agency margin

[touche]

hey all,

is it allowed to ask an agency for how much margin they charge on my rate?

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

[chicane]

There's nothing wrong with you asking, but chances are they'll either lie to you about their margin or tell you it's none of your business.

[ratewhore]

...or tell you it's none of your business.

Which is correct. It is none of your business.

[DodgyAgent]

Which is correct. It is none of your business.

It helps you to know where you stand in the scheme of things so I would advise you to make it your business, unless of course you are working through "Dodgy Enterprises" in which case it is none of your business.

[ratewhore]

It helps you to know where you stand in the scheme of things so I would advise you to make it your business, unless of course you are working through "Dodgy Enterprises" in which case it is none of your business.

An alternative and equally viable opinion. I've always taken the view that my negotiations take the agency margin to a reasonable level and, if I'm happy, who cares!!

[Beefy198]

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

To a degree, yes. But there's only so much haggling they'll do with an end client (especially true at renewal time) before the extra effort isn't worth it and/or they worry about pissing the client off.

Think about it - you could negotiate and extra £50 a day with each of you getting £25, or spend that time placing someone else in a placement for £300 a day with you taking £75-£100..............

[Jubber]

IMHO - If I’m happy with the rate – then a huge margin means if anyone is getting ripped off, it is the client, not me.

I suppose it all comes down to what is good business? Are your business ethics any better? Think about it. Would you take a rate of 800/day when really it should only warrant 400? Would you take the gig at that rate or would you say to the client, sorry, I only want 400?

[ratewhore]

Would you take a rate of 800/day when really it should only warrant 400?

I call that good negotiating...

[XLMonkey]

hey all,

is it allowed to ask an agency for how much margin they charge on my rate?

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

Yes, of course it is. For most large corporates/government departments the agency margin is fixed in advance under their contract with the agency, so it makes no difference to you.

The agency doesn't have to tell you, of course. But that shouldn't stop you asking.

[XLMonkey]

Would you take a rate of 800/day when really it should only warrant 400?

not sure its really a question of ethics. If the client thinks its worth 800/day, then that's what its worth. Its not the supplier's job to decide the value of the work, its the customers job to do that.

so yes, I would take it....