agents (yet again)

[frizik]

Just found out an agency managed to charge 28-29 % on my contract. I think its a tad excessive. Anyone agree.

[TheFaQQer]

Just found out an agency managed to charge 28-29 % on my contract. I think its a tad excessive. Anyone agree.

We're back to the "who cares?" argument again.

Cue discussion between the "it doesn't matter what they make as long as you're happy and the customer is happy" folk () and the "it's obscene, they should make much lower than that folk.

Probably excessive, but if you're happy and the customer is happy, why care?

[NotAllThere]

Because while the client may be happy now, he may not be so happy in the future, e.g. when he finds he's paying £800 a day for a £400 a day contractor. Of course it can work the other way. I had one client who thought I was brilliant value for money because I cost him the same as the other guys but was twice as good.

[SueEllen]

Because while the client may be happy now, he may not be so happy in the future, e.g. when he finds he's paying £800 a day for a £400 a day contractor.

Then it's up to the client to find up how much the contractors s/he is using are getting, and if they are not happy to find another agency to deal with.

[mace]

Because while the client may be happy now, he may not be so happy in the future, e.g. when he finds he's paying £800 a day for a £400 a day contractor. Of course it can work the other way. I had one client who thought I was brilliant value for money because I cost him the same as the other guys but was twice as good.

That's presuming that there is a link between the price you pay for a contractor and the quality that you should expect. I've not noticed one so far.

Rates tend to be based on the going rate for a particular skill, which is based on the laws of supply and demand. A client is only interested in whether a contractor is just good enough to fulfill the role. A lot of contracts are for you to fulfill a position on a project to meet a particular project plan. There's always some contingency in there, so if you're good, then the PM can take the days he's saved on you and give it to a less good contractor working more slowly on another part of the project plan.

[frizik]

We're back to the "who cares?" argument again.

Cue discussion between the "it doesn't matter what they make as long as you're happy and the customer is happy" folk () and the "it's obscene, they should make much lower than that folk.

Probably excessive, but if you're happy and the customer is happy, why care?

Well i care because i thought the guy was on commission when it turns out he was effectively subcontracting. So when he asked me for my rate i gave him my get out of bed rate thinking the more i earned the more he would get. Whereas it turned out the less i got the more he got.

[TheFaQQer]

Well i care because i thought the guy was on commission when it turns out he was effectively subcontracting. So when he asked me for my rate i gave him my get out of bed rate thinking the more i earned the more he would get. Whereas it turned out the less i got the more he got.

So, why do you care? You gave him a rate thinking that the more you got, the more he earned. So surely you asked for a high rate?

There's a lesson to be had here - if you aren't happy with the rate that you are getting, then don't take it.

[lukemg]

This happens a lot and yes I do care what they are creaming off because I want as much as possible. At next renewal ask for an increase that will reduce their percentage to 15%, they should swallow this and not even contact the end client. They will claim they can't or that the client has said no - blah blah. Dig heels in and if possible talk to the client saying you consider the percentage commission to be excessive.
Of course - make sure you are excellent in all other respects so they actually want to keep you !

[malvolio]

This happens a lot and yes I do care what they are creaming off because I want as much as possible. At next renewal ask for an increase that will reduce their percentage to 15%, they should swallow this and not even contact the end client. They will claim they can't or that the client has said no - blah blah. Dig heels in and if possible talk to the client saying you consider the percentage commission to be excessive.
Of course - make sure you are excellent in all other respects so they actually want to keep you !

Agreed, but the point the OP missed is that you are not setting the rate for the role, that's probably already been set between the client and teh agent. What you get is determined both by what you ask for and what the pre-agreed total rate is less the agency's margin.

In-demand specialists, scarce skills combinations and senior staff can drive the rate to a large extent, but "standard" workers are not really in control of it. Best you can do is study the market rates and aim a shade higher. You should also have a mental rate card - how much for a job next door, then add daily expenses and inconvenience money, then add seniority, then add risk. The first two are non-negotiable, the last two are your variables.

[BigTime]

Just found out an agency managed to charge 28-29 % on my contract. I think its a tad excessive. Anyone agree.

name and shame