Childminders Club: Retainer Fees - How Much????

[HellyBelly]

Hi Guys

I know this has been discussed before but I'm trying to decide how much of a retainer to charge IF I take on a new mindee in April/May. Baby due in couple of weeks so mum wants to meet me just after Christmas.

I've got plenty of time to prepare which is good but it would help to know what most people charge as a retainer so I know what seems fair. She may not like me anyway but if she does, I need to be able to let her know how much the retainer will be.

At the moment, it's looking like she requires someone Mon - Fri full day.

I've told her IF she wanted me, I wouldn't actually charge her unless someone else wanted the space and then I'd need something to secure the place.

I can't afford to not charge something for these months.

What do you all charge?

As i explained to you this would be alot of lost income to keep the place open so you should have something to show from her a good will on both of the sides. You also know that if she chooses not to use the place you still have something.

Yeah cheers, thanks for your email. Just wanted to get as many people's charges so I could see what the norm was. I think from previous threads it's quite common to charge half but i want to be sure.

Hello

I am such a meanie on this front as my spaces are so limited and it is rare that one come up!

My policy is if I have a vacancy and someone wanted me to hold it from them I charge 1/2 fee for the whole time....that would mean from now until they wanted to use the space! Just the same as a nursery would do! Believe it or not I had someone pay me 1/2 fee from May until Nov this year as she really wanted to use me.

Of course if the parent changes their mind they do not get their money back!

Thanks Booh. I must say I've only just done a big load of advertising locally so could quite possibly get calls soon. Hope so then I can charge earlier.

How strange - as I typed this, the phone rang and it was an enquiry!!!!

Anyway, thanks!

No problemo!!

I know minders who charge up to half the expected rate, and some who charge a nominal amount each week as a gesture of goodwill (say £20). I have heard of minders charging the full whack, but have also listened to parents who can't really afford to pay much if they're not both working at that point.

I guess you will have to weigh up how much you would like this job (full-time!!) and how much you feel would be acceptable to pay without scaring her away. I would also suggest that the mum-to-be visits you before the baby is born if she can; if she comes after she's had the baby, she'll be so exhausted from the complete lack of sleep that she might be too tired to come at all!

I've never charged a retainer as most of my work has slotted in nicely together (one child leaving to go to school, for instance, just when someone wants new baby to start).

There have been a few occasions when I've had a space which hasn't been filled immediately, and I still haven't charged - mainly because I'm a big softie, I tend to trust people because no-one has yet done the dirty on me, and because the long-term cost to those parents should amount to me earning lots (which has always happened so far!) This is a system that works on absolutely no sensible principle whatsoever!!

I contacted her again yesterday as I had another lady who wanted to meet me (although the shift patterns and hours wouldn't work for me in the end - cabin crew!)

Anyway, she really wants to wait until the baby is born before she visits - maybe superstitious? Having said that, she said her reasons were because she wants to get used to her new baby first and then she'll think of questions. I may contact her again to offer a very casual tea/coffee and chat and say she can do a proper meeting after the baby is born with all the questions etc, if she wants to see me again.

What do you think?

Thanks for the push Theprisoner!! I've now got her coming on Wednesday for a very casual chat and IF she likes me and my setting, she can come again once the baby is here!

More feedback on retainers?????

I would love to have this job so I reckon I may need to be for flexible but I have to be careful as we're doing really bad financially. Oh well, I'll see how we both feel after meeting on Wednesday!

Would really like to hear about other retainer charges though to help me decide

I don't actually charge a retainer at the moment...I know I ought to , especially as I have a baby starting in Sept 06 but I'm just to soft!!

I'm extremely soft myself but I just can't afford to say I'll turn down all enquiries between now and April/May and leave the space open - as much as I'd love to!!

Know what you mean, we are in totally dire straights finacially due to 2 parents and a childminder colleague pi**g me about, I'm not a happy bunny to say the least!!

Why is it parents think we can afford not to be paid?! It really messes things up doesn't it!

I've been messed about already but only by one parent, the other just forgets on pay day so I said I'll start invoicing.

Luckily I told everyone (but the one who messed me about) to pay me in advance after seeking advice from other minders who have lost money!

Hope you manage to get your money owed!

My childminder didn't ask for a retainer fee and had agreed to take dd at 5 months, before dd was even born! I know I am very lucky - I love my CM to bits and I wouldn't have minded giving her a retainer if she had asked for one.
On the other hand,if this new mindee is going to be with you long term then you might think about how your relationship with this new family is going to work, as well as your short term cash flow (obv important!) because what you are saying to them could be interpretted as 'I'll hold a place for you unless something better comes along, and if it does you will have to compensate me or I'll drop you.' I'm sure you don't mean that but either charge her now or don't charge and then you'll both know where you are.
That's my view but hope it works out whatever you do.

Thanks for your comments. Very pleased you have a nice childminder who managed to keep a space open so far in advance without a retainer. I really really wish I could afford to do this but I'm struggling as it is at the moment. It would be different if I knew a space would be available around that time - of course I wouldn't charge a thing then. My problem is that this vacancy has only just become available and I've just done a big load of advertising. I've had 2 enquiries this week and would be very unlucky to get no more between now and April/May.

