Contract negotiation advice - forcing a higher rate

[AnthonyQuinn]

I have actually seen many contractors effectively hold the client to blackmail and get their way. Its not often possible but you seem to be in a position where it might be possible to do that. The following is only valid if all your assumptions (i.e only 6 monhs left for your contract, respect for your skills, difficulty replacing etc) are valid. Try to negotiate based on extra 'close - down' and decommisioning tasks and effort. You would be on very strong ground if you found another contract and then started negotiating. Then you would be able to tell them to hike your rate or else.....

[andrewb]

It shows......

Touché

My point was really: don't start with your final offer.


Chimpmaster, you say you know for certain that they need you. If it wasn't you, what would they do? They might not like it, but they must be aware that it's a possibility.

[Notascooby]

The question is how do you justify the increase...
Well if you've the balls to walk, you simply say that you are de-skilling, would rather move to something else realise that this is likely to be the final extension and will stay if offered extra cash, if not you'llgo elsewhere where there are longer-term prospects.

Should you feel bad - nope. Just be prepared to walk.

I think the advice of looking to refuse the extension is a good one - you give the reasons you stated and then see if they come back with a better offer - then you say not quite enough and see if they'' add another £20.

What have you lost - you thought the gig would finish by now - maybe this will enure it does, otherwise you'll gain a few £££ and maybe piss off the client but you'll only be there for a few months - so who cares?

[Old Greg]

I've said this before: you are already paid to do the best job possible. Unless you have added something significant over and above that, my reaction would be to say "OK, sorry, but bye-bye". Nobody is going to be held to ransom, especially by a minor supplier and especially in a market where thousands of contractors are out of work. Basically you're looking at getting 25% extra of bugger all.

If you can't make a business case beyond "I'm too valuable for you to lose" you're going nowhere. You have to justify the raise commercially, one element of which will be the extra costs they will incur if they have to replace you.

And 33% is simply ridiculous in the current economic client. Start from 20% and expect 10%.

It is possible. I got a 33% increase on my rate at last renewal. But I also wanted to go from 5 to 3 days per week, so their overall cost was the same. I wasn't that keen to stay and they really couldn't easily replace me. But it was done in a friendly and professional manner so nobody felt they were over a barrel.

[AnthonyQuinn]

[QUOTE=Old Greg;1576164]I got a 33% increase on my rate at last renewal. But I also wanted to go from 5 to 3 days per week, so their overall cost was the same. QUOTE]

Whatever they gave you a hike for, it was certainly not your math.

[northernladuk]

Whatever they gave you a hike for, it was certainly not your math.

I just hope you are not a coder

[Old Greg]

[QUOTE=AnthonyQuinn;1576194]

I got a 33% increase on my rate at last renewal. But I also wanted to go from 5 to 3 days per week, so their overall cost was the same. QUOTE]

Whatever they gave you a hike for, it was certainly not your math.

Nothing wrong with my maths.

[LumbaBread]

He might be right, he got a higher rate, working less hours / week so in the end it evens out.

[Lewis]

Nothing wrong with my maths.

You sure?

Assume current rate is £100 p/day.

£100 p/d * 5 days = £500 per week for client to pay (ignore VAT, agent margin etc.)

£100 p/day + 33% increase = £133 per/day
£133 p/day * 3 days a week = £399 per week for client to pay

So paying you a 33% increase and letting you work three days a week saves them £101. If you got paid the same you did nicely!

[Old Greg]

You sure?

Assume current rate is £100 p/day.

£100 p/d * 5 days = £500 per week for client to pay (ignore VAT, agent margin etc.)

£100 p/day + 33% increase = £133 per/day
£133 p/day * 3 days a week = £399 per week for client to pay

So paying you a 33% increase and letting you work three days a week saves them £101. If you got paid the same you did nicely!

As I say. Nothing wrong with my maths.