Agency Rates

[DeCoder]

I saw a contract advertising xxx a day, the agency offer to put me in at a lower rate – xx a day to the client to secure the role. However it appears that they did not offer me to the client at a lower rate.

Instead it appears that they charged the full day rate and are now pocketing the difference, I was taking to another contractor who works at same place/same agency the rate turns out to be about 17% cut on their job. The same rate 17% applied to my role would appear to be the full day rate i.e. charging xx more a day for me than we agreed to the client, not the agreed -xx and they are now pocketing a 40% profit on the job.
Which puts me at a loss of 17% on the job?

Any one got any views on this, as this feels like a scam because they said they were going to bill me at –xx to the client and I am 17% down on earnings not good in the current climate.

[realityhack]

I'm pretty sure you wouldn't want to have this posted in General, so moved to an appropriate section.
Please read the sticky threads in the pro fora, and check out the first-timers links on the right.

[stek]

I saw a contract advertising xxx a day, the agency offer to put me in at a lower rate – xx a day to the client to secure the role. However it appears that they did not offer me to the client at a lower rate.

Instead it appears that they charged the full day rate and are now pocketing the difference, I was taking to another contractor who works at same place/same agency the rate turns out to be about 17% cut on their job. The same rate 17% applied to my role would appear to be the full day rate i.e. charging xx more a day for me than we agreed to the client, not the agreed -xx and they are now pocketing a 40% profit on the job.
Which puts me at a loss of 17% on the job?

Any one got any views on this, as this feels like a scam because they said they were going to bill me at –xx to the client and I am 17% down on earnings not good in the current climate.

It's business mate, take it on chin and guard against it next time. If you could sell widgets to Co. A at X value and someone was willing to provide widgets at X -50% would you do it? Or would you feel sorry and pay them more and lower your profit?

[craig1]

I saw a contract advertising xxx a day, the agency offer to put me in at a lower rate – xx a day to the client to secure the role. However it appears that they did not offer me to the client at a lower rate.

Instead it appears that they charged the full day rate and are now pocketing the difference, I was taking to another contractor who works at same place/same agency the rate turns out to be about 17% cut on their job. The same rate 17% applied to my role would appear to be the full day rate i.e. charging xx more a day for me than we agreed to the client, not the agreed -xx and they are now pocketing a 40% profit on the job.
Which puts me at a loss of 17% on the job?

Any one got any views on this, as this feels like a scam because they said they were going to bill me at –xx to the client and I am 17% down on earnings not good in the current climate.

You agreed the rate so you've really got to just suck it up.

That said 17% isn't hugely excessive for a weekly billed, seven day payment term contract with an agency that gives excellent service to contractors. The fewer of those good points you have then the harder it is for them to justify their rate.

If I were you though, and it's a short-ish contract (3 months or so), I'd wait until renewal and refuse to renew until they matched the originally quoted rate as a minimum, making it expressly clear that you know they were up to sharp practices at the original contract setup.

[Wanderer]

Now that you know how much the agency are taking, don't let them mess you around, ask them for a fat pay rise. Their margin can come down to somewhere between 5 and 15%, no more than that

[DeCoder]

It's business mate, take it on chin and guard against it next time. If you could sell widgets to Co. A at X value and someone was willing to provide widgets at X -50% would you do it? Or would you feel sorry and pay them more and lower your profit?

Its not business, as they lied and misled me. We had a verbal agreement on the rate the client would be charged. This is a breach of that.

[DeCoder]

You agreed the rate so you've really got to just suck it up.

That said 17% isn't hugely excessive for a weekly billed, seven day payment term contract with an agency that gives excellent service to contractors. The fewer of those good points you have then the harder it is for them to justify their rate.

If I were you though, and it's a short-ish contract (3 months or so), I'd wait until renewal and refuse to renew until they matched the originally quoted rate as a minimum, making it expressly clear that you know they were up to sharp practices at the original contract setup.

Its not 17 percent its 40% and its still a breach of what i agreed to be billed at. I havnt mentioned the billing invoice period or anything else, and the service is terrible. So im interested in what these assumptions you're making are in reference to. I have only stated a few facts, but basically they misled me into taking a lower rate than was advertised, and that this reduction would be passed onto the client. I now have found it that it wasn't but that they are pocketing the difference.

[perplexed]

Its not 17 percent its 40% and its still a breatch of what i agreed to be billed at. I havnt mentioned the billing perion invoice period or anything else, and the service is terrible. so im interested in what are these assumptions youre making in reference too. i have only stated a few facts, i think i will talk to my barrister about breach of the agreement and agreed rates see what he says.

Please inform us of the outcome.

I honestly can't think what it would be.

[stek]

Its not business, as they lied and misled me. We had a verbal agreement on the rate the client would be charged. This is a breach of that.

Rubbish. What one business charges another is nothing to do with your business and you can't dictate that. If I buy some apples the supplier can't tell me how much I can sell them for.

[perplexed]

Rubbish. What one business charges another is nothing to do with your business and you can't dictate that. If I buy some apples the supplier can't tell me how much I can sell them for.

^^^ this.

"Wah, I agreed a rate which would be acceptable for me but agent making more money... Ima gonna sue."

Lawyers will laugh and take your money. Maybe he could then sue the lawyers as he thought he could pay them less?