Holding Fee?

[CrazyEight]

I just set up an interview with a potential client to start her baby, who will be 1 year then, in September.

I don't mind the wait, a lighter load through the summer with my own kids home will be nice, and we are planning on taking a vacation this summer, so not having to try to coordinate vacation schedules with another family will be nice.

Assuming everything works out, what would you suggest I do for a holding fee? I have never charged one before, I've only been open since July. Half-fees seem like too much, and I actually like the idea of not taking another child on until then, I just don't want to get screwed if they end up walking on me.

Thoughts? Thanks!

[cfred]

At the very least, have them make a non-refundable payment for 2 weeks pay, payable immediately and to be used as their final 2 weeks of care. That's a substantial chunk of cash that most people don't want to just walk away from. I also charge a $200/mo holding fee for a maximum of 3 months, then full payment. But, if you're happy enough to just leave the space open for your own reasons, then the 2 week payment should be sufficient.

[gravy_train]

If you aren't planning on filling the space anyway you could just charge a two week non-refundable deposit to be applied to the child's last two weeks of care. If you go this route, make sure the client clearly understands that should they decide not to enroll their child on your agreed upon date, the deposit is non-refundable and make them sign something to that effect. I was threatened by a lawsuit when I first opened when a woman my husband has known for 20 years gave me a two week deposit then opted for a less expensive option near her house a week or two before her child was to start care. She demanded the deposit back and I refused, as my contract stars that it's non-refundable. I was very nervous for a while though because my contract did not not specifically address what would happen if she decided not to start her child in my care.
Good luck!

[5 Little Monkeys]

If the spot is available now, I expect them to pay now, unless We discuss something different. I do have a holiday fee that is $10 less per day that they can use if they don't want to start until September. 5 months is too long for me to hold a spot. I am actually holding a spot right now but only for 2 weeks. I likely wouldn't consider holding for much longer than that. I also take a 1 week deposit that is applied to their last 4 weeks of care.

[mickyc]

I don't hold spots. I have had people ask and I told them I would charge them $500 a month instead of $600 but that is the best I could do. I certainly wouldn't take a cut in pay to do someone a favour.

My concern with just taking a 2 week deposit is what happens if they end up finding a different daycare in August and then you are left out in the cold? When I first started I had someone book a spot and gave the deposit. I turned so many people away and then 2 weeks before I was set to open up she emailed and said that she found care closer to where she lived. I was ticked. Sure I got the 2 weeks deposit but it was still a mad rush then to fill the spot immediately.

[Crayola kiddies]

I charge a $250/month to hold a spot payable on the first of every month that goes towards nothing but holding the spot and a two week deposit that goes towards the last two weeks of already commenced care.

[bright sparks]

When a parent takes a spot it is there's and costs them money to have it. If you offer it for free, or at a reduced rate then this becomes a financial loss to you, not them. They may not need the spot yet but to secure it they need to pay for it and it prevents someone else from having it who very well may want it earlier and be willing to pay full price immediatly . If this doesn't work out and another family enquires next week for a May start would you accept them? If so, then you are losing income by holding that same spot for 4 months at a reduced cost when someone else could pay you that much earlier at full price. Obviously you don know if someone else will want to start earlier, but by holding it till September you remove the possibility and option for this at your expense. If you would not take a child on before September regardless of when they would start then it's different, but if it is a case of enjoying the benefit of a lighter load over the summer, or wanting the income if an earlier enquiry comes in then you need to charge for the spot.