instead of a rate cut..

[Joeman]

Instead of taking a rate cut, has anyone negotiated less days instead?

Obviously over a 5 day week, a drop to 4 days would equate to a 20% drop in revenues but would give you a spare day to work on Plan B or just chill out with family.
Also it would not devalue your skills and when the client realise they actually need more days from you, you could resume 5 day weeks without a pay cut.
Anyone tried this??

[ChimpMaster]

Instead of taking a rate cut, has anyone negotiated less days instead?

Obviously over a 5 day week, a drop to 4 days would equate to a 20% drop in revenues but would give you a spare day to work on Plan B or just chill out with family.
Also it would not devalue your skills and when the client realise they actually need more days from you, you could resume 5 day weeks without a pay cut.
Anyone tried this??

I've thought about this, as I'm sure many contractors have, but the problem is that clients want the same amount of work (or bums-on-seat time) for less payout.

[BrilloPad]

Amusingly a contractor I work with was forced to take a pay cut recently, enforced by HR. He was vital and refused. His manager offered him the chance to work 4 days and claim 5! He turned it down on the grounds it is fraud....

[SteelyDan]

Instead of taking a rate cut, has anyone negotiated less days instead?

Obviously over a 5 day week, a drop to 4 days would equate to a 20% drop in revenues but would give you a spare day to work on Plan B or just chill out with family.
Also it would not devalue your skills and when the client realise they actually need more days from you, you could resume 5 day weeks without a pay cut.
Anyone tried this??

Your logic defies logic at times.

If you go down this route, they might want 5 days work doing in 4, cos they're like that sometimes...Or they might say yes just do 4 days, and we'll pay you at the lower rate, cos they are now the new applicable rates.

So now you're potentially only working 4 days when you could have been happily doing 5, and billing for 5 of course. Of course it makes sense!

Shooting into the foot all the way Joe.

[TheFaQQer]

I'd rather work 4 days a week than 5, especially if it's away from home.

There aren't many clients that want me to do that, though.

[Joeman]

Your logic defies logic at times.

If you go down this route, they might want 5 days work doing in 4, cos they're like that sometimes...Or they might say yes just do 4 days, and we'll pay you at the lower rate, cos they are now the new applicable rates.

So now you're potentially only working 4 days when you could have been happily doing 5, and billing for 5 of course. Of course it makes sense!

Shooting into the foot all the way Joe.

Maybe it defies your logic, but its called "negotiation". dont just roll over and die when asked to take a cut - explore the other options...

If the client feel its ok to change the terms of the contract part way through, then surely it should be a two way street.
Your standards of work have not fallen, so why should your day rate?
By taking a day off you are offering the client a larger cost saving than they were looking for, and getting a day off for your "Plan B". so potentially, if you can swing it, its a Win-Win scenario.

And the point is, of course they need 5 days of work from you! but you are banking on the greedy managers jumping at the chance of a 20% cost saving, but then realising they need "bums on seats", so it puts you in a stonger position to get back your 5th day at the same rate. Asking you to work the 5th day AND take a 10% cut is a harder thing for the client to ask you.... its all mind games

Lucky for me ive not been in this situation, as ive never been asked to take a rate cut, but i like to think that my relationship with the hiring managers is such that we would be able to have a conversation like. its only business afterall!!

[d000hg]

Joe if you work less days at the same rate then the client hasn't gained anything, so that's not negotiation. Under your existing contract they can already say "we only want you 4 days a week" (if it's a sensible IR35 contract).

If you work less hours at the same rate, the work you're doing will cost the client the same but just take longer, and it's unlikely this is what motivates them...

[NotAllThere]

Joe if you work less days at the same rate then the client hasn't gained anything...

Yes they have. They retain you and your skills, your knowledge, while reducing the overall purchase order amount. Sure, they can't get the same amount of work, but that's not always the driving criteria.

Practically, the amount of work done in four days is not significantly different from five. You tend to be more focussed - since working for different concurrent clients, I'm definitely working harder, than when it was 5 days a week at the same place.

Another approach which works - at least with direct contracts - is when they say "we can't afford your rate", offer a lower rate at fewer hours per day. So you're rate is £500, you say you'll work half days for £300. Often the blockage is purchasing, who have a "standard rate" for a contractor that the manager can't affect.

Of cours, all this is dependent on you being an outstanding contractor that the manager wants to keep.

[SteelyDan]

Lucky for me ive not been in this situation, as ive never been asked to take a rate cut....

Yet you seem quite able to come up with ill-conceived ideas and offer equally questionable advice in other related threads AND then have the temerity to give me bad rep bcos you don't happen to agree with what I've said.

I suggest it is you who is not cut out for this contracting lark!

Not that I'm taking it personally or owt...

[Bexter]

I've thought about this before and I don't understand why everyone is jumping on this as a bad idea. I would love to work 4 days instead of 5, and have been on the verge of suggesting it to my client!

From my perspective, if they wanted to enforce a rate cute, I would quite simply walk, no questions asked. But if they wanted to keep me, and reduce their costs I would quite happily work 4 days at my current rate as it still reduces the cost and they get to keep me, as opposed to me leaving. Isn't everyone happy then?