Negotiating rates on contract renewal

[Tindog]

Hey,

I've read in a few places that contract renewal is a good time to negotiate a rate increase. I've heard mutterings about me getting a renewal next month so having a think.

I was great at negotiating in perm but I'm an inexperienced contractor, and would appreciate tips (this is my second contract but first renewal - last one was a very small project).

I'm not direct with the client, I go through some consultancy (not a recruiter) so I suspect his take is fixed. I imagine this means he'll be reluctant to up my rate? Is it worth even trying?

Handy links/threads/tips appreciated!

[northernladuk]

Been asked by nearly every first time contractor so plenty of advice already on the forums. Use the google search as linked below.

https://www.google.co.uk/search?q=ra...hrome&ie=UTF-8

[LondonManc]

TL;DR for NLUK's post:
If you've not been there a full year and cannot justify your rate increase without being prepared to risk everything, simply sign up and carry on.

[Tindog]

Thanks northernladuk, I have already poked around online but haven't quite found what I'm looking for.

Specifically, I was hoping to get thoughts on the following:
"I'm not direct with the client, I go through some consultancy (not a recruiter) so I suspect his take is fixed. I imagine this means he'll be reluctant to up my rate? Is it worth even trying?"

Sorry if my post wasn't clear

[LondonManc]

Thanks northernladuk, I have already poked around online but haven't quite found what I'm looking for.

Specifically, I was hoping to get thoughts on the following:
"I'm not direct with the client, I go through some consultancy (not a recruiter) so I suspect his take is fixed. I imagine this means he'll be reluctant to up my rate? Is it worth even trying?"

Sorry if my post wasn't clear

A consultancy won't be able to up their rate for this - you'd have to eat into their considerable take. If you feel that you can play hardball with them and threaten to leave (and have your bluff called) then you're in a position to negotiate taking some of their chunk. If they're billing you out at £1200 and you're on £400, then you can argue that you don't need consultancy co's support network anywhere as much as you used to so you're worth more to the consultancy and costing them less.

[Tindog]

A consultancy won't be able to up their rate for this - you'd have to eat into their considerable take. If you feel that you can play hardball with them and threaten to leave (and have your bluff called) then you're in a position to negotiate taking some of their chunk. If they're billing you out at £1200 and you're on £400, then you can argue that you don't need consultancy co's support network anywhere as much as you used to so you're worth more to the consultancy and costing them less.

Thanks, that's exactly the kind of advice I need. I suspected it might be more difficult with a consultancy.

[BrilloPad]

Best way I have always found is get another gig. Then start talking.

Dealing with Clients is like dealing with Children. Never threaten unless you will carry it out....

[Tindog]

Best way I have always found is get another gig. Then start talking.

Dealing with Clients is like dealing with Children. Never threaten unless you will carry it out....

Make sense, thanks.

True - same with employers IMO, I don't think empty threats make for good leverage

[HugeWhale]

I have never asked for a rate increase. All too often you're asking for something that needs layers of approval, new budgetary sign-off and a whole lot of pain all round. There's a strong chance you won't get it and you'll look daft if you ask for it, don't get it, and stay anyway.

I always ask for something though. Something that is within their immediate gift. So maybe a WFH day, condensed working week, reimbursement of travel expenses....look at what the senior partners in the consultancy are getting and be creative.

[washed up contractor]

I have never asked for a rate increase. All too often you're asking for something that needs layers of approval, new budgetary sign-off and a whole lot of pain all round. There's a strong chance you won't get it and you'll look daft if you ask for it, don't get it, and stay anyway.

I always ask for something though. Something that is within their immediate gift. So maybe a WFH day, condensed working week, reimbursement of travel expenses....look at what the senior partners in the consultancy are getting and be creative.

I dont know. I recommended a mate of mine who'd been benched for nearly a year for a role. He got it and was at said client for just over 3 years. He later told me he asked for 3 increases. He got 2 of them. The only reason he didnt get the 3rd was because client told him he was on the top rate after they'd cut their margin to its lowest.

If you dont ask, you dont get. As for asking, not getting, staying and maybe looking 'silly,' really? Who cares? Your peers wont know unless you blabbed to all around you, the client wont care as you're just an 'employee' to them and frankly neither will the agent be bothered.