Deposits?

[Inspired by Reggio]

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!

[Judy Trickett]

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.

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.

[fruitloop]

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.

[Momof4]

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.