Peed off with Agency

[northernladuk]

You have just broken one of the golden rules of contracting and are paying for it. You found out what you were being charged out at and what the other guys are earning. I make a point of walking away from ANY discussion or paperwork that may end up with me finding this out. You will always be pissed off when you go digging in these areas. Ignorance is most definately bliss. Never discuss rates or charges. It only ends in tears.

This isn't the first and am sure certainly won't be the last post complaining about this.

[Shimano105]

God, some of the advice on here is so wet.

Of course he should be peeved and of course it matters what the agency is getting. He should on no account renew unless he gets £350.

All this about agencies being entitled to charge what they want is bollocks, they are ripping him off. If the client is paying £450 they are going to expect the contractor to be getting the lion's share of that otherwise they are not getting the full value. Ludicrous to expect most of that to go to a middle man.

If you bought a car for £10k and found out that £5k of that was profit for the dealer would you be happy? Thought not.

[NorthWestPerm2Contr]

I am going to apply and see how it goes.

Thanks guys

[The Agents View]

What on earth makes any of you think that a consultancy has the right to charge a higher margin than an agency??

Costs are similar, process is almost identical, insurances are different and risk is slightly different - but to be honest, there's not that much in it - they're the biggest con going most of the time.

Shimano - what are you on? Yes - the margin is high - too high in my opinion, but there's no law against charging high margins - if the client is happy to pay it, what's the problem? I've been known to balance margins - as a rough guide, I need to average about 17.5% margin across all of my contractors - with the same client I've been known to charge 25% and 10% to make deals work for candidates, clients, and myself.

The others above are right - you agreed the deal, you were happy with it, you're probably earning double what you were as a permie, you've only got the arse because you entered into the conversation that professional contractors never enter into.

You could go and negotiate, but to be fair, the market is saturated with people willing to work for less, so they very much have the upper hand. If you can get something better, then walk, if you can't, swallow it, and don't have that conversation again......

[jmo21]

You have just broken one of the golden rules of contracting and are paying for it. You found out what you were being charged out at and what the other guys are earning. I make a point of walking away from ANY discussion or paperwork that may end up with me finding this out. You will always be pissed off when you go digging in these areas. Ignorance is most definately bliss. Never discuss rates or charges. It only ends in tears.

Actually, I completely disagree that this is "one of the golden rules of contracting" part.

I always have my ears and eyes open for this stuff, so that I can pitch my renewals correctly.

The important part, is realising this is business. You were happy when you signed the contract. So either put up or shut up.....or.......use the new knowledge to your advantage!

[Wanderer]

What on earth makes any of you think that a consultancy has the right to charge a higher margin than an agency??

Costs are similar, process is almost identical, insurances are different and risk is slightly different - but to be honest, there's not that much in it - they're the biggest con going most of the time

Maybe I'm missing something but my take on it is:

Typically, a consultancy will retain people (permies) to work on various contracts and they have a pool of good people at their disposal, trained, experienced and strengths/weaknesses well known. If their people aren't working on a chargable contract with a client, the consultancy still pays them. The consultancy will have substitutes they can bring in to work for a client at short notice.

Agencies by contrast pretty much just forward on CVs, often having never met the contractor and with little or no understanding of the client or contractors business.

That's why a consultancy takes more money than an agency.

[northernladuk]

Actually, I completely disagree that this is "one of the golden rules of contracting" part.

I always have my ears and eyes open for this stuff, so that I can pitch my renewals correctly.

The important part, is realising this is business. You were happy when you signed the contract. So either put up or shut up.....or.......use the new knowledge to your advantage!

Yeah I can go with that. If you can not let it eat you alive and ruin the gig your at it can be an advantage. Unfortunately from what I have seen on here and the times it has happened in RL that isn't very often at all.

[Moscow Mule]

Knowledge is power.

Use that power to your advantage, do not use it to wind yourself up.

[Shimano105]

...usual agency bollocks......

He agreed the deal not being able to know the margin because the parasite agents will never disclose it - I wonder why?

Now he knows the margin he is perfectly entitled to ask for more and should. He should also inform the client - let's see how happy everyone is with the arrangement with everything out in the open.

All this 'everyone is happy' line is always trotted out from those that know all the figures but keep them to themselves. Like I say, let everyone know the numbers involved and see if they are happy, otherwise you are nothing but an underhand, lying shyster.

But you knew that anyway.

[bellymonster]

God, some of the advice on here is so wet.


If you bought a car for £10k and found out that £5k of that was profit for the dealer would you be happy? Thought not.

Thats irrelevant, if you were happy with the price of the car when you bought it, why would you care what his profit is?
At the end of the day nobody is forcing you to take the contract at £250 a day if you think it's really worth £350.

As with buying a car, you negotiate till both parties are happy or you walk away and look for a different car\contract.