Getting a rate rise at renewal

**thunderlizard** · 15 September 2005, 22:09

Being genuinely "not willing to lose out on rate" is the key. With that position you shouldn't feel obliged to enter into a negotiation. Contractors often do themselves a disservice by making their prices negotiable just because they think everyone expects them to be. Just tell the guy plainly and simply that your rate isn't negotiable, and make your preparations to end the contract if you don't get what you now require.
If you're not negotiable on rate but you are negotiable on other things e.g. notice period, maximum billed hours etc, feel free to offer these in exchange for more ££s

**Durbs** · 15 September 2005, 22:29

Basically just stand firm, give the agent your price and make its clear its totally non negotiable, it sounds like you are on to a nice number and i'm assuming that the client is very happy with you to offer the extensions so this agent is no way going to risk you refusing the extension and potentially upsetting one of his clients. He's still going to make a bundle for the easy task of renewing rather than having to source a new contractor so you really hold the advantage here.

**DieScum** · 16 September 2005, 00:52

ha ha

"the agent is a very senior rec con and will eat me alive in any negotiation"

This is exactly the kind of mofo who I enjoy ******* with. Seriosuly what the hell is he going to do? Use colourful language? Be persuasive?

If you say a rate and don't budge and you are willing to walk away then either you will get the rise or the agent will lose a fee for a renewal.

Once I was playing hardball over a potential contract. The agent I was dealing with got a senior agent to call me back. Spend an hour on the phone with this 'barrowboy' as he spouted various pieces of nonsense at me on why I should accept a lower rater than I wanted.

I just repeated "That if fine. I fully accept that the client wants to pay a lower rate. However this is the going rate for my particular skillset and I won't go any lower."

He finally relented.

They didn't offer me the contract. Ha ha. The thing was I was happy in my permie job, I didn't want to move unless the money was 100%. I was willing to walk away.

Maybe a mixed message there but just what happens.

**n5gooner** · 16 September 2005, 06:59

just set your stall out, be sure in your mind the rate you want, get a job offer from elsewhere, try and time it with the rate rise date and stick to your guns.

this is what I did for my contact, but the new one I got the rate was so much higher, there was no way the client was going to match it, so I'm off. What the agent did let slip was that there was an extra £5 ph in the pot for me had I stuck to the orgiginal plan, so I just let my fellow contractors know so they could be in pocket with there renewals.

**The Lone Gunman** · 16 September 2005, 07:15

You have to be willing to walk, thats it.

Tell the guy you gave him a good will rate to get in and to show your worth(truth), but now you want a proper market rate which reflects the real situation.
If he says it cant be done then tell him you will not be renewing.

It is not a negotiation.
Tell him early enough.

**boredsenseless** · 16 September 2005, 07:47

It comes down to whether or not you feel you can walk away.

All rates are negotiable if one party wants it enough. i.e. the client can always pay more if they really need you and can't do it any other way

Equally your rate can be kept the same or lower if you need the cash and they are willing to hold out.

Put simply negotiation is always best at the outset, trying to up an unattractive rate to market rates is very difficult. I expect that unless the difference between current and market rates is slim you may have to walk to get what you want.

Bear in mind that clients set their budgets early so if they think they are getting you for £20 p/h they'll request a budget for that if you turn around and say that it was a goodwill rate and its now 35 its too late they've already requested a certain budget.

Also by rights it can't be a goodwill rate if you didn't tell someone about it at the time. If you are going to do this sort of stuff include it in a covering letter to the agent or client at the time of accepting...

i.e.

I have pleasure in accepting the contract with X for the position of Y. I understand from our negotiations that the client is willing to pay £X p/h, this is different to our usual trading conditions which indicate that the resource requested has a standard charge out-rate of £Y p/h. On this occassion we are prepared to operate at a discount to our standard conditions as we recognise the opportunity in this engagement for future work. For any future work with this client we reserve the right to revert to our standard conditions and/or negotiate further.

-- The above is a little rusty as I'd usually get a contracts expert to draft it for me and I'm doing it of the top of my head. But the jist is there, if you want to go back in 5 months and say I gave you a good deal then you need to make sure they are already aware of the deal you have given them

**insight14** · 16 September 2005, 08:02

It will probably be frowned upon by some members, but one of the first things I do when entering a contract is find out who at the client site is responsible for my pay and become their mate. Get them out to the pub. After your 5 months you should either know what they pay the agent (can you cut the agent's margin?), or you should at least know whether there's any chance of a rate rise on the clients side.

This way you can double team both the agent, and your "mate's" boss into finding more money for you. The best way to negotiate is to know all the facts.

**Rebecca Loos** · 16 September 2005, 08:39

All good advice up there. My method, which usually works is: "I have an offer somewhere else at £XXX+N a day (XXX being what you want). However I like it here and would stay for £XXX. But any less than that and I can't stay cos' I would earn a lot more at <other fictitious position>"

Yes it is a lie to the agent but they do lie to you too so we're evens. The agent will usually get the increase they need from the client without even having to lower their margin (provided the client likes you).

I usually avoid being confrontational with agents (but it is purely my style, by choice) but I can play the really annoying contractor "no, really, I love it here, but you know, I am being offered so much more elsewhere, I can't possibly lose that much money even for a role I like. OK, tell you what, I'll do it for £XXX, but at that rate, I am losing quite a bit, so it's really really really my last offer" bla bla bla

Tell yourself that at renewal you're in a much stronger position for negociation than for a new contract, since the client knows and (hopefully) likes you, and clients don't really like to change personnel all the time, so they will pay a bit more to keep you. Also the agent knows you're a good guy who knows their stuff (they have to deal with a few cowboy contractors, so good ones are valuable) and therefore are keen to carry on placing you at the client's - not by love for you (they don't care) but only because it does make their life easier (not having to look for someone else) and they get to carry on extracting revenue from the client, instead of seeing that contract go to another agency.

**ratewhore** · 16 September 2005, 12:06

my 2p's worth

Doesn't matter whether he's senior or not. Set your rate and be prepared to walk away. A small amount of negotiation is fine and usual in my experience but remember you are a businessman and your skills and time have value.

Loads of work out there at the mo so don't stress too much and don't undervalue yourself.

Getting a rate rise at renewal