Agency Percentage. Does it matter or not?

[monobrow]

So you want more money for doing the same work, but the agency is greedy for wanting the same amount?

Ignore this clown, he is now clearly a bitter permie or an agent.

There are countless threads on here about the lack of visibiilty of agency rates and by how much they vary. The fact that you have found out you are on a rate (17%), which all the information suggests here is high, go for it. but be prepared to walk if it doesn't go your way.

i'd suggest you go in at 10% and assume you will end up somewhere in the middle.

Good Luck!

[The Agents View]

Ignore this clown, he is now clearly a bitter permie or an agent.

There are countless threads on here about the lack of visibiilty of agency rates and by how much they vary. The fact that you have found out you are on a rate (17%), which all the information suggests here is high, go for it. but be prepared to walk if it doesn't go your way.

i'd suggest you go in at 10% and assume you will end up somewhere in the middle.

Good Luck!

Wtf? 17% is high? the way this has been written, he's talking about mark up anyway - so 17% is actually LOW. Anything below 15% margin, is Low, above 15% - 21% is middling, and above 21% is high. AND THAT IS MARGIN, NOT MARKUP.

[d000hg]

He's just a troll, don't let him get to you.

[monobrow]

Wtf? 17% is high? the way this has been written, he's talking about mark up anyway - so 17% is actually LOW. Anything below 15% margin, is Low, above 15% - 21% is middling, and above 21% is high. AND THAT IS MARGIN, NOT MARKUP.

Thanks for CAPS, REALLY HELPS.

So, TAV, what does it cost you to run a contractor? Average it out. % or £per week is fine. Do tell, seeing as you are so contractor friendly. And also, what do you expect to make on top of that? 3% 6% 15% or how about "as much as a weak client or contractor kept in the dark needing another role"%. ?

[The Agents View]

Thanks for CAPS, REALLY HELPS.

So, TAV, what does it cost you to run a contractor? Average it out. % or £per week is fine. Do tell, seeing as you are so contractor friendly. And also, what do you expect to make on top of that? 3% 6% 15% or how about "as much as a weak client or contractor kept in the dark needing another role"%. ?

Yes, I am contractor friendly - perhaps worth reading back on posts and realising that I'm here to inform and educate, not be abused by jumped up little trolls like you.

I will however answer the question in a round about way.

Essentially, every agency is different. Big players, can go low on margin, as they have the economies of scale. Smaller players, simply can't - they can't generate the cashflow to make it work.

I can only explain situations I have been in.

So, I work for a major player, and I have a "threshold" if you like. I can (and normally do) negotiate down to a 14% margin level.

I am required to keep the margin across my contractor book (so everyone working thorugh me) at above 14%.

This means, that in certain circumstances, with the right authority, I can negotiate to 10%, but it means that at some point I will need to push the margin made to 17%-18% to counter it.

All of the above figures are margin figures, they are not markup. I take that percentage of the total rate paid by the client, not on top of your rate.

My previous role was with a small, boutique organisation, with various value add services, ranging from skills transfer matrix, through to providing project support using some of my resource market skills (I'd do resource plans for certain clients as part of their project plans). This business charges a MINIMUM of 23% margin. Some of you, work through that business - I know that for a fact If a pretty website, video content, and preaching that they're "not a recruitment company" sounds familiar, but a projects company, then you've possibly worked through them.....

In this instance, again, everything was done on margin, and their threshold was 21% - drop dead minimum. With 80 odd people in the company, they don't have the scale to deal with bigger accounts, and therefore cannot cope with the cashflow demands created by contracts.

I hope this helps - perhaps worth realising that sometimes it is not the agent who is pushing the margin, but the last contractor who played hardball.

[MrHelpful]

My my what a debate I have triggered.... not been able to check during the day as the snow and ice is wreaking havoc..

d000hg - no I am not doing the same amount of work - from what was initially scoped - I have 50% increased the scope. My knowledge has been recognised and I have delivered ahead of schedule - all of which add to building a stronger case. Yes, the agency is greedy (in my POV) as they just asked the end client for a rate increase in order to try just a slight rate rise which they are not passing to me.

Agent View - 17% is the margin... the mark up is more.

monobrew - thanks

Anyways update - it looks like the client want to go via the single supplier route for all agency staff so if I don't get what I want - I will trigger and transfer all other contractors (working through a variety of agency) who work on my project to the supplier (I have the backing of client procurement) and try negotiate a better deal. It doesn't come as a suprise my agent is alarmed by what the client is proposing but I'll try to see what is available. Otherwise I potentially finish in 1 month!

[northernladuk]

Anyways update - it looks like the client want to go via the single supplier route for all agency staff so if I don't get what I want - I will trigger and transfer all other contractors (working through a variety of agency) who work on my project to the supplier (I have the backing of client procurement) and try negotiate a better deal. It doesn't come as a suprise my agent is alarmed by what the client is proposing but I'll try to see what is available. Otherwise I potentially finish in 1 month!

Just to play devils advocate here, the theory is lovely. If you have a handcuff clause in your contract it won't happen and has been shown on here many times the clients have been quite happy to let contractors go rather than get in to a legal fight with agents, particularly if the people dealing with it at the client end are not fans of contractors as a whole.

[MrHelpful]

well my current contract finishes next month - so I don't see it as an issue which other "agent" "supplier" I go via - ok my current agency would want to ensure they secure the renewal but if the terms are not right I dont see why I would have to stay with them. On my previous contract with another client - I changed supplier 5 times in 3 years. PS.

The client ('manager') is a fan of contractors as I've delivered and has given strong indications he would like to keep me on. He is assuming I will be here in 2 - 3 months time with plans being set.

[Wanderer]

Just to play devils advocate here, the theory is lovely. If you have a handcuff clause in your contract it won't happen and has been shown on here many times the clients have been quite happy to let contractors go rather than get in to a legal fight with agents, particularly if the people dealing with it at the client end are not fans of contractors as a whole.

Being optimistic, I've heard of clients paying off agents to release contractors from their restrictions so they can take their contractors to a preferred supplier. The preferred suppliers take a minimal margin so the eventually recoup their outlay.

[monobrow]

monobrew - thanks

no problem. if you cut through my no nonsense and admittely sometimes troll like rhetoric, I do actually have a point to make in there somewhere.... agencies have been earning 100k a year off our backs for too long - time to squeeze them MARGINS!

remember folks, after every offer, the client wants you, the agency wants you to sign, just politely ask what the Margin or Mark up is and if they refuse then be prepared to walk! I would suggest starting at 10% with an aim to getting in at 15% maximum. anything over this is lining their pockets and buying them new rolexes & buy to lets!

don't forget, it was Agencies and not banks that caused the last recession!!!!