Agency margin

[d000hg]

Your numbers seem to fit my model when I plug margin numbers in.

[The Agents View]

Your numbers seem to fit my model when I plug margin numbers in.

You may well be right - I read it a bit funny (perhaps back to front - what can I say, I'm an agent - don't expect high levels of intelligence)

[magic hans]

I've always thought that 15-20% is entirely reasonable. Any more than that (or lower that 10% even) violates business ethnics in my opinion.

I want good agencies to survive and do well, and so am very happy that my agents get a half decent margin.

On the other hand, I previous agency of mine was taking nearly 40%!!! Well, their off my shopping list, and I'll not work for them again. Or at least not until I've forgotten at any rate!!!

[northernladuk]

On the other hand, I previous agency of mine was taking nearly 40%!!! Well, their off my shopping list, and I'll not work for them again. Or at least not until I've forgotten at any rate!!!

But it is you that didn't negotiate and during the contract were you happy with the rate? If it's down to your negotiation and you were happy why not work for him again? I wish I had so many contracts I could turn work down (at reasonable rates)

[vjmac108]

What little you know, despite your "Agents View" moniker. I work within one of the largest City institutions and manage our contract recruitment function. We work exclusively on markup.

If I had a pound for every time I spotted misinformation coming out of your mouth I'd have accumulated a fair amount by now. Please stop making generalisations - there will be some poorly informed contractor out here that actually thinks you're an accurate representation of the prevailing "view"

The problem in these situations is that people don't know the difference between margin and markup. It drives us nuts.

Lets put the record straight. The agency world, works on Margin. Anyone who tells you they work on a mark up, is lying.

Margin is a simple way of dividing up the pie - ie client agrees rate, contractor takes (for example) 80% of that rate, and agency takes 20%. This is a 20% margin.

In the above example, if you've got them round the wrong way, then you've basically screwed your agency (although you're right - 3% is not a rate that most agents would work at). 19% mark up comes out at about 14-15% margin, which is neither unreasonable, or a rip off.

Indeed, dependent on the situation (volume, relationship, prestige of the client) I would say any agency who provides a decent level of service, would expect to put between 15 and 20% margin into a deal.

[vjmac108]

Should clarify that I am a client and not an agency

What little you know, despite your "Agents View" moniker. I work within one of the largest City institutions and manage our contract recruitment function. We work exclusively on markup.

If I had a pound for every time I spotted misinformation coming out of your mouth I'd have accumulated a fair amount by now. Please stop making generalisations - there will be some poorly informed contractor out here that actually thinks you're an accurate representation of the prevailing "view"

[SimonMac]

To be honest I have no idea what they are taking and am happy in ignorance, how do you all find out, is it usually from the Client end or do you ask the pimp outright?

[JamJarST]

To be honest I have no idea what they are taking and am happy in ignorance, how do you all find out, is it usually from the Client end or do you ask the pimp outright?

I am an SAP FICO conusltant so I have access to the ClientCo's financial information. I can see the agents vendor account and I was able to work out that the mark up is approx 18% or a margin of 15% in The Agents View terms. Seems perfectly reasonable to me, but then I am very happy with my current agent.

[Wanderer]

I've always thought that 15-20% is entirely reasonable. Any more than that (or lower that 10% even) violates business ethnics in my opinion.

My agency takes about 7%, that's more than enough as they don't do bugger all.

[norrahe]

My agency seems to be adding on 20%