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direct to client negotiating advice needed

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    direct to client negotiating advice needed

    Hi all - first post!

    Need some advice.

    An old colleague set me up an interview with a client he is working for and I've was subsequently offered the role (directly). They asked what my rate was, knocked it down a little, but still more than my current contract so fine. I then sent the company details they requested and was told the admin team would deal with it

    Now a week has gone by and I've had no further correspondence, apart from replies to emails I've sent chasing it up - I've been informed there's a 'backlog'.

    My issue is that during the week I've been waiting, I've seen they're recruiting via agencies (massive project) for the same roles but for significantly higher rate than I agreed directly. Clearly I undersold myself and didn't do my homework. I've not gone direct before so I'm going to learn from this.

    My question is, am I in a position to reopen negotiation for my rate, since I haven't received a contract yet? Or is this a big no-no? If I ask meekly, i'm sure they'll say no, so just want understand my position. Assuming they still want me of course

    Any advice appreciated, cheers

    #2
    Originally posted by whyman View Post
    They asked what my rate was, knocked it down a little, but still more than my current contract so fine.

    ... I've seen they're recruiting via agencies (massive project) for the same roles but for significantly higher rate than I agreed directly. Clearly I undersold myself and didn't do my homework. I've not gone direct before so I'm going to learn from this...

    Any advice appreciated, cheers
    So, you agreed to a rate you were happy with, and now you're not happy.

    Not happy or greedy?

    Next, how often have you seen (or read stories of) agents advertising rates higher than the eventual offer? (Clue: they do it all the time)

    My advice for now: Don't renegotiate.
    For the next time you get offered a direct role, take the last rate you had through an agent and add 10%, but be prepared to negotiate.
    …Maybe we ain’t that young anymore

    Comment


      #3
      Originally posted by WTFH View Post
      So, you agreed to a rate you were happy with, and now you're not happy.

      Not happy or greedy?

      Next, how often have you seen (or read stories of) agents advertising rates higher than the eventual offer? (Clue: they do it all the time)

      My advice for now: Don't renegotiate.
      For the next time you get offered a direct role, take the last rate you had through an agent and add 10%, but be prepared to negotiate.

      Thanks for your advice.

      I don't think it's greedy to want to make more money for your business is it? If the guy next to you doing the same job was on £100 a day more, I don't think anyone would be totally happy with that.

      Comment


        #4
        Re-negotiating your rate may put a bad taste in their mouth and may delay them even more.

        Given them a time period to come back to you by, otherwise say you will have to then look elsewhere.
        ______________________
        Don't get mad...get even...

        Comment


          #5
          Originally posted by whyman View Post
          Thanks for your advice.

          I don't think it's greedy to want to make more money for your business is it? If the guy next to you doing the same job was on £100 a day more, I don't think anyone would be totally happy with that.
          Its greedy if you negotiate a rate you feel you are worth, but when you see someone else on more money feel the need to renegotiate:

          Definition of greed: intense and selfish desire for something, especially wealth, power, or food.

          For me, it's all about knowing your worth and sticking to it. My first contract I took at a rate I wasn't entirely happy with, but I wanted out of permie land. I've done some professional services for other clients whilst i've been here during evenings and weekends and charged them significantly more, a rate which i'm happy with. Would I renegotiate with my current client? No. I agreed that rate for a reason; I was happy with it at the time and the opportunity was of a benefit to me in the situation I was in.

          Next opportunity I move on to I will absolutely hold out for a higher rate or let it pass me by, as long as I can afford to.

          Best thing to do is not renegotiate, know your worth for next time and chalk it up to experience. As for the delays and the backlog, if the project is massive and needs lots of staff that could be genuine. I'd ride it out a week with another couple of chasers and then say you're going to start interviewing.

          Comment


            #6
            If you are going to compare the day rates of your peers, I am afraid you are not cut out for contracting. It does not work that way. No two contractor's are alike and we all have various skills and even though there might be a team of contractors on the same project, they all will be on various rates and there never will be a uniform rate. This is even true in permie world.

            What would give you peace of mind is determine what your day rate is for your skills and experience and then negotiate that rate and be happy when you get it. Ignore what everyone else gets.
            Vote Corbyn ! Save this country !

            Comment


              #7
              Originally posted by whyman View Post
              Thanks for your advice.

              I don't think it's greedy to want to make more money for your business is it? If the guy next to you doing the same job was on £100 a day more, I don't think anyone would be totally happy with that.
              that's some envy mixed in with a smattering of greed. Not pleasant really. And if that's how you try to negotiate an increase your client will see it as such.
              Do the term you've contracted and try for an increase at renewal time. And the angle you use is not whining that you get less than the other bloke, but more about the fact that you're adding value and delivering the benefits (hint: they know you're on less than others so don't patronise them).
              See You Next Tuesday

              Comment


                #8
                Originally posted by whyman View Post
                Thanks for your advice.

                I don't think it's greedy to want to make more money for your business is it? If the guy next to you doing the same job was on £100 a day more, I don't think anyone would be totally happy with that.
                How do you know they are on £100 a day more? Is it because that is the rate the agent is advertising?

                Please re-read what I said.
                Agents will advertise rates to entice contractors to apply, they will then use various tactics to drop that rate. That’s what they do.
                If you apply for a job that’s advertised, it’s rare to get the advertised rate.
                If you are approached by an agent, you are going to get the rate they quote maybe + a bit if you’re a good negotiator.
                And if you go direct, you take the last rate you were on (i.e. the rate the agent was paying you) and add maybe 10%

                Once you’ve got a contract, don’t try to compare yourself to other roles being advertised or with other contractors, unless you are certain that the people doing those roles have exactly the same skills, qualifications and experience as you and that they come across exactly the same as you in an interview situation.
                I.e. don’t compare yourself, you don’t know.
                …Maybe we ain’t that young anymore

                Comment


                  #9
                  Your Ltd Co is a supplier to the client. The interview process is a bit like a scaled down RFP (request for proposal). The client tells you what they want doing, you evidence why you are the right supplier and how you would deliver what they want. You (at the interview or later) agree a day rate. Contract and schedule are issued and signed and you commence the project at the rate agreed.

                  Imagine it's a much bigger piece of work that the client wants doing. They approach a number of consultancy firms via RFP process. IBM (say) win the business at the price quoted. IBM then find out that TCS (say) are doing a similar piece of work at the client but getting paid more. IBM go back to the client and say they made a mistake and they are upping the price on the contract. What is the client's reaction in this scenario?
                  Best 4g signal is in
                  [ ] Trap 1
                  [X] Trap 2
                  [ ] Trap 3

                  Comment


                    #10
                    Originally posted by mattfx View Post
                    Definition of greed: intense and selfish desire for something, especially wealth, power, or food.
                    Which is the very definition of and raison d'être of every single private limited company.

                    Comment

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