Consultancy cutting rates by 40%

[CountryGirl]

Hi Guys,
I've been contacted yesterday by a recruiter who offered me a 6 months WFH contract with a consultancy, but at ~60% my normal rate.
His explanation for the low rate was that "they have been badly hit by the pandemic".
I've given it more-than-a-bit of a thought, and my feeling is that, although it is a relatively small consultancy,
it is an attempt to take advantage of the current market state in order to increase profit on the contractor expense.
What are your thoughts?

[uk contractor]

If you need the work & the income take it as better than nothing! But yes they always have & always will take advantage of the bad economic cycles.

[eek]

Hi Guys,
I've been contacted yesterday by a recruiter who offered me a 6 months WFH contract with a consultancy, but at ~60% my normal rate.
His explanation for the low rate was that "they have been badly hit by the pandemic".
I've given it more-than-a-bit of a thought, and my feeling is that, although it is a relatively small consultancy,
it is an attempt to take advantage of the current market state in order to increase profit on the contractor expense.
What are your thoughts?

I'm aware of consultancies who are charging £650 a day rather than their previous £1000+ to just get work through the day for their permanent consultants.

Equally I've got a piece of work that I need to quote for where we should be going for £850 (according to our G-cloud price list) but I will be going in at £725 ish (as I suspect any competitors will be doing the same).

[WTFH]

Hi Guys,
I've been contacted yesterday by a recruiter who offered me a 6 months WFH contract with a consultancy, but at ~60% my normal rate.
His explanation for the low rate was that "they have been badly hit by the pandemic".
I've given it more-than-a-bit of a thought, and my feeling is that, although it is a relatively small consultancy,
it is an attempt to take advantage of the current market state in order to increase profit on the contractor expense.
What are your thoughts?

My thoughts are:
1. Are you financially resilient to be able to turn the work down?
2. Have you other offers on the table?
3. Having spoken to your previous clients, do they expect any work would be coming your way soon?
4. Have you any other interviews lined up?

If the answer to 1 is Yes, then consider the other questions.
If the answer to 1 is No, then take the contract.

...but re-reading your post, is this an offer of a contract, or an offer of being put forward? If it's an offer just to be put forward, then yes, you should go for it. Any interview in a client you don't already work with for a relevant role is a good thing. If the rate is too low, you can always negotiate or turn them down when it comes to the offer stage.

[GhostofTarbera]

Hi Guys,
I've been contacted yesterday by a recruiter who offered me a 6 months WFH contract with a consultancy, but at ~60% my normal rate.
His explanation for the low rate was that "they have been badly hit by the pandemic".
I've given it more-than-a-bit of a thought, and my feeling is that, although it is a relatively small consultancy,
it is an attempt to take advantage of the current market state in order to increase profit on the contractor expense.
What are your thoughts?

In Jan it will be 40% or 50% of your dead rate, I call it dead rate because these rates are never coming back unless you have niche in demand skills

We are getting great sub £200 programmers from all over the world for example, product owners for £350, we were paying £700/£800 last year


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[northernladuk]

Hi Guys,
I've been contacted yesterday by a recruiter who offered me a 6 months WFH contract with a consultancy, but at ~60% my normal rate.
His explanation for the low rate was that "they have been badly hit by the pandemic".
I've given it more-than-a-bit of a thought, and my feeling is that, although it is a relatively small consultancy,
it is an attempt to take advantage of the current market state in order to increase profit on the contractor expense.
What are your thoughts?

None of that matters to you. Do you want the gig or not? That's all you are bothered about.

[Paralytic]

The issue you have is that you're seeing this as a 40% cut. Its not, it's the current market rate.

[GhostofTarbera]

The issue you have is that you're seeing this as a 40% cut. Its not, it's the current market rate.

And if deemed inside IR35 its another 20% haircut


Sent from my iPhone using Contractor UK Forum

[_V_]

This is where inflation will come from.

Prices up 10% and wages down 40%.

[jayn200]

Depends what you were at before.

If you were at 500 and now they're offering you 300 that sucks and whether you should take it or not depends on personal circumstances.

If you were at 800 and now you're being offered 500 I'd just suck it up and take it.