Agency excessive margin

**malvolio** · 12 March 2015, 09:24

Are you getting what you agreed to get? If so, what's the problem? What do you intend doing about it anyway? Ever tried suing Sainsbury's for their mark-up on sirloin steaks?

Anyway, they aren't getting 25%, you're getting 80%: after 10 years you should at least have an idea how that works.

**meridian** · 12 March 2015, 09:25

Originally posted by workitout View Post

I have just discovered that my agency is netting 25% on my daily rate. I have never experienced such sharp practise in my 10 years of IT contracting. Do I have a legal leg to stand on? As I am hoping to challenge them on what I believe to be extortion.

Is that 25% of your rate? That would make it 20% of the gross, which isn't that "sharp". Percentages can often be higher on lower-rate contracts, when I was first starting out the agent was taking closer to 30%.

Why do you care? If you're happy with your rate, and the client is happy to pay the gross, what's the problem?

What do you hope to gain from challenging them? The most likely outcome is that you'll keep your rate (as per your contract) and the client will pay less. And the agent will then possibly start looking for your replacement....

If you do really want to reduce the client's outlay for you out of the goodness of your heart then the legal route's not the best approach, you'll need to negotiate with the agent. This may only be successful if you're on your second or third extension and can justify them reducing their margin.

**sal** · 12 March 2015, 09:29

The agency offered you work at a certain price, you accepted and signed the contract, case closed.

Your only 3 options are:

A) Suck it up and negotiate better next time
B) Ask for more money at contract extension
C) Serve your notice and walk after it's finished

**tractor** · 12 March 2015, 09:56

.....

Many agents will start the negotiation at 40%. Sad thing is that if you play hardball, many will just drop you and go for the low hanging fruit. They don't really care about quality. As long as what they put in front of the recruiter is viable and provides the most amount of profit, they are happy.

Th best bargaining chip is to have niche skills that are in demand.

**northernladuk** · 12 March 2015, 10:06

Originally posted by workitout View Post

I have just discovered that my agency is netting 25% on my daily rate. I have never experienced such sharp practise in my 10 years of IT contracting. Do I have a legal leg to stand on? As I am hoping to challenge them on what I believe to be extortion.

Extortion.. **** me. Heard it all now. Maybe he got wind from the off you are a bit of a push over and has gone for it rather successfully..

BTW of you do challenge him please record his response for us lol..

**northernladuk** · 12 March 2015, 10:07

BTW.. You are getting 80% of his rate not the other way around

**malvolio** · 12 March 2015, 10:16

Originally posted by northernladuk View Post

BTW.. You are getting 75% of his rate not the other way around

No, he's getting 80%...

**northernladuk** · 12 March 2015, 10:17

Originally posted by malvolio View Post

No, he's getting 80%...

That's what I put. You've just changed it to make me look stupid. You cad!!!!

**psychocandy** · 12 March 2015, 10:27

20% is not too bad. I found out I got stung for 40% at last gig - must admit I was a bit peeved.

As someone said, claiming extortion is taking the piss. If you get away with it, as someone said, Im off into tescos later to see how much they made on those cornflakes they sold me.

Agency excessive margin