5 days into contract, rate cut!

[DaveB]

But they do. Maybe not a cut out of the blue or a change midway through but a lot of clients push for a year on year reduction in the cost of the service from big companies like this. I know my last clients did and the year on year target was more than 10% so they do push the big guys for cuts, even more regularly than contractors.

Indeed. This is why big supplier companies front load their costs into a contract, because they know they are going to be asked to reduce them in the future. They need to make sure they get a return on the contract that covers setup and development in the first 2 years because their margins will be cut every year after that. It's a balancing act for them in terms of making money on the contract and keeping the customer happy so they don't go elsewhere in search of a better deal.

[7specialgems]

Bank and Public Sector are sheep with this. One goes, the others then follow.

Some good advice earlier in the thread - with these sectors, revenge is a dish best served by adding on 10% next time.

[Underscore Pt2]

But they do. Maybe not a cut out of the blue or a change midway through but a lot of clients push for a year on year reduction in the cost of the service from big companies like this. I know my last clients did and the year on year target was more than 10% so they do push the big guys for cuts, even more regularly than contractors.

I agree - so the only time they should be allowed to do it as at the end of a contract (ie the same time we can ask for a rate increase). Its a sham that they get away with it but as so many just bend over and take it, it will continue to happen. If everyone just walked they'd change their mind. But people lose their bottle as they think they wont find other contracts (or get black balled)

[northernladuk]

I agree - so the only time they should be allowed to do it as at the end of a contract (ie the same time we can ask for a rate increase). Its a sham that they get away with it but as so many just bend over and take it, it will continue to happen. If everyone just walked they'd change their mind. But people lose their bottle as they think they wont find other contracts (or get black balled)

It's not about losing their bottle. It's about making a business decision based on the current circumstances.

[speling bee]

Bank and Public Sector are sheep with this. One goes, the others then follow.

Some good advice earlier in the thread - with these sectors, revenge is a dish best served by adding on 10% next time.

Why wouldn't you add the 10% anyway if you can get away with it?