already for June of 2014 really threw me LOL

That is fairly normal in some areas for centre care, isn't it? Perhaps she is thinking that home daycare is the same, and covering all her bases?
Seems crazy to me, LoL, but in our area you don't need to do that. I guess we are lucky.