Reply to: Potential boom & negotiations.

[NickNick]

Maths time!

Round pound figures that, with 13% added, end up with .35 decimal:

95
195
295
395
495
595
695
795
895
995
1095
1195
1295
1395
1495
1595
1695
1795
1895
1995
2095
2195
2295
2395

Which one was it?

Lets just say it's not the first or the last.

[PerfectStorm]

I had a similar conversation with a client the other year, except it went somewhat differently. Approaching the two year mark and something went belly up on a different part of the project meaning there would be more work for me (taking me beyond the two year mark) so I told them that as my business costs would rise in the near future I would need more to carry on and pick up the pieces. I'd just read an article on negotiation and so asked for a random number extra on the day rate that was higher than needed (i.e. something like 13%). The thought behind a random number (apparently) is that it makes the other party think you have worked things out carefully and not just picked a number out the air.

They went for it without negotiaion and I accepted and stopped claiming any T&S to that site. Which is why I ended up on a day rate that ends in 35p.

Maths time!

Round pound figures that, with 13% added, end up with .35 decimal:

95
195
295
395
495
595
695
795
895
995
1095
1195
1295
1395
1495
1595
1695
1795
1895
1995
2095
2195
2295
2395

Which one was it?

[kal]

Boomed!

So dev mgr calls me in again yesterday and offers me the 10% increase I was after to extend, another 6 months at quite a laid back gig with 1 day WFH can't be bad. Lesson is stick to your guns when negotiating, they can smell bullsh!t/fear

[kal]

Good for you kal. 2% seems a bit pointless after all.

I just got 10% and that wasnt a huge amount when you looked at it. But, good to see someone got the guts to can it.

I was up for canning it (crap place to work, average rate but close to home) because last time they offered 2 months so I was expecting one this time. But they came up with 4 and agreed to 10% so I bottled it lol.

Good luck with finding something else.

That's not bottling it PC, a 10% increase for a close to home gig is worth accepting. I will hit the 24 month rule if I extend and a 2% increase = a rate cut if I can't offset travel costs. I'm sure something closer to home will turn up, won't miss the 5 hr commute!

[psychocandy]

Good for you kal. 2% seems a bit pointless after all.

I just got 10% and that wasnt a huge amount when you looked at it. But, good to see someone got the guts to can it.

I was up for canning it (crap place to work, average rate but close to home) because last time they offered 2 months so I was expecting one this time. But they came up with 4 and agreed to 10% so I bottled it lol.

Good luck with finding something else.

[NickNick]

So as promised an update... offered a 6 month extension with a wait for it... 2% increase , he offered that straight off the bat so I thought asking for 20% in response would be a step too far. Asked for 10% to extend, his reply (after giving me a sob story about how as a permie he earns a lot less and only got 2% himself this year) was that that would 'set a new bar for contractors at clientco'. Fair enough I said, thanked him and declined the offer. Have been here almost 2 yrs so a good long run , make some room on the bench at the end of Sept!

I had a similar conversation with a client the other year, except it went somewhat differently. Approaching the two year mark and something went belly up on a different part of the project meaning there would be more work for me (taking me beyond the two year mark) so I told them that as my business costs would rise in the near future I would need more to carry on and pick up the pieces. I'd just read an article on negotiation and so asked for a random number extra on the day rate that was higher than needed (i.e. something like 13%). The thought behind a random number (apparently) is that it makes the other party think you have worked things out carefully and not just picked a number out the air.

They went for it without negotiaion and I accepted and stopped claiming any T&S to that site. Which is why I ended up on a day rate that ends in 35p.

[kal]

My response would be "but you've got job security (snigger), paid sick days, paid holidays, pension contributions and health benefits (probably)"



Good for you for sticking to your guns, hope you get the next gig quickly, or it triggers a renewed offer

Exactly, the August bank holiday on Monday cost me a days billing (wouldn't have minded but it royally p!ssed it down all day!)

[jmo21]

So as promised an update... offered a 6 month extension with a wait for it... 2% increase , he offered that straight off the bat so I thought asking for 20% in response would be a step too far. Asked for 10% to extend, his reply (after giving me a sob story about how as a permie he earns a lot less and only got 2% himself this year) was that that would 'set a new bar for contractors at clientco'. Fair enough I said, thanked him and declined the offer. Have been here almost 2 yrs so a good long run , make some room on the bench at the end of Sept!

My response would be "but you've got job security (snigger), paid sick days, paid holidays, pension contributions and health benefits (probably)"



Good for you for sticking to your guns, hope you get the next gig quickly, or it triggers a renewed offer

[kal]

It would only set a bar if he / you told everyone about the increase.

Mind you, I've not had an increase here in two years. Haven't asked for one, though - they might ask me to justify what I do to earn that rate

Same here, been at current client co for 2 yrs on the same rate, 6 month renewal offered with a 2% increment, the easy option is to accept but I decided before that I would stick to my guns. To be honest I need a reason to move and this is it, market seems quite healthy so am not worried that I will be on the bench for long

[TheFaQQer]

So as promised an update... offered a 6 month extension with a wait for it... 2% increase , he offered that straight off the bat so I thought asking for 20% in response would be a step too far. Asked for 10% to extend, his reply (after giving me a sob story about how as a permie he earns a lot less and only got 2% himself this year) was that that would 'set a new bar for contractors at clientco'. Fair enough I said, thanked him and declined the offer. Have been here almost 2 yrs so a good long run , make some room on the bench at the end of Sept!

It would only set a bar if he / you told everyone about the increase.

Mind you, I've not had an increase here in two years. Haven't asked for one, though - they might ask me to justify what I do to earn that rate

[kal]

Update

So as promised an update... offered a 6 month extension with a wait for it... 2% increase , he offered that straight off the bat so I thought asking for 20% in response would be a step too far. Asked for 10% to extend, his reply (after giving me a sob story about how as a permie he earns a lot less and only got 2% himself this year) was that that would 'set a new bar for contractors at clientco'. Fair enough I said, thanked him and declined the offer. Have been here almost 2 yrs so a good long run , make some room on the bench at the end of Sept!

