Dodgy Pimp?

[portseven]

Not impressed with the current pimp, talk about not trusting them as far as you can throw them.

So I have been offered an extension and a rate increase by the client. They told me what they will be paying the agent, and so it was up to me to talk to agency to get final rate to me.

Talk to agent, and he tells me that they normally take 25% but as I have been at the client a long time and have been a ‘good posting’ they would only take 5%. Agent said that’s fine and he just wanted to OK it with client.

A few days later my line manager and I are going though the budgets for the year and I notice my rate is down as something different (more) as to what I thought. So asking about it, it seems that the agency after talking to me spoke to the client and got them to up their rate for me. I didn’t get any increase; it was the agent upping their margin. So the sob story about the 5% has now gone up to 12%, and I wasn’t told anything about it.

I am not sure if I should feel out-of-turn about this or not, on one hand I was reasonably OK with the final rate to me so why should I be bothered about what they get on top of that. On the other hand the agent telling me they were doing me a favour by only taking 5% was a bit or a porkie-pie.

What think ye?

[kirk]

are you happy with your rate? I don't really give a flying fook what the pimp gets, as long as I'm happy with the rate I'm getting.....

[KevinS]

The agent sounds like a good negotiator..

You got your increase, why worry about what the client is paying the pimp??

[Ardesco]

12% also sounds like a reasonable cut as well. They won't ever go as low as 5%.

[PAH]

The agent sounds like a good negotiator..

You got your increase, why worry about what the client is paying the pimp??

Because if they're creaming too much off top you may be first out of the door when they decide to cut back.

Pretty much every contract I've been on I've outlasted all the other contractors on my team, maybe because I'm good, but just as likely because I find out the margins and squeeze them. I know for a fact some have fallen before me because the client thought they were too expensive, even though I knew they were getting a similar rate to me from the agent (unless my fellow contractors lied to me!), hence the agent must have been taking the piss.

There's only one reason agents don't like contractors finding out what their fellow contractors are on, and that's so they can bulltulip them to retain their sometimes outrageous margins. Hence before any first renewal I try to find out what the others are on so I have more ammo come negotiations.

[malvolio]

Because if they're creaming too much off top you may be first out of the door when they decide to cut back.

Hence before any first renewal I try to find out what the others are on so I have more ammo come negotiations.

See, that's where we part company. As a manager I engage you to do a given piece of work. Unless you do something startling to save my budget, why should I pay you any more just becuase you've been there a while or have found out you earn less than my other contractors?

Still, no harm in trying it on though!

[Ardesco]

Also if the others are shouting about their rate to all and sundry I'm not surprised they are on the way out.....

They are going to affect morale in the business. Between contractors when some find out they are on a lower rate and definitely amongst the permies who will think that they do the same, if not more and are jealous that they are getting probably half of what the contractor gets.

Never discuss your rate!!!

[PAH]

See, that's where we part company. As a manager I engage you to do a given piece of work. Unless you do something startling to save my budget, why should I pay you any more just becuase you've been there a while or have found out you earn less than my other contractors?

Still, no harm in trying it on though!

When there's an agent between contractor and client, I may not be earning less than the other contractors but you may be paying more for the others.

I just don't like it when lying agents try to make out I'm on the best rate I can get when they're trying to cream a large chunk for themselves, for very little work once the placement has been arranged.

Also, just because an agent is saying a contractor wants an extra £5/hour at renewal doesn't mean the contractor has even asked that or will receive it if given.

Circumventing the agent to provide more clarity can only be at the disadvantage to the scheming agent, otherwise they'd allow all parties to see all contracts in place in the relationship between client-agent-contractor.

[PAH]

Also if the others are shouting about their rate to all and sundry I'm not surprised they are on the way out.....

They are going to affect morale in the business. Between contractors when some find out they are on a lower rate and definitely amongst the permies who will think that they do the same, if not more and are jealous that they are getting probably half of what the contractor gets.

Never discuss your rate!!!

Bollocks. Just don't discuss it in the presence of permies. Keeping schtum with fellow contractors only helps the agents exploit the contractors.

It's worked for me so far. Maybe it matters how you go about it.

Another tip: if an agent offers to take you out for drinks or a meal, you know he's screwing you behind your back, otherwise the margins would be too lean to allow it!

[DodgyAgent]

Bollocks. Just don't discuss it in the presence of permies. Keeping schtum with fellow contractors only helps the agents exploit the contractors.

It's worked for me so far. Maybe it matters how you go about it.

Another tip: if an agent offers to take you out for drinks or a meal, you know he's screwing you behind your back, otherwise the margins would be too lean to allow it!

Why else would someone put up with your company?