New job, no agency - best approach to negotiate rate?

[kryten22uk]

One of the benefits of an agency is their insight into what the client really might pay, and s o the negotiations are a bit easier

I've been offered a new contract which I've got direct with client, no agency involvement. But market rates for my sector/seniority vary massively. I think the current market supports a rate in the upper end of what is usually on offer. I want to avoid offending the client by stating a rate that I think is fair given the current market, but they think is ridiculous.

Has anyone had success in turning the question back on the client and asking them for their range/expectations for this role? I have seen advice on here and elsewhere that suggests I provide a range, but if I say "from £x to £y" then they will just say £x! Note that I have been referred to HR to negotiate, hence not talking with the actual people i will be working for.

[SimonMac]

One of the benefits of an agency is their insight into what the client really might pay, and s o the negotiations are a bit easier

I've been offered a new contract which I've got direct with client, no agency involvement. But market rates for my sector/seniority vary massively. I think the current market supports a rate in the upper end of what is usually on offer. I want to avoid offending the client by stating a rate that I think is fair given the current market, but they think is ridiculous.

Has anyone had success in turning the question back on the client and asking them for their range/expectations for this role? I have seen advice on here and elsewhere that suggests I provide a range, but if I say "from £x to £y" then they will just say £x! Note that I have been referred to HR to negotiate, hence not talking with the actual people i will be working for.

I've always found the best approach is to work out what you would be prepared to do the role for, not what you think the client will pay. Going direct will have a few extra risks around payment terms so you might want to factor this in, maybe add 10% to what ever you decide.

[fool]

It depends.

Personally, I'd ask for a little bit more than what you think the top end of market rate is for the area and the sector. Going first is called anchoring, and thus it means when they come back to you, they're more likely to be happy paying more as long as it was less than your original ask.

Playing games wrong can sometimes sour things, so if you're desperate for the work, ask them what their rate is, or ask for middle of the road.

[kryten22uk]

I've always found the best approach is to work out what you would be prepared to do the role for, not what you think the client will pay.

I get that, but you still need a view of what they might pay in order to know how negotiations might go. For example whether you're close enough to ballpark to be able to hold ground and say "I'm worth £x", or whether to acknowledge that they may need bit of downward movement to feel like they've achieved a good negotiation. So if I wanted £x then should I start with £x+1, and concede a drop to £x so they "win" the negotiations.

[kryten22uk]

Playing games wrong can sometimes sour things, so if you're desperate for the work, ask them what their rate is, or ask for middle of the road.

Certainly not 'desperate' for the job, but it is a good one.

[zonkkk]

What's your normal rate for that type of work and would you be happy to work for them for that rate?
If so, add 20-25% on top of that and give the number to the client.

If they are happy to pay, you win; if they try to negotiate, you've got margin.

[northernladuk]

I get that, but you still need a view of what they might pay in order to know how negotiations might go. For example whether you're close enough to ballpark to be able to hold ground and say "I'm worth £x", or whether to acknowledge that they may need bit of downward movement to feel like they've achieved a good negotiation. So if I wanted £x then should I start with £x+1, and concede a drop to £x so they "win" the negotiations.

No you don't. You put in what you are worth and they will counter with what they think you are worth. If you really are that good or they really need you then asking what they might pay is seriously constraining your position. Getting to the right price is the whole point of negotiation.

[kryten22uk]

A slight side question. I have one other interview already arranged for tomorrow. What is the most professional approach to managing two negotiations?

For example, if I state my rate to a client, I would be doing it just to see if they would be happy with the rate. It doesn't mean that I'm accepting the job if they agree that rate. But I do need to know that both companies accept my rate before I decide which is the better role.

But if I start mentioning deciding on other jobs then it might look like I'm trying to blag them into a higher rate.

[BlasterBates]

You've actually highlighted the problem of going direct. It is often easier to go through an agency. A client not using an agency will be going through the hassle in the hope of getting the contractor for a rock bottom rate, not simply to save 5%.

[jmo21]

Has anyone had success in turning the question back on the client and asking them for their range/expectations for this role? I have seen advice on here and elsewhere that suggests I provide a range, but if I say "from £x to £y" then they will just say £x! Note that I have been referred to HR to negotiate, hence not talking with the actual people i will be working for.

Quote them a rate, and if they don't like it, see if they counter offer - you are over thinking it with talk of ranges and offending them.

You should have a good idea of your market value if an agency was involved, so bump it up a bit if you like.