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Would You Trust an Agent Who Doesn't Reveal His Markup?

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    Would You Trust an Agent Who Doesn't Reveal His Markup?

    Let me see, I really need to think hard about that one...err..NO!!

    It's not just me being paranoid either. It seems like contractors on the other side of the Atlantic have the same problem that we have over here. A snippet from what I just read follows below. For the full page take a look at this http://www.realrates.com/news/margin.htm

    By the way they seem to call agents brokers, borkers or just borks.

    // Start of snippet..
    In a past life, I was a hiring manager for an organization where HRD forced me to use two less-than-reputable, nationwide contract firms. At one point, I had one individual working for me for whom I was being billed $47.00 / hr. One morning, he came into my office with a big grin from one ear to the other indicating he had asked and received a pay raise from his agency. I said, "Hey, that's great". I was excited for him since he and his wife were expecting a baby in the near future, and I figured they could use the extra $$$. Of course, my excitement ended abruptly two seconds after he indicated he received the raise . That's when he indicated the agency had raised his pay from a whoppin' $14.00 / hr. to a whoppin' $18.00 / hr. I had to paint a smile on my face so as not to reveal to him how bad he was being screwed.

    A month later, I sat down with the agency account rep. When I indicated I had "acquired" this information, he was furious with me and threw a tirade. Unfortunately for the agency acct manager, upper management heard about the tirade. Very soon, we had a new contract with the agency, we had a new agency acct manager, and HRD was given the directive to find a new agency. Today, that acct manager no longer works for the agency and is now trying to be a local politician (imagine that!!!).

    I tell this story just as an example of how big of liars some of these guys are. In every case when I used these two agencies, the minimum markup was 100%. Granted, there are exceptions. I'm presently working with a W2 agency for whom I have a great deal of respect. They aren't flashy, they aren't fake with plastic smiles, and they aren't all schmoozey-woozey with me. They work hard and are pretty much straight-shooters. In the past, I have asked what my markup was, they told me, and I verified it with the client. Unfortunately, I believe this agency is the exception instead of the norm.

    To summarize, in general, I am uncertain if I would trust borkers. As Tandem Guy indicates above, "What makes you think it would be a truthful number?", and as Accuracy indicates, "There's so many reasons beyond markup to not trust borks".

    'Nuff said ..........

    #2
    would you trust any company who did not reveal their markup?

    yes you do so every day

    like when you go to Maccy D's - how much do they make per cheese burger?

    question is not relevant as long as you are happy with the price you pay.

    we all want to earn more and buy things for less but we live in the real world where business are in business for profit.........

    if the rate the pimp offers you is ok then take it - if not do not - if the pimp has managed to negotiate a great markup from the end client then so be it....

    Comment


      #3
      I'm in the 'Not bothered as long as my rate at leasts reflects the going rate' community. I negotiate hard to usually gain above market rates and that works for me.

      I am aware, however, there are those for whom the margin means a lot...

      Older and ...well, just older!!

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        #4
        Everybody brace yourselves for another thread being turned into a Denny/DA/TheOmegaMan free for all...

        Comment


          #5
          Originally posted by jh0711
          would you trust any company who did not reveal their markup?

          yes you do so every day

          like when you go to Maccy D's - how much do they make per cheese burger?

          question is not relevant as long as you are happy with the price you pay.

          we all want to earn more and buy things for less but we live in the real world where business are in business for profit.........

          if the rate the pimp offers you is ok then take it - if not do not - if the pimp has managed to negotiate a great markup from the end client then so be it....
          The difference is that agencts "could" lose you the gig based solely on THEIR mark-up not your rate.
          The client may pay the higher rate, but it does put you at a disadvatage IF an agency tries to squeese too much out of the client.

          After all if they get 50% of their clients to pay way over the odds as opposed to 100% paying a reasonable rate - the agency doesn't lose out - the only ones who lose are the 50% who weren't taken on...
          Cenedl heb iaith, cenedl heb galon

          Comment


            #6
            Originally posted by jh0711
            would you trust any company who did not reveal their markup?

            yes you do so every day

            like when you go to Maccy D's - how much do they make per cheese burger?

            question is not relevant as long as you are happy with the price you pay.

            we all want to earn more and buy things for less but we live in the real world where business are in business for profit.........

            if the rate the pimp offers you is ok then take it - if not do not - if the pimp has managed to negotiate a great markup from the end client then so be it....
            As my original snippet shows, there is no reason to think that the pimp is any more honest with the client than he is with the contractor. Telling a lie to each side seems the way to make the most money, at least until somebody finds out, (as described in the snippet).

            I'm not happy being told lies to, basically, it's not just the money.

            I really don't grudge anyone making a living, but agents should be honest about how much they make both so that contractors can have confidence in them and to prevent abuse of their position.
            Last edited by abc; 21 March 2007, 16:34.

            Comment


              #7
              Originally posted by chicane
              Everybody brace yourselves for another thread being turned into a Denny/DA/TheOmegaMan free for all...
              Sorry I just could not resist sharing what I had read from over the pond.

              Comment


                #8
                well easy answer do not use pimps get your own gigs..........

                Comment


                  #9
                  Originally posted by jh0711
                  would you trust any company who did not reveal their markup?

                  yes you do so every day

                  like when you go to Maccy D's - how much do they make per cheese burger?

                  question is not relevant as long as you are happy with the price you pay.

                  we all want to earn more and buy things for less but we live in the real world where business are in business for profit.........

                  if the rate the pimp offers you is ok then take it - if not do not - if the pimp has managed to negotiate a great markup from the end client then so be it....

                  Boll***.The dynamics are totally different. If you are charging the contractor out at £1000 a day the client will expect an £800 a day contractor. If you are paying a contractor £500 a day then the client will be expecting more from his contractor. If the client is happy with the deal then fine.

                  From a contractor point of view it helps to know where he is positioned in terms of cost to the client.
                  Last edited by DodgyAgent; 21 March 2007, 15:29.
                  Let us not forget EU open doors immigration benefits IT contractors more than anyone

                  Comment


                    #10
                    Originally posted by Bluebird
                    The difference is that agencts "could" lose you the gig based solely on THEIR mark-up not your rate.
                    The client may pay the higher rate, but it does put you at a disadvatage IF an agency tries to squeese too much out of the client.

                    After all if they get 50% of their clients to pay way over the odds as opposed to 100% paying a reasonable rate - the agency doesn't lose out - the only ones who lose are the 50% who weren't taken on...
                    Exactly so

                    And also loosing a 6 month gig at a good rate, that you technically fancied doing, is a little bit more "troublesome" than missing out on a cheeseburger.

                    Comment

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