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Post by rasharoon on Jun 13, 2007 12:36:50 GMT
Hi again I'm trying to get my head around retainer fees and when/how and where they should be used. Can anyone explain in simple English as I'm not quite understanding what 'retainer fee' actually means. Bear with me, it's just that I'm new and won't start childminding until September so am trying to get my brain around everything. Thanks
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Post by donnam on Jun 13, 2007 12:51:22 GMT
Hi i charge retainers for example:school teachers children who will not be using your service during hols then you charge a retainer to keep the place open(usually half fee). Or if you have a vacancy a parent wants but it means you waiting for a while you could charge retainer to keep the place Hope this makes some sense. Donna
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Post by deeb66 on Jun 13, 2007 12:56:42 GMT
Hi
You have 2 different types:
Retainer fee - You usually charge this as an ongoing sum of money e.g. if the placement is for September you are effectively holding these places for over 2 months and are therefore loosing potential earnings......the normal procedure is to charge a nominal amount which is agreed between you and the parents. There is no set limit and each childminder charges different amounts. This effectively guarantees that you will hold the place for the children.
Deposit - Again this is a figure that is agreed between yourself and the parents but is usually refundable. E.g. if you signed contracts and the child was due to start next month take deposit and providing child starts on the agreed date then you deduct amount from first months fees. If the parents cancel the contract and child does not start with you then they loose the deposit.
The main differences vetween the 2 of them is that a deposit tends to be used when the child is due to start in a few weeks and a retainer is paying you to help cover loss of earnings whilst you keep the place open for the child.
I hope all this makes sense
Dee
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Post by mel on Jun 13, 2007 16:38:17 GMT
Hi I have had a lady enquire for her two little girls (3 and 6 months) as she is returning to work. However, this will be the end of September so how much would you charge as a retainer / deposit? I will be charging £3 per hour once (and if) they start?
Thanks Mel
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Post by deeb66 on Jun 13, 2007 17:30:49 GMT
You are effectively holding 2 under 5 places for over 3 months therefore you will be loosing a considerable income. It is very difficult deciding how much to charge but I would suggest that you work out how much these places would earn you if they started now and then charge a percentage - I can't tell you what percentage or how much to charge because that would depend upon your personal circumstance, the parents circumstance and how much you need the money - only you can work this figure out.
If you cannot bring yourself to charge a monthly retainer at the very least you should consider asking for a deposit....to give you an idea I usually ask for at least £350.00 - £400.00 deposit if the child is full time. You can explain that when they start you will deduct from first months fees therefore it won't actually cost the parent anything in the long run but at least it does give you some security in case they decide not to go ahead.
So my advice to you is to get a contract signed as soon as possible and either charge an ongoing retainer or a one of deposit.
Dee
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Post by susi513 on Jun 13, 2007 19:10:42 GMT
Retainer This is usually when you have a space available that the parent wants to reserve but does not need to use - this may be at the beginning of the arrangement when they haven't yet gone back to work or if they don't work in school holidays or if they take time off work for maternity leave or long-term sickness.
Retainer fees are usually 1/2 fees (if you read the NCMA paperwork) but I have a colleague who is happy with £15 a week and I've seen posts from others saying they charge 2/3.
Because the parent is paying to reserve the place for their child, the parent should have the option of sending their child upon payment of the remaining half fees and on giving reasonable notice of their desire to use the place (so they pay full fees for time used and half fees for any unused part of the retained period).
Retainer fees are usually paid weekly or monthly on a regular basis until regular service resumes. They are not refunded if the parent changes their mind.
Deposits This is usually to reserve a space that is not yet available. eg you may have a mindee leaving on a specified date and a parent wishing to take the place when it becomes available.
The deposit is a one-off fee that is not refundable if the parent changes their mind and should usually be credited to future fees.
Some childminders credit the deposit to the first payment period. I used to do this but now I keep the deposit until the end of the childcare arrangement. This covers me if they leave before the notice period ends without paying the correct amount. Also if they fall into arrears I can take what I'm owed from the deposit.
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Post by tasha on Jun 13, 2007 21:45:30 GMT
Suzie 513 - I do the same as you (again)!!!!
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Post by angeldelight on Jun 13, 2007 21:53:34 GMT
I thought Dee explained it all really well
I would ask for a months deposit also at least that way you are covering yourself and they are more than likely going to keep to it if they know they have paid that much Like Dee points out at least it will come of the first month childcare so they can not really complain
Just tell them straight that they have to pay a month deposit if they wish you to keep it open for that long because it is preventing you taking on other children
Also if they do pay it make sure you type something up for them to sign Do not forget to add that if they do not take the childcare place on the agreed date then the deposit is non - refundable
Good luck
Angel xx
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Post by mel on Jun 15, 2007 17:11:29 GMT
Thanks everyone - it just did seem like a lot of money - but youare right - I would be holdin my only 2 u5 places for a good while. I'm meeting with her on Wednesday so I will go from there - she may decide against taking the places anyway.
Mel
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