How to tackle low rate?

[Anubis]

Hi guys,

I would like your opinions on this one please.

Been contracting for around 5 years now, have a very good CV and working in a financial environment in London for a well known institution (making a loss). My skillset is in the dev side of IT and the market rate roles are frequently offered between £350 - £550+. I've been at my current client coming up to 2 years (yes, I know - no more expenses and so on and the game changes with IR35, etc).

I was intending to move on about 3 months ago as I've done above and beyond the call of duty, really changed and improved things for the client and it's always good to be on your toes (and not turn into a permie like contractor). However - just as I was looked for roles elsewhere, someone came over and said they have this huge project that garuantees at least 6+ months work in exactly the same field. I knew the team, how everything worked (process and technical) and it seemed silly to gamble it just for the sake of wanting to move elsewhere. I switched over to the new team, rate stayed the same (no official discussion over this at the time) and have been told I play a key part in the team and that they'd be stuck without me.

OK - the problem I have is that I feel my rate is too low. Not that I am totally unhappy with it, but when your charging 350 and elsewhere others are offering up to 500+ and agencies are calling up offering roles on better rates, the penny drops realising I've been under selling myself. I also know exactly what others are earning in the team since I have access to the database, and less technically minded staff are on even more than me (a little shocked was an understatement, but I kept quiet and no one knows). So, whats the problem? Go ask for more right?

I know what I should do, but how do you think I approach this? I can't exactly say "I know what others are getting in the team, I want more". I could also be told to clear off if they refuse to pay up my new rate I will be charging, which would feel a shame since everything else is spot on. No matter what I'm going to have to charge more to cover the 2 year rule over expenses, so should I go for 400 or do you think I could push for more? Bearing in mind in this climate people are still being fired so I do appreciate I am lucky to be in a job (I could be playing with fire here).

I'm sure others have been in similar situations, so would like to know how others have tackled this problem.

Thanks.

[oracleslave]

Get another contract for the rate you want. You can then either use this as a negotiating tool or just jump ship. If the market will pay the higher amount you should be able to find something.

[Clippy]

Be careful - the grass isn't always greener.

Why is someone prepared to offer you a lot more for essentially the same role?

It's always safe to set yourself a rate you think you're worth based on the current climate and if the client meets that then don't worry about other roles (there will always be others; you live a long time).

I don't agree about always chasing the cash; it should be at the top of a contractors priorities but greed isn't always good. Life is about being happy...

Source.

[eek]

Source.

Ask your agent. Its hardly difficult to say

As my contract is coming up for renewal its come to my attention that I'm being paid less than the market rate of xxx a day. Could you start sorting out the renewal on something around that level.

We discussed this last week at http://forums.contractoruk.com/gener...situation.html

[perplexed]

To me, you're in a decent situation.

You've been working at with that client - you offer familiarity and clearly they are happy with your work. It's in their interests to keep you on - any other contractor coming in may not turn out as well as you appear to have.

Equally, agency will want to keep you placed. Easy money for them.

So there's scope for wiggle room on the rate from both client and agency if you play your cards right.

As others have said, go for other contracts with a rate you'd be happier with. If you get them,then great. If you don't, you've always got this client to fall back on. Even if they aren't offering as much as you like, it's still something you agreed to before, and it's better to be in work than out, so treat it as a fallback option.

EDIT: And of course, now you can ask for danger money if you're in London.

[Epiphone]

How do you know you're not being charged out at £550+ and the agent is making a decent wedge out of you?