found out my agency is making 400

[TheFaQQer]

Where is the shame in what the agency did? Some people deserve to be fleeced - cos they behave like sheep.

What he said - some agencies are given a budget to work to and will bring someone in on that budget, others work on a fixed margin.

If you signed up at £126 a day, then what does it matter what the agency take? Move on, if it's an issue.

[trsisko]

Hi all thankyou for the replies, i just just rushed this post as i was working away with people behind me


yes this suck i will name and shame them considering my co-worked begged them for a pay increase and they said their cut was very small, whitch is a total lie and they wont be used anymore here so no wonder they wont give any. They would be screwed if i quit though .

The name of the agency is LogixIT. damn i only thought i was on an ok deal becasue some guy who had been here almost 2 years was on the same rate. Yes its my first contract and i have messed up i suppose and i have been here a year and usually made an extra few hundred over the weekend but still 126 out of 400 sucks.
Im going to ask them what their cut is?

[lukemg]

You are in a slightly awkward situation because you shouldn't have seen this info, even if you were setting up out of hours on email you must have been looking.
When approached by the agent over renewal, delay them saying you will call back. Ask to talk to your contact (manager) at the client in private.
Say to him that you like working there and are happy to stay but that 126 a day is way below the going rate for the role. Say you took the rate initially to gain more experience but that you know similar roles are paying considerably more.
If he has any smarts he is likely to fall off his chair as he realises what markup the agency is creaming, the client is getting ripped off as well.
Hopefully, that will result in some changes. From your side, when the agent phones again, tell him the rate is too low and you want 350/day.
After the initial shock they will plead poverty and claim the client wont pay that much. Tell him you have heard the client is paying 400, if pushed say you overheard it and aren't prepared to say anymore.
STICK TO YOUR GUNS, with the client in the loop you are in a position of strength. The agent will probably think ok I've had a good run out of this and can still get something and make you an offer - DON'T agree to less than 300, tell them they have already had a year of massive margins.
Remember - it's not personal, it's business, either you get the cash or the agency does, it's your choice.

GOOD LUCK, tell us how you get on.

p.s. Through all this, make sure you are the perfect contractor, keep everyone at the client double-happy so they want you to stay.

[Fran]

What he said - some agencies are given a budget to work to and will bring someone in on that budget, others work on a fixed margin.

If you signed up at £126 a day, then what does it matter what the agency take? Move on, if it's an issue.

Ok, name and shame may be the wrong phase. Name and warn then.

I'm glad I know the agency name now as it's worth knowing who are more likely to be taking large cuts. For example, I took this contact quite a bit below my minimum as the market was very quiet and I couldn't afford to wait. If I had know the agency I am using take large cuts I could have pushed them a bit on my rate.

You could argue that I should do that anyway, but being new means I don't have as much weight to through around. (the fact that I'm better than my experience shows only holds weight when I first meet the client)

[chef]

wise words luke..

[TheFaQQer]

You are in a slightly awkward situation because you shouldn't have seen this info, even if you were setting up out of hours on email you must have been looking.
When approached by the agent over renewal, delay them saying you will call back. Ask to talk to your contact (manager) at the client in private.
Say to him that you like working there and are happy to stay but that 126 a day is way below the going rate for the role. Say you took the rate initially to gain more experience but that you know similar roles are paying considerably more.
If he has any smarts he is likely to fall off his chair as he realises what markup the agency is creaming, the client is getting ripped off as well.
Hopefully, that will result in some changes. From your side, when the agent phones again, tell him the rate is too low and you want 350/day.
After the initial shock they will plead poverty and claim the client wont pay that much. Tell him you have heard the client is paying 400, if pushed say you overheard it and aren't prepared to say anymore.
STICK TO YOUR GUNS, with the client in the loop you are in a position of strength. The agent will probably think ok I've had a good run out of this and can still get something and make you an offer - DON'T agree to less than 300, tell them they have already had a year of massive margins.
Remember - it's not personal, it's business, either you get the cash or the agency does, it's your choice.

GOOD LUCK, tell us how you get on.

p.s. Through all this, make sure you are the perfect contractor, keep everyone at the client double-happy so they want you to stay.

Be VERY careful with this approach.

1 - admitting that you wanted experience from the contract implies that you did not know / might still not know what you are doing. Not a good position if asking for an increase.

2 - some agencies have clauses in their contracts that say that you should not be discussing your rate with the client or other contractors there. Unless the client knows what you are on, it may come across as unprofessional to be moaning to the client about it.

3 - Sounds like the agency is on a fixed budget of £400 a day. You are now asking them to take a massive cut on that. If you are looking for them to pay you £350 a day, then they are making 15% margin on this - rather than the 200% that you say they are already making.

4 - it's always easier for the agency to tell the client that you won't extend because you are trying to squeeze their margin. Regardless of how unfair you think it is, that's what you are trying to do, although I don't think it's unreasonable.

5 - if the agency is not telling you the margin, then you need to ask WHY anyway. The fact that they aren't means that you shouldn't know what it is.

If you didn't know what the client was paying, would you be happy? If you would, then negotiate a better rate. If not, then you should be thinking about moving on anyway.

[Zippy]

wise words luke..

Indeed - but be a bit careful about how you approach the client. There may be something in your contract barring you from discussing rates with them and the agent may get very bolshy if he suspects.

On the plus side you now know you are worth £400 to someone so bear that in mind for the next contract. And if future pimps insist on knowing what you were getting for the last gig it was £350. That is your new 'minimum' rate OK?

[poser]

trsisko what do you do?

[lukemg]

The time for being 'careful' is long gone. You are getting screwed royally, forget 'happy with the rate' etc. You have nothing to fear about talking to the client, if the agency cancels your contract go direct or with the agency they now use.
All the threats and implied threats in contracts and from the agent are usually b*llocks, any beak would laugh them out of court when the full details come out.
You need a very large raise or you need to leave, there is NO other choice. I couldn't work knowing these details.
Ideally, get another gig in the pipeline or at least locate jobserve evidence of the appropriate rate.
The client knows what the rate should be, that's why he is paying 400, presuming you get 350 ish
Agent knows, that's why he is charging 400.
You are being taken for a total chump, grow a pair and come out swinging, you have nothing to lose !!!

[XLMonkey]

Normally, I'm in the "who cares what the agent charges" camp. However, on this one I agree with luke et al - the level of the markup is disproportionately high for what the agent provides. Its legal, but it ain't right.