Negotiating a new rate

[BoredBloke]

"However.....what I was trying to get at was you're given a (for example) 3 months contract at £400 a day for providing a certain service. Why should you expect to increase it after that 3 months to £450 for providing exactly the same service?"

Don't agree. At month 3 you are doing the job better than you did at month 1. So the client might be keen to keep you. You shouldn't expect a rise in rate after only 3 months, but if you can get a role which pays the desired rate, then why not give the existing client the benefit of first refusal. Also, what is so bad in trying to maximise your rate. I don't see too many ethics on the client side when they hit a financial blip! Best to make your money while you can.

"Yes its a business negotiation, but surely you have to have a bit of ethics about you aswell?!! If we all kept upping our rates for no reason then suddenly companies would start thinking of alternatives. There has to be a balance."

Nope - there is supply and demand. All contractors can be replaced. I'd like £1000 per day, I won't get it because it is way above the market rate and there are plenty more fish in the sea.

[Spacecadet]

[QUOTE=SallyAnne]

However, reporting requirements are slowly creaping in as in house staff are either too busy are not up to the task QUOTE]


.....what you need is a superb little reports developer who just happens to be finishing her gig today!

Nice try but I need the money and the skill set

[Ardesco]

[QUOTE=SallyAnne]

However, reporting requirements are slowly creaping in as in house staff are either too busy are not up to the task QUOTE]


.....what you need is a superb little reports developer who just happens to be finishing her gig today!

And there was me under the impression that you had admitted to being plump not little in another thread.... (Unless of course you are small and plump which is never a good combination...)

[Spacecadet]

Don't agree. At month 3 you are doing the job better than you did at month 1. So the client might be keen to keep you.

In most cases you're doing the job better from gaining experience on the clients time. As far as I see it, as a contractor I'm providing services to the client based on my extensive experience and knowledge gained before meeting the client. If I'm going to negotiate for a rise after a fixed term contract based on increased knowledge experience then it would be based on training and/or certification gained in my OWN time, proving to the client that they aren't paying extra due to standard knowledge inflation. Plus, if you have gained knowledge or experience on standard systems whilst at the client then potentially its because you accepted a contract which you knew you would need to gain on the job knowledge to do.

Compare this to employing a plasterer. He does the ground floor of your house at rate X. You then want him to do the upper floor as well, he quotes you a larger rate Y because "Well mate, i'm a better plasterer now that i've spent an extra week plastering"

[wonderwaif]

I personally don't see a problem with trying to negotiate a rate rise as part of contract renewal negotiations.
Having provided the agreed service at the agreed rate it is perfectly acceptable to negotiate new terms for a new service provision.
What other business would tie itself to the same price indefinitely regardless of changes to their circumstances apart from ones where economies of scale make it desirable to attract more customers? That doesn't apply to me.
The client is free to refuse and if they feel they can't refuse then supply and demand kicks in, just like it does when they want to lower your rate at renewal.

[BoredBloke]

That isn't what I meant. By Month 3 you know who is who. You know the ins and outs of how things run and how to get things done. People at the client site also know you and what you can do for them. Somebody new would not have this inside knowledge. The client would also have the down time and hassle of getting somebody up to speed to deal with. I don't see the problem in using this extra info as a means to trying to get a rate increase. The client can still say no afterall.

Also, in the case of the plasterer, if the he got the job at a low rate and the market rate shifted or was offered a role at a higher rate, do you think he would hang around at your lower rate? If you went into a job at a low level, as you pick up the skills, so you can command a higher market rate. Why should you hang around on the lower rate because that is what rate you signed up for all those renewals ago.

[tim123]

That isn't what I meant. By Month 3 you know who is who. You know the ins and outs of how things run and how to get things done.

But IME, in most cases this is factored into the original rate. The employer knows that you are going to take time to get up to speed with the nuances of the company, but he also knows that, in a competitive market, he isn't going to get any (good) people to accept the job on the basis that they pay for this learning period.

So the employer pays the going rate immediately and accepts that he is going to make a loss on the deal whilst you get up to speed.

I agree with some of the others. You squeeze the agent's margin at renewall. You don't expect your client to stump up more cash for the same job.

tim

[tim123]

What other business would tie itself to the same price indefinitely regardless of changes to their circumstances

There are no changes in the circumstances. You are performing the same
role that you initially agreed to perform.

tim

[wonderwaif]

There are no changes in the circumstances. You are performing the same
role that you initially agreed to perform.

tim

My circumstances may change. My costs increase.
I'm a business, you sound like IR35 fodder to me.

[Pondlife]

My circumstances may change. My costs increase.
I'm a business, you sound like IR35 fodder to me.

I agree but wouldn't be using this argument every three months though.