What I am trying to say is as much as I'd love to say yes right now, I need the money too much to be able to GUARANTEE a place now and turn down all other enquiries. Also, I know some minders who have been generous and not charged (but could also afford the drop in income) and then the parent has decided not to use them. This meant loss of income and they turned down work that could have worked out well. Does that make sense.

I don't want to charge loads but I have to charge something otherwise I may have to stop childminding all together and I really don't want to do that as I love my job.

I'm not sure what made you think I'd drop this lady if something better came along??? I said the only way I could GUARANTEE the space for her is if she paid a retainer - HOWEVER - I said I'd only charge it IF an enquiry came up that I'd have to turn down. I'd then contact her to say "right, I've had an enquiry, would you like me to keep the space for you?" If she decided not to then I would go ahead with interviews but I may still end up available. This lady was very happy with that and COMPLETELY understood about needing to pay a retainer. I just want to see what sounds fair for both of us as this is the first time I've had an enquiry for this far in advance when I've had a vacancy.

Hope I don't sound like a mean money grabbing childminder Wish I did this job just for fun but I have bills and a mortgage to pay too.

Childminders do a brilliant job and realise that you can't do it for fun. I wasn't even saying that you shouldn't charge a retainer. My point was that, being the kind of person I am, I like knowing how things are going to work out and I would want to know upfront if there were going to be any charges between now and April rather than have them spring up in the intervening period.
Maybe I am too inflexible, which probably explains why I couldn't be a childminder. Sorry if I have misunderstood, I didn't mean to cause offence.

Oh right, we've misunderstood each other then

I've not met this lady yet, I'm meeting her on Wednesday. I mentioned a retainer on the phone casually but it was a very quick chat. When we meet on Wednesday I will tell her the amount etc. and take things from there. She will leave knowing what's what.

I'm trying to get advice so that come Wednesday, I know what to charge iyswim.

Helly - do you get many enquiries from people wanting casual care? If I have a space but no-one starting with me until some time in advance, I tend to make it very well known in my "sociable circles" that I'm available for casual care. It's amazing how many people suddenly realise that they can leave their offspring for a few hours, or even a whole day, to have a day for themselves!!

If you were able to pick up snippets of work, and if you charged a fairly nominal sum to the new lady, perhaps you wouldn't be too out-of-pocket? (Am I clutching at straws here??)

This would obviously be such a good job to have long-term so you don't want to scare her off, but I totally understand what you mean about needing to pay bills now.

I'd be interested to know if other minders charge retainers (then Icemum and I can start getting tough!!)

Just about to get ds ready for bed so this is a quicky.

Thanks for your reply Theprisoner. Unfortunately I've only ever had one enquiry for casual care although I do advertise that I do this. But then again, the word of mouth thing might work as until I gave notice to the other mindees, I was full pretty soon after registering so this is the first time I've actually been able to offer casual care ifswim.

I see what you are saying and this would be better long term so I just need to make sure we can survive (unfortunately as well as halving my income, we've had about £1500 worth of extra things we've just had to pay out for which is why I'm panicking, and Christmas of course ) - monthly, I don't need to charge lots and lots, just enough to justify turning down other work! I'll do some advertising for my web business too as if I can keep busy at weekends doing these, I wouldn't need to worry. At the moment, I've only advertised twice on ebay and got enough enquiries through that so step it up a gear and who knows!!

Thanks again for your advice, so much for my quick reply

Hi guys

I was chatting to dh about this last night and told him that I would really like to work with a young baby like this.

I know I've not even met this lady yet, she may not like me and my setting etc. but I need to work out what I will do IF she wants me and therefore I'm prepared.

Dh agreed that although we are desperate for the money and are sure we could get other work to start earlier etc, this would be a better situation long term IF it all worked out. He agreed that although we could really do with at least half the fee, we can't expect them to be able to afford it - we wouldn't be able to in that situation!

I worked out, based on what she thinks at this stage re: hours etc (she could change her mind), we would get approx £650 a month from this mindee. Half of this would be £325 so we were thinking of maybe £150 a month? I can help make this sound better by reminding her that I do special rates for full timers and she'd be saving £108 a month once the baby starts (IF!!)

What do you think? Does this sound fair?

I think she would be barking to say no.

Hellybelly, I think that's very fair. This type of situation is always so difficult; I was in this situation prior to one of my current mindees starting - I was not charging a retainer to keep his place open but did tell parent that if other enquiries for place were received then I would let her know so we could discuss the possibility of a retainer. This did happen and she started mindee early which I was really pleased about. I would have only charged her possibly up to half fee.

I'm glad you think this is ok. This is the minimum really for me to survive, obviously still a big loss but better long term IF it all worked out.

Now I've thought so much about it, she probably won't want me or may do and then decide not to return to work (I've had this happen already). We'll just have to wait and see what happens on Wednesday!

Thanks for the advice!

Sounds like a very fair arrangement indeed!Hope it all works out well for you.

Thanks. I've now got to line up another 2 interviews for more pregnant ladies! Like this one though so hope it works out