Agency Commission / Markup

[EddieNambulous]

Keep quite about the information and use it to your advantage

Not sure what advantage he is going to gain from keeping quiet. Most agents are perpetual liars and most contractors know that.

It's not as if he can do a Columbo to the agent over the phone..."just one more thing before I hang up..." and catch them in the act. They wouldn't care.

[Mustang]

Not sure what advantage he is going to gain from keeping quiet.

In that case then I suggest going on a negotiation skills course and definately dont play poker!!

When the OP goes to contract renewal he/she has valuable information that may help to get him/her a better rate.

[EddieNambulous]

and definately dont play poker!!

Actually, I play quite a lot of poker and I do pretty well. Sorry to disappoint you.

[pmeswani]

But I accepted the rate on the understanding of my initial statement that there was no flexibility in rate, when clearly there may well have been. Is 25%norm for commissions ? And should I tell the agent that I know and am not happy about it ?

If you were not happy with the rate before you signed the contract, you shouldn't have taken it. Full stop. You shouldn't take on the contract and then say "Oh... the agency is making x% on top of what I am getting, and I'm not happy any more". Either accept the rate and negotiate at the next renewal, or, unless you have the client on your side, walk away from the contract.

[pmeswani]

Bulltulip......contracts can be re-negotiated at anytime, as long as negotiations are within the terms of the contract.

Obviously, that's worked for you. A lot of people I know have been shown the door when they negotiate the contract early on.

25% is way too high, looking at 8% (on a framework) to 12% (which is high IMHO).

Get the client in your pocket and then play hardball.

Good Luck

In your opinion. You don't know the overhead / running costs are of the agency. The agency is in the business of making money.... as is your business.

[pmeswani]

It's not a Markup!!

The agency won the business. You are getting a proportion of the fee they negotiated with the client. When you win your own business, then you can dictate terms.

Fully agree.

[moonstar]

Thanks for the various responses.

I was thinking of speaking to my client co to clarify the exact position, as I am still not happy about the way I was advised there is no flexibility on rate by the agent, and ask the client co exactly what discussion the agent had with them.

I would stress to the client co that this is not a reflection on them (by the sounds of it anyway) and they have also said they have no time for the agent anyway and what a liar he is. This would also give me more ammunition for whenever the best time to raise it with the agent is (as per some responses).

Is this a worthwhile approach or should I not bring up with the client co at all (for info they raised the issue of rate with me which has triggered this all off) ?

[DodgyAgent]

Thanks for the various responses.

I was thinking of speaking to my client co to clarify the exact position, as I am still not happy about the way I was advised there is no flexibility on rate by the agent, and ask the client co exactly what discussion the agent had with them.

I would stress to the client co that this is not a reflection on them (by the sounds of it anyway) and they have also said they have no time for the agent anyway and what a liar he is. This would also give me more ammunition for whenever the best time to raise it with the agent is (as per some responses).

Is this a worthwhile approach or should I not bring up with the client co at all (for info they raised the issue of rate with me which has triggered this all off) ?

I would advise you not to create too many waves on this, but quietly support the client and politically undermine the agent with a view to setting things up in your favour at extension time. There is nothing wrong with a 25% margin unless it was obtained through deception.

[RichardCranium]

I am still not happy about the way I was advised there is no flexibility on rate by the agent

If an agent's lips are moving, it means they are lying.

Is this a worthwhile approach or should I not bring up with the client co at all (for info they raised the issue of rate with me which has triggered this all off) ?

Go on. Hassle the client. It means one of us on the bench can get your gig when the client decides you're a pain in the bum.

[Another Dodgy Agent]

This is one of those few scenario's where I would agree with the contractor that 25% margin is way too high. We typically charge out at 10%/12%. Nice to see the comments suggesting that "you agree to a rate, doesn't matter what the agent is charging", however it does really in this context purely because the total charge percentage wise is so high.

Myself and DA could offer a better deal I am sure, as could the other agents that post on here. Now I know it's not that easy to cross over but nevertheless scope is there.

I would talk to your line manager and see if some of that percentage could go to you, or in these uncertain times, make you more cost effective by cutting the agency margin by a wee bit?