Renegotiate rate after verbal agreement and start

[a27]

Is £220 market rate for what you do or is it well below... realistically?

Rates vary depending on location and other factors.

The last one I did was £250 (Norfolk) but I was keen to get into the private sector.

The £220 one is in Leeds.

[tractor]

.

Thanks.

When it comes to renewal, how does one know how high to go?

I know the client is paying them £280 now but if say I asked for £250, would the client pay them more?

Maybe, maybe not but tbh it's none of your business, you know what the margin is now and it's unlikely to go down so make an educated guess and go for that. But remember, once you have agreed, it is binding so make sure that you are happy with what you ask for.

[Wanderer]

Thanks.

When it comes to renewal, how does one know how high to go?

I know the client is paying them £280 now but if say I asked for £250, would the client pay them more?

I've worked at clients where it is openly stated that the agencies are taking 5% cut on contracts worth 400-500/day so that's £20-£25 per day.

Agencies scream like a stuck pig if you tell them you know they will work on margins this thin but the fact is that some do operate on margins like this.

As for renegotiating on the rate, you can do it but it will turn into a hell of a tulip fight and unless you have a very think skin then you will lose the fight and create a lot of bad feeling.

How long is the contract? If it's 3 months then sit tight and at renewal time tell the agency you are going to take £250/day for the extension (if one should be offered). When they say the client won't like that, bluntly point out that you don't expect the client to pay any extra and that it's coming out of their margin.

Number one rule of playing hard ball though - you've got to be ready to walk away if it doesn't go your way....

[Mulder]

I think best to put up with £220 a day for now, you don't want to upset the client because you aren't happy with the agency cut I assume, at renewal time see about a raise, if the agent says the client doesn't want a raise then you mention about the margin and see if it come out of that.

I agree that £60 seems high % and fixed sum wise.

For FS isn't the avg agency cut around 5-10%, so from a £500 contract that would be what £25-£50 per day?

Important thing is to the put annoyance to one side, you were willing to accept £220 for the contract before you knew the margin so that shouldn't change you doing the best for the contract & client. & Weigh up using that agency for future roles.

[northernladuk]

I think best to put up with £220 a day for now, you don't want to upset the client because you aren't happy with the agency cut I assume, at renewal time see about a raise, if the agent says the client doesn't want a raise then you mention about the margin and see if it come out of that.

I agree that £60 seems high % and fixed sum wise.

For FS isn't the avg agency cut around 5-10%, so from a £500 contract that would be what £25-£50 per day?

Important thing is to the put annoyance to one side, you were willing to accept £220 for the contract before you knew the margin so that shouldn't change you doing the best for the contract & client. & Weigh up using that agency for future roles.

I would say 5-10% isn't the average. That is more in the region of fixed margin ones. A good rate for a general gig seems to be the 10-15% and we see a lot of comments from people on here with approaching 20% rates. I am sure an agent won't think he has hit pay day with that rate. Still wiggle room for the OP though come renewal for sure.

[Antman]

Fixed rate normally when an agency is supplying dozens/hundreds of contractors to an end-client.

If it's a one-off which is my impression in this case then below a certain amount (£50 per day IIRC) then it isn't worth it any more from an agent's point of view. I remember reading an agent posting on here ages ago saying something along these lines.

[SueEllen]

Fixed rate normally when an agency is supplying dozens/hundreds of contractors to an end-client.

WAS

It isn't worth the agency's time to supply one or two contractors at a margin lower than 10% or £50 a day.

[GB9]

Rates vary depending on location and other factors.

The last one I did was £250 (Norfolk) but I was keen to get into the private sector.

The £220 one is in Leeds.

If you tell us what you do we can give an opinion on what the average rate is.

Depending on what you do, I would suck it for the contract duration at which point you have the private sector experience and can maybe get something better.

[DirtyDog]

I don't intend to make a habit of leaving after a short period.

And if I did, I wouldn't say it was because I wanted more money.

So what answer will you give when the agency / client ask why the previous role was only two months when the norm for whatever you do is longer than that?

[DirtyDog]

Rates vary depending on location and other factors.

The last one I did was £250 (Norfolk) but I was keen to get into the private sector.

The £220 one is in Leeds.

Depending on your location, those two could be comparable rates once you factor in your expenses. Make sure that when you look at the rates on offer, you are including all your costs rather than just seeing the pound signs and jumping at that.