Childminders - what is a reasonable retainer fee?

Tirian

We've been looking into childminders since we've recently had a child and will need 8am-6pm childcare from the end of April. Having seen several and talked through rates etc, we found one nearby we were very happy with.

However have just now been told that she wants a 'retainer' of half the full time fees for the whole time until end of April to hold the place.

Now I understand the need for a deposit or retainer, to keep people from taking liberties and dumping you for someone else at the last minute - but this seems to me a hell of a lot of money for not really doing anything. I mean, it's the best part of £1000. Is this normal?!?!?!?

Is there any kind of industry standard for this kind of thing, or do people just make it up and hold you over the barrel for as much as they can fleece you for?!?

liney

http://www.netmums.com/coffeehouse/working-childcare-692/childcare-691/97000-childminder-retainer-fee.html

This thread has many experiences.

Consider that your idea that she is 'not really doing anything' translates to her taking herself off the market. If you are happy for her to accept another child instead of yours should one wish to start between now and April then i'd imagine you wouldn't need to pay a retainer, and just enquire closer to the time to see if she still has space.

newcook

A few years back I was looking into being a childminder and we were advised at the training sessions that a retainer of half the amount was the norm.
You may see it as it not being for anything but she is holding a place for your son for 4 months when really she could have had a full time paying child there (which she cannot do with the retainer – even if it was just until April if she had a child there to fill the gap you would then only pay a deposit)

Tirian

That's not exactly the full picture though, is it? I mean, the likelihood of her being able to take someone else on immediately is nil - otherwise she wouldn't have a space. So I don't think it's reasonable to base the retainer on that assumption.

As I stated from the outset, I don't have a problem with the idea of a retainer fee. It's merely the amount that I find outrageous. It's £1000 for heavens sake!

thatgirlsam

She will be asking for a retainer to also keep people from taking liberties and dumping her for alternative childcare nearer the time!

GobbledyGook

If she's a good childminder then the chances of her not being approached by anyone else between now and April are slim. Most good childminders round here only go a couple of weeks at most without someone wanting them to start quickly.

You are asking her to make herself unavailable to other clients so she's got to have some sort of back up incase you turn around at the end of March and say "Actually we don't need you now". She also needs to have some sort of income whilst she's unavailable to other people.

LandyAndy

Tirian wrote: »

We've been looking into childminders since we've recently had a child and will need 8am-6pm childcare from the end of April. Having seen several and talked through rates etc, we found one nearby we were very happy with.

However have just now been told that she wants a 'retainer' of half the full time fees for the whole time until end of April to hold the place.

Now I understand the need for a deposit or retainer, to keep people from taking liberties and dumping you for someone else at the last minute - but this seems to me a hell of a lot of money for not really doing anything. I mean, it's the best part of £1000. Is this normal?!?!?!?

Is there any kind of industry standard for this kind of thing, or do people just make it up and hold you over the barrel for as much as they can fleece you for?!?

Well it is a few years (about 8) since we used a childminder but half fees was standard for retaining a place during school holidays (MrsLA was in education).

newcook

Tirian wrote: »

That's not exactly the full picture though, is it? I mean, the likelihood of her being able to take someone else on immediately is nil - otherwise she wouldn't have a space. So I don't think it's reasonable to base the retainer on that assumption

she may have a space today but its possible that tomorrow she may have an enquiry for a full time starter from next week or next month - with you retaining the place she will have to turn them down.

Tirian wrote: »

As I stated from the outset, I don't have a problem with the idea of a retainer fee. It's merely the amount that I find outrageous. It's £1000 for heavens sake!

you should be able to pay monthly/weekly in advance with the provider that if your payment is even a day late she has the right to offer your place to someone else and keep what you have already paid.

Tirian

I understand that. Perhaps other people live on a different planet to me, but a deposit of even £100 or so would be more than enough to keep me from dumping someone for that reason.

But let's say it needs to be a bit more than that for some people. What would seem more reasonable to me is a retainer of a £200-£300 plus a further deposit (even up to the £1000 total) that is then set off against fees when the childcare starts.

I've certainly no objection to the space being used by someone else before our child starts ... we don't need it in that time, that's what we've taken maternity leave for.

GobbledyGook

Tirian wrote: »

I've certainly no objection to the space being used by someone else before our child starts ... we don't need it in that time, that's what we've taken maternity leave for.

It's not about the possibility of another child wanting the space for a few weeks though. Not many people would want that. It's about other customers who could phone tomorrow and want a full time place from the end of Feb - they aren't going to use her from Feb to April, they are going to go elsewhere and that's a permanant customer lost because of her commitment to you.

GobbledyGook

To put it into perspective - my old Nanny was paid a half fee retainer for 2 months by a family and then a full time wage for 4 weeks because they had a delay in moving to our area. When they got here the wife changed her mind and decided not to have a Nanny anymore. So people do pay the full whack and still dump childcarers last minute.

In that time she had turned down 4 full time, permanant jobs because she was committed to the family. She also wasn't going to be paid by anyone else for the time between taking their job and starting it so she needed them to pay a retainer to cover her bills.