Negotiating Rate Rises

[Bumboclot]

I'm contracting for Computer People (everyone's favourite!) and have found out that they are taking 20% cut of the charge to the client.

I should get a renewal at the end of the contract, but was wondering how much of the margin I should eat into. Perhaps I should forget the margin, set a figure and let the agent and client sort it out amongst them.

Any thoughts?

[t0bytoo]

This agent sounds like a lying scumbag. Surprise, surprise.

I second the previously mentioned 'hardball' approcach. Ask for the rate that everyone else is on. And tell them if you don't get it, you will walk. That there are 'other opportunities' out there for you.

As a contractor, you should be flexible enough to take a few weeks off until a decent job comes up/

[malvolio]

Any thoughts? Yes, several, but if it's CP then you're stuffed since they don't do negotiation. Best to hope for is a 2% lift after a load of guff about group margins and team performance criteria and the like, referrals to line management and d accounts and they make you think they're doing you the favour. And 20% is over the top by any standards these days - what the hell value do their clients think they add, compared to anyone else, that would justify it, I wonder?

[t0bytoo]

Is 20% an excessive rate these days?

Damn. I got a massive rise and I'm *still* getting skanked.

(see earlier thread: agent takes 33%)

[rootsnall]

I'd say 20% margin is fairly normal if an agency is just doing one off contracts with a client, if they are the preferred supplier and/or doing repeat work on a site they should probably be on less but the client may need to get involved to drive the margin down. Most can't be bothered getting involved and its up[ to you to fight your own corner !

I don't think you can expect rate rises on renewal. Only if the market has swung noticeably your way, your initial rate is a bit ropey, or possibly you can't stand the job would I bother pushing it.

[tesla]

All,

Many thanks for all of your replies.

I am sure the agency in my case is getting more than 30%

I understand what many of you say about not getting hung up about it, but if I were to be renewed time after time, it would sure begin to annoy me knowing the agency were getting such a big cut for doing practically zero.

I think I will take the approach mentioned earlier. I will wait until I know they want to renew me and then say "I'd like to, but ... I want a bigger slice of the pie ... etc, etc" (not those exact words!!).

Has anyone out there ever threatened to finish a contract and re-sign with another agency at a higher rate? Can this approach work? Has anyone actually done this?

Regards

[t0bytoo]

Has anyone out there ever threatened to finish a contract and re-sign with another agency at a higher rate? Can this approach work? Has anyone actually done this?

You generally can't sign a contract with a different agent for the same client. But I have no trouble telling an agent that someone else is offering me a better rate.

No scruples in this game.

[malvolio]

One other thing...

The agency is not doing nothing. They are carrying the bad debt between you getting paid weekly/monthly and them getting paid 90-days or more after invoicing. With 100 averagely paid contractors on your books, you're carrying roughly £2.1m liability per month. Even at today's low interest rates, that is a significant overhead.

They may all be lying scumbags , but they do actually add value to your end of the food chain.