Asking Agency for rate % cut

[chappers]

As I am currently in a 3 month contract, with possible renewal [not confirmed yet, but likely as the business is growing all the time], but as I have not asked in the past for the agency margin on my current rate and T&Cs.

What are ppls advice to approaching this?

Would at renewal if comes to past, ask the client of what rate they are paying the agency and go from there?

Do the agency have a right to keep the margin to themselves [getting fobbed off], or would they get uptight about asking what their cut is>?

Going forward, on an example of another contract day rate, do you always ask what their cut is etc..?
thanks

[malvolio]

As I am currently in a 3 month contract, with possible renewal [not confirmed yet, but likely as the business is growing all the time], but as I have not asked in the past for the agency margin on my current rate and T&Cs.

What are ppls advice to approaching this?

Would at renewal if comes to past, ask the client of what rate they are paying the agency and go from there?

Do the agency have a right to keep the margin to themselves [getting fobbed off], or would they get uptight about asking what their cut is>?

Going forward, on an example of another contract day rate, do you always ask what their cut is etc..?
thanks

Classic mistake. The agency do not get a percentage of your rate, you get a percentage of theirs. As such it is commercially confidential and both client and agency may want to keep it hidden.

Also your contract is with the agency. You want a raise, that's where you start. However, after three months, you will have had to have done something seriously exceptional to warrant one.

[Eirikur]

I suppose you want to have a higher daily rate. Why not ask first for a raise and if that's not possible ask for the agency to cut their %?

[northernladuk]

It wouldn't have done any harm to ask them what their arrangements are with the client at the beginning of the contract. It is highly unlikely they will tell you the truth but you could find out if they are on a fixed margin. I have dealt with two larger agencies that were on fixed margin and were happy to tell me what it was, I did find out later they were indeed telling the truth. This means there wasn't a cat in hells chance of squeezing any more out of them so that was that problem solved.

If they are not then it's just down to your negotiating skills. They could be on anything from 4% to 25%+. You do often find out whilst in the gig through paper left on printers or permie managers letting it slip and if that's the case you are in a strong negotiating position. Failing all that then you just have to give it a shot. There is no harm in trying but if you are going to you must make sure the agent knows you mean business. If you are not willing to walk then don't bother. They will sniff you out a mile off and once they know you are weak you will never get a rate rise out of them.

I have to say IMO 3 months isn't long enough to start playing hardball with them either. Once you have been on site a good length of time then they will be much more inclined to drop the rate as they are not doing any work for it now and you are a good steady income so will want to keep you sweet.

It's worth asking as they could be ripping you off royally and know it but as I say play hardball, don't going in asking if they would please give you a bit more. Remember you are in a business negotiation. Expecting a rise just because you have been there for 3 months is going to fail. You have to justify it to them and make it stick.

[Cenobite]

Classic mistake. The agency do not get a percentage of your rate, you get a percentage of theirs.

Malvolio is right that the money goes initially to the agent who takes a cut then passes some money on to the contractor. But it's just that this argument is used to make agents feel they add more value than they really do.

If the agent can get you a contract without the client having to interview you then fine perhaps the agent won the work. But generally it's the contractor's performance at interview which wins the agent the work. If the client doesn't like the contractor at interview, I doubt the agent can change the client's mind.

[Boney M]

WTF is the OP for real?

[malvolio]

Malvolio is right that the money goes initially to the agent who takes a cut then passes some money on to the contractor. But it's just that this argument is used to make agents feel they add more value than they really do.

If the agent can get you a contract without the client having to interview you then fine perhaps the agent won the work. But generally it's the contractor's performance at interview which wins the agent the work. If the client doesn't like the contractor at interview, I doubt the agent can change the client's mind.

Ermm... Have you any idea how much work the agency does to get to the point of you being able to convince the client you are the man for the job? And how much of that is wasted effort?

That agency does not take a cut. You do. End of.

[Hireonomy]

The end client would have a daily budget in mind for the piece of work, and it is the responsibility of the Agency to find the best candidate for the role.

Whether the person is the cheapest/most expensive is by the by - so long as they are the right person for the job, and within the client budget.

Personally, I don't see there being a problem with asking an Agency their rate... it's not commercially sensitive at all... unless they are making an absolute bomb from the Client... otherwise, what have they got to hide?

[Cenobite]

That agency does not take a cut. You do. End of.

Oh dear, another agent lover.

[malvolio]

Oh dear, another contractor who understands how the business works.

FTFY...

I didn't say I liked it, but I live in the real world.