Peed off with Agency

[NorthWestPerm2Contr]

In my first contract @ £250/day but very close by.

Coming to end of contract (21st) and verbally been offered (and accepted) renewal. Permies don't have security where I am working let alone the contractors. Found out other contractors are on at least £50/day more and we are being charged out at £450/day each. I feel like I have been robbed.

I am applying elsewhere as still no contract to be seen but peed off at the ridiculous margins of these agencies (lying scum). The agency tried pushing around another experienced contractor and lied to him about them not changing the previous contract. Just generally angry and annoyed with agencies.

Only been here 3 months but I want a fairer deal. Should I consider walking?

[norrahe]

In my first contract @ £250/day but very close by.

Coming to end of contract (21st) and verbally been offered (and accepted) renewal. Permies don't have security where I am working let alone the contractors. Found out other contractors are on at least £50/day more and we are being charged out at £450/day each. I feel like I have been robbed.

I am applying elsewhere as still no contract to be seen but peed off at the ridiculous margins of these agencies (lying scum). The agency tried pushing around another experienced contractor and lied to him about them not changing the previous contract. Just generally angry and annoyed with agencies.

Only been here 3 months but I want a fairer deal. Should I consider walking?

Welcome to the real world, these things happen.

[NorthWestPerm2Contr]

Welcome to the real world, these things happen.

OK and the advice is...

[malvolio]

OK and the advice is...

Do better next time. HTH

Seriously, you were happy with the rate and presumably you're paying the bills or you wouldn't be renewing. What you get is up to you, in the main, what others get is immaterial. If you start worrying about that, you only cause yourself grief, nobody else.

If you want perspective, I was on a contract a while back on £600 a day, and being charged out at £1800. Most Big5 consultants are running similar markups, and mostly they're not even very good. Like the man said, sh*t hapens

[cojak]

If you can find better contracts out there walk.

If you can't, don't.

Simples.

[Drewster]

WTS ^^^^^^^^

Its sometimes better not to know what others are making on a deal..... if its going to upset you!!

You discussed a rate..... You agreed a rate.... Thats it - done and dusted.
If the rate isn't good enough - don't take it.
Doesn't matter what anyone else gets out of it.

Once you do know it you could use it in your next negotiation.. but I'll put money that "they" are better at that than you..... so don't worry about it.....

[rootsnall]

OK and the advice is...

Well you've defo got scope for getting your rate upto 350 and leaving the agent with a good margin. In better times ( ie. there is other work out there ) I would go with the 350 or walk option to the agent. It has worked a number of times for me in the past ! But you are a newbie, and the market isn't good, so !?!?!?!? I think some people new to the game are way too soft with the agents, keep the client sweet, but you can play hard with the agent, if you don't you'll get nowt.

[SuperZ]

We should consider the guy is using an agency not working for a consultancy where it is more acceptable to be earning a smaller amount of the actual cost to the end client. So bearing that in mind, earning £250 of £450 that is charged to end client is not acceptable.

You could walk, you could negotiate, you could even cause trouble by stirring up the client. Considering the later option, in many cases and especially in this economy, they may not be too happy knowing they are paying just an agency (not a consultancy) £450 for your services and you are only getting £250. They may also not be too happy knowing that you might walk (therefore affecting client co) because of the scam the agency is pulling. It is also embarrassing for the end client, why are they paying £450 when there are people out there (like you) who will accept £250 a day?

I caused a little havoc recently due to seeing through an agency scam and reporting it to client co, the result was fairer pay to the contractor. Rather than just accepting it as 'it happens' I'd prefer it if more people spoke up about it and raised the awareness with client co, grow some b*lls people , don't be owned by agencies.

[Wanderer]

In my first contract @ £250/day but very close by. Coming to end of contract (21st) and verbally been offered (and accepted) renewal. Permies don't have security where I am working let alone the contractors. Found out other contractors are on at least £50/day more and we are being charged out at £450/day each. I feel like I have been robbed

My initial reaction is that you get stuff like this happen a lot in contracting and you have to grow a thick skin to deal with it. Agencies with high markups is just part of doing business. That doesn't mean you can't negotiate though, anything is fair game - if there's a big markup then there is nothing stopping you trying to get a slice of it.

So the agency are charing you out at £450/day and you are getting £250/day? If that is correct, then go back to the agency and tell them you know how much they are charging you out at and they need to up your rate to at least 350 or you won't renew. Forget any verbal agreement with the agency to renew, it's time to play hardball. The agency will pay hardball too, it's what they do and they are very good at it. Remind them that if you leave, you will have to give references to all the other agencies you contact and it's likely that another agency could get someone in there to fill your old position and your agency would get nothing. Sometimes you will win the fight, other times you wil lose.

Depending on how well you get on with the client, they may be able to kick the agency into shape too, but this is a very touchy subject and not recommended unless you are absolutlely certain about what you are doing.

Bottom line though, if you don't have 6 months cash in your war chest, plenty of experience/confidence to get a new contract then don't walk. Calm down, try and negotiate if you can and start looking for something else if you are still unhappy. If you can't find or get offered anything better then you have to deal with what you have.

[BolshieBastard]

In my first contract @ £250/day but very close by.

Coming to end of contract (21st) and verbally been offered (and accepted) renewal. Permies don't have security where I am working let alone the contractors. Found out other contractors are on at least £50/day more and we are being charged out at £450/day each. I feel like I have been robbed.

I am applying elsewhere as still no contract to be seen but peed off at the ridiculous margins of these agencies (lying scum). The agency tried pushing around another experienced contractor and lied to him about them not changing the previous contract. Just generally angry and annoyed with agencies.

Only been here 3 months but I want a fairer deal. Should I consider walking?

Oh dear, I detect a residual permie mindset here!