Realistic Agency Margin

[Wanderer]

(FWIW, my car is newer and shinier than the guy that I have invoiced less than)

What if you found that the other guy brought the same car for £7200 less than you? Would you still be OK with that. If you are then that's fine.

Like most business people, I am looking to maximise my profits and minimise my expenses though...

[Barley]

(FWIW, my car is newer and shinier than the guy that I have invoiced less than)

I'm driving an 8 year old Ford KA, there's only 1 person invoicing more than me at my client.

Been thinking of treating myself to a nice new car but I quite like the KA, I just look at shiny new motors and think of depreciation and the missed opportunity cost of pulling the money from equities which are growing 25%

It's a no brainer to maximise your income in my view , the same reason I invest money instead of leaving it in a bank account paying a pitiful return, the same reason I swap my car insurance at renewal when current insurance go try and put the premium up 20%

If you're happy to lose 25, 50, 100k potential income over 10 years of contracts I guess that's your choice.

[DirtyDog]

If you're happy to lose 25, 50, 100k potential income over 10 years of contracts I guess that's your choice.

I refer the honourable gentleman to the answer I gave some moments ago

I feel neither happy nor sad about these facts - there was no scope to increase the rate, so I took a very good rate that I was happy with.

[XperTest]

That is until you realise that every other contractor working on your project is taking home £100 a day more than you.

This will dawn on you when they rock up in their new BMW's and Mercs.....

The OP is absolutely right to be interested.

Again though, I would have taken the assignment only if I was happy with the rate on offer, which would be above market rate anyway in my case as I have so far refused to lower my rate due to this so called financial crisis and have still had plenty of work. At that point, I would rather find out the client paid the agent 20% on top of my rate than 2%, as the former gives me much more scope for a rate increase than the latter. I know of a case where the agent mark up was 50%. Once the client and contractor found out they ditched the agent for another one (client power) and split the difference: win-win.

[Boo]

Then ask for a higher rate and if you aren't happy then don't do it.

No. You don't understand. Being contented with a rate is not a binary thing : higher rate => higher levels of contentment.

So if the contractor is "happy with a rate" they can be even happier with a higher rate. See ? It's simple really...

Boo

[SussexSeagull]

No. You don't understand. Being contented with a rate is not a binary thing : higher rate => higher levels of contentment.

So if the contractor is "happy with a rate" they can be even happier with a higher rate. See ? It's simple really...

Boo

It is also fairly simple to understand that there are different approaches to life and business and some of us can appreciate a different viewpoint without being obnoxious.

[BlasterBates]

I think some contractors are happier earning a lower rate if the agency has a low margin.

i.e. 400 per day 40 to to the agency = happiness, 600 per day 100 to the agency = misery.