Renegotiating rate for contract renewal

[m00]

Here is a situation, how would you negotiate in this position?

Worked a 3 month contract for a client, which was found through an agency. When negotiating the initial rate with the agency, they wouldn't budge and took a "take it or leave it" attitude to a figure which was 10-15% below the market rate. Client loves you and says they'll be in touch for more work after the initial contract ends.

Some time has passed and now the client got in touch directly and have arranged another 3 month contract, for paperwork reasons unfortunately they must go through the agency again. When the agency calls, how would you negotiate to get market rate or above? To restate, before when attempting to negotiate they simply said the rate was fixed, take it or leave it - how would you handle that on the phone?

Would it be worth finding out from the client what they're paying the agency for you? Is that a massive faux-pas to ask a client this?

Help and advice would be greatly appreciated, thank you.

[SarahL2012]

To the client - I would love the opportunity to work for you again, but I agreed a significant discount on my day rate last time and I can't afford to do that this time round. I would like to propose a day of £X, would you be able to agree that with the agency?

Worked for me anyway!

[jmo21]

I'd tell the client what I want and tell them to deal with agency. The agency should have ZERO say in what you get paid in this instance.

Bare in mind it may be an eye opener for the client what you ask for. Even your (last rate)*1.15 or whatever rate might be massively lower than what they were paying the agent the last time.

[TheFaQQer]

Pick a rate that you want. Tell the agency that.

If the client comes back to you and says you were too expensive, explain what you wanted and why.

[kevpuk]

To the client - I would love the opportunity to work for you again, but I agreed a significant discount on my day rate last time and I can't afford to do that this time round. I would like to propose a day of £X, would you be able to agree that with the agency?

Worked for me anyway!

WSS - I would do much the same. Seeing as the Client has come to you, I would surmise that they are pretty keen on you personally so there may well be some sway to be gained. That said, there is always the chance that the rate cannot meet both parties expectations.....still, don't know without asking and SarahL2012's approach is very elegant

[TheFaQQer]

Alternative - ask the client what their budget is. Knock off 10% for the agency, and tell the agency that's what you want and are being generous.

[m00]

Many thanks for all the replies, very helpful.

[Antman]

Calculating what your worth is a good exercise but you now have to convince an agent of that and more importantly why he should give you money that's his.

That's the tough bit, how indispensable are you to the client? Although it's hard on the ego in most cases the answer is "not very".

Your best angle is convincing the agent that you're prepared to walk and the agent then has to find somebody to fill the role and this time might have to pay more percentage-wise then they are currently paying to you.

[Wanderer]

Would it be worth finding out from the client what they're paying the agency for you? Is that a massive faux-pas to ask a client this?

Absolutely! You work for the client, the agency are just there to provide a legal buffer to protect the client from claims of employment status from the contractor.

Call up the client and casually ask how much they are going to be paying (don't say to the agency or whatever). If they say "talk to the pimp" then you have to negotiate it with the agency - nothing ventured, nothing gained.

If the client will enter into negotiations with you then negotiate it directly with the client and the client can cut a deal to pay the pimp a margin on top of your rate but that's between them and the pimp.

[m00]

Many thanks again everyone, using the advice here I managed to secure a rate increase.