Will a client refuse a rate rise out of fear it will upset other workers?

[BlasterBates]

Not quite the answers hoped for, but

I have a large warchest so can afford to take a risk.
I got offered a contract at the rate I am now asking for at the end of last year, so if things continue as they are then I see no reason why I shouldn't get another contract in a few weeks.

But maybe things have got worse in the market since then, and I am shooting myself in the foot. That's what the agency is suggesting, but then they are biassed.

I instinctively feel that the client is taking the P. Or at least they are playing a clever game to offset my rate rise demands, which I notified through to the agency a month ago, well before the 10% cut notified by the client.

Yes but if it takes 5 weeks to find a contract you'll earn 90% of a better rate i.e. 11 months * rate + 10% = 12 months * rate.

Why take the risk when there is no financial gain, indeed you may well be worse off if you take 3 or 4 months to find something.

Contracts are usually only 6 months so surely better to wait a month or two before the end of the contract and get a follow on at a better rates.

[Notascooby]

The good thing about linkedIN is that you can see what the main agents are touting.

Straight after the LBG 10% cut there was an immediate requirement for a number or BA, Infra Architects and Security SA roles...which I think was down to people refusing and being told to walk.

[Wanderer]

My contract is up for renewal, and I have offered to renew it if they increase my rate by 11%. But the company has just done a permie wage freeze, and all contractors have been forced into 10% cuts. My brother thinks that the company will refuse me the rise even at risk of inconveniencing the business because of the risk that permies and other contractors will be upset and demotivated etc etc if they find out (thinking it is unfair).

Ahh, come on. If you've got the balls to ask for a 10% pay rise then you can't be worrying about what all the other poor saps are getting paid.

It's quite likely that they will refuse, when they do it's time to get negotiating with the client. Find out what the agent's cut is and if it's more than 5-7% then tell the agency that you are getting a pay rise out of their margin....

[Robinho]

Well it's just simple market forces - surely this doesn't need to be explained to you. The higher you price yourself the less you'll be wanted. Do you think you are wanted enough?

Unless i had something else lined up though, i'd probably just be happy with the renewal.

[TheFaQQer]

The higher you price yourself the less you'll be wanted.

That doesn't always hold true.

If you charge a ridiculously high rate, there are certain clients who will think that for you to justify that rate, you must be the pup's nuts, so will want you.

For further details on how this works, click here.

[KentPhilip]

In case you're interested, here's what happened:

I took it right to the wall, and the client manager tried to get an exception in my case from his manager. By this time I had "conceded" that I would carry on for my original rate, but would not accept any reduction.

But he failed to persuade him. And he looked pretty dejected, so I think he was telling the truth.

So what I did was suggest that he use "managers discretion" to pay me for a full shift for some out of hours work where only a little work was actually required. i.e. fudge things to make up the difference. Legal and within company rules, but only just.

He agreed to this, so I carried on working for that client.

Not an ideal solution because it did put the client in an awkward postion. But they started it by dropping my rate!

Next renewal coming up. And I wouldn't be surprised if I get canned because the critial phase of the project is now over. Still I think I took the right decision, and proved a point (to myself if no one else).


...Will lead to more time for chasing randy cleaners