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

[tpsman]

I'm aiming to go contracting soon, so I contacted a few people in my industry. A couple of them have proven fruitful, and I think one will be offering me a role soon. They've said they only deal through agencies, so I've sent my CV through to one of the agencies they mentioned.

Now, the rate advertised is the same on multiple adverts (and with different agencies). Does that mean the client has given a fixed rate, and the agency's margin is on top (paid directly by the client)? Given I found the role outside of the agency, and the client really want me in the role, I wanted to negotiate a better rate, but I'm new to all of this, so could do with some advice.

[malvolio]

I'm aiming to go contracting soon, so I contacted a few people in my industry. A couple of them have proven fruitful, and I think one will be offering me a role soon. They've said they only deal through agencies, so I've sent my CV through to one of the agencies they mentioned.

Now, the rate advertised is the same on multiple adverts (and with different agencies). Does that mean the client has given a fixed rate, and the agency's margin is on top (paid directly by the client)? Given I found the role outside of the agency, and the client really want me in the role, I wanted to negotiate a better rate, but I'm new to all of this, so could do with some advice.

Let's get the interview first, sending in a CV doesn't guarantee anything...

However, you set the rate you want. Let the agency worry about their price to the client and the client worry about what their budget is.

[tpsman]

Yep. Planning on getting the offer first, then will talk about money. Who should I talk about the moolah to? Agency or client?

[Wanderer]

Yep. Planning on getting the offer first, then will talk about money. Who should I talk about the moolah to? Agency or client?

The client!!! If at all possible, deal directly with the client and let them introduce you to an agency because the client has about a billion times more clout when dealing with an agency compared to a contractor.

If you can negotiate a rate directly with the client then the client will cut a deal with the agency of their choice to give them a small percentage mark up on this.

Make sure you get decent payment and contract terms from the agency.

[evilagent]

I'm aiming to go contracting soon, so I contacted a few people in my industry. A couple of them have proven fruitful, and I think one will be offering me a role soon. They've said they only deal through agencies, so I've sent my CV through to one of the agencies they mentioned.

Now, the rate advertised is the same on multiple adverts (and with different agencies). Does that mean the client has given a fixed rate, and the agency's margin is on top (paid directly by the client)? Given I found the role outside of the agency, and the client really want me in the role, I wanted to negotiate a better rate, but I'm new to all of this, so could do with some advice.

If you have got the role on your own merit, then you can ask a number of agencies what admin fee they would charge.

No agency can claim "dibs", and you are a free agent. They will take a cut, but just play them off against each other.
You are very lucky that you have the upper hand in this.
Does the client recommend anyone?

[CheeseSlice]

If you have got the role on your own merit, then you can ask a number of agencies what admin fee they would charge.

No agency can claim "dibs", and you are a free agent. They will take a cut, but just play them off against each other.
You are very lucky that you have the upper hand in this.
Does the client recommend anyone?

WHS

I was very fortunate to do this myself. In my case I agreed the rate with the client first. The client didn't want to speak to the agencies himself, so he gave me the names of a few and it was down to me to call them.

Are you sure you need to send your CV to the agencies for this role? If you've secured it anyway, then you don't want to appear like you're 'applying' for the role through them. Keep it outside of the normal process here, you should be the one doing the choosing.

[Scrag Meister]

WHS

I was very fortunate to do this myself. In my case I agreed the rate with the client first. The client didn't want to speak to the agencies himself, so he gave me the names of a few and it was down to me to call them.

Are you sure you need to send your CV to the agencies for this role? If you've secured it anyway, then you don't want to appear like you're 'applying' for the role through them. Keep it outside of the normal process here, you should be the one doing the choosing.

What margin did you manage to negotiate ?

[CheeseSlice]

What margin did you manage to negotiate ?

The client didn't have a clue about real agent margins, but I told him what day rate I wanted and when I dealt with the agent they suggested 10% would be enough to cover their admin expenses. I think in the end the client may have squeezed them down further than that. After hearing the full cost from the agent, the client phoned me back and tried to share the cost with me, but I politely refused (it was a very niche role). Either he folded with the agent, or squashed down the margin further, but I still got my day rate and didn't have to speak with any other agencies

[aoxomoxoa]

they suggested 10% would be enough to cover their admin expenses...

Including a nice little mark-up at that rate. If they're just administering, and taking a small hit in paying your Ltd before they get paid by the client, my experience is that 5% would be a generous mark up.

[jonsg]

That's about right

Including a nice little mark-up at that rate. If they're just administering, and taking a small hit in paying your Ltd before they get paid by the client, my experience is that 5% would be a generous mark up.

For agent-supplied leads, a mark-up of 5-10% is normal; if you do the work yourself, and the agent's just administering, probably 5% is reasonable.