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Agency cannot agree rate with end client: how do I proceed?
If its a public sector end client sourcing the work through one of the newer procurement frameworks then this may be the case, I know that a number of them stipulate a maximum of 7% mark-up can be made on any third party resourcing deal (some frameworks have a higher number). So on £500 a day the agent can charge £535 and make £35 in commission.
Reducing your rate to £450 (i.e. a drop of £50) would mean the agent can now only charge £481.75 and makes £31.75 in commission - only the client wins....
It's great finding one of these contracts with one of the big 4 as you know their day rates are huge so they have no qualms about giving you £900 a day as they then earn £60+ a day and get the job done by a happy contractor where as if you asked for a more "in range" rate of £600 per day they only get £36 and a "not miffed" contractor; on either rate you will still be less than their most junior resource is charged at anyway
Plus at £900 a day, you're more likely to go the extra mile and bring their junior Powerpointers up to speed quicker so they can charge them out at £1500 instead of £1200 sooner rather than later.
The greatest trick the devil ever pulled was convincing the world that he didn't exist
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