Retainer advice

[makeawishmummy]

I'm sure this has been done to death but I can't find a thread with my exact query so at the risk of boring you all to tears...

I have a vacancy for a four day a week under 1 from September and I have a parent who has been out to see me and seems fairly interested but is undecided as yet. I got on with her really well and got a good vibe about the family, baby is gorgeous, hours/ days are perfect etc. so I'm keen not to put her off or be unreasonable/ unfair/ unkind but obviously I need to earn too.

I've decided on asking for the first month's fees when we sign contracts (non refundable and will cover first month's care) which I thought was reasonable because they'll have to pay it at some stage anyway and I've been advised to make the sum fairly high. I've said if she wants to split it over the next two months that's fine.

But I'm stuck on the retainer. Obviously I'm not going to charge anything until the vacancy is actually there i.e. September. But Mum doesn't want me until November. I have no idea what would be fair to both parties... any ideas? How have you done it in the past?

I have never taken one as I feel it would loose me business to the others who also don't. Also some mums on maternity often don't have extra money to pay out as well as the first month upfront. Our area is really quiet though with no enquiries for months, I have a full time space along with nearly every other childminder so we all need the work. Obviously this is just me and most will charge 50% or something similar to hold it open.

I think given that you'll know 6 months in advance that you'll have business in November and you don't even have a space until September, it would be a little churlish to charge a "retainer".

I mean, there isn't really a space, is there? You just have a 2 month gap because your client doesn't need you until a short while after you have a vacancy.

You could I suppose charge a 50 percent retainer from Sep to Nov, but I've never got round to doing that. Lots of people do.

Thanks all, I really appreciate it.

I wouldn't describe myself as churlish I am new to childminding and am not minding at all until September so the space is very much there from September and if I went with this family (who haven't even confirmed that they want me yet ) I would lose two months of fees (£1440) which is why I thought I should charge something. But the lady is on maternity leave and I have never in my life taken money for something I've not done! So torn!

Around here childminders are few and far between and almost everyone has a waiting list, although they have seen one other whohas avacancy. I have had quite a few enquiries but all for full time rather than four days so along with the fact that I really like Mum, this family would be perfect... maybe I should just go for nothing... but will I then kick myself if someone comes forward who I also like who wants a September start?

Oh, dilemmas...

You could mention the idea of retainers and say that you'll contact her asap if someone else wants the place from September - then she'd need to pay a (usually half fee) retainer. It'd 'only' be for 2 months, so hopefuly not too onerous.

If CMers are in demand near you then its a 'sellers' market and you need to decide what terms and conditions you are happy with/will accept. You may also want to consider holding the deposit until the end of the contract in case they leave without notice/don't pay fees?

FWIW I don't charge retainers if parents are starting within the month, but anything longer than that I do charge half-fees, as its too long to reserve a space for no fees.

If this family isn't quite right for you - as they'd mean 2 months with no/half fee, then why not wait and see who else comes along? You've 3 months to find the ideal mindees. :)

Thanks for the advice. I think I will go down the route of charging half for October if someone else comes along. If I fill up my other spaces by then I'll have enough cash and won't need to implement it anyway.
You're right, I do have quite a long time, but I got a good feeling from this family.
Let's wait and see if they even want me

I have a gap of six weeks coming up but as the new family's contract doesn't start till mid-August I'm not charging them anything before that except the deposit to retain the place. I don't myself think you'd be entitled to charge your new family anything until November.

"I think I will go down the route of charging half for October if someone else comes along."

You see, this is the problem - it's very convenient for you to know 6 months in advance that you have certain business in November.

You might get business in September, but you might not.

You can risk turning this family down and potentially not getting anyone in September anyway, or you can accept their business and be glad you have a certain booking not long after your vacancy becomes available.

A retainer would be payable if she wanted you to keep a place free from now until November.

I'm not sure a retainer is payable because her requirements and your vacancy don't exactly line up, given how much notice you've been given of her intention to use your services.

If you and she have a definite booking for November, it's not really her problem if months after accepting the booking it turns out you could have got work in September.

I'm not sure I'd be too impressed with being asked to pay for your regret that you'd accepted my business a long time in advance.

Would the advice be different if I met her in September and she didn't want a place until November? Or is it beacuse it 's only two months?

I think you are right and I was very uncomfortable about asking for money when I wasn't doing any work, but I am also now unsure as to what a retainer actually is..? I thought it was for these exact occassions? When there is a space but a parent doesn't want it yet.

My LA coordinator keeps warning all of us to be assertive and business minded etc. and start as you mean to go on, so although it doesn't come naturally to me (especially as there are children involved and I haven't quite got my head around marrying up little babies and business yet ) I'm trying to do this properly and make sure I'm not being naive.

Maybe the LA woman is just harsh

Am also now quite liking the thought of two months off (Well, I'd still have my after school mindees)

Yes, my advice would be different if someone came you in September looking for a place in November.

It's a judgement call, but to my mind her advance booking, and your knowledge of that work starting in November makes her business attractive to you despite the 2 month gap.

Would you turn her down in hopes of getting another client in September? If not, I don't think a retainer is appropriate.

She's not "retaining" your services months in advance, there's just a gap between your availability and her needs.

Of course you should be business minded - that you are in the business of minding children is irrelevant.

I'm not saying you shouldn't charge her a retainer out of the goodness of your heart. Just that it's not really applicable here, and you might piss her off and/or lose her business if you seem like the kind of person who is out to gouge money. And there is that risk if you are prepared to take a long term booking without recognising its advantages to your business.

You're right. If they do want me (crosses fingers) then I'll just go for the first month fee deposit and hope I fill my spaces for after schoolers in Sept/ Oct and can pay my bills with that.

Thanks for all the advice x

There are some weird answers on here. It is completely normal (esp in South East) to charge half-rate retainer as you have a space and it is not being used. At the end of the day it is a risk - but when you met the lady you ideally should have explained your payment policy and then she would know about the retainer before she comes back to you with an answer - otherwise if she comes back to you now with a 'yes' and you then tell her about the retainer she may feel a little put out.

I've always said it's your business, run it how you want, charge what the hell you want. And if you don't get the business then that's a bummer, but there's no right or wrong way to do it. You're in charge, remember that :-)

Thanks Buggerrats - when I met the lady I thought she wanted a September/ October start so it wasn't really on my mind, November is a bit different though.

Oh rubbish, and I thought I'd made my mind up

Are you actually child minding now or only starting in September. I think it would be fair to ask for a deposit but not to be paid. I don't think reserving a place is exactly the same as a retainer fee. Why not suggest that you have the baby one or so days a week from September/October to settle in. Then you'd be getting some money.

That's not a bad idea!!