Cut In Day Rate

[gryphon]

Hi guys.
It looks like the agency i am through are cutting the day rate we are on. No money has been mentioned yet but if rumour control is right there will only be a £10 difference between Ltd company and PAYE.
Is there a rule of thumb i can argue to say well if X is the PAYE then i should be on at least X+

[pmeswani]

Hi guys.
It looks like the agency i am through are cutting the day rate we are on. No money has been mentioned yet but if rumour control is right there will only be a £10 difference between Ltd company and PAYE.
Is there a rule of thumb i can argue to say well if X is the PAYE then i should be on at least X+

No. Next.

[cojak]

Agents won't be interested in the niceties of your argument.

How much leverage do you have with the client? (Would they miss you if you go?)

If you have leverage tell them you're leaving if they drop your rate - they may back off.

If you're a 'bum on seat' (one developer in a sea of them) then it's a case of take it or leave it, I'm afraid...

[gryphon]

I would like to think i have a lot of clout with client.

[cojak]

Good - then use that, not the PAYE angle.

[Menelaus]

If the charge rate from the agent to the client is being dropped as a consequence of hard negotiation then you should be able to tell the agent to eat the reduction in their margin without expecting you to lower your charge rate.

The unilateral reduction in rate that's being suggested here should be fought off - it's the agents commercial decision to take the reduced charge rate.

[cojak]

If the charge rate from the agent to the client is being dropped as a consequence of hard negotiation then you should be able to tell the agent to eat the reduction in their margin without expecting you to lower your charge rate.

The unilateral reduction in rate that's being suggested here should be fought off - it's the agents commercial decision to take the reduced charge rate.

That will depend on how much margin they're getting in the 1st place - the agents might be in a weak position over this - I know that telcos have been pushing hard with their PSL's many agencies in this position have a very small margin per individual...

Basically it will come down to how much the client wants him, will they care if he walks?

[Menelaus]

That will depend on how much margin they're getting in the 1st place - the agents might be in a weak position over this - I know that telcos have been pushing hard with their PSL's many agencies in this position have a very small margin per individual...

Basically it will come down to how much the client wants him, will they care if he walks?

WS(H?)S

[Pondlife]

I would like to think i have a lot of clout with client.

You may be about to find out.

Personally, I'd put the feelers out at the client to find out if the drop is
a) coming from the client or the agency
b) just for you

[cojak]

You may be about to find out.

Personally, I'd put the feelers out at the client to find out if the drop is
a) coming from the client or the agency
b) just for you

Yep - ask those 1st before you threaten to walk...