Would You Pay a Waitlist Fee for Childcare?

mr-incredulous on 24/06/2020 - 14:30

First time being exposed to the childcare industry as my wife is going back to fulltime employment.

I made a shortlist of some 10 or so possible places based on location and the NQS ratings and have contacted each. So far, some have said "sorry we won't have any places this year", some have said "we'll put you on the waitlist" and others I'm waiting for a reply.

One centre has said "we'll put you on the waitlist if you pay a $25 waitlist fee to cover the admin cost". Surely maintaining a waitlist is in the best interest of the centre so they can keep their places filled and the associated 'admin' is simply the cost of doing business. I can't think of any moral or business justification other than "we do it because we can". You would think this fee would entitle you to some kind of information about how long the waitlist is and what the waiting time is likely to be but nope instead I get "things can change from week to week and month to month". I could understand a deposit for a guaranteed place at a specific date.

So the question is, how normal is this, and would you ever pay a waitlist fee?

Bonus question, is this going to keep happening with schooling down the track with ever increasing amounts?

BTW I'm aware of this thread which is a separate issue and I don't really have a problem with the idea of paying in advance.

Poll Options

  • 2
    No, unless I was desperate e.g. short time-frame
  • 3
    Yes, if I had exhausted other options
  • 5
    Yes, for any centre that asks
  • 11
    Yes, if I knew it was a really good centre
  • 69
    No
Toys & Kids

Comments

  • tsunamisurfer on 24/06/2020 - 14:40
    +6

    $25 for putting your name in a spreadsheet? What a rip off, they aren't even beginning the process of signing you up yet.

    Unfortunately if the establishment is good, you are in a tough situation.

    • 69 dollar dealz on 24/06/2020 - 15:22
      +1

      What you get for $25 (probably) -

      Name on Spreadsheet;

      Clerical time responding to requests for an update on spreadsheet;

  • boomramada on 24/06/2020 - 14:41
    +5

    You are in a waiting list = high demand for it.
    If you want that place so bad, you pay the fee or look else where. This poll not going to fix your issue.

    So the question is, how bad you want to put your child in that center?

    • mr-incredulous on 24/06/2020 - 14:59

      Maybe it follows that if waiting list = high demand and low chance of getting a place then waiting list with fee = very high demand and near-zero chance of getting a place? Seems pointless then unless this is your 'holy grail' centre and you're willing to use another centre for months until a place opens up.

      • GG57 on 24/06/2020 - 15:17

        It is your decision, so you decide based on your own situation and if you think this is the best option.

  • [Deactivated] on 24/06/2020 - 14:43
    +6

    Its to help screen out idiots, works great

  • Rockets84 on 24/06/2020 - 14:47
    +13

    A $25 fee is a simple way of sorting out the serious parents from the tyre kickers. My son wanted to play basketball but the local association had limited number of courts and plenty of kids waiting to play. They charged a wait list fee so that only kids who seriously wanted to play would be on the list. Before they charged a fee the association might go through 10 names before they found a kid who wanted to play.

    • mr-incredulous on 24/06/2020 - 15:03
      -1

      Yeah I get your point but its not really a fair comparison since we're talking about a for-profit business and any 'admin cost' must be miniscule in comparison to turnover. They have staff, not volunteers.

      • cloudy on 24/06/2020 - 15:17
        +2

        Parents often put up to 10-20 centres wait lists. So if every parent does that centre’s need to make 10 or so calls before a parent actually accepts the offer. So yea, the admin is substantial. I know cos my wife did what all mums did, start putting our kid on waitlists 6 months in advance

      • Rockets84 on 24/06/2020 - 15:21

        Because they for profit it surprises me that most don't charge a fee. A chain of centres probably wouldn't because they can offer you a spot in different locations. Our local basketball association has a stadium & paid staff so a group of volunteers isn't running it day to day but they still charge a fee for the wait list.

      • poboy on 24/06/2020 - 21:48

        My centre is non profit and charges a wait list fee.

    • Lastchancetosee on 25/06/2020 - 09:29

      Sure, but if this became general practice, it could be hard for families with more than one child, and who are doing it tough.

