Paying for A Spot That Doesn't Exist Yet

[mommyneedsadayoff]

One of my best friends is having a baby in October. Her daughter goes to a daycare she really loves, but she was kind of upset, because she told the provider about her baby and said she would love to reserve a spot when one came open. The provider said she has a wait list, so she could only hold the spot if she starts paying for it now.

This is what's weird to me though. She is full, so there are no open spots. The provider never said anything about one opening up soon and no one on her wait list is contacted till a spot opens, so my friend is wondering why she would pay for a spot that's not even available. She said she would gladly pay for an actual spot to hold it if there was one available or when one comes open, but says she feels worried about paying now when there is not an actual space. Like, is she going to kick someone out when the baby comes? Anyway, you guys are so great with this stuff, so thought I would ask if that's normal? I know people pay to hold available spots, just never heard of paying for one that's not open. Thanks for any input!

[lovemydaycare0912]

One of my best friends is having a baby in October. Her daughter goes to a daycare she really loves, but she was kind of upset, because she told the provider about her baby and said she would love to reserve a spot when one came open. The provider said she has a wait list, so she could only hold the spot if she starts paying for it now.

This is what's weird to me though. She is full, so there are no open spots. The provider never said anything about one opening up soon and no one on her wait list is contacted till a spot opens, so my friend is wondering why she would pay for a spot that's not even available. She said she would gladly pay for an actual spot to hold it if there was one available or when one comes open, but says she feels worried about paying now when there is not an actual space. Like, is she going to kick someone out when the baby comes? Anyway, you guys are so great with this stuff, so thought I would ask if that's normal? I know people pay to hold available spots, just never heard of paying for one that's not open. Thanks for any input!

I don't have expertise in this but that sounds weird to me.

[Unregistered]

I do not charge a holding fee unless I am holding a space open.
I do expect a deposit of two weeks though.

I just spent the day with one of "my kids" who just had her first baby. She said that centers where she lives now charge hefty fees just to get on the wait list with no guarantee that your child ever gets a space. She said $300 is typical.

[BumbleBee]

I only have families pay to hold a spot once it's available. Say a daycare parent needs a spot starting in January but currently all of my spots are currently filled. A spot comes open in November and I will offer the daycare parent the spot for January if they start paying to hold the spot in November. But paying for a spot that doesn't exist I wouldn't do.

[Thriftylady]

I would never charge for a spot that is not available. Now I would tell a parent "I don't have a spot now, but if I have one come open I will let you know, so be thinking about if you are willing to pay a holding fee when that time comes".

[Laurel]

One of my best friends is having a baby in October. Her daughter goes to a daycare she really loves, but she was kind of upset, because she told the provider about her baby and said she would love to reserve a spot when one came open. The provider said she has a wait list, so she could only hold the spot if she starts paying for it now.

This is what's weird to me though. She is full, so there are no open spots. The provider never said anything about one opening up soon and no one on her wait list is contacted till a spot opens, so my friend is wondering why she would pay for a spot that's not even available. She said she would gladly pay for an actual spot to hold it if there was one available or when one comes open, but says she feels worried about paying now when there is not an actual space. Like, is she going to kick someone out when the baby comes? Anyway, you guys are so great with this stuff, so thought I would ask if that's normal? I know people pay to hold available spots, just never heard of paying for one that's not open. Thanks for any input!

That's just wrong. There is no way I would pay for a spot until there actually was one. Are you sure your friend didn't misunderstand? Maybe she should ask for clarification. I think I would say "I don't quite understand. Do you mean you are charging me for a spot that isn't available yet or do you mean you will 'start' charging me when one becomes available?"

[mommyneedsadayoff]

That's just wrong. There is no way I would pay for a spot until there actually was one. Are you sure your friend didn't misunderstand? Maybe she should ask for clarification. I think I would say "I don't quite understand. Do you mean you are charging me for a spot that isn't available yet or do you mean you will 'start' charging me when one becomes available?"

I asked her the same thing, but she said that she asked if a spot was opening in June (she pays monthly and the dcp said she could start paying the fee with her June tuition) and the dcp said no, but the fee is to guarantee she gets first pick at the next available spot. But she is asking for a full weekly fee, not a deposit, so that is kind of weird r?

On a side note, I stopped doing daycare recently and love that my past families and friends come to me for advice, but I'm definitely understanding why nannyde does a consulting business! I have had so many contacting me for advice and input lately! In my case, if i made money consulting, I would need to send you all a piece of the profits, bc I come here for advice so often! ::

[LindseyA]

Maybe the daycare provider will be losing a kid or 2 to kindergarten, so she is planning on the infant taking one of those spots? If that's the case though, I wouldn't charge until school starts and that spot is available. This fall I am losing 3 to kindy and will be interviewing in mid summer.

[Blackcat31]

Like all things business, we do things that work for us.

While I do not agree with how this particular provider is charging, I really don't see it as any different than those providers that charge a weekly rate and then pick up a drop in kid when a regularly attending child is absent for the day.

The reg kid is paying the weekly tuition (including the absent day) but the drop in kid is also paying for the same day so in essence the provider is double dipping....which is exactly what this provider is doing but for a longer period of time.

Anyways, I guess my advice is if the potential parent doesnt feel comfortable paying what the provider is asking, she (the parent) should move on and find care that works for her budget.

[NightOwl]

I would not feel comfortable paying for a potential spot. A deposit to get bumped to the top of the wait list? Yes. A full time weekly rate for a non-existent spot? No.

[JackandJill]

I do have a holding fee, and while it guarantees your start date it does not guarantee your spot before the start date.
My holding fee is 1/4 of a weekly fee. So if I know I have someone leaving in a few weeks, I offer to move someone off the wait list and they pay to reserve that spot. This way I rarely ever have a week or two with openings. Some people see it as double dipping, I see it as weeding out people who may not be 100% serious about taking the spot when it opens, leaving me scrambling.

But I only do it if I know for sure I have a space opening up. I would not offer to hold a nonexistent spot, nor would I ever charge someone for basically being on the waitlist.

Like Black Cat said though, if it works for this woman's business more power to her!

[Leigh]

It does seem odd to ask for payment for a spot that isn't open. I would advise her to do it ONLY if there is a firm promise of a spot (the provider WILL kick someone out when baby comes). A provider can ask for full payment to hold the spot-it's her prerogative, but I wouldn't. I would ask for the usual starting fees to hold it (first week and last two weeks for me), and not start charging for the spot until it is open. I do this because it seems most fair.

[thrivingchildcarecom]

I actually have a Pre-Enrollment Program and do charge a holding fee for an upcoming spot. The fee is not nearly what tuition would be, but I have found is necessary to avoid having the spot vacant when it becomes available. In the past, people have indicated they wanted the spot and then backed out at the last moment. That being said, once a family pre-enrolls that spot is theirs. It cannot be given to another family.

[EntropyControlSpecialist]

I would never charge for a spot that is not available. Now I would tell a parent "I don't have a spot now, but if I have one come open I will let you know, so be thinking about if you are willing to pay a holding fee when that time comes".

Yes!

[mommyneedsadayoff]

Thanks so much for the input! I am meeting my friend for coffee tomorrow, so I will relay the info!:hug: