Negotiating a new rate

**Cowboy Bob** · 25 October 2006, 20:37

Best way to get a high rate is to say you're leaving if they don't increase your rate by X%. If they want you to stay, they'll up the rate. If not, you've got to walk. It all depends on how much they think you're worth. You've got to be prepared to follow through though.

**malvolio** · 25 October 2006, 21:07

New rate in 6 months, eh... What are you, God?

We had the "when do I apply for a pay rise" question a while back. From where I sit, as someone who uses contractors fairly regularly, the answer was (and is) that you can ask for a rise when you've done something to warrant it. Doing the job you are paid to do properly does not even remotely qualify, because that is what I bought when I took you on. I want to see you add something of value to the overall operation, whatever it may be. You do not get paid for turning up, you do not get paid extra for longevity, you do not even get paid extra for doing the job to the very best of your ability because that is what you are supposed to be doing.

Now grow up and start thinking like a professional selling a service.

**Sockpuppet** · 25 October 2006, 21:09

Originally posted by christhedon

Hi,

I'm interested in peoples experiences and how they dealt with certain situations. Has anyone been in the situation where their initial rate on a six month contract is low but for whatever reason they accepted the contract.

At what point during that six month period did you

1) Look for another role
2) Negotiate a new rate with the existing client

If you did (2), what was your approach? Did you?

a) Negotiate with the client
b) Negotiate through the agent

At what month in the contract did you do the above?

Thanks,

Chris

I usually take the "as of <date> my rate will be £x/day" approach. They are welcome to negotiate if they want. To be fair though most of my work is never extended contracts wise (no not becuase i'm tulipe) but becuase one the warehouse is built there really isnt a lot more to do to it. I had it over to operations and ride off into the sunset.

**christhedon** · 25 October 2006, 21:28

Originally posted by malvolio

New rate in 6 months, eh... What are you, God?

We had the "when do I apply for a pay rise" question a while back. From where I sit, as someone who uses contractors fairly regularly, the answer was (and is) that you can ask for a rise when you've done something to warrant it. Doing the job you are paid to do properly does not even remotely qualify, because that is what I bought when I took you on. I want to see you add something of value to the overall operation, whatever it may be. You do not get paid for turning up, you do not get paid extra for longevity, you do not even get paid extra for doing the job to the very best of your ability because that is what you are supposed to be doing.

Now grow up and start thinking like a professional selling a service.

I'm interested in peoples experiences/approaches in my questions. However, since you have indicated that you have used contractors before, I'd be interested in your experiences as an employer, I.e. the same questions but from your perspective. E.g. When did someone ask you for a rate increase for their services, what approach worked with you and what didn't. As a side note what industry/technologies do you typically deal with?

Thanks,

Chris

**mcquiggd** · 25 October 2006, 21:31

Get involved with the bosses twin teenage (18+) year old daughters, and offer to use a condom if you get a rate rise.

**Bovvered** · 26 October 2006, 08:46

I just got offered two rate increases in a week. Geez I'm good at this

Just hold your nerve.

**Sockpuppet** · 26 October 2006, 08:57

Originally posted by Bovvered

I just got offered two rate increases in a week. Geez I'm good at this

Just hold your nerve.

Its OK, you can put the gun down now.

**BoredBloke** · 26 October 2006, 09:03

If you took a low paying role to pay the bills, then keep on looking. Once you get something at your desired rate, then you can say you are leaving - They might up the rate or not - but at least you have something to fall back on.

**malvolio** · 26 October 2006, 09:05

Originally posted by christhedon

I'm interested in peoples experiences/approaches in my questions. However, since you have indicated that you have used contractors before, I'd be interested in your experiences as an employer, I.e. the same questions but from your perspective. E.g. When did someone ask you for a rate increase for their services, what approach worked with you and what didn't. As a side note what industry/technologies do you typically deal with?

Thanks,

Chris

It's nothing magic, but look at it from my perspective. If I have a budget to meet, as all managers do, you have to add some signficant value to make me want to shift expenditure from one area to another - for example, develop a way of working or a toolset so routine apps can be built more quickly. If it saves money and/or time and/or rework (all the same thing, really), I might reward you. But turning out error free code that hits the spec required to the standards required and never causing me any problems - sorry, but that's what I pay you for , and it's what you contracted to do for me, at the agreed rate.

Go for a rise at renewal, by all means, but it's between you and the agency margin - if all you are doing is your job, the client management are not interested in funding extra for no return.

Negotiating a new rate