Unhappy with rate... what to do?

[rootsnall]

Although the agency cut is something that gets discussed here regularly it really has little bearing on your situation. If you are getting a rate you are happy with ( and you were when you signed on ) it shouldn't matter what the agency is getting. Thats a matter between them and the end client.

He isn't happy with it and his rate discussions can take place without involving the client at all. If the agent has other people on the site on lower margins I think it's more than reasonable to play hard with them as they have pulled a fast one. If the agent has an ongoing interest in keeping the client happy on that site then I would fancy my chances of getting the rate increased.

[King Cnvt]

I've just found out some chump I work with is getting a really low rate compared to me, and not only that, the agency are robbing him blind with an outrageous margin.

Really made my day that has.

HTH

[thunderlizard]

It will make your day when they realise they're getting the same services from him at 1/3 your price, and give you your marching orders.

[Ardesco]

Be professional.

Finish your contract and do a good job. At the end of the day you accepted the rate and were initially happy with it. What's changed?

Just because Billy next door says he earns more than you (He may be lying) is not reason to shoot yourself in the foot. Next time ask for more, and if its a 12 month gig up your rate in the beginning.

[TheFaQQer]

Be professional.

Finish your contract and do a good job. At the end of the day you accepted the rate and were initially happy with it. What's changed?

Just because Billy next door says he earns more than you (He may be lying) is not reason to shoot yourself in the foot. Next time ask for more, and if its a 12 month gig up your rate in the beginning.

Seconded - you accepted the rate, so your only real choice here is to give notice and walk if you're really not happy with it. If you start arguing over the rate now, you'll look a bit silly to say the least. If you walk out now, you'll look worse than that.

As others have said, you can at least do some planning now about what income to expect, and chalk it up to experience. I'm wary of accepting a year's contract which, whilst to looks great when just starting out, ties you in to current rates for a long time. If you'd signed a three month contract (with the possibility of an extension), then you'd be in a better position as far as negotiating an increase goes.

I don't know what contract length other people here look for, but I don't look for anything longer than 6 months at the most, for two reasons - I like the possibility of negotiating an increase periodically, plus I like the option of a break if I get fed up with the work.

[Xenophon]

I don't know what contract length other people here look for, but I don't look for anything longer than 6 months at the most, for two reasons - I like the possibility of negotiating an increase periodically, plus I like the option of a break if I get fed up with the work.

Same.

[BlasterBates]

Hi, Hi. Hoping to get a bit of advice from all you highly experienced contractors out there.

I'm 3 months in on a 12 month contract at a rate I thought at the time was 'reasonable'. Since then, seeing several contracts of similar work, area and industry come up with a significantly higher rate coupled with finding out what rates some of my contracting friends of similar skill are on (some at same client, some not) I have lately become slightly disheartened.

I also recently found out that the agency charges the client a 45% markup on my rate (or, they take 30% cut what they charge client, depending on how you work it out) which is pretty astronomical is it not? I am now feeling like a bit of a mug!

I guess my options are

(1) Ask the client for a rate rise
(2) Ask the agency for a margin cut
(3) Hand in notice and find another contract

I feel uncomfortable with (1) as I'm only 3 months in and also they pay a decent amount to the agency. And (3) is only really a last resort as I'm not really that keen on going through the whole finding & starting the new job process right now! Would you have any advice on how best to go about asking for (2)? What are the chances?

Thanks.

Robin

Once you've signed the contract its too late. Obviously you can try, but there is no need for the Agency to cut his margin. When the renewal comes shove your rate up, leaving the agency about 10%. If the client finds out he'll cut the agent's margin taking it all himself, because he doesn't care about you (fact of life). So what ever you do make sure the client doesn't know.

When you go for a contract ask yourself what you want, when somebody offers it and you get it, be happy. It seems this disatisfaction is simply caused by knowing something doesn't actually legally concern you. Obviously knowing things increases your negotiating power.

[BlasterBates]

He isn't happy with it and his rate discussions can take place without involving the client at all. If the agent has other people on the site on lower margins I think it's more than reasonable to play hard with them as they have pulled a fast one. If the agent has an ongoing interest in keeping the client happy on that site then I would fancy my chances of getting the rate increased.

Why have they pulled a fast one ?

I think Golden Boy is new to the game so the Agency pushed him into the client, even though he was inexperienced because they could earn more. If he'd have gone asking the same as experienced guys then maybe they would have binned his CV, and put forward other candidates. Some clients have a favourite agency and jsut simply ask for a few CV's because they can't be bothered. Of course who knows.

The point is no-one forced Golden Boy to accept the rate. It is the contractor's responsibility to determine his own rate, not the agency.

If you buy a lawn-mower which you could have bought much cheaper elsewhere who's fault is that ?

[MrRobin]

Be professional. Finish your contract and do a good job.

You're right. There are plenty of similar roles around that pay less too... I guess I was being a bit greedy and just shocked at the agency markup but in retrospect, good for them I suppose, atleast they'll want to keep me happy and I'll know what to bump my rate up to at renewal time.

I've just found out some chump I work with is getting a really low rate compared to me, and not only that, the agency are robbing him blind with an outrageous margin.

Har har very good.