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I've never been in the position to have a holding fee before, but I have someone who is interested in starting in about 10 weeks. When she asked about holding the space I wasn't sure about fees, but I said that I thought 50% off regular fees would be reasonable. She said she needed to discuss it with her partner. Anyhow, do you think that is a reasonable fee for holding a space for 2 1/2 months? If she thinks it's too much, should I negotiate with her? What do you charge to hold a space?
Well, my issue with charging a holding fee is this...
If I charge a client half fees for 2 1/2 months that equals to about $900.
That sounds wonderful and worth my time to hold the space... but... what if that child comes on board and after 2 weeks or 30 days it doesn't work out. Are you going to feel obligated to keep that child because you charge her almost 1000 in holding fees? Is she going to feel like she deserves more out of you and put more pressure on you because she's in for almost 1000 before she even starts care?
I would charge one weeks fees per month.
I chose not to charge holding fees because I was just starting out, and wanted to transition into child care slowly. I have three right now, with one more coming in January and one in March (both turning one when they come). In the future, I won't hold a spot. I personally don't like the idea of charging a holding fee because if I decide that it isn't working out, and I've been charging them all along, I will feel guilty about not keeping them; almost as though I "owe" them something for having taken their money as a holding fee. Judging by the posts above, I'm not alone in feeling this way.
IMO it totally depends on what you can afford and are willing to 'forgo' in potential income now to save the spot for them down the road and as mentioned above how that is going to affect your relationship .... if two weeks from now you get another client interested in this spot but now you have committed to and charged this person $$ to hold and secure their spot are you going to be upset about that lost income, if 2.5 months from now they start and do now work out are you going to be ok with having forgone that income these past 2.5 months when you could have waited and taken on a client willing to start right away and pay full time for your space?
I personally have a 'you want the spot you pay for the spot when it comes available ~ I do not 'hold' a spot and forgo income for it' that is my 'official policy' so that people do not ASK me to do special cause it is right there in writing as to why I do things they way I do ~ this is my income and it is already capped by the 5 children I am allowed to have in care having a open space means I am taking a direct hit income .... however I have negotiated and bent that rule under certain circumstances when it benefited me in other ways to do so but only because it was ME offering it not them asking for or expecting a 'deal' from me because than they seemed to truly appreciate the compromise knowing it is not something I would normally do but they 'lucked out' so to speak.
You have to do what works for you and your business and what you can 'live with' under all the potential circumstances of what can happen in this field.
I charge $200/month holding fee.
I do charge a holding fee for mat leave clients. I charge half fees for the week and allow them to bring their child for 2 days if they choose. If they choose not to then the half fees still stand. But... these are people I know and have been with me, so there's a different expectation I think.
I charge $200/month as a holding fee. Something I have done in the past and in fact I'm doing right now, is to start a baby 1 day the first week, 2 days the next, 3 days the next, up until the Mom returns from her mat leave. It works out to more than the $200/month and I'm transitioning the child while the Mom is still available for help and can make it shorter days, like 9:30-3:30 and I can tell her all my problems at the end of the day and she can help at home too and isn't already stressed because she's returned to work. Anyway, that's my method.
Since we are talking about holding spots, I had an email from a family looking to schedule an interview for a spot, but they don't need it until FEB. 2013!!!! Would holding a spot for this long even be an option??? I've never had somebody contact me looking for this far in advance.
In my area there is such a shortage that this kind of early preparation is common. I've found that without holding fees, the parents may end up on several lists and then choose the option that becomes available first. Some parents are happy to pay a holding fee just for the piece of mind.Quote:
Originally Posted by momof5
Well i'm going to meet with this family tomorrow evening. I sure don't want to miss the opportunity to possibly fill a spot even if it's not until the new year. I will mention charging a holding fee.
One thing about the holding fee is to not accept post dated cheques. They must physically bring you a cheque every two weeks or whatever schedule you set. This way you have constant contact with them and if they are going to renegotiate or are wavering it will probably come out in the time. You might want to do a quick play visit on the day mom brings the money and this gives everyone a chance to meet and interact constantly. They are less likely to just up and leave or if they do then you will know sooner than later and can advertise again.
I only hold a space that long if I have more than one as in can still give it to someone that needs sooner.