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Consultancy cutting rates by 40%

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    #11
    Lots of contracts at the moment that used to be in the 500-600 pd range, now advertised in the 300-350 range, one agnecy called me if I was interested at 250
    I say yes to all of them as some income is better then none and I will dump them as soon as rates go up again.

    The same happened with perm roles, where I saw 90k last year I see now 60k max

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      #12
      Originally posted by Eirikur View Post
      Lots of contracts at the moment that used to be in the 500-600 pd range, now advertised in the 300-350 range, one agnecy called me if I was interested at 250

      I say yes to all of them as some income is better then none and I will dump them as soon as rates go up again.


      The same happened with perm roles, where I saw 90k last year I see now 60k max
      Surprised you can't see the flaw in that line of thinking..
      nomadd liked this post

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        #13
        Thanks to you all + an update

        Hi Guys,
        First of all I would like to thank you all for your helpful and beneficial input.
        Just wanted to give you an update on the case:
        Well I've decided to go for the first phase interview (was today, on the phone),
        and one of the things I've learned there was that not only the consultancy was not "bad hid by the pandemic"
        as the recruiter very confidently stated,
        but guess what - they benefited from the pandemic, and they've now got much more projects than they had before.
        Now I don't know what your thoughts are,
        but I surely know what mine is.

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          #14
          Originally posted by CountryGirl View Post
          Hi Guys,
          First of all I would like to thank you all for your helpful and beneficial input.
          Just wanted to give you an update on the case:
          Well I've decided to go for the first phase interview (was today, on the phone),
          and one of the things I've learned there was that not only the consultancy was not "bad hid by the pandemic"
          as the recruiter very confidently stated,
          but guess what - they benefited from the pandemic, and they've now got much more projects than they had before.
          Now I don't know what your thoughts are,
          but I surely know what mine is.
          Yeah doesn't matter though. They are purchasing labour at market rates.

          If they were buying bricks and the price of bricks went down 50% but their customers were still buying bricks from them at same price do you think they'd go to their brick suppliers and say "no please charge us more we are happy paying the price from last year"

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            #15
            It's important to understand whether it is the consultancy or agency who is cutting he rate.
            This may well be an agent looking to increase margins.

            Comment


              #16
              Originally posted by fidot View Post
              It's important to understand whether it is the consultancy or agency who is cutting he rate.
              This may well be an agent looking to increase margins.
              This was my suspicion also.
              But how can I find out?

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                #17
                Originally posted by CountryGirl View Post
                This was my suspicion also.
                But how can I find out?
                You can't unless the consultancy confirms it - but being blunt does it matter - do you want money coming in or can you sit on the bench with an evaporating skill set for longer as I suspect we are under lock down now until next year.
                merely at clientco for the entertainment

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                  #18
                  Originally posted by jayn200 View Post
                  Yeah doesn't matter though. They are purchasing labour at market rates.

                  If they were buying bricks and the price of bricks went down 50% but their customers were still buying bricks from them at same price do you think they'd go to their brick suppliers and say "no please charge us more we are happy paying the price from last year"
                  Market rates in my skill set contracts haven't gone down by 40%.
                  10-15% at the most.

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                    #19
                    Originally posted by CountryGirl View Post
                    Market rates in my skill set contracts haven't gone down by 40%.
                    10-15% at the most.
                    And are the number of contracts available the same? Are all your fellow contractors working

                    You may nit pick all you like it but someone has said the new market rate for your skills is 60% of what it was earlier this year. We don't know that market and I actually don't think you do.

                    Hint in my field rates are down yet everyone I know has more work than they can cope with
                    Last edited by eek; 7 November 2020, 13:48.
                    merely at clientco for the entertainment

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                      #20
                      Originally posted by CountryGirl View Post
                      This was my suspicion also.
                      But how can I find out?
                      There's no need, it is irrelevant to your decision. Either the client is taking advantage of you or the consultancy is, it makes no difference.

                      i.e. if the consultancy isn't trying to cut your rate then it means the client is and "pocketing" the difference.

                      The question you need to ask yourself is what are your chances if you refuse whether the client or consultancy can find an alternative.

                      The way I do this is to calculate how long I would require to find a contract at a better rate and compare 6 months on a low rate with 2-3 months on a higher rate.
                      I'm alright Jack

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