Rates and Margins in these times..

**s2budd** · 5 June 2009, 05:53

The agents are giving out scare stories and keeping the rates down though there is a lack of work out there. To compensate for the lack of work they are raising their margins. I was offered a contract for £325 odd per day. I turned it down due to the rate being too low and after fifteen minuets the daily rate magically increased by £100 per day. Now that's not enough time to go back to the end client but is time for the agent cut their margin.

Moral of the story, I am on £425 and not £325 per day. The problem is taking the risk and saying no in the first place hoping that the rate magically increases. Good luck.

**Fred Bloggs** · 5 June 2009, 06:27

I would think that the majority (or at least many) Blue Chip client co's are paying exactly the same hourly rates to their agencies as they were last year and the year before that. I reckon the agencies are taking a much bigger slice and taking the pi55 out of us.

Last week I got a call directly from a large client co asking me if I was interested in a role for which they would pay £65 to £60 per hour. Within an hour I got three calls from agencies offering me the same role at £40.

Obviously, in parallel with talking to me directly, the client co went to their PSL agencies. Isn't this a blatant example of agencies taking the pi55?

**DimPrawn** · 5 June 2009, 08:16

Agents have Porsches to buy too you know.

**ChimpMaster** · 5 June 2009, 11:19

The sad part is that there are some contractors out there desparate (or stupid enough) to fall for these very obvious agent tactics

**beemarman** · 5 June 2009, 12:16

Originally posted by s2budd View Post

The agents are giving out scare stories and keeping the rates down though there is a lack of work out there. To compensate for the lack of work they are raising their margins. I was offered a contract for £325 odd per day. I turned it down due to the rate being too low and after fifteen minuets the daily rate magically increased by £100 per day. Now that's not enough time to go back to the end client but is time for the agent cut their margin.

Moral of the story, I am on £425 and not £325 per day. The problem is taking the risk and saying no in the first place hoping that the rate magically increases. Good luck.

Same thing happened to me as well, i asked for more and got £50 extra per day.

**Fred Bloggs** · 5 June 2009, 12:20

Originally posted by TazMaN View Post

The sad part is that there are some contractors out there desparate (or stupid enough) to fall for these very obvious agent tactics

The other side of the coin is that I don't get the job at £60/hr because someone out there will take the £40/hr offer. The location of the job meant that Mon/Fri commuting and digs adds £18/hr overhead to my current rate. So even at £60 the rate is actuially lower than my present work near home rate. For £60 I'd have done it. For £40 I might as well work in Aldi.

**haybaby212** · 5 June 2009, 12:42

yep had this on the phone just yesterday the role was for the same job as im doing now SC cleared Virtualisation role she asked what i was on blah blah asked how much i wanted told her she said oh thats too high.

Other candidates have asked for £25-£30ph i mean its a £40+ph role all day long stop cutting your nose of to spite your face if you want to earn low money go permie and stop cutting the rates for everyone else.

**slickcontractor** · 5 June 2009, 13:05

Originally posted by DimPrawn View Post

Agents have Porsches to buy too you know.

lol

**nevergoingtopay** · 5 June 2009, 13:39

5%

Elan IT are going in to all gov departments and offering contractors at 5% margin....my current gig asked me what my contact says about them changing the agent. It says pay ££,£££ so they are not bothering changing.

Elan IT are all driving Fiestas now!

Rates and Margins in these times..