Rate cut

[Clippy]

Heard a rumour that client is cutting rates across the board for contractors.

Anyone been through this?

Did you stick it out or tell client co to stick it?

Leaving is not an option at the mo, so will have to suck it up.

 

[_V_]

I love the way, that during a boom time for IT Contractors, anyone daring to put up their rates mid-contract is deemed unprofessional, money-grabbing and mercenary, but during a downturn, it is good business sense and ethical for clients to slash rates mid contract.

 

[Chugnut]

Heard a rumour that client is cutting rates across the board for contractors.

Anyone been through this?

Did you stick it out or tell client co to stick it?

Leaving is not an option at the mo, so will have to suck it up.

Yep, I went through this a few months back, it's happening quite a bit in the City.

I took it but negotiated it up a bit at renewal so lessened the damage.

Asking for advice on this is largely irrelevant though, everyone's circumstances are different, yes?

 

[Ravello]

Heard a rumour that client is cutting rates across the board for contractors.

Anyone been through this?

Did you stick it out or tell client co to stick it?

Leaving is not an option at the mo, so will have to suck it up.

Haven't had to go through it, but in current climate I'd suck it up, if/when things finally get better I'd be looking to make sure I had other irons in the fire before landing the client with a rate increase request.

 

[sasguru]

Some of you are thinking like permies. You run a business, it's supply and demand, you take the rough with the smooth.
In my contracting career I was never slow in reducing rates myself in slow periods to keep working. The point about contracting is not your rate, but to avoid the bench and keep working - that's how you build up your stash.

I'm surprised I have to make this post.

 

[ChimpMaster]

Yes it sucks but it's still better than:-

a) Being forced to go permie
b) Being asked to leave.

Many here had to take a 10% cut. Some stood their ground and managed to continue at the same rate. Some got booted out. Depends on how essential the client believes you are to their project/organisation.

 

[bren586]

My agent called me this morning and asked me how I feel about a 10% rate cut. I queried the terms of this 10% cut and found out there was no stick - yet.

I pointed out that they may well have missed the boat on this one as we (contractors) have known about a down turn in the economy for at least a year and have been planning accordingly. My rainy day fund would allow me a year at home in reasonable style.

I have worked for this client several times and this is not the first time they have done it.

I asked what was in it for me and was told "Just my job".

I said that I would walk if they cut my rate.

 

[Purple Dalek]

Depends on how essential the client believes you are to their project/organisation.

Client perception is very important. I've seen projects where they booted the configuration team in favour of permies. Epic fail!

 

[Mich the Tester]

I love the way, that during a boom time for IT Contractors, anyone daring to put up their rates mid-contract is deemed unprofessional, money-grabbing and mercenary, but during a downturn, it is good business sense and ethical for clients to slash rates mid contract.

...especially clients who've just recieved a big cheque from the taxpayer.

 

[Jubber]

A rate cut? Luxury.

I'm busy trying to organise something through an old client of mine who unfortunately has been instructed to use Injuns due to the current financial situation. Apparantly this Indian supplier gets people for half the cost my old agency supplies at.

Happy days.