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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

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Original poster

Retainer fees - what's normal, what's reasonable?

17 replies

SharkSkinThing · 11/02/2011 19:51

Hope someone can help with this question - I have no experience at all in this area.

I'm going back to work in July, DS will be one. We need a chidminder 5 mornings per week from the beginning of August.

I have found someone I really like and when I called her today to move things forward with retaining DS's space, she told me there would be a retainer fee. No problem I said, is this just a non-refundable flat fee? No, she said, it will be 50% or there abouts of our monthly fee from NOW until AUGUST - 5 months! She says this is because she won't be able to fill our place as she's holding it for us until then, so she needs to earn.

This seems pretty steep to me. we're talking around £1000.

Any idea if this is normal? Or is she being a bit cheeky? I understand paying a fee, but this seems quite high?

All thoughts welcome.

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NickNacks · 11/02/2011 20:06

50% is fairly standard, yes.

You are requiring her to hold a space for 5 months and will therefore earn zero from it. 50% is a half way compromise since if she gave it to someone with an immediate start she'd be earning 100%.

You don't have to agree to this though. You can carry on looking, risk that she hasn't filled the space until closer to your start date, or pay it.

Also worth noting that you are entitled to use the space (giving reasonable notice) if you pay the remaining 50% for hours used. Handy to have a good settling period for your LO or to cover appointments etc.

KatyMac · 11/02/2011 20:14

Well I don't have a 50% retainer fee, I generally change 100%.

I can't afford to not earn, the mortgage company doesn't like it

maidbloke · 11/02/2011 23:29

One of the down-sides of being organised and sorting it all out in plenty of time...

I guess only you can answer the question "what's reasonable" - if you pay it, it's reasonable - if you don't, it's not. :)

It will probably be negotiable, essentially depending on what the CM thinks of you and what she thinks her chances are of filling the space between now and August - probably quite high tbh.

So maybe go back and say that you really like her and can afford to offer £ x/month?

pollywollyhadadollycalledmolly · 11/02/2011 23:39

I charge 50% and as far as i know that is the standard to charge.

I echo everything Nicknacks has said and sadly dont have anything else to add!! lol

Pipped to the post!! :D

Original poster

SharkSkinThing · 12/02/2011 10:16

Thanks everyone - I am more than happy with the condition, of course she has to earn, but 5 months of fees is a lot. For us, anyway, at the mo.

I may have to risk holding on a bit and hope she still has the space come June.

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looneytune · 12/02/2011 16:59

Same as Katy - I'd have to charge 100% (although would take a deposit to start with and not charge until someone came along wanting the space). Thing is, I fill my under 5 spaces pretty easily so I just couldn't justify taking 50% when someone could probably give me 100% much sooner. I've got someone coming to see me in a week who wants the space in September. The reason I wouldn't charge (if they want to go ahead) is because I don't have a space until September anyway. Otherwise it would be full fee or risk it I'm afraid. Again, my mortgage company wouldn't like it if I didn't do this

Littlefish · 12/02/2011 17:06

Just a small point - is she charging you for full days or half days once your ds starts with her?

When my dd was with a childminder before and after nursery, she (understandably) charged me for the hours dd wasn't there, as she couldnt' take anyone else on for those hours.

Will she be able to take anyone else on for the afternoons? Just thought I'd alert you to the possibilities.

looneytune · 12/02/2011 17:18

Good point although I would have thought the CM would say something if that was the case - best to check though. I personally charge for the hours used but I'd charge a higher rate for half a day. Actually, at the moment I refuse to do half days but that's because it just wouldn't work with our current routines. We're all different though :)

Original poster

SharkSkinThing · 12/02/2011 18:12

I'm going back p/t and working half-days. The whole reason for us using a childminder is that they offer more flexibility, unlike nurseries which are 8am - 1pm and no flexibility.

This CM has said she's ok with 7.30am - 12.45, which is more realistic for me considering the commute and traffic where we live.

I hadn't even considered the half-day issue. Or if she'd charge more for half a day. She seems to have plenty of spaces, but things always change.

I'm beginning to wonder if it's bloody worth going back to work. At this rate we'll be paying so much in fees my salary won't cover the petrol to get to work!

Gawd, it's all so new to me, and I really appreciate how hard it is for CM's to earn a decent wage.

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HSMM · 12/02/2011 18:21

She's nicer than me then. I would charge you for the whole day - like looneytunes, i don't do half days.

HappyMummyOfOne · 13/02/2011 10:46

I think its steep and you have no way of knowing if she gets a temp child etc in that time so gets paid effectively twice.

I would also worry about the half days, what if she gets a call from a parent wanting a full time place - it will mean more money so she may give notice to the part timers.

PositiveOutlook · 13/02/2011 10:51

If a retainer is being paid then the space has to be available. The cm could not get a temporary placement.

maidbloke · 13/02/2011 18:21

If a retainer is being paid then the space has to be available.

Agreed.

The cm could not get a temporary placement

Don't see why not...? As long as the retained space is available at the time CM/parent agreed it was needed.

pregnantpeppa · 13/02/2011 22:17

This reply has been deleted

Message withdrawn at poster's request.

WidowWadman · 13/02/2011 22:35

Gosh. I had to pay £50 for my daughter's nursery place (and nothing for number 2, as it's the second), when booking it about 8 months in advance.

I don't think I could have ever afforded sending a child to the childminder if that's the normal done thing.

dobby2001 · 13/02/2011 23:04

our local nursery charges a £100 registration fee (non refundable) just to go on their (currently 18mth) waiting list. Then a £500 deposit to sign up in full .

Original poster

SharkSkinThing · 14/02/2011 13:49

Thanks everyone.

Just to bring you up to date, the CM has come back with a retainer fee of £300, plus £300 deposit, refundable so long as we take up the place. I suspect (which I'm totally cool with) that she's able to fill the space for the next five months, so is being sweet with not charging what she could.

The retainer does not go towards any of the settling in, it's purely to hold the space, and she's only charging me half-days, so all in all, I think that's fair enough.

The only bugger is that she can't do Fridays, so I'll have to rejig my hours, but peace is mind is more important than my inconvenience!

Thanks again for all of your advice.

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