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    Default Another rate question

    I have done a search on the forums about this but my question is slightly different ...

    I am planning to ask for a rate increase, mainly because of rise in hotels costs, which I have so far managed to absorb but not any longer. Is it "appropriate" to ask the agent for an increase but state that I would like the increase to come from their margin.

    In the past, I have asked for an increase but didn't care if the client or the agent made up the rise.

    This isn't a situation where I will walk if I don't get it, like I have done in the past, but would like the agent to meet the rate increase.

    I am on a weeks’ notice so hotels are my only choice (staying in a budget hotel as well to keep costs down) so don't fancy renting out.

    For some reason I keep thinking it is rude to ask the agent to give the increase from his margins, no idea what their margin is, maybe I should ask beforehand? (is this really any of my business, what their rate is)

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    Asking for a rate rise is one thing. Dictating to them where it comes from is something else.

    That bottom paragraph shows you need to understand your engagement and the players a little better if you don't mind me saying.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    Quote Originally Posted by northernladuk View Post
    Asking for a rate rise is one thing. Dictating to them where it comes from is something else.
    yes that's a good point

    Quote Originally Posted by northernladuk View Post
    That bottom paragraph shows you need to understand your engagement and the players a little better if you don't mind me saying.
    no offence taken, could you clarify this a little please, think its gone over my head
    Last edited by aa2006; 7th November 2017 at 09:08.

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    In the end it's not up to you whether the increase comes from the agency or the client. This sounds like a reasonable request. Just contact the agency and explain. You might have to look for an alternative though and you need to figure in a bit of bench time before you get something.
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    Quote Originally Posted by BlasterBates View Post
    In the end it's not up to you whether the increase comes from the agency or the client. This sounds like a reasonable request. Just contact the agency and explain. You might have to look for an alternative though and you need to figure in a bit of bench time before you get something.
    very true

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    Default Private sector IR35

    Quote Originally Posted by akhtara7 View Post
    I have done a search on the forums about this but my question is slightly different ...

    I am planning to ask for a rate increase, mainly because of rise in hotels costs, which I have so far managed to absorb but not any longer. Is it "appropriate" to ask the agent for an increase but state that I would like the increase to come from their margin.

    In the past, I have asked for an increase but didn't care if the client or the agent made up the rise.

    This isn't a situation where I will walk if I don't get it, like I have done in the past, but would like the agent to meet the rate increase.

    I am on a weeks’ notice so hotels are my only choice (staying in a budget hotel as well to keep costs down) so don't fancy renting out.

    For some reason I keep thinking it is rude to ask the agent to give the increase from his margins, no idea what their margin is, maybe I should ask beforehand? (is this really any of my business, what their rate is)
    try to hold off asking until after the budget on 22nd November, as if the widely expected IR35 rules are adopted into the private sector you might need to increase your rate by 50%+

    As no more claiming expenses via your company (you will need to pay them from your NET 50%+ tax deducted salary)

    anyone with high (living away in hotels + flights) might as well give up contracting
    Last edited by tarbera; 7th November 2017 at 10:58.

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    Quote Originally Posted by tarbera View Post
    try to hold off asking until after the budget on 22nd November, as if the widely expected IR35 rules are adopted into the private sector you might need to increase your rate by 50%+

    As no more claiming expenses via your company (you will need to pay them from your NET 50%+ tax deducted salary)

    anyone with high (living away in hotels + flights) really should be well on their way into creating their own niche consultancy
    FTFY....
    merely at clientco for the entertainment

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    Quote Originally Posted by eek View Post
    FTFY....
    Read my ******* mind

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    Quote Originally Posted by akhtara7 View Post
    no offence taken, could you clarify this a little please, think its gone over my head
    OK.. So you said.

    For some reason I keep thinking it is rude to ask the agent to give the increase from his margins, no idea what their margin is, maybe I should ask beforehand? (is this really any of my business, what their rate is)
    For a start why do you think it's rude for the agent to make it from his margins. Where is your business sense. His margins is his profit. He's put the effort in finding you, paying for jobserve and it will make him a profit over the duration of the contract. He puts a bit of effort in at extension and that's it. The rest is free money for them, they've already done the work so why shouldn't he reduce his margin. It's just business 101.

    You really think an agent is going to tell you what is profit margin is? Where else can you go and someone you are buying from tells you their profit margin? The only time they may tell you is when it's really low and they've nothing to hide, either a fixed percentage deal or it's like sub 10% already. He's happy to tell you because it will be so low they aren't going to budge. They aren't going to turn round and tell you they are making 20% from you are they? The result will be you will squeeze him or get hacked off and possibly leave.

    No it isn't any of your business what his margin is. Finding out and reducing it is though. You should be asking the agent if they are on a fixed margin at the start of the gig and get it in writing. If it is fixed there isn't a hope you'll get an increase from his margin. You can often find out by keeping your eyes open on site. Not so common to find it on the printer anymore but look at charge rates for projects or possible slip ups in mails, paperwork on hiring managers desk etc. You should be able to find out at some point on many gigs.

    It's very unlikely you'll get a rate rise from anywhere else. The client is likely to have a rate card and they aren't going to give you any more because your costs have gone up. They are paying for a set piece of work. You aren't delivering anything else so why should they pay more. If you don't like it they'll find someone else.

    You've got to understand this stuff if you are going to play agents. They do this day in day out. They will have lost count of the number of contractors that 'ask' for a raise, they say 'no, what are you going to do about it' and the contractor just re-signs. It's what they do. If you don't know how it works you aren't going to be able to play him at his own game.
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    Quote Originally Posted by eek View Post
    FTFY....
    Quote Originally Posted by SeanT View Post
    Read my ******* mind
    What a load of bollocks.

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