Where to pitch you rate when offered a spread?

[Smartie]

An agent has contacted me regarding a contract which I'd love to do. They've quoted a rate range and I'd be happy enough with the lowest figure though obviously the top rate would be best from my perspective.

So, where would you pitch your rate? At the bottom end it seems they might perceive me as too cheap and therefore of dubious quality. At the top end perhaps too greedy. Taking the middle of the range seems to lack imagination and perhaps confidence.

I don't know the client's budget so I'm not sure whether anything below the top of the range would simply go into the agent's pocket.

At the moment I've simply told the agent that the range offered is in the right kind of place for me. I'm tempted to avoid quoting a precise rate before the interview but the agent may press for it before that.

[speling bee]

An agent has contacted me regarding a contract which I'd love to do. They've quoted a rate range and I'd be happy enough with the lowest figure though obviously the top rate would be best from my perspective.

So, where would you pitch your rate? At the bottom end it seems they might perceive me as too cheap and therefore of dubious quality. At the top end perhaps too greedy. Taking the middle of the range seems to lack imagination and perhaps confidence.

I don't know the client's budget so I'm not sure whether anything below the top of the range would simply go into the agent's pocket.

At the moment I've simply told the agent that the range offered is in the right kind of place for me. I'm tempted to avoid quoting a precise rate before the interview but the agent may press for it before that.

50 quid above the top of the range but willing to negotiate if it's a really great contract.

[northernladuk]

50 quid above the top of the range but willing to negotiate if it's a really great contract.

Absolutely this. You sound like an agents wet dream you do. He doesn't even have to pull your pants down and bend you over as you sound like you are willing to do it for him.

[Smartie]

It is a great contract and a strategic move which would put me in a great position to command higher rates in the future.

To be honest, if I get a rate I'm happy with I'm not overly bothered what the agent gets. I don't want to get excluded from consideration by pushing it on the rate and if that looks like bending over, well that doesn't bother me.

[malvolio]

It is a great contract and a strategic move which would put me in a great position to command higher rates in the future.

To be honest, if I get a rate I'm happy with I'm not overly bothered what the agent gets. I don't want to get excluded from consideration by pushing it on the rate and if that looks like bending over, well that doesn't bother me.

So go for the top rate on offer. How hard is that?

[stek]

It is a great contract and a strategic move which would put me in a great position to command higher rates in the future.

To be honest, if I get a rate I'm happy with I'm not overly bothered what the agent gets. I don't want to get excluded from consideration by pushing it on the rate and if that looks like bending over, well that doesn't bother me.

It's not about what you know and what skills you have, it's about bigging yourself up and negotiating, wish I had 10p for every time I'd thought a particular gig would skill me up and see me on for the future*, never happens.

*I'd have £3.60.

[Smartie]

It's not about what you know and what skills you have, it's about bigging yourself up and negotiating, wish I had 10p for every time I'd thought a particular gig would skill me up and see me on for the future*, never happens.

*I'd have £3.60.

Sure, but as we're operating a business surely we have a duty to think strategically about the future of the company rather than just about rates?
I've known plenty of suppliers that would bend over backwards (or forwards ;-) to get a good client on their books and reference list.

I'm happy to negotiate but of course that depends what hand you're holding and how much you're prepared to bluff.

While I'm prepared to stretch the truth somewhat (as long as I know I can back it up when delivering to the client), there are limits.
For instance if someone said to me 'do you have investment banking experience' I'd really like to be able to give a positive answer. In fact I'd be prepared to be flexible on my rate in order to, at a later date, say 'yes and it was with a well known and respected company so give me loadsa money'.

[malvolio]

Sure, but as we're operating a business surely we have a duty to think strategically about the future of the company rather than just about rates?
I've known plenty of suppliers that would bend over backwards (or forwards ;-) to get a good client on their books and reference list.

I'm happy to negotiate but of course that depends what hand you're holding and how much you're prepared to bluff.

While I'm prepared to stretch the truth somewhat (as long as I know I can back it up when delivering to the client), there are limits.
For instance if someone said to me 'do you have investment banking experience' I'd really like to be able to give a positive answer. In fact I'd be prepared to be flexible on my rate in order to, at a later date, say 'yes and it was with a well known and respected company so give me loadsa money'.

Hmmm....

A few things spring to mind:

a) You're a contractor; you won't be offered the job if the agent doesn't already think you can do it fully. You're not paid to learn or improve yourself, you're paid to deliver. So already you are fully qualified for the role, as far as your value is concerned

b) An agent offering a spread is potentially conning you into taking a lower rate to increase his profit: the gig will have been offered to him at a single rate by the client. Arguably he will have some room above the highest rate he's offering.

c) Your duty as a Director is to maximise the profitability of YourCo, so going for anything less than the highest available rate is a dereliction of that duty.

d) You're a contractor.

Nuff said?

[Smartie]

Hmmm....

A few things spring to mind:

a) You're a contractor; you won't be offered the job if the agent doesn't already think you can do it fully. You're not paid to learn or improve yourself, you're paid to deliver. So already you are fully qualified for the role, as far as your value is concerned

b) An agent offering a spread is potentially conning you into taking a lower rate to increase his profit: the gig will have been offered to him at a single rate by the client. Arguably he will have some room above the highest rate he's offering.

c) Your duty as a Director is to maximise the profitability of YourCo, so going for anything less than the highest available rate is a dereliction of that duty.

d) You're a contractor.

Nuff said?

a) Yep, sure I can do the job, though obviously this is contingent on the client meeting and subsequent offer (or not).

b) I'd rather the money was in my pocket than in the agents but equally if he has a couple of options to send to interview I don't want him sending someone cheaper instead. If he has a single figure, I'm guessing at the max offered rate he'll be taking 15% which isn't that unreasonable though my current contract is 10%.

c) Correct, partially. Profitability is not simply a function of rate but also of chargeable days. I'm happy not to be the most expensive if I'm fully utilised for 46 weeks every year.

d) Yes, yes I am :-)

[Scrag Meister]

Always start high, you can't negotiate up from a starting point you give.

As others have said, start at the top or just above and see where you end up.

Hopefully not at the bottom of the range.