Agency rates

[Mustang]

Any specific views on what agents charge? Currently negotiating a contract and the agency claims it is getting 11% but normally claims between 15-20%. They claim the end client is squeezing them and has capped the price with the agency.

Should I try and negotiate my rate up by squeezing the agency's margin or do you think I have a better chance of teaching pigs to fly....?!

I am focused on my rate and trying to work out if I want to accept it (irrespective of what the agent gets!).

[rootsnall]

Any specific views on what agents charge? Currently negotiating a contract and the agency claims it is getting 11% but normally claims between 15-20%. They claim the end client is squeezing them and has capped the price with the agency.

Should I try and negotiate my rate up by squeezing the agency's margin or do you think I have a better chance of teaching pigs to fly....?!

I am focused on my rate and trying to work out if I want to accept it (irrespective of what the agent gets!).

The only way you ever work the real margins out is when you are working there and ask your cleint manager or look it up on the clients invoicing system. I'd say about 50% of the time the agent has told porkies about the margin when asked. If I am being asked to accept what I think is a low rate due to sob stories from the agent I ask them to send me an email stating that their margin is X. If they are telling the truth then they generally have sent me the email, if they won't send it then you have a good idea they are being ecomical with the truth.

Just in the process of trying to up my rate on a renewal, never a pleasant process !

[boredsenseless]

Any specific views on what agents charge? Currently negotiating a contract and the agency claims it is getting 11% but normally claims between 15-20%. They claim the end client is squeezing them and has capped the price with the agency.

Should I try and negotiate my rate up by squeezing the agency's margin or do you think I have a better chance of teaching pigs to fly....?!

I am focused on my rate and trying to work out if I want to accept it (irrespective of what the agent gets!).

anything below 15% is a steal, most good agents won't touch the work for less than 20%. Those that do are either on a PSL or desperate to get into the market i.e. like DVD players from asda at £9.

[n5gooner]

I've with Modis and they take 15%.

[PAG]

hi

Hi guys, I have just joined here 2 days ago. Excellent forum.

I have been contracting now for 9 months. The agency rates varies from 5.6 %5 - 20%, at least I am aware of. 5.6 rate will only apply if you found the contract yourself and then approach the agency.

[malvolio]

Reality is that an agency canot survive on less than 10% unless they are on a PSL or some other cash-flow guarantee system with their client (Do the sums - work out the rolling debt on 100 contractors at £300 a day for 90 days at 5% interest...). Between 10 and 15 is average territory for most, once you go over that you are looking at either cowboys or big corporates, neither of whom add any value for their extra charges.

And remember you get what's left after the agency takes their share - the margin is not added to your rate, your rate is subtracted from their charges. Client pays £300, agency takes 15%, you get £255 which the uninitiated might see as 17% markup...

[Bluebird]

On my current gig the agent sent me th job spec that the client spec'd complete with the rate the client was willing to pay the agency - natrually I up-ed my rate to allow them just 9%.

[scooterscot]

i got mine down to 8% - did the agent not half moan though, the joys of being in demand.

[Maxamus]

My agency takes 16.3% of my hourly rate

[Sockpuppet]

My agency takes 25% margin on me. I actually suspect that they may be making 50%.

Am I bothered....not really. In 5 months my wage has gone from sub £20k to over £60k

I'm happy with it if the client wants to pay that much they can.