How to negotiate rates when you're forced to go through an agency

[Sausage Surprise]

In a similar scenario I also managed to get a case of wine out of the agent for plonking myself in their lap with a role already set up. Shy bairns get nowt!

[blinko]

as previously mentioned 5 - 10% to cover admin is the general margin if the client forces you through an agency

[masonryan]

Typical agency behaviour here is to act all grateful then pretend their hands are tied on the commission they get. They'll call it a standard rate, say it's already pre-agreed between them and the company and they can't change it. Well in my view that's all a load of bs.

[CheeseSlice]

Last point from me. Don't feel guilty about the agent here. Once they've got the deal they'll be all over the client when you're contract is up, trying to 'add value' and secure your next contract with same clientco.

I wonder why?

Edit: make sure you remove the part of the contract that ties you to working for clientco through the same agent!

[SueEllen]

Typical agency behaviour here is to act all grateful then pretend their hands are tied on the commission they get. They'll call it a standard rate, say it's already pre-agreed between them and the company and they can't change it. Well in my view that's all a load of bs.

Agencies do have costs and not all clients pay monthly or on time.

I've been paid monthly by agencies within a couple of days of my invoice being submitted when the agent actually gets paid by the client 90 days later.

Anyway invoice factoring isn't cheap for small businesses.

Instead of being bitter about agents you should actually talk to a couple who aren't in your line of work though I don't think DodgyAgent or any of the others on here would give you the time of day.

[masonryan]

as previously mentioned 5 - 10% to cover admin is the general margin if the client forces you through an agency

That's an extortionate cut for just doing that. Last time I was forced an agency for this it was 3%. I thought that was expensive.

[northernladuk]

Depends on the rate to some extent. 3% of squat is squat and won't be worth the agents time. If it's a low rate they will need a higher percentage to make the same figure as a hight rate. OP hasn't said how much I don't think. 3% of 350 a day is only £10.5 a day, over a 3 month contract it's £630. I can't see an agent getting out of bed for that tbh.

[aoxomoxoa]

3% of 350 a day is only £10.5 a day, over a 3 month contract it's £630. I can't see an agent getting out of bed for that tbh.

At my last clientco it was part of the deal if agents wanted to be on the PSL that their cut was around 4% for contractors where they hadn't had to do any work. I guess they would have taken the view that overall it was worth their while.

[northernladuk]

At my last clientco it was part of the deal if agents wanted to be on the PSL that their cut was around 4% for contractors where they hadn't had to do any work. I guess they would have taken the view that overall it was worth their while.

Last 2 I dealt with were on 6%.. Around these numbers it makes peanuts numbers to the contractor. Only works for the agent if he has enough guys on site and slick enough process. 3,4 6 percent. I wouldn't be losing sleep over which one it was.

[Wanderer]

3% of 350 a day is only £10.5 a day, over a 3 month contract it's £630. I can't see an agent getting out of bed for that tbh.

Oh yes they will - it means that they can build up a relationship with the client and potentially get other contractors in there. It's all business to them.

I've had a couple of contracts on 4 or 5% markup.