6 weeks after interview - get an offer

[psychocandy]

Incidentally, I mentioned, based on initial rate that agency cut is about 26%. Bit high.

What is reasonable these days?

[SpontaneousOrder]

Incidentally, I mentioned, based on initial rate that agency cut is about 26%. Bit high.

What is reasonable these days?

Does the question make sense? Reasonable is what gets you a gig, and the client the resource they're looking for.

The agent is in business to make money, and like all business, to make as much as he can. If any part of the deal were really unreasonable, then the transaction would't have taken place.

[SpontaneousOrder]

Right. So I've got an advantage in that I know what the agency plan to charge the client. As I see it, the important thing here, as a business, is, in order or importance:-

1. Keep the client happy. If I do something to upset them it could all go wrong. i.e. If I tell agency I know how much they're getting then its surely going to impress the agency not at all that client told me. Might be nothing they can do about it but last thing I want is hassle.

2. IF its in the bag, maximise the amount I can get out of the deal. If agency get less than they planned, so what. I have information, its about how best to use it to my advantage.

At least you know you have room to move come extension time, if nothing else.

[Wanderer]

Incidentally, I mentioned, based on initial rate that agency cut is about 26%. Bit high.

What is reasonable these days?

Way too high. I've had a few contracts on 5-8% cut. If the agency won't play ball then tell them you will go back and "talk to the client" which will give them the willies.

[northernladuk]

Yeh they do give out phone numbers otherwise phone interviews could be problematic. Every CV of mine I've ever seen on desk during interview has had address removed though.

You put your address on your CV?!?!?!

[northernladuk]

Way too high. I've had a few contracts on 5-8% cut. If the agency won't play ball then tell them you will go back and "talk to the client" which will give them the willies.

Ah but not forgetting 5-8% of £150 is obviously different to the same cut of £600. The agent needs to make a certain amount of money to make it worth his while so it will vary with rate... but yes 25% is a piss take.

Assuming we are talking around the £350 to £400 mark though I think it was Dominic who said the norm is between 8% and 12% but again it depends on the amount of work the agent has with that client. For a single contractor it's going to be higher. The last two agents I spoke to who had fixed percentage agreements with large blue chips were on 6%. In this case you are going to attempt to half the agents cut which will be a challenge. I will be willing to bet you won't get much less than 15%.. if you pull a 'got an offer of more on the table' lie I would expect him to hardly budge at all.

Good chance to nail him to the table knowing what you know though so start low with a figure in your head you will accept and play hard ball.

Oh.. and factor in if the negotiations are going to eat in to your start date. Losing a couple of days billing over a few percent may not work in your favour.

[sunflower]

Normal cuts for agencies can be anything from 5%-20%, but 26% is high.

Don't be so surprised about a customer from an interview months ago calling you for the role now. I've had this happen, typically when I am already busy elsehwere. It usually means they could not find someone who fit their profile 100% or 90% even for the project and saw you as a decent match.
Good luck sorting it out.

[psychocandy]

Ah but not forgetting 5-8% of £150 is obviously different to the same cut of £600. The agent needs to make a certain amount of money to make it worth his while so it will vary with rate... but yes 25% is a piss take.

Assuming we are talking around the £350 to £400 mark though I think it was Dominic who said the norm is between 8% and 12% but again it depends on the amount of work the agent has with that client. For a single contractor it's going to be higher. The last two agents I spoke to who had fixed percentage agreements with large blue chips were on 6%. In this case you are going to attempt to half the agents cut which will be a challenge. I will be willing to bet you won't get much less than 15%.. if you pull a 'got an offer of more on the table' lie I would expect him to hardly budge at all.

Good chance to nail him to the table knowing what you know though so start low with a figure in your head you will accept and play hard ball.

Oh.. and factor in if the negotiations are going to eat in to your start date. Losing a couple of days billing over a few percent may not work in your favour.

Thanks for some sensible advice NLUK. So you recommend not telling agent you know? In terms of rate its not £150 but its not £600 either - but a bit higher than you quoted. So we're talking agent making over £100 day on the deal....

Its a big customer for the agency - they have an account manager for this particular customer. And a mate of mine is permie at client - they use this particular agency for tons of contractors.

Sounds like last time I had an agent trying it on a bit.

Agree with the 'go for the rate your happy with' thing to a certain extent but when the margin is this large its a bit much. Client is thinking their paying top dollar and contractor isnt getting it. Champagne money for beer contractor!

It terms of start date, they're talking about 2 weeks in any case (I'm on 7 days notice where I am now) so don't see that being an issue. And if I can half their cut its >£50/day so a fair bit.

[d000hg]

Incidentally, I mentioned, based on initial rate that agency cut is about 26%. Bit high.

What is reasonable these days?

26% is high but maybe they found you on CUK and are expecting you to be very high maintenance, calling up every two days to ask if it's OK to be a bit late because your dog has diarrhoea, or what colour pen to use when filling in your timesheet, etc.

[vwdan]

You put your address on your CV?!?!?!

Serious question - is this considered a bad thing? My address has always been on my CV.