Current Rates = Ticking Timebomb

[Jog On]

I agree that having low rates attracts a different breed of contractors who
are more likely desperate and lack skills or integrity, that's a generalisation
and guess applies to any market not just contractors.

Also you've got redundant permies going for anything they can get contract or otherwise. Makes little difference to them if they take the contract equivalent of their permy salary or a bit less.

I saw a support monkey role (1st/2nd line) being advertised at £8.50/h the other day....

... and some desperado will have taken it by now no doubt

But yes there will be lots of ship jumping and hopping about when things pick up but that's the way it goes. We are in business after all.

[rootsnall]

Supply and demand as various have said, we've been here before and it even surprised me how quickly rates recovered after the dot com 2002/2003ish? slump. You've got the outsourcing and imported workers issue pushing down rates but I still think you'll see a pretty sharp upturn in rates the other side of the recession. I've just got a gig with a previous client and managed to get away with a token 5% cut on the rate from 2 or 3 years ago, I offered it up front and the ploy worked. They could of got someone cheaper but I think they are being sensible and avoiding the downside of paying peanuts.

[scooterscot]

No one has mentioned reputation.

If an agent is willing to make hay while the sun shines for a quick buck then so be it.

My industry is nicher than a niche thing with niche bits on it.

Maintaining a long standing relationship is just as important now as it was before the economic crisis. Taking advantage of clients is not going to keep you in business.

[thunderlizard]

No one has mentioned reputation.

Desperate contractor keeps looking for better rate on offer and although he would never do this normally he cannot work for peanuts so jumps ship or just does not extend, making contractor look bad and effecting his reputation.

hth,
tl

[scooterscot]

hth,
tl

missed that one...

[George Parr]

I saw a support monkey role (1st/2nd line) being advertised at £8.50/h the other day....

... and some desperado will have taken it by now no doubt

Well, if he is unemployed he will take it up. It's five times better than the dole.

£8.50ph then effectively becomes the going rate for the job until there are no more deperados left. Sad but true.

[SuperZ]

£8.50ph then effectively becomes the going rate for the job until there are no more deperados left. Sad but true.

Hence why contractors should be putting something aside to avoid the desperado situation, rates might rise quicker.

I don`t buy this "but if we don`t take the low rates the jobs will be off-shored" rubbish. If offshorihg is in the frame they`d be looking at that option anyway. Iknow none of my clients over the last x years would consider offshoring just because contracotrs won`t accept a desperado rate.

[minestrone]

I am going back to a place I left in January when they offered me an extension with a 15% drop. I was totally honest with them at the time and said I would not work for less than X, they are now offering me more than X. Honesty is the best policy and I find people in the business don't mind an honest money grabbing bastard, they know where they stand with them.

[weemster]

If you need the money then you do the job regardless of rate.

[Mustang]

If you need the money then you do the job regardless of rate.

WHS