Requesting an agent fee cut at point of renewal

[Murder1]

Current place is looking to renew for another 6/7 months and are receptive to a rate increase -

I've been looking at how much I could/should look to request based on value to project/experience/responsibility etc.

However I (probably unnecessarily) started to look at how much this rate increase would cost the end client including the agents fee. Ironically the agent fee is agreed between the client and the agent and from what I've heard this is fixed across all contracts (15%) so that the client could control what the end contractor was being paid.

Has anyone on here negotiated a rate increase with the client as well as a fee cut for the agent?
Should I just ignore the (vast) amounts the agent has recouped over the previous 12-18 months and focus solely on my rate, or should the resultant impact of my rate increase be in my consideration?

[lukemg]

You have been there a reasonable time, I think it's perfectly fair to ask for a bump after 12 months and shouldn't cause offence. Perms expect this and anything less than 5% is a cut in effect.
I would ask for 10%, don't bother with agent cut, who gets what, justification blah, blah.
Just contact the agent, say look - they are looking to renew, I've been here x time, I am looking for x/day. Don't get in a big chat about it.
Agent should attempt to earn their coin by talking to the client. Sometimes they don't bother and just phone you back later saying client says NO, but usually they will.
If you get a knockback - it's business so don't make it personal. You can then decide whether to stay or look elsewhere or both !!
Good luck

Good luck.

[northernladuk]

Don't speak to the client about your rate. Your business is with the agent. As was pointed out in a thread yesterday you might even have a clause in your contract saying not to speak to client about rates.

If you play hard ball enough the agent the client will get the message. Can go either way if you try and engage client in rate discussions so best avoided if you can.

[Murder1]

Don't speak to the client about your rate. Your business is with the agent. As was pointed out in a thread yesterday you might even have a clause in your contract saying not to speak to client about rates.

If you play hard ball enough the agent the client will get the message. Can go either way if you try and engage client in rate discussions so best avoided if you can.

Thanks for the advice. I've already had it cleared by the agent to discuss rates with the client (nothing in the contract to stop it) but I could tell they were a little nervous of it happening.

[Support Monkey]

Don't speak to the client about your rate. Your business is with the agent. As was pointed out in a thread yesterday you might even have a clause in your contract saying not to speak to client about rates.

If you play hard ball enough the agent the client will get the message. Can go either way if you try and engage client in rate discussions so best avoided if you can.

WHS: your contract is with the agency, they are supplying you to the end client, what the agency get out of the client is nothing to do with you and to be honest i don,t think agents get this either as i have been told by agencies to speak to the client about a rate rise i am all for close relations with the client but at the end of the day its the agency that are paying me not the client.

[Wanderer]

I've heard this is fixed across all contracts (15%) so that the client could control what the end contractor was being paid.

I've had clients like that where the agent is told that they take a fixed markup on the contractor's rate. If the client is a big one and they have semi-exclusive deals with a small number of agencies then they often insist on it. It's a good way to do business because it prevents agencies ripping off clients and contractors alike.

Has anyone on here negotiated a rate increase with the client as well as a fee cut for the agent?

Yes, I've done that. The client made it clear to me that I could have a pay rise but it was coming out of the agency's margin and not their pockets. the client did the dirty work and the agent duly bent over and took it like a man.

When negotiating rates, some clients blankly refuse to get involved and insist that you talk to the pimp, others are quite strict with the agencies and dictate to them what margin they can take.

If the agent says to talk to the client then that's what you do. Tell them what the agency is paying you and find out what the client pays the agency. If the client can't get the rate you want then suggest to the client that the agency can cut their margin a bit. This may or may not happen, the client is best placed to negotiate this with the agency as they have considerably more clout with the agency than a single contractor will ever have...

Don't let them tell you that things are across the board and can't be changed, there are exceptions to every rule...

[psychocandy]

Never understood the need to get involved with rates with the client if agency is involved. Your contract and business relationship is with the agent.

If you want a rise, tell the agent. Up to them then whether they cut their margin or get more from the client - I dont care!

[NotAllThere]

Never understood the need to get involved with rates with the client if agency is involved. ...

Then I suggest you educate yourself by reading Wanderer's excellent post.

It all depends on the client.

[Murder1]

Thanks for taking the time to respond this was really helpful.

[Wanderer]

Thanks for taking the time to respond this was really helpful.

You're welcome. The rep button is that little star at the bottom of my post.