Agent won't budge

[ClothCap]

After finding out the agent are taking 25% (and the p1$$ imho) it is renewal time.

I normally get some drop in their cut if I insist, but this time they won't. I don't want more from the client as they are paying enough.

So I think I'll just tell the client the situation and not renew if they don't budge.

How can the winkers get away with blocking my services just cos they hide their margins at the outset?

[sal]

If you have a good relationship with the client, just let them now that you want to stay, but the agent is taking a piss with 25% margin. See if they can lean on the buggers.

Short of that if you decide to hold your ground be prepared to walk.

[northernladuk]

25% of what.... If you are on £200 a day he's going to have to take that to make it worth it. If you are £400 a day it's too much.

If he has to make say £40 a day the percentage is going to vary. Looking at a flat percentage figure is misleading.

[FatLazyContractor]

After finding out the agent are taking 25% (and the p1$$ imho) it is renewal time.

I normally get some drop in their cut if I insist, but this time they won't. I don't want more from the client as they are paying enough.

So I think I'll just tell the client the situation and not renew if they don't budge.

How can the winkers get away with blocking my services just cos they hide their margins at the outset?

If you are getting enough, what exactly is your issue? That is how the business works, doesn't it?

[ClothCap]

No. You are obviously young and naive. NLUK has hit the nail on the head, higher rate should reduce their cut otherwise they take way too much.

[psychocandy]

Really depends on relationship with client....

Bearing in mind agent knows how to play this game and will want to protect his margin at all costs. He may even phone client and say your trying to blackmail everyone and threatening to leave for a few quid - even if you tell him not to ask the client. I've had that happen.

Also, how do you know client will care about the 25%? They might know/they might not, they might not care too. Depends.

I've had similar and client got all indignant that agent had told them he was on fixed margin and it turned out to be 25%. What ended up happening. Everyone got about £10 next renewal, agent kept large margin minus £10 and client forgot all about it.

[NotAllThere]

If you are getting enough, what exactly is your issue? That is how the business works, doesn't it?

For the hard of thinking - high margins are bad because they distort the market. The client doesn't know how much you get, he only knows how much he's paying.

Bad for contractors:

Contractor A - costs £600 a day, gets £400 a day
Contractor B - costs £550 a day, gets £450 a day.

Which contractor gets canned first? From which one does the client expect more?

Bad for clients: they're paying over the odds.

One of my clients dictates margins to their suppliers. And after six months insists on a margin reduction - which must go to the contractor.

[SlipTheJab]

For the hard of thinking - high margins are bad because they distort the market. The client doesn't know how much you get, he only knows how much he's paying.

Bad for contractors:

Contractor A - costs £600 a day, gets £400 a day
Contractor B - costs £550 a day, gets £450 a day.

Which contractor gets canned first? From which one does the client expect more?

Bad for clients: they're paying over the odds.

One of my clients dictates margins to their suppliers. And after six months insists on a margin reduction - which must go to the contractor.

+1, I've never understood the 'why do you care what's the agents getting' mentality, it's very important to know what the score is so that you can manage expectations (and beat the agent down if possible) OP it's a risk only you can quantify it's tough out there!

[Lance]

How can the winkers get away with blocking my services just cos they hide their margins at the outset?

They can get away with as you've agreed a price, the client has agreed a price, and you have a clause in your contract to prevent you from bypassing the agent.

Simple.

[ClothCap]

Except I haven't signed the renewal which is a separate negotiation. Even simpler.