They cancelled!- Deposit

:(
I filled my last 2 spaces 2 weeks ago with sisters. The mom gave me a deposit for their start date. I was so relieved to finally be done interviewing. She sent me an email last night saying her mom got laid off and has offered to watch her girls. She also asked for her deposit back because she feels she has given me enough notice to still fill the space (Sept 1st). I really don't know if I'll be able to fill them by them and am not too excited to be looking again. The only way I'd even consider giving it back is if I do fill them both for September but I still in no way have to.
Would you ever give a deposit back? - ISn't this the point of the depost:huh:

Nope, no deposit back in my opinion - BUT...only if you have it in writing that the deposit is NON-refundable. Remember, in this line of work, you can't depend on anything or anyone!

I use a 2-week non-refundable deposit, which becomes their first 2-weeks of care (which is also the trial period). This deposit saves the child(rens) spaces, and prevents me from advertising that space. I tell them this at the interview, and it's also in my manual.

This is exactly what I do. I do feel a bit bad for the family though but they are going to be saving money by using a family member to watch her children so I don't think it's that terrible. Also, I explained how it works and have it written in their contract.

I agree with play and learn ~ do you have non refundable deposit in your contract? If so, then no.

I have it written in my contract as my deposit is one week, non refundable to help advertise if a family backs out and it also is my client's first week of care.
I would advise her that you understand why she has decided to not have the kids come. Having said that you also have to now advertise for 2 spots which requires more time and money

Yes my deposit is worded a similar way ... it is meant to secure the space in the program until their start date, it is non refundable and can only be applied to the LAST TWO WEEKS OF CARE provided proper written notice has been received ... so you have to already be in care if you change your mind before starting you technically forfeit.

I worded it this way cause it gives me the control to CHOOSE based on the scenario and my 'mindset' about the clients. So in this case she had no clue her mother would get laid off and offer to care for the girls in exchange ~ and well supporting 'family' is an important value to me so the daughter being able to help her mother out by sending the girls to her is something I would not be 'upset' about cause it is good supportive family decision! So with 'good faith karma practice' .... if they give LOTS of notice and if I am able to FILL the spot with a new client without ever being out income than I would do the good faith gesture to return the deposit minus any paperwork cost I might have invested in them and attempt to keep the relationship positive .... they might than engage in positive word of mouth about you to other people so win win ~ you are not out any $$$ and you've sent good karma for future business your way!

Now if they told me this a week before September that they got into a 'centre' or some other scenario and that is why they are needing to pull ~ yup deposit is forfeited cause that is something that was IN their control and they chose to use me as a back up plan or what not ... there is no moving forward wanting to have any sort of relationship with them or anyone they night 'know' ;)

NO REFUND. The entire point of the deposit is to protect you from this exact scenario. Hello???? What part of that does a parent not understand???

There is NO way I would refund a cent of that deposit.

The problem is, wont' they just come in September and use there two weeks of daycare they already paid for and then give their notice and you will have to start advertising and interviewing again anyways!

That's a tough one. Unfortunatly in our business word spreads. In my area I get referalls all the time because I'm fair. Although my policy is the same, if they gave me this much notice I may be inclined to refund it. I know it goes against my policy and we wonder why we have these policies if we don't stick to them, but, some of it is customer service too. I think this is a reasonable amount of time, I would love for that client to refer someone else to me, I wouldn't want to burn a bridge. September is easy to fill in my area so I wouldn't be out money... but your area might be different.

Think of it from both sides and how the "bad press" might affect you in the long run. Only you know if you can afford to give it back and if it would affect your name in your area if you choose not to.

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Originally Posted by DaycareLulu

The problem is, wont' they just come in September and use there two weeks of daycare they already paid for and then give their notice and you will have to start advertising and interviewing again anyways!

