Deposits?

Hello! This is my first time starting a new thread and am soooo disappointed that I even to for something like this. Here's the situation:

I had a client whose little girl had been coming to me since she was 10 months old. Of course, I became attached to the little girl and the family, as I tend to do. The mother soon was expecting a second child and was didn't want to lose her daughter's spot. Typically, I have a minimum attendance requirement of 3 days per week in order to hold the spot. Since she couldn't afford that, I offered to hold it for 2 days per week in addition to holding a second spot for the new baby, at no extra cost. To me, it seemed a win win situation. I'd definitely have the clients, her daughter (who's a pretty sensitive little gal) wouldn't have to lose her spot in the daycare she was so comfortable in and it would greatly help out a young family just starting out. They were to come full time in 3 weeks. I was informed last week, by another client, that they would not be coming and had enrolled elsewhere. In addition, she had convinced this other client to follow her so their girls could stay together. It was stressed that it had nothing to do with my performance or the children's happiness in my care. Fortunately, the second client changed her mind and decided to stay with me, for which I'm so grateful!

I'm so hurt by the actions of this other person as she was aware that I had turned away quite a few people who were interested in those spots. She didn't ever say anything to me, and even discussed how we would handle the transition, even after the decision to move had been made. I thought I was doing such a nice thing and was quite generous in my actions. Needless to say, it won't happen again. In the future, I will require a non-refundable deposit in order to hold spots. Does this sound reasonable? What amount should be charged in order to hold spots? Has anyone else ever been in this situation before? Any guidance in this situation would be most appreciated.

Yup been there ..... I even had a non refundable deposit but apparently just not big enough .... Now I charge $ 250 a month and from what I have read on here even that is low.... But a lot of providers don't save spots .... You want it you pay for it in full ..... I been hit with the swing twice in that department..:(

I've only held a spot for someone once, it's not a practice I like doing, and I charged them a deposit of 1/2 months fees that would be held and credited against their last months fees. In addition they had to pay $200/month they wanted to hold the spot in full (4 months = $800 paid upfront to hold it). Also I generally try to limit the number of months I offer to hold a spot for as it is lost income monthly. And usually when parent hear they have to pay to hold a spot they usually decide to call back within 2 months of needing care to re-inquire about availability.

I charge $300 per month to hold a spot but only when its convenient for me....ie, It's not that important for me to fill right away because I am transitioning another child in those months and I really like the family.
I also have a scenario, where I have one little girl that comes here once a week for 3 hrs only and her mom has had another baby. She has kept her coming here now that she is on Matt leave too to keep her "spot" and has also told me that she would like her next daughter to come here too come january. I had initially told her no problem but now am rethinking the whole plan and how I could make it work as I have decided to restructure and no longer take part time. I would normally just keep this going and be ok with squeezing them in, but I really dread taking care of her older daughter each time she comes because she is just so hard to deal with at the door. She also has the craziest tantrums. I haven't thought of charging her a holding fee for her baby though because their care is so infrequent and just a little extra addition for a few hours once a week which doesn't take away from an actual spot.

I don't hold spots unless I don't have an opening until that time. If the space is open now and someone wants it held, they will have to pay full fees. I understand that it is difficult for parents, but I cannot afford to take a cut in my income like that.

Thanks everyone. I see that deposits are the way to go. Traditionally, I don't hold spots for more than a few months. This was a favour.....one that cost me $15, 000 in lost fees. NEVER AGAIN! She feels she's being 'gracious' in paying me an extra 2 weeks to fill the spot. All I can really say to that is, "wow, so very generous." I'm feeling it would be fair to charge a full month's pay ($760) to hold the spot for 3 months. This will be non-refundable and will be counted as their first month's payment to me when they start. If they go elsewhere, I have a month's pay to cover things while I find someone else. I live in a rural area and it can be a little more difficult to fill spots, so I'm inclined to be less rigid about charging full fees to hold a spot. This seems a reasonable compromise. I have a feeling I'll be starting with contracts soon too, as much as I hate doing it. I've always liked to keep it casual and haven't had much need for such a thing. This has been such an eye opener and learning experience!

Always have a contract!!! It is for your protection as well as the parents'! Plus it makes your business much more professional and organized.

I charge 20% of my full time fees. It is not refundable, nor is it used for anything other than to line my pocket.This is my income while they are gearing up to take their spot. I don't know why any of you would put these fees toward any future care, as you are losing money by holding the spot, and therefore in my opinion, entitled to some kind of compensation for being so flexible. If the parent wishes, they may send their child twice per week during that time to acclimatize the dck to me and my home. I also insist on a signed contract as well as my normal two week deposit, which is applied to the last two weeks that their child is in my care.

I do not hold a spot either - I am currently advertizing for a spot coming open for May 7th and you need care June 1st ideally you offer to start paying for it on May 7th or I keep looking for a client who is a better match and the spot goes to them ... now if they were the PERFECT match I might be willing to meet in the middle and use the time between May 7th and June 1st to slowly transition in babe - so they'd pay 'part fees' and wean up from couple hours a day to half half to nap to full day to starting type thing but they PAY for those hours of care used and it is a nice compromise cause it is always better on babe when they can wean into care slowly verses BAM 9 hours a day with a stranger!

I am the same as alphagetti ... My holding fee holds the spot nothing else

Ummm - ya I would not apply any holding fee to their CARE when they start... it is a holding fee it covers your 'lost income' for keeping that space open for them and it is non refundable should they change their mind and not start.

Same with the security deposit which I would also charge which is equal to two weeks fees and ensures that you are given proper notice to terminate the contract and find a replace that is only applicable to the last two weeks of CARE and with proper written notice before hand ... should they change their mind and not enroll after having signed a contract they LOOSE the deposit!

It is like when you put in an offer on a new house you have to pay $1000 or something like that and if the other person accepts that offer and than later YOU change your mind you do not get that $1000 back ... it is absorbed by the realtor for their work in putting in the offer and accepting the offer and so forth!

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Originally Posted by cfred

In the future, I will require a non-refundable deposit in order to hold spots. Does this sound reasonable? What amount should be charged in order to hold spots? Has anyone else ever been in this situation before? Any guidance in this situation would be most appreciated.

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You should always be charging a deposit for even regular spots. So, for example, if you interview with me today and sign on to care for tomorrow or two weeks from today then you pay me a deposit. The deposit is NON-refundable and it ensures you actually show up for your first day of care.

Holding spots is not something I will do. If you want a spot you PAY for it. Period. There is no way I would hold a spot like you did for ANY family without FULL pay.

Live and learn, eh?

I don't know why providers feel guilted into holding spots. I think a lot of the time the provider assumes that if she says NO - that she won't hold the spot - that in some way she is really saying, "Hey, the money is more important to me than your kid". And, well, YOU have to take care of YOU first. And, yes the money IS more important. Why? Because YOU have to look after your OWN kids. They need a roof over their heads, food in their bellies and shoes on their feet.

Providers need to realize that daycare is a BUSINESS first and foremost. Stop feeling like WE have to be the ones to give, give, give. There is no give in business. It is an exchange of good or services for MONEY.

Ya, I agree with the others. I will hold a spot for people if I like them and want them in care and I charge them $200/month and it goes towards nothing. I also charge a reg. fee of another $200 and this goes towards their last month of care. So, upfront, they have to pay me $400. Always always have a contract! It sets a precedence/tone for your business and it lays out what is expected from both you and the parents...no confusion!

I also agree with Judy, this is a business and in business you are out to make money. Otherwise, why would you bother. Do charity work instead. I'm not a charity and I do this for the money, it's no secret.

I have a deposit that is paid when the contract is signed and it is applied to the last week of care at the end of our relationship. But if I'm holding a space for a month I charge a fee that is non-refundable for that.

I learned the hard way that you can't be too nice, because the families have to take care of themselves and their needs, of course they do. But we have to take care of ourselves too. The best advice I got from friends in the business when I was learning was that you have to be a BUSINESSWOMAN when dealing with the parents and demand that your contract rules and policies be followed to the letter. It's really important because if you let one thing slide they will be pushing you on everything. Save all your nurturing for the children, never for the parents.