Retainer question

[GiveMeChocolateNOW]

Hi - I am a new CM in need of advice re. a retainer I have taken.

I took a retainer of £600 (1/4 of 3 months costs) at the beginning of November to hold a place for Feb (next week). I said I would offset it against settling in fees, £380 has been used.

The contract takes starts next week, there is £220 left... Should I keep it or continue to offset. Feel a bit uneasy about keeping it and don't want to start on a bad footing. Is there an industry standard?

What a minefield! The NCMA should outline industry standards, would make dealing with parents so much easier!

Bumping for you

thanx

Retainers and deposits can be very confusing. But if NCMA or anyone else were to specify how we must deal with these things, we would lose the benefits we have a childminder of being flexible and able to choosing/negotiate what works best for each family we work with.

A retainer is not usually offset against fees. Its meant as compensation in respect of your loss of income by keeping a place open thats not being used - which usually means turning away other people in order to keep that place reserved.

Its a deposit that is usually offset against fees either the first or last payment of the entire childcare agreement. A deposit is used to secure a place that's not yet available and/or to cover payment during the notice period (to protect you in case parent loses job and can't pay or chooses not to pay and does a runner).

However, if you have told the parent you will use the retainer as a credit towards future fees, then I think it only right that you keep your word and chalk this one up to experience. But next time you take a retainer, put it in your contract that its not a credit to future fees - p.66/67 NCMA handbook 2008/09 and don't feel guilty about keeping it. The parent is free to use your service during the retainer period, it was their choice, not yours, not to use it.

HTH, welcome to the world of childminding - where nothing is ever as easy or as simple as it seems!

I told her I would offset it against settling in fees, not against all future fees.

I have turned quite a few people away, so in that resect I've lost potential income so I do deserve the retainer.

I was unwell before christmas so there were a few settling in days I couldn't do, I'll take that amount off next months money as a good will gesture.

Will check out the handbook too, thanks so much!

missed that, sorry you did say settling in in your post. Quite right for you to keep the balance IMO

great glad you think so too