Reply to: Rate increase after 3-4mths?

[cojak]

Don't forget to search the board for older posts on this topic, it has been discussed plenty of times. I recall the main CUK site has some articles too.

Re-negotiating at renewal time is a popular one. In my own experience the only way I've secured higher rates is to move on and set it correctly when starting the next contract. I believe raising rates part way through a contract is taking the mick unless the client or agent has already stated they'd be willing to consider after a period of time.

Yep, I do this too.

[Smartie]

Increase

I asked for a 10% hike at renewal after three months with one client, mostly because I pitched my initial rate quite low in order to get the gig. They also loved my work and had mentioned that they thought I was low cost(!) Worth asking if you feel you're worth it.

[tarbera]

agreed

Sorry if this has been asked/answered. Do you have any idea of the margin the agent is on. Any extra rate is going to come from the agents cut. I doubt he will be going back to the client for more money so knowing what his percentages would be very useful to you here. If he is on fixed margin at 6% or so you are wasting your breath. If he is taking you to the cleaners on 15%+ it should be a walk in the park to get your money.

If you can't get it out the agent dont waste clients time with such a tiny amount as will cost them up to a grand in time to get everything re-signed agreed etc

[northernladuk]

Sorry if this has been asked/answered. Do you have any idea of the margin the agent is on. Any extra rate is going to come from the agents cut. I doubt he will be going back to the client for more money so knowing what his percentages would be very useful to you here. If he is on fixed margin at 6% or so you are wasting your breath. If he is taking you to the cleaners on 15%+ it should be a walk in the park to get your money.

[tarbera]

Ask for £50

Thanks all, yeah it'd be at renewal time. I've 20+ years dev + architecture experience in my skill area, so reasonably senior, but yes a few others above me in the project/team pecking order.
I wouldn't normally put in a request at this stage, but feeling pretty confident about my skills/experience/ benefit to clients these days and feel there's still perhaps a bit more potential scope for rate movement - maybe £25/day

Then you will get £25.

Its a lot of hassel for the PM to raise paperwork etc, if you asked me for a tenner rise I would put you down as a timewaster.

[rurffy]

the simple answer to that question is - if you dont ask you dont get .

[CheeseSlice]

I'm still struggling to see how you're going to approach this. There are three or four motivations here: rise in cost of travel, and confidence in the value delivered to client, the initial discount to get your foot in the door and rising market rates. Are you going to put them together as a joint reason for upping your costs? IMO your weakest reason for doing this is the value you're delivering to the client. Unless you're doing something very niche or can do it particularly quickly, developers are perfectly replaceable and project managers really don't care who is doing this kind of work so long as its getting done. Market rates would be a better reason there because if you leave them they're going to have to get somebody else at market rate. Then again have they really changed that much in 4 months? The problem with using rising cost of travel as a reason is that a company can just recruit somebody who lives closer than you, unless they're relocating operations out into the sticks.

I'm not trying to talk you out of this, only you know your true situation with all of the information at hand. From experience - and I may just be bad at it - this is like a tough game of poker and you will often think you've got a stronger hand than you really do.

[MonkeyWorld]

Yeah right. Except they are paying you already for those years of experience. What is the value add that you are now bringing to the party? If nothing then all you can do is threaten to leave.

By all means try it. But be very clear about how the client views the engagement.

Cheers, agree for the most part, but market rates change and maybe you under sell yourself initially/ or take a cut to get the gig.... at that point I think there's other factors in play in addition to your v.valid point about, 'value add'.

So most of you guys wait 12mths or until you can quantify the value add before you request a rare rise?

[malvolio]

Thanks all, yeah it'd be at renewal time. I've 20+ years dev + architecture experience in my skill area, so reasonably senior, but yes a few others above me in the project/team pecking order.
I wouldn't normally put in a request at this stage, but feeling pretty confident about my skills/experience/ benefit to clients these days and feel there's still perhaps a bit more potential scope for rate movement - maybe £25/day

Yeah right. Except they are paying you already for those years of experience. What is the value add that you are now bringing to the party? If nothing then all you can do is threaten to leave.

By all means try it. But be very clear about how the client views the engagement.

[MonkeyWorld]

Thanks all, yeah it'd be at renewal time. I've 20+ years dev + architecture experience in my skill area, so reasonably senior, but yes a few others above me in the project/team pecking order.
I wouldn't normally put in a request at this stage, but feeling pretty confident about my skills/experience/ benefit to clients these days and feel there's still perhaps a bit more potential scope for rate movement - maybe £25/day

[malvolio]

If the client is relocating and that was putting my costs up, I would look to increase my rate accordingly.

Except I doubt they decided to relocate on less than three months notice...

Also the OP is concerned about £10 a day. I may be wrong but that doesn't imply he has a lot of seniority to make demands with...

[Old Greg]

Standard answer(s) - what have you done to warrant an increase in your charges? How much have you saved your client in overall improved productivity? What are you now doing over and above what you were hired to deliver?

I'm guessing not much. So why do you think you deserve a raise? Your costs aren't the client's problem, and he's already paying you to do the best job you can.

You can talk to the agent about redistributing your share of their charges since they have now recovered the costs of putting you there. But the likely outcome of demanding a rise from the client on renewal just for being there is likely to be no more contract.

If the client is relocating and that was putting my costs up, I would look to increase my rate accordingly.

[SimonMac]

I read "initial 4 months" so hope he means at the end of his contract and at renewal, if you ask for a raise be prepared to walk as if you don't you will never get one in the future as they know you are just bluffing, but then again if you don't ask you never get

[northernladuk]

Also claiming you know their systems and are skilled in their process so adding extra value won't work either. That is why you are there. They would just see that as you holding them to ransom now you are on site so won't go down well.

EDIT : You were expecting to negotiate a rise at renewal time weren't you. Please tell me you weren't expecting to try this on mid contract?

[CheeseSlice]

Don't forget to search the board for older posts on this topic, it has been discussed plenty of times. I recall the main CUK site has some articles too.

Re-negotiating at renewal time is a popular one. In my own experience the only way I've secured higher rates is to move on and set it correctly when starting the next contract. I believe raising rates part way through a contract is taking the mick unless the client or agent has already stated they'd be willing to consider after a period of time.