Agent rate negotiations after being in place for a while

**TheFaQQer** · 12 February 2016, 10:27

Originally posted by mankyspanky View Post

And advice on next step?

1) Ask again, and have a proper conversation
2) Suck it up and stay
3) Walk away, explaining to the client why you are turning down the extension

Your choice. Only you know whether you'll walk into another contract or really regret it.

**SimonMac** · 12 February 2016, 10:36

Originally posted by mankyspanky View Post

So been at client for a few extensions now. This time around they want me to do a different job.
So I asked agent to change title etc and wanted a rate increase. Different role, rates have gone up, forthcoming dividend tax. I know agency margin is about 17% too. My request was pretty low as well considering.
I dont care if they ask client or look at their margin. Answer back - no rate increase. And advice on next step? I do want to stay but even a counter offer would be something - this is having a larf a bit. Tempted to say ok then no thanks, I'll tell client Im leaving on this date then (when current contract ends).

Thing is I know PM will be sick about this - project has just started and they rely on me totally. always moaning that they dont have perm staff to do the job.

How tough to be on this tho?

How tough can you afford to be?

Its a case of brinkmanship, if you have a good relationship with the client then use that as leverage against the agent, speak to the client and let them know you are happy to continue however new role needs new terms and you are discussing that with the agent.

However could you have the good relationship with the client as they know you are cheap and any extra headache will not be worth it to them.

Only you can decide which is true.

**northernladuk** · 12 February 2016, 10:39

Don't kid yourself though. No one is irreplaceable. You might think they rely wholly on you but they'll be back up to speed in no time if you go. These things are bigger than one person.

**pr1** · 12 February 2016, 10:48

if you're convinced you've got a really good hand then raise, otherwise call or fold

don't bluff

**mankyspanky** · 12 February 2016, 11:07

Well, I have a very good relationship with client. Thats the thing. And the rise I've asked for is about 5% so we're not talking huge amounts over the next 3 months. Probably a grand or so to them. Yes I know no-ones irreplaceable but Im sure me leaving would be more than a grands worth of hassle for them.

I feel its taking the piss a bit to turn it down. But yeh I want to stay but still its a bit much. Two weeks to go - might just say not happy and see if they crack first. Or see if something else comes up in the meantime. Might as well. Hardly going to withdraw the original offer I dont think.

**LondonManc** · 12 February 2016, 11:11

17%?

Ask them what they're doing for 17% this time round and how 17% of ABSOLUTELY NOTHING works out for them.*

* N.B. You must be prepared to walk in this case.

**northernladuk** · 12 February 2016, 11:24

Originally posted by LondonManc View Post

17%?

Ask them what they're doing for 17% this time round and how 17% of ABSOLUTELY NOTHING works out for them.*

* N.B. You must be prepared to walk in this case.

He's dealing with uppety contractors trying to take a cut of his money...

* and if anyone has to ask this question they'll never walk and the agent knows it.

**mankyspanky** · 12 February 2016, 11:27

Originally posted by LondonManc View Post

17%?

Ask them what they're doing for 17% this time round and how 17% of ABSOLUTELY NOTHING works out for them.*

* N.B. You must be prepared to walk in this case.

Yes exactly. If theres a 3 month contract on offer, then yes fair enough the agent has to do a lot of work to get someone in there. So surely the margin they set has got to work if this only lasts the three months? i.e. there is no extension. So its enough they make a profit in this case.

But then past the initial extension all they do is factor invoices and sort out paper work for extensions. Money for nothing. Coining it in.

BUT they seem to guard this margin jealously even after several extensions. Maybe they dont think anyone is ever going to walk but surely they're not so dull as to risk 17% of something that they do little work for? I wonder sometimes. Unless of course, they're the clever ones and know most people will fold.

**pr1** · 12 February 2016, 11:38

Originally posted by mankyspanky View Post

Yes exactly. If theres a 3 month contract on offer, then yes fair enough the agent has to do a lot of work to get someone in there. So surely the margin they set has got to work if this only lasts the three months? i.e. there is no extension. So its enough they make a profit in this case.

But then past the initial extension all they do is factor invoices and sort out paper work for extensions. Money for nothing. Coining it in.

BUT they seem to guard this margin jealously even after several extensions. Maybe they dont think anyone is ever going to walk but surely they're not so dull as to risk 17% of something that they do little work for? I wonder sometimes. Unless of course, they're the clever ones and know most people will fold.

The 3 month original contract might(!) be a loss leader and they may actually be assuming it'll be 6,9,12 months for them to break even/make their profit - like when sky offer you free broadband for a year, they're basing their model on the fact you probably won't leave after 12months1day

Your contract is not the agents only income stream so he can afford to lose it more than you can (assuming it's your only income stream)

Therefore don't bluff, you will lose, if you have another offer on the table or are confident you can get one quickly, then you can afford to demand more or walk away - otherwise, accept the offer

Agent rate negotiations after being in place for a while