Different margins, same agency?

I'm working on a project with several other contractors, who've all come through the same agency.

One of these contractors found out that he was being paid less than the rest of us (albeit only around 5% less).

I believe the client would be paying the same rate to the agency for all of us, but presumably the agency is making a better margin from him than they are from us.

He asked me what I would do... and I really didn't know what to say! I personally wouldn't want to work with an agent like that - but equally, if he was happy with the rate initially it's hard for him to argue.

What would you guys do if you were in his shoes?

[jamesbrown]

Nothing. He was happy with the rate when he took it, and the agency's margin is irrelevant in that context (it's also the agent's business). He may want to negotiate harder next time, based on an understanding of what he's worth.

[northernladuk]

+1 to the above. If he starts getting upset about it it could destroy his motivation and become a problem to the client. What could have been a great gig could now just make him miserable. Finding out rates can be a bit of a nightmare.

There is sod all he can do now anyway. He's contracted to it. Best he can do is suck it up and push the agent for the 5% at renewal or walk.

If I was you I would keep away from any rate discussions with any other contractors in future as well.

[aytri]

If I was you I would keep away from any rate discussions with any other contractors in future as well.

I managed to avoid telling him what I charge

He basically said that the agency quoted a range of rates prior to interview, and he'd gone in at the top rate in the range on the basis that they told him they'd put forward another candidate at that rate already.

Turns out that the range is a little wider than he thought

I can see why he's unhappy, but what can you do!

They took six of us on at the same time. Two have already jacked it in (job not as described apparently), and one is thinking about leaving as we speak - the agency already know this, and are not happy at all! He plans to ask the agency for the margin back, on the hope that they'll lower their margin rather than lose yet another person.

It'll be interesting to see what happens!

[BlasterBates]

Stop contracting become permanently employed and join a union.

This getting jealous about a few percent or getting angry because the agency negotiated a better margin for himself is unbusiness like.

As contractor it is your responsibility to pitch your rate which gets you the job.

If you're without a contract by pitching in with a lower rate than the competition the agency will push you harder and you get the contract.

If the guy had pitched it 5% higher he might well be twiddlng his thumbs at home because the agency talked up another guy.

If you want "a rate for the job" you need to join the TUC.

The next time he goes for a contract he needs to negotiate with several agencies and he needs to be trying out different rates, playing agencies off one another. He's now signed the contract so he has to stick with the rate.

[aytri]

If the guy had pitched it 5% higher he might well be twiddlng his thumbs at home because the agency talked up another guy.

In this case, probably not - the rest of us ended up on the same (higher) rate. Seems like the agent quickly took advantage of the guy!

If you want "a rate for the job" you need to join the TUC.

[BigTime]

I've been in his shoes when I was a student and I let the agent have it. No way was I going to accept 5.50/hour when others who'd started a couple of weeks before were on 6. I didn't get a rise but it was entertaining.

[aytri]

I've been in his shoes when I was a student and I let the agent have it. No way was I going to accept 5.50/hour when others who'd started a couple of weeks before were on 6. I didn't get a rise but it was entertaining.

If it were me, I'd probably just suck it up. I would definitely let the agent have it though... especially if they'd told me an outright lie like that!

[Barley]

Heinz have just realised M&S are charging 2p more for tins of baked beans than Sainsburys, they're angry, upset, and want to renegotiate their contract.

Stop press!!! Tesco are selling 1p lower than Sainsburys.

You guys are running a business, you need to stop blaming other people for your business decisions.

[aytri]

Heinz have just realised M&S are charging 2p more for tins of baked beans than Sainsburys, they're angry, upset, and want to renegotiate their contract.

Stop press!!! Tesco are selling 1p lower than Sainsburys.

You guys are running a business, you need to stop blaming other people for your business decisions.

Lucky for you that you're not in the baked bean business