  • godofpizza on 24/06/2020 - 14:51
    +1

    Someplaces have an admin fee and a deposit fee. The place i go to wants $300 per child, and their wait list is about 3 years long.
    but with the pandemic, you might find alot of vacancies available now.

    if you really like the centre, paid then a visit and go for a tour.
    Ask the right questions, if this the best place for my child? how are they caring the other kids there.

    But if you need a centre for care you might have to opt at the other 9 places your mentioned.

  • GG57 on 24/06/2020 - 15:23
    +2

    Imagine if there were no fees.
    You, and many many other parents, would wait-list your offspring at each and every centre, and in the back of your mind you have preferred options at the top of your list.
    Whenever a vacancy arises, the child car centres would spend a lot of time and effort working through their wait-list trying to find a family that really wants to go there. That 'admin' is a cost, and it isn't their core business.
    I see it that you need to commit to allow the centre to weed out all the timewasters.

    • Leo Getz on 26/06/2020 - 00:33

      That 'admin' isn't just a cost, it's how any business gets run regardless of the core business.
      Be it government, private or public enterprise, the business doesn't just magically happen.

  • jimdotpud on 24/06/2020 - 15:31

    do they refund the fee if you accept the offer down the track?

    • poboy on 24/06/2020 - 21:49

      No.

  • JustinHardie on 24/06/2020 - 15:34
    +1

    It's hard to get the spot and days you need, so you have to waitlist. Because you need one from a certain date for work or school or whatever, you have no flexibility and need to waitlist multiple centres to be sure you get a place somewhere. Centres know this and fee is a new normal. Schools do the same thing when applying for school. You have no practical alternative, you have to pay.

  • whooah1979 on 24/06/2020 - 15:59

    Slip the doorman a $20 note and get in door sooner while the cheapskates wait back in the line. Basic supply and demand.

  • Diji1 on 24/06/2020 - 17:26

    Another privatisation disaster.

  • brendanm on 24/06/2020 - 17:46

    Yes I would if the centre was good.

  • p1 ama on 24/06/2020 - 18:48
    +5

    Bonus question, is this going to keep happening with schooling down the track with ever increasing amounts?

    Yes.

    I used to be a teacher and was the acting enrolments officer (whilst the real one was on leave) of a reasonably popular school.

    We had a similar policy, where parents who would want to get on the waiting list would have to pay a fee. Even with the fee, the waiting list was many times longer than the number of students we could actually accept. Furthermore, many parents actually reject when you give them an offer (usually because they want to send their kid elsewhere).

    This sort of thing is an administrative nightmare and can take months to do since you cannot offer a place to another student until an individual earlier on in the waiting list has rejected. There's significant cost in doing this.

    Basically, if you did not have these sorts of fees, everyone would put themselves on the waiting list, you will end up admitting maybe 1/20 students. That basically means if you are admitting 300 students, you would have to end up calling thousands of people, most of whom are rejections. The cost this would take is enormous.

    In any case, this is all a moot/silly discussion to have. The centre/school can charge however much they want. You can choose to pay or not pay. Market sets the price. If you don't like it, nobody's forcing you to pay. Just don't post here to complain in a few months when your wife is back at work and you're at home babysitting because you chose not to pay…

  • Trying2SaveABuck on 24/06/2020 - 22:48
    +2

    this is Ozbargin what do you expect people to vote?

  • TheOtherLeft on 25/06/2020 - 08:22

    Having gone through the process with two young kids, yes the waitlist fee is quite widespread. As others have said it's to weed out tyre kickers who put their kids names at 10 different childcare centres. $25 is very low. I've heard of waitlist fees being in the hundreds of $$$.

  • HelpMeiCantSee on 25/06/2020 - 08:58
    -2

    It’s like cover charge. A sure sign of price gouging or business incompetence. Charging others for the price of doing business. It’s the Australian way!

  • Mister LoLPants on 25/06/2020 - 11:58

    Needs another option which is used:

    Yes - If its refunded upon acceptance of a place.

    These are there because people apply to be put on wait lists for many places, once a spot becomes available and they are called, it can take a few calls to find someone who hasn't taken a place elsewhere.

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