Rip Off Margins / Rates

[evilagent]

If the clientco if offering £500 a day, and the agency normally takes £100 a day, thats £400 for the contractor.

If the agency manages to convince another contractor to accept £350, they take £150 a day.
That may be regarded as a rip-off margin.

If a contractor if making £350 a day, thats his agreed rate.
If he is offered £500 a day, for essentially the same job, is he ripping off the new client, since he is doing the same work for £150 more than last client.

Is there such a thing as rip-off rates?
Would you accept the higher rate, or as benevolent and ethical contractors, offer to work for your "normal", lower, rate?

[scooterscot]

If the clientco if offering £500 a day, and the agency normally takes £100 a day, thats £400 for the contractor.

If the agency manages to convince another contractor to accept £350, they take £150 a day.
That may be regarded as a rip-off margin.

If a contractor if making £350 a day, thats his agreed rate.
If he is offered £500 a day, for essentially the same job, is he ripping off the new client, since he is doing the same work for £150 more than last client.

Is there such a thing as rip-off rates?
Would you accept the higher rate, or as benevolent and ethical contractors, offer to work for your "normal", lower, rate?

Whose offering the new rate?

[AtW]

Is there such a thing as rip-off rates?

Yes, but only from client's point of view.

[scooterscot]

If the clientco if offering £500 a day, and the agency normally takes £100 a day, thats £400 for the contractor.

Looking at it this way, you're will to give up £2500 a month because you don't do your own marketing.

[suityou01]

When I was finishing my contract in Germany I learned the agency was charging double my rate. Considering they screwed me down on 4€ per hour at the start with the threat it might be a deal breaker, and I was so desperate for work, also how they made me wait 60 days for my first invoice to be paid I think this was evil.

I was paying all my flights and accomodation and hanging on by a thread while they were making €550 per day from me and laughing all the way to the bank.

Yes I was naive, yes I learned a lot, yes I am bitter.

Their slogan was "Putting an IT worker in their place every 48 seconds".

I hope they all die in a fire.

[AtW]

I think this was evil.

Next time check agency's motto in advance and don't take on those that have it as "Be Evil".

[suityou01]

Next time check agency's motto in advance and don't take on those that have it as "Be Evil".

But all agents have that etched into their hooves though

[eek]

When I was finishing my contract in Germany I learned the agency was charging double my rate. Considering they screwed me down on 4€ per hour at the start with the threat it might be a deal breaker, and I was so desperate for work, also how they made me wait 60 days for my first invoice to be paid I think this was evil.

Never show weakness in negotiating.

[suityou01]

Never show weakness in negotiating.

Again, I learned a lot. Even if I'd been balls out confident I would never have even dreamed an agent would or could make 100% markup.

[eek]

Again, I learned a lot. Even if I'd been balls out confident I would never have even dreamed an agent would or could make 100% markup.

Have you never worked for a consultancy and seen their markup rates.....