Rate Negotiations

[Kelstar]

I am coming out of contract at the end of August and have started putting the feelers out. I've had a good response so far and some great roles come up. As this is only my second contract I wanted to ask the forums advice.

I was sent a role profile for £500-700 per day, PM Solvency II. I find this situtation hard when the agent asks what rate are you looking for when there is a £200 gap. I quoted £600 giving it was £100 more than what I am currently earning but gave bullet points why I wanted an increase (regulatory change, increased risk, managing actuaries!!). They seemed happy enough but I walked away from that conversation thinking "did I just hand the agent a further £100 in their pocket??"! I have 6 years FS Consultancy experience, change manager, PM, PMO Lead, SME, qualified CA - I have PM'd actuarial change for 18 months so feel more than qualified.

I am happy to work for £500, its a good rate, matches my current rate and the way I see it as long as I'm in work I'm happy. Would have been delighted with £600, would have been over the moon with £700.

What do you guys do in these situations? I am new to this and know I am going to make mistakes along the way, hence why I read this forum religiously to learn from the more experienced. I didnt want to price myself out of the contract, if someone else was willing to work for less for instance? Or have I been stupid and sold myself short.

Any advice appreciated, thanks!

[BlasterBates]

I think you pitched it right. If you have a couple negotations at around 600 for other roles then you pitch in at 700. Two things indicate the rate you should go for, firstly the rate you´re on, and then the demand for your skills. No demand, pitch in at the lower end. high demand pitch in high. If you´re too low you´ll be inundated with agents calls, too high and nothing happens.

[Magic]

Easy

I will make this easy for you:

1. Stick to the 600 you quoted you seem more than happy with that
2. Next time ask for 700 and do not spend so much time to justify it

Next!

[Wanderer]

I am happy to work for £500, its a good rate, matches my current rate and the way I see it as long as I'm in work I'm happy. Would have been delighted with £600, would have been over the moon with £700.

What do you guys do in these situations? I am new to this and know I am going to make mistakes along the way, hence why I read this forum religiously to learn from the more experienced. I didnt want to price myself out of the contract, if someone else was willing to work for less for instance? Or have I been stupid and sold myself short.

It's always a tough call, you've got to go with that gut feeling, - you'll win some and lose some. I'll tell you what though, fortune favours the bold and if you don't ask then you don't get. Always pitch in at the higher end of what you feel you could reasonably expect and see how it goes.

I've walked away from interviews grinning in disbelief that they have swallowed my pitch and they think my rate is reasonable. It doesn't always work that way though. If a gig is priced at £500 to £700 and two identical candidates pitch at £500 and £700 then it may mean that the client interviews the £500 person and decides to accept without even considering the other candidate. On the other hand, they may interview both and decide to go for the "reassuringly expensive" option because they perceive them to be a better choice.

Take the example of a bottle of wine. A group of couples are given identical bottles of wine free with their meal, the people who were told that the wine was expensive enjoyed the wine a lot more than the ones who were told that the wine was inexpensive. Thus my motto is to be "reassuringly expensive".

As for the agency charging the client (say) £800 paying you what you ask for and keeping the rest, it doesn't necessarily work that way. Hopefully the agent is on a fixed markup and the rate you pitch at will be passed on to the client, plus agency markup rather than the client paying a fixed fee and the agent keeping the rest. However, it's a good idea to try to steer the agent into discussing the rate at interview time or get a business card from them so you can make sure the agency margin isn't excessive and the client is clear about how much you are charging otherwise you could both end up getting ripped off. Clients deal with this in different ways, some think it's none of their business and completely between you and the agency, others will tell you up front what rate they are expecting the agency to pay you and perhaps even reveal what the agency are taking for their part of the deal too.

Good luck, sounds like a good gig. Inclined to agree with Magic on the rates, but who knows - you might even get more.

[norrahe]

I am coming out of contract at the end of August and have started putting the feelers out. I've had a good response so far and some great roles come up. As this is only my second contract I wanted to ask the forums advice.

I was sent a role profile for £500-700 per day, PM Solvency II. I find this situtation hard when the agent asks what rate are you looking for when there is a £200 gap. I quoted £600 giving it was £100 more than what I am currently earning but gave bullet points why I wanted an increase (regulatory change, increased risk, managing actuaries!!). They seemed happy enough but I walked away from that conversation thinking "did I just hand the agent a further £100 in their pocket??"! I have 6 years FS Consultancy experience, change manager, PM, PMO Lead, SME, qualified CA - I have PM'd actuarial change for 18 months so feel more than qualified.

I am happy to work for £500, its a good rate, matches my current rate and the way I see it as long as I'm in work I'm happy. Would have been delighted with £600, would have been over the moon with £700.

What do you guys do in these situations? I am new to this and know I am going to make mistakes along the way, hence why I read this forum religiously to learn from the more experienced. I didnt want to price myself out of the contract, if someone else was willing to work for less for instance? Or have I been stupid and sold myself short.

Any advice appreciated, thanks!

You could have stretched yourself to more, I know that there is a shortage of the right people and agents are falling over themselves for people with your skills. With things ramping up towards the end of the year for SII good PMs are in demand.

It is difficult when you are on a lower rate than what is quoted and always best to pitch yourself somewhere in the middle, sound the agent out and they might try and get you more if the client is amenable. Better to be just right than too cheap or too expensive.

[Kelstar]

Thanks for the feedback guys. Now fingers crossed it comes off!

[SimonMac]

If you can't spell "Negociations" your not really in a position to enter them in respect to a rate rise

[stek]

If you can't spell "Negociations" your not really in a position to enter them in respect to a rate rise

You missed a full stop off the end. McKeans Law!!

Hehehe!!

[Old Greg]

You missed a full stop off the end. McKeans Law!!

Hehehe!!

You missed an apostrophe, or was that deliberate?

[jmo21]

You missed an apostrophe, or was that deliberate?

I bet you triple checked that post before clicking submit?