Is it common for daycare providers to charge a holding fee to reserve a spot. Currently I will hold a spot for 2 or 3 months and not charge a fee. Do you charge a flat fee, monthly fee or weekly?
Printable View
Is it common for daycare providers to charge a holding fee to reserve a spot. Currently I will hold a spot for 2 or 3 months and not charge a fee. Do you charge a flat fee, monthly fee or weekly?
I was just going to start a thread on this also. I have a lady wanting me to hold a full time open spot until April for a 1 year old. That's a long wait without income but they are great and I don't want to loose the parent. How can I guarantee she shows up in April and what can I do now, charge her a holding fee?
I ask for a deposit fee that will become their first two weeks of their child being in my daycare. This way they know their spot is held. Hopefully that helps?
Play and learn would this be non refunable deposit if the parent never showed up or changed thiers mind type thing?
You got it! I could potentially get another client, but can't accept them because I'm holding the spot for family A. This way, at least I get some money! As we all know, we're not in it for the money!!!Quote:
Originally Posted by Jenn-FSFCC
I have a 2 week deposit as well and a reservation/holding fee.
I think whether a holding fee will be accepted with the family will depend on whether or not it is 'normal' for your area. Here a holding fee is fairly common but A LOT of families will still choose to go elsewhere if you ask for one.
With my holding fee I will sometimes allow a 4 week grace between when the space becomes available and when the family will be using it.
I recently held a space without the holding fee for a returning family for 3 months, 2 spaces. I thought it was worth losing income just to have a good family return. Boy was I so wrong! The returning good family within days of returning back to care has turned into a horrible family. In the 6 weeks they have gotten better, but not good enough that I wouldn't consider terminating them if a better match fell into my lap. I don't think I will EVER hold a space for that long again without a holding fee.
I always let the family know that there are a couple of families interested in the space( and there are). If they are committed to coming, then a month deposit will hold this space for them. If they do not come, it is non refundable. If they do start on the time agreed, it becomes their deposit that is returnable after proper notice is given. Parents find it reasonable and have no problems with that. They usually really want to secure their space!
I do a two week deposit that becomes payment towards the last two weeks of care.
I have a registration fee as well as a holding fee if a spot is being held for longer than 1 month. The holding fee goes towards nothing except to hold the spot. My registration fee goes towards their last months fees.
I currently have a holding fee that is non-refundable if care is cancelled before the starting date. If care starts, the holding fee is used towards the first months fee.
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?