rate negotation

[assclown]

Hi Folks,

I'm seeking advice about renegotiating my rate. Do I do this directly with the client or with the agent?

Its a 6 month contract that expires mid sept. my umbrella company just rang me saying would i like to renew to mid sept? I dont understand why they would have to renew again if its until the same time anyway?

I understood that contract rate renegotiation is done through the agent and not directly with the client? But is this not the case?

[MrRobin]

Strictly speaking, you should renegotiate with the agent as this is with whom you have a contract. However, for every extra £1 you ask, that is £1 less in the pimp's pocket so they are fairly likely to go to the client and also ask for the same increase to keep their cut the same (or even more than your request to keep their % the same) so it is probably wise to talk to the client about it beforehand.

Make sure you have a case to prove you're worth your required increase and see what they say. They might offer you the full increase or perhaps meet you half way, in which case you can then ring up the agent and say you want them to meet the other half.

[assclown]

Having read contractor calculator it seems the standard agency practice is to get you to commit to a renew 2 months before end so you can't find something else.

I'll remain non commital and look for other contracts I suppose until about 4 weeks to contract end. I'm unsure about going to the client and asking about a rate increase as im sure he'll point me in the direction of the agency. Besides when asked I verbally vaguely agreed that I might be interested in extending although nothing concrete certainly not rates were discussed.

[TheFaQQer]

My current contract prohibits my discussion of rates with the client or other contractors here - it's not uncommon.

Discussions should be with the agent - but knowing what the customer is paying may help you out!

[lukemg]

Sooner or later you will get a call from the agent saying are you interested in renewing for a further 3/6/12 months. You say yes and they will say ok I will do the paperwork and get off the call as soon as. They know that this is the time you will try to bump up the rate and are ready for it (they do this everyday - you don't)
Soon as you get the question, say yes but that you want an increase in rate - give them reasons to take back to the client - Increased responsibility, work outside the original spec, unpaid overtime expected, on-call requested, you know they are taking 25% etc etc blah blah blah.
You will find it very difficult to get more than a few % unless they are taking a big cut.
Tell them what you want firmly and stick to it. You have to play hardball, they will likely not speak to the client at all, but call you back later and say they have and it's a no go. At this point say thanks for trying and that you will make sure you keep up a good standard to the end of the contract.
They might call your bluff and say ok, thanks. But if the client wants to keep you they will have to tell them at this point. They will probably spin it that you demanded a big rise and make it your fault. In the past I have had a quiet word with manager dealing with this to say I am looking to reduce agency cut but don't want to leave no matter what they hear (only works if you have built up good relationship).
Of course, best way is to have another contract lined up and fight from a strong position but if you know you are being lowly paid/ripped off on agency cut AND are prepared to leave, then play hardball and hope they crack first.
Usually they make you a smallish offer and you might want to accept that and chip away again at next renewal.
It's business, not personal and don't let it interfere with your attitude at work or how you treat the extra contract time. If you accept the rate in the end, do the best you can even if you think it is less than it should be. If you can't - walk away.

[Devlin]

What do people think is a "fair" % margin for an agent? Currently the agent is taking 15% for me.

[MrRobin]

That's some pretty sound advice lukemg. Nice one.

My agent takes 30% from what the client pays for me.

[assclown]

Cheers luke, im somewhat surprised at getting useful responses instead of the usual derision.

Should I approach the client then? Its not as if im asking for a huge rise just a measly £20/hr instead of £18.85/hr. When I rang the agent she seemed uninterested and basically said the onus was on me to ask for more from the client. I expect she'll gain interest as it gets closer to contract end.

If i'm expected to negotiate with the client directly i don't really see the point of the agency I might as well just say I'll work directly for the client when my contract with the agency runs out and cut out the middle man.

[MrRobin]

The agent doesn't know what she's talking about (surprise surprise). The onus is on them to get more from the client! But as I've said above, it may just be easier to go to your manager directly and just say 'look, I want to stay but think I deserve a bit more per hour because of x responsibility, y is hard work and you delivered z benefits.

On your last point, check your contract. There's probably a clause in there that says something on the lines of:

"Service provider cannot work for the client for a period of x months following the termination of this contract"

x usually being between 6 and 12

I.e. if you want to carry on working there then you have to carry on thru the agent. There's probably a buy out tho that may be worth persuing.

[Epiphone]

To the agent

"In line with other well known suppliers we try to keeps costs as low as possible but sometimes have to increase our prices. The cost of your service will be XXX from DATE and we look forward to serving you as a customer for some time to come"