Consultancy advertising the role up to X day rate, drops day rate once I get offer.

**northernladuk** · 30 March 2022, 18:07

Should you really be contracting if you don't know the difference between a consultancy and an agency? Also why do you need to be asking this if you've been contracting since before 2014? This is your bread and butter we are talking about here. You've also failed to ask what model the consultacy is running.

P.S, I look forward to the replies! always entertaining

You are welcome.

**northernladuk** · 30 March 2022, 18:14

But on a more serious note it's not uncommon for rates to drop at offer, it's the way the middle man maximises their revenue. This situation might different though as you don't understand the model you'll be working for so the rate from the client direct is always going to be more from the consultancy as they have to make some money out of it. What the client pays and what the agency pays is also always different but 21% is a bit steep. If they don't have many contractors they have to make their money from a smaller pool. If it was a very large consultancy/agency they'd have better rates but 21% isn't unheard of in the contracting arena.

Without a full and clear picture of the situation it's hard to say really.

**ukmercenary** · 30 March 2022, 18:28

Thanks for quick reply, Looks like I need to go back to the consultancy to get them to explain the difference and there model. I think what you are trying to say is the rate I saw advertised is what the client is paying the consultancy so therefore the 21% is there cut?

*oh also I messed up the tittle to this thread it should read consultancy not agency.

**cojak** · 30 March 2022, 18:34

They lied to get you to interview, now they are trying to persuade you to accept the drop with the hope that you are daft or desperate.

(and I’ll change the title.)

**northernladuk** · 30 March 2022, 18:38

Originally posted by ukmercenary View Post

Thanks for quick reply, Looks like I need to go back to the consultancy to get them to explain the difference and there model. I think what you are trying to say is the rate I saw advertised is what the client is paying the consultancy so therefore the 21% is there cut?

Please don't. If you are selling yourself as an experience contractor at top dollar and then ask them the difference between an agency and a consultancy they could have a re-think. Nothing wrong with asking what you will be doing for the consultancy though. Are you passed straight on to client site on a day rate (which it looks like) or will you be working for the consultancy delivering a service to the client so not so bum on seat. It's not uncommon for small consultancies to start with offering a manged service for a fixed fee and then shaving off little pieces of work or hovering bum on seat roles up when they appear. It's picking up the bum on seat roles that greys the distinction between an agent and a consultancy. The agents offer up bodies and as people say 'pimp' them to the client. Consultancies tend to offer a piece of work as a whole that just get's delivered to the client. But as I say, it's not uncommon for consultancies to start putting bodies on site like an agent.

So yes, if I am reading this right, a client is offering £400 a day and the consultancy steps in to the middle they will want a cut for looking after you etc so your rate will be less from the consultancy. The difference could be higher as consultancies work on a bigger profit margin than agencies who work like a sausage factory. A great many contractors happily sign a contract and work for X until they find the client is paying the agency Y and it's a good chunk more than X so get very unhappy about it. We've had a couple of comments on here where it's 25%+. They can either walk or then can get bedded in and at first renewal nail that down to something more reasonable or walk.

**northernladuk** · 30 March 2022, 18:39

Originally posted by cojak View Post

They lied to get you to interview, now they are trying to persuade you to accept the drop with the hope that you are daft or desperate.

(and I’ll change the title.)

I read it as the client found him and is just putting them through a consultancy rather than dealing with him direct and the consultancy want their pound of flesh. The bit about being on comission is likely to be a down right lie though. Or have I read it all wrong?

**cojak** · 30 March 2022, 19:28

I’ve had this- a jumped up agency trying to put it about that they were a consultancy for a greater slice of the cake. They were slick so I fell for it but they’re cheap, shiny suit ways let them down.

At least I recognised the difference.

OP - the fat lie on day rate proves that they are a jumped-up, cheap suit agency. A professional consultancy treats its associates professionally. JUCSAs will side with the client at all times rather support their own people with some diplomatic straight talking if needed.

(I’m not sure about the direct interview bit, I think the OP skipped a bit of the story.)

**ukmercenary** · 30 March 2022, 19:36

To clarify the Consultancy got me the interview, yes I could have been clearer on that. The role is for a 2nd line support role working onsite at the client, the consultancy are just placing me. The guy I spoke to at the consultancy is off an annual leave this week. I spoke with the lady who has the account with the client today she said they are a new client and they have only just started placing contractors there.

**northernladuk** · 30 March 2022, 19:43

Originally posted by ukmercenary View Post

To clarify the Consultancy got me the interview, yes I could have been clearer on that. The role is for a 2nd line support role working onsite at the client, the consultancy are just placing me. The guy I spoke to at the consultancy is off an annual leave this week. I spoke with the lady who has the account with the client today she said they are a new client and they have only just started placing contractors there.

Right, so yes it's not uncommon for an agent to advertise at a rate and it's mysteriously up to 50 quid a day less. 9 times out of 10 that's just the agent trying to pocket the extra money. With an agent the first question is are you on a fixed rate. If they are then they can't pocket more, if they are flexible rate that you negotiate then it's almost certainly them creaming it for themselves. Same for consultancies.

The other issue is the amount of money you are getting paid. I don't know the rate for 2nd line but the consultancy will pick a figure to pocket. Lets say £30 quid a day. That £30 is going to be a much smaller percentage of a £600 day rate than a £200 one. Pocketing any less isn't worth their time so they want X pounds which will be a big percentage of a 2nd line rate. You get what I am saying?

Get the offer and then throw it back to them and half their cut. They client wants you so they are going to be making money from you so you are in a strong position to negotiate. You have to be prepared to walk though. If they have half an idea you are asking and have no intention of walking they'll roll you over.

Consultancy advertising the role up to X day rate, drops day rate once I get offer.