Best way to get a rate rise at renewal

**ratewhore** · 20 October 2005, 12:42

Come renewal time it's always handy to have a backup option, this gives leverage for negotiation.
So:

1) Get another offer.
2) Decide what increase you would accept.
3) Negotiate with the agent (do not involve the client) and be ready to walk if necessary.

**stacks** · 20 October 2005, 13:10

So the art of blagging comes in handy then

I suppose it also helps that I know the client has budgeted for a rate rise and I assume the agent would be keeping that for himself if I made no attempt to get it!!

**ratewhore** · 20 October 2005, 13:57

Blagging gets you a long way in this game, one of the key differences in my mind between a contractor and a permie. Permie's generally wait for the world to be handed to them on a plate.

So blag away and good luck..!

**jonhoops** · 20 October 2005, 14:39

Yes, its quite common for agencies to reduce their rate by a couple of percent as contracts go into 2nd and 3rd extensions. This is often by agreement before the contractor starts and leads to savings by the client.
Which is why you might find come extension time that your agent trys to find you another role rather than renew.

Originally posted by stacks

I'm in my first contract which started as a 6 month deal ending in June and was then renewed until December. My daily rate is £350 but I know the client pays £400 a day so the agent is pulling in some easy money for each renewal I do. I'm expecting the client to keep renewing me for at least another 12 months and at the December renewal I want to see if I can up my rate.

What's the normal practice for this sort of thing and what should I be looking out for just in case the agent tries to stitch me up. Does the agent ever decrease their "cut" of the rate they take to keep you happy if the client refuses to cough up any more dosh?

**jonhoops** · 20 October 2005, 15:01

Well in that case they are most definately not reducing their margins as your contract wears on .

Originally posted by zeitghost

That'd be a first in my experience...

**ratewhore** · 20 October 2005, 15:11

I've never experienced it either. The only way they will do this is by you eating into their margin by a rate rise come renewal...

**BlasterBates** · 20 October 2005, 16:27

Well agency rates are usually around 15% so £50 ain't bad really, sounds a lot, but not much room for manouvre really.

**boredsenseless** · 20 October 2005, 22:08

I'm with Blaster here 50 quid is about the minimum your agent will stomach push it any lower and you run the risk of him pulling out

**malvolio** · 20 October 2005, 23:12

Plus, with my management hat on rather than my contractor one, the first question I'd ask is what have you done to justify getting a raise?

Doing your job well is not actually a reason, because that's what you're paid to do. You have to have added some value somewhere: the agent will go the client first, rather than threaten his margin, so you need the client to be saying good things about you, even if they are not putting up any extra cash themselves. Blagging is fine, but you have to start from a position of strength.

Best way to get a rate rise at renewal