How Do You Charge For Holding A Spot For An Extended Period Of Time?

[aDCProvider]

I really love your idea! Something for nothing??!! You are giving them the credit towards future daycare. My question is what happens if the parents end up needing to be termed? What happens to the money paid in then?

If I had to term immediately for cause (non payment, disrespect, excessively not following policies), they forfeit the deposit. If I give a family notice, their deposit covers their last few weeks.

[aDCProvider]

This is what I was thinking too.

Also is the deposit refundable or not? < that seems to be a real sticking point for some parents/providers and not being REALLY clear about that often times leads to a huge hassle.

The deposit is non refundable.

[daycare]

I will not hold a spot for longer than 1 month. I do not credit any of the holding fee back to the parents. If they are looking and want to interview months in advance, I tell them to call me back closer to their desired start date or I will add them to my wait list and when I have an opening, I will call them.

You will never make that money back by holding spots for that long and most people will not be willing to shell the money out and get nothing out of it for a long period of time.

[DaisyMamma]

Exactly.

Like another poster, though, I have lined it up where another child coming in will take a child who is going to Kinder's spot. I require the regular 2 week security deposit fee (applied to the final two weeks of care) just to make sure they are serious about starting here. I do this for everyone, though, after having around 4 children fully enroll and then never show on their first day! PLUS, it helps to have the final two weeks already paid because I have had at least 5 people in the past year who have tried to leave suddenly and demand this fee back. Nope. Sorry dude.

Seriously. Doesn't it make you want to say to them "people like you are exactly why I collect the last two weeks' payment upfront!"

As for original poster I don't see how it helps you to have the set up that you have. All the $ they pay goes towards future daycare and does nothing for the fact that you're sitting on an empty spot and not getting paid one cent for it. What happens if someone calls the next day and is ready to start next week? Then you really lose out.
They might be more willing to pay half tuition weekly or even full tuition weekly since they have to come up with less money up front.
Or have them call to see if you have space closer to the target start date.

If I know a family is looking for future care I usually won't even meet with them until a month before. It's a waste of my time.

[aDCProvider]

Ok Ladies, you're right! This system is not helping me, in fact it seems to be driving people away. I looked around at other daycares in my area, it seems the common hold time is 2-4 weeks, after that they charge full tuition to hold the space. Here is my new policy...

Deposits
A non-refundable deposit of 2 weeks tuition, based on the age of your child, is required to hold a spot for up to 30 days, and will be applied to your last 2 weeks of care.
If you would like to hold a spot for longer than 30 days, you must begin paying your contracted weekly tuition until your start date. These tuition payments are non refundable and will not be applied to a future balance. Late payment is subject to a $10.00 per day late fee. After 7 calendar days of late payment, the daycare spot and all monies paid to date will be forfeited.
All deposits are NON-REFUNDABLE. If, for any reason, you choose to forfeit your hold on a daycare spot, you also forfeit your deposit and all monies paid to date.

What do you think?

[Leigh]

IF the spot is open, I require payment in full.

ALL rates are based on enrollment not attendance.

Sorry that is not much help but I can't afford to hold a spot for someone and infant and toddler space here is SUPER hard to find so it is what it is.

I certainly couldn't hold a spot for free (or a reduced price), either.

Rather than call it a deposit, I would just tell it like it is: I will hold a spot for up to 2 weeks without charge (because I WANT clients to give current daycares notice). After that, I charge my full-time minimum. I explain that it is NOT a deposit, but that they are paying for the space because they are USING the space.

[KidGrind]

I would change the wording of deposit to holding fees.

They are getting something for nothing. They are ensuring their child has childcare when they need it. Why should forfeit income to ensure STRANGERS have childcare at their convenience?