Agency excessive margin

[SpontaneousOrder]

The farmer invested a lot of money in feed, veterinary bills, and cared for the cow for a number of years. The agent phoned someone up.

Agency invested in an office & telephony & agents.

Agent invested his time in sitting at his desk every day, when he could be doing something more fun, before he landed the role.

[tractor]

.....

The farmer invested a lot of money in feed, veterinary bills, and cared for the cow for a number of years. The agent phoned someone up.

The farmer usually collected CAP payments for not farming.

[DaveB]

Just get a gig with Hays. At some point they will mail everyone all the contractors rates again...

Current agent did that ona smaller scale. Sent me some poor sods aggent/client Ts&Cs by mistake detailing what he was getting paid and what the client was paying.

Suprisingly little considering.

[meridian]

My honest answer.

http://www.sthree.com/images/reports...ments-2014.pdf

So assuming that Revenue is the gross you receive from clients, and Gross Profit is the difference after paying the contractors (I.e it's your margin), then you're averaging 30% off the clients.

Averaging.

[Andy Hallett]

So assuming that Revenue is the gross you receive from clients, and Gross Profit is the difference after paying the contractors (I.e it's your margin), then you're averaging 30% off the clients.

Averaging.

No, you are including the perm introduction fees which are effectively 100% as we have no direct cost of sale.

[meridian]

No, you are including the perm introduction fees which are effectively 100% as we have no direct cost of sale.

Ah, of course.

So from p95, perm revenue is 85k. Take that off both the revenue and the gross profit, and you have 661k revenue and 133k gross profit from contracting, so around 20% on average then.

[redlorry]

Just get a gig with Hays. At some point they will mail everyone all the contractors rates again...

Brilliant.
So the agency I was working through isn't the only one who does this then.
They're bloody useless. Every couple of months said agency sent me an email with the invoice requesting payment from the Client.
That's how I found out they were skimming a very healthy chunk for themselves, well above their agreed percentage with the Client. I used it as leverage to increase my day rate without affecting what the Client paid.
After that I still got the odd email from the agency with the invoice by mistake. They still weren't charging their agreed percentage, but it was a lot closer

[Platypus]

I have just discovered that my agency is netting 25% on my daily rate.

Well I do have some sympathy. I've just discovered that my agent is taking 32% of the gross value of my contract. Mind you it's a cushy WFH role and the agent pays me (monthly) within a week of invoice despite waiting 60 days for the client to pay them. Another issue is that the agent is one of the few on the client's PSL and I have a clause in my contract that stops me switching agents. So to keep my cushy job I've decided I'll have to suck it up. But I'm still peeved. Even the client told me I was being screwed