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LOL ~ yup perfectly within their right to do this too ~ and if you than REFUSE service to them you would HAVE to refund it anyway because now YOU are breaching your contract ;)

I had a client do this to me when I first started out and I refused to refund the deposit cause A) she had used the family emergency to delay starting the kids and I followed my heart instead uf business hat and LET her delay and B) she had only given me two days notice of changing her mind because she got into a centre she had been on the waiting list for which totally opened my eyes that there had likely NEVER been a family emergency she had just 'stalled' hoping to get in ... so yes to avoid loosing out on $320 she sent both her kids for the two weeks notice period ~ thankfully they were 'easy' kids for me and it gave me the two weeks income secure replacements for them ... but there was no way I was refunding and I did not want to risk a lawsuit if I had 'refused' to serve her for those two weeks cause I would not have had a leg to stand on .... which is why my contracts NOW read that you must already be attending care IN the space before giving notice or you forfeit the deposit but still it would than mean the kid spends a three weeks in the program instead of two and if they are having a HARD time is the income really worth it :rolleyes:

I agree with Reggio's first comment. I would refund the money IN THIS SITUATION. It's totally annoying that she would do that, but she is right. You do have plenty more time to fill the spot. The reason for my deposit (that I tell the parents) is to hold their spot. It IS non-refundable, but it's rare that I have someone make a deposit for a start date so far away. I use the deposit for things I need to buy for the child - potty, playpen.... so usually, the money is spent before the child comes into care. I don't know. Part of me says DO NOT REFUND, but it's more as principle. As consideration and KARMA goes, I would refund the money :)

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Originally Posted by apples and bananas

That's a tough one. Unfortunatly in our business word spreads. In my area I get referalls all the time because I'm fair. Although my policy is the same, if they gave me this much notice I may be inclined to refund it. I know it goes against my policy and we wonder why we have these policies if we don't stick to them, but, some of it is customer service too. I think this is a reasonable amount of time, I would love for that client to refer someone else to me, I wouldn't want to burn a bridge. September is easy to fill in my area so I wouldn't be out money... but your area might be different.

Think of it from both sides and how the "bad press" might affect you in the long run. Only you know if you can afford to give it back and if it would affect your name in your area if you choose not to.

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I would have to agree:)

Trust me when I say I am not one to bend on policies eithier, but I am sure you've read my posts about the wako's I've dealt with, they have given you notice return it in good faith that Karma will return rthe favor, just my two cents

I would base it sort of on how long you have had the deposit as in how long have you not been interviewing because that will effect how long it takes to fill the space. If she can find someone to start before Sept then she will get her money back and if not then well that is the point of the deposit.

You could agree to advertise and interview and only if you find a replacement the refund will be returned as in the deposit placed by the new family becomes their's.

I changed my deposit to apply to the last two weeks of care. IF the parent starts care in sept then she pays accordingly and then is allowed to give notice. Until care actually starts the contract doesn't go into effect. Meaning she can start in Sept and pay for her first week of care and on the same day give notice to terminate and pay anything beyond the two weeks of care. The fact she told you early is a bonus and effects nothing. The money is yours if she doesn't start care in Sept. If she starts care in Sept then the rules of the contract start too - ie length of notice.

Oh yes, playfelt I never thought of that, sounds like a good idea to me.

Is it worded in your contract?
I totally understand where everyone is coming from, it's a tough call. Think of it this way ~ if you were putting a deposit down on something to buy like a sofa and then change your mind because you lost your job, that store won't be giving back that deposit once you sign on the dotted line. Yes, we are not selling sofas and our business is families but we are doing just that, running a business. You could come up with a compromise and give 50% back and explain that you understand and respect her choice to have her Mom watch her kids- the other portion that you have written in your contract is non refundable is being used to adertise for the spots that you possibly missed filling with potiental clients while she held the spots.
Word of mouth travels fast in any business and in a small community even more so but, having said that, do you want someone who is going to take the negative without understanding both sides. I think that might be a happy medium? And do you have the deposit sitting in an account and or folder for their first or last week of care, if your like me, it's been spent

Good luck ~ hard one. Let us know how it works out for you.

I would tell her that you stopped interviewing for families because she made a verbal promise and a written legal promise to take the space and that is costing you time by having to start the interview process again which has been delayed. It's her fault, not yours. You did everything in good faith. Stand strong.

I would not refund the deposit. You get a deposit to protect yourself from this type of situation.

@ Playfelt - I like your wording regarding the deposit - I think I may incorporate that phrasing into my own contract - try and avoid these fools who sign up four months in advance and then cancel 2 weeks before they start up.