Trial Period AND Deposit?

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  • Lilbutterflie
    Advanced Daycare.com Member
    • Apr 2010
    • 1359

    Trial Period AND Deposit?

    I have never offered a trial period before for newcomers; but this is only the end of my second year so I'm learning as I go. Now that I am looking to fill spots; I am thinking of putting a trial period of two weeks in my contract where either party can terminate at will.

    However, I've also recently implemented a two week deposit upon enrollment; good toward their last two weeks of care.

    For those that do both trial periods and deposits; how do you work the deposit should you or the client discontinue services during the trial period? Do you refund the deposit? Or is the deposit kept by you the provider to at least cover so you are not left high and dry with no notice? Does it make a difference if you are the one ending services?
  • wdmmom
    Advanced Daycare.com
    • Mar 2011
    • 2713

    #2
    If a family secures a deposit, it is applied to their last few weeks of daycare. I also give them a 1 month introductory period. I've found that kids will adjust within a month so even if the first or second week isn't the best, look at the third and forth before making a rash decision.

    If parents want to leave within the introductory period, I still require them to provide me with a 2 week notice. Depending on when they decide to give notice, additional money may be due.

    The reason I implemented it this way is for those daycare jumpers that only need a week or two of daycare because their original provider is on vacation, closed, maternity leave, etc.

    Comment

    • Lilbutterflie
      Advanced Daycare.com Member
      • Apr 2010
      • 1359

      #3
      Originally posted by wdmmom
      If a family secures a deposit, it is applied to their last few weeks of daycare. I also give them a 1 month introductory period. I've found that kids will adjust within a month so even if the first or second week isn't the best, look at the third and forth before making a rash decision.

      If parents want to leave within the introductory period, I still require them to provide me with a 2 week notice. Depending on when they decide to give notice, additional money may be due.

      The reason I implemented it this way is for those daycare jumpers that only need a week or two of daycare because their original provider is on vacation, closed, maternity leave, etc.
      I never thought of someone using my care as a fill in for their provider taking time off. Glad you brought that up. For those providers that allow termination at will during the trial period; have you had to address this before?

      So forgive me for questioning; but what is the benefit to them or yourself for having the introductory period if they still have to give notice? Do you have to give notice or can you terminate at will? I thought the purpose of the trial period was to make it easy to end the arrangement should it not work out. Or do you normally require a 30 day notice and the benefit of the intro period is to only need to give 2 weeks?

      I guess it would really help me understand if I were able to see how your policy reads if you don't mind?

      Comment

      • momma2girls
        Daycare.com Member
        • Nov 2009
        • 2283

        #4
        Originally posted by Lilbutterflie
        I never thought of someone using my care as a fill in for their provider taking time off. Glad you brought that up. For those providers that allow termination at will during the trial period; have you had to address this before?

        So forgive me for questioning; but what is the benefit to them or yourself for having the introductory period if they still have to give notice? Do you have to give notice or can you terminate at will? I thought the purpose of the trial period was to make it easy to end the arrangement should it not work out. Or do you normally require a 30 day notice and the benefit of the intro period is to only need to give 2 weeks?

        I guess it would really help me understand if I were able to see how your policy reads if you don't mind?
        For a family that needs care, ex. pregnancy, I now have a holding fee, of one week per month to hold it. This doesn't apply to weeks of daycare.

        Comment

        • wdmmom
          Advanced Daycare.com
          • Mar 2011
          • 2713

          #5
          Beyond the 4 week introductory period, I require a full month's notice to terminate.

          My reason for doing so is this: It takes a lot to find a family to fill spots. You don't just want them leaving you high and dry after a week or two. It takes countless hours to interview and find the right candidate. Who wants to start that process all over and fork out all those advertising fees again?!


          When I first started I had a 2 week introductory period with no penalty for cancelling within that time frame. I had 2 families come in and utilize my services. 1 family was here 2 weeks and the other was only here a week. 1 family provided notice that they weren't coming back but did so on Monday so I charged them for that week since they already paid up front for it. I refunded the 2 week deposit. The other family was suppose to return on Monday for their 3rd week and no called, no showed. I finally heard from the mom saying she wasn't bringing the kids back because I sent them home sick last week and she had to miss work and got wrote up. Not only was I without income and notice but I was back to square one and it took me 5-6 weeks to fill the slots they left open!

          Comment

          • meganlavonnesmommy
            Daycare.com Member
            • Apr 2011
            • 344

            #6
            I dont have a deposit in my contract, but I do have a two week trial period.
            I'm in a bit of a different situation though. We are military, and I only do care for other military families children. So we have the support of the military if we need to go after someone for backpay. We can get their help and go to their command if need be. So I've never seen the need for a deposit.

            A two week trial period, absolutely! I've never had a family use it, but I've terminated before those two weeks because of problems with the child. It gives me an out, and I dont have to keep watching a child that isnt working out.

            I require payment on the first day of care for a two week period, so for me that means $140 per week, so they pay $280 on the first day of care. But if either the parent or I want to terminate services during those first two weeks, then I only keep the money to pay for the services they have used so far, and I refund the rest.

            After the first two weeks, then if they continue care, they will have to give me a 2 weeks written notice to quit care. I will also have to give them a 2 weeks notice if I want to discontinue care. Unless they have broken a my contract, then I have written into to my contract that I can terminate with no notice if they break one of my contract rules.

            Hope this makes sense?

            Comment

            • Cat Herder
              Advanced Daycare.com Member
              • Dec 2010
              • 13744

              #7
              I think I am in the minority in that I don't require deposits or have a trial period. I recommend that providers do, though.

              I see the contract as "at will" since that is how my State views employment. I would never win in court. I just make sure I have people waiting for each slot.

              My families pay on Monday for the upcoming week. I ask for a minimum of two weeks notice if they are leaving, but it has not happened, yet. I have no competition in my niche market for about 40 miles. I am very lucky (I planned hard to get this lucky, IYKWIM?) ::

              My DCK's leave once they turn 4 on the first day of pre-k (it would be mid Aug. this year if I had big kids). I plan for that date each year to take new enrollments.

              During a behavioral/parental termination I just take the loss since it was worth it BOTH times. Although I did find both of those a new provider that would fit their childs needs better. Think "Miracle on 34th Street". ::

              I'm a big softie occasionally and take it personally when I can't make a situation work. That is a weakness of mine.
              - Unless otherwise stated, all my posts are personal opinion and worth what you paid for them.

              Comment

              • VTMom
                Daycare.com Member
                • Oct 2010
                • 371

                #8
                I only accept deposits if enrollment begins beyond a month's time. If the child begins within that month, I don't feel a deposit is necessary in my case. I haven't had anyone leave without adequate notice, so this hasn't been an issue at all for me.

                My deposit is fully refundable during the 2 week trial period. Either one of us can back out of the agreement without penalty. In my mind, that's the whole point of a trial period - no penalty if either party feels it's not a good fit.

                Just my opinion

                Comment

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