How do you ask for a renewal raise, if working direct?

[d000hg]

Through an agent I would find this rather easy - you just tell them you want more and see what they can do.
But direct to your client, when it's someone you work with and know, I always struggle the best way to put it. I'll end up spending an hour writing and rewriting a 3-line email!

How do you do it? Do you justify it or just ask?

[malvolio]

Through an agent I would find this rather easy - you just tell them you want more and see what they can do.
But direct to your client, when it's someone you work with and know, I always struggle the best way to put it. I'll end up spending an hour writing and rewriting a 3-line email!

How do you do it? Do you justify it or just ask?

Justify it. Think like your client does:

If you haven't added value, why should I pay you more? I'm already paying you to do the best job possible, so why ask me to go to my budget holder to get more money for you? If you can show me you're actually saving us £x a week in improved "something" then we might have a discussion.

Then open the conversation with "Can we have a talk about rates? Because..." And if you can't quantify it, and your costs haven't gone up significantly since the rate was set last time, then you might struggle.

[northernladuk]

Firstly I'd be assessing my client and my engagement method. Do they see you as a supplier on a proper framework or are you just a day rate bum on seat shovelled through the system. There is a massive difference between asking for a raise and having to re-quote your original proposal though a rigid system. How many times have you seen a supplier asking for a raise for nothing and getting it? Virtually none. Conversely many will be being asked to reduce years 2 and 3 rates by 10% not increase it.

You also need a very good justification why you want an increase. Cause you fancy it or because the work has changed? Depending on the answer to the above they'll need to know why it's worth paying you more. And it better be a good one. Generally cause market rates have gone up or I want more or I'm jumping ship won't go down well.

Some 'feeling' from the client about what type of org they are and the players in the chain are important as well. Is this all above board via process and review or is it a project that just has to pay it out of ring fenced budget. Are they open to negotiation, have they done it before, do you have the ear of the people that can sign it off etc. What is your position power with your client?

So IMO, the answer depends on the detail of your engagement. Are you a supplier asking for a contractual rise or a bum on seat asking a PM for a bit more money. The way forward would depend greatly on the answer to the last question. One needs a full justification and is likely not to work, the other depends on how pally you are with said PM.

[jamesbrown]

I would just propose something in a very simple and matter-of-fact way - no need to explain yourself. Renewal is the right time to reconsider rate. Inflation is real, so it shouldn't be a big deal. Obviously, if there's something more you're offering beyond originally anticipated, then factor that separately.

( Personally, I have a rate card for T&M, which I revise annually. For a given calendar year, that is my rate, take it or leave it. )

[cannon999]

I have always found asking for rate rises extremely easy. And probably have a 90% success rate. You find another gig that pays the rate that you want as a counter - propose the rate increase to your client. If they refuse - you leave. It's very simple.

[northernladuk]

I have always found asking for rate rises extremely easy. And probably have a 90% success rate. You find another gig that pays the rate that you want as a counter - propose the rate increase to your client. If they refuse - you leave. It's very simple.

Just to caveat this, I believe from reading your posts you have a different engagement to most standard contractors though don't you. Remembering your posts I can see how this might work for you but I think your situation is very different to most standard contractors? I could be wrong but it makes a big difference as to whether this is going to work for the OP. It's not the answer for a vast majority of situations IMO.

But does raise I point I forgot to mention. If you aren't willing to leave when they say no they don't bother. If they've half an idea you are just chancing it then the default answer will be no.

[cannon999]

Just to caveat this, I believe from reading your posts you have a different engagement to most standard contractors though don't you. Remembering your posts I can see how this might work for you but I think your situation is very different to most standard contractors? I could be wrong but it makes a big difference as to whether this is going to work for the OP. It's not the answer for a vast majority of situations IMO.

But does raise I point I forgot to mention. If you aren't willing to leave when they say no they don't bother. If they've half an idea you are just chancing it then the default answer will be no.

Yes it is different but I followed the same methodology when I was a permie way back when. If you are not willing to leave - you are not going to get paid properly. I know plenty of people who feel that they are not paid what they should but their jobs/gigs a cushy and they don't have the direct intention of going elsewhere. Their bosses/clients know this. If you don't have the power to leave - you don't have the power to ask for an increase in pay.

[malvolio]

Yes it is different but I followed the same methodology when I was a permie way back when. If you are not willing to leave - you are not going to get paid properly. I know plenty of people who feel that they are not paid what they should but their jobs/gigs a cushy and they don't have the direct intention of going elsewhere. Their bosses/clients know this. If you don't have the power to leave - you don't have the power to ask for an increase in pay.

Yes you do. The hard part is proving it to a hard-nosed budget holder. And nobody likes being threatened.

[northernladuk]

Yes it is different but I followed the same methodology when I was a permie way back when. If you are not willing to leave - you are not going to get paid properly. I know plenty of people who feel that they are not paid what they should but their jobs/gigs a cushy and they don't have the direct intention of going elsewhere. Their bosses/clients know this. If you don't have the power to leave - you don't have the power to ask for an increase in pay.

That makes sense but that's very different to asking a client to up the rate they are paying for you. It's much more on added value in the supplier world than in the perm world. In perm you want a raise because that's market value and they need to keep you, in supplier it's about how much extra value you've added to support the raise Yes it both comes down to 'or else I'll leave' but a supplier needs a lot more justification than basic blackmail. You have to explain why you think you are worth more money and then you throw the bit about cancelling if you don't get it. A straight strong arm isn't the best approach.

[cannon999]

Yes you do. The hard part is proving it to a hard-nosed budget holder. And nobody likes being threatened.

Yeah my manager back in the day tried to tell me there was no money in the budget for a salary increase once. Amazingly after I put the notice in they found 12k straight away and countered. Nobody likes being threatened but nobody is going to let go of talent because of it. I have always been paid top money for my skills because I know what they are worth.

if you think you deserve more money you have to prove that to yourself first by finding someone who will pay you what you are asking.