Contract renewal, to ask for a rise? How?

[MiniMani]

Thankyou for all your inputs! I am happy with the role and happy with the rate...I guess I should have negotiated better in the first place, my skill is extremely niche and it took them a while to find me, which is now why the client are asking me to join (because it took them so long to find me)

I guess I read the atricle on this site, about how a contract renewal is an opp to get a rate increase and thought I would see what peoples views were...!

[Wobblyheed]

You need to find out the agency margin

[MiniMani]

You need to find out the agency margin

How do I do that... ? Just ask them?

[Wobblyheed]

How do I do that... ? Just ask them?

In the past for me it's been...

1. Brother was a project manager there
2. Get matey with the budget holder at clientco
3. Search the shared drives for admin staff stupidly leaving sensitive docs available
4. The printer - always a good source
5. or fax machine
6. one admin lass gave me my timesheet back with the company purchase order for the agent on the back

[prozak]

How do I do that... ? Just ask them?

Yes.

I always ask at the start.

The ones that say it is confidential are usually on 20% and I wont work for them.

you could also try asking the end-client if you have a good relationship with them.

[JamJarST]

How do I do that... ? Just ask them?

Don't you already know this, or have I misread your original post? You say they are getting £625 and paying you £560. The difference is £65 and is their margin, roughly 11.5% markup on your rate or conversely 10.5% margin on theirs.

[MiniMani]

Yes.

I always ask at the start.

The ones that say it is confidential are usually on 20% and I wont work for them.

you could also try asking the end-client if you have a good relationship with them.

I once saw the manager who approves my timesheets - saw the total at the end and somehow I'm sure it looked like less than my day rate.. is this something different?

apologies for my naiveity

[MiniMani]

Don't you already know this, or have I misread your original post? You say they are getting £625 and paying you £560. The difference is £65 and is their margin, roughly 11.5% markup on your rate or conversely 10.5% margin on theirs.

They put me forward to the client at 625 a day - client apparantly came back and offered lower, i took it... I'm not sure this means that they are taking 625 a day, could be a lot higher...

[JamJarST]

They put me forward to the client at 625 a day - client apparantly came back and offered lower, i took it... I'm not sure this means that they are taking 625 a day, could be a lot higher...

Ok got you ..... sounds a bit like agent BS to me.

[MiniMani]

difficult one.

do you know the agencies margin?

are you sure the end client has the appetite to pay more?

How long have you been there?

Why were you happy with the rate initially but now decided you want more?

Pushing the end client to pay more can make you look like a "greedy contractor". Some companies have no problem with contractors and some others get contractors in only because they have no other option. If your end client is asking about permie he may be the latter and may not look kindly on you asking for more money.

whenever I have asked for more money it has always been when I know the agencies margins. More than happy for agencies to have 10% margin, anything above that is negotiable IMHO.

and I made clear to the agency that I was asking for more of their margin not a pay rise from the end-client.

Hi Prozak - bit more info based on your questions

Been here nearly 6 months
Was happy with the rate initially because I was a bit naive and didn't realise I was potentially being fleeced! Had no idea about things like the agency trying to get me on a lower rate to potentially maximise their take up... had been a permie since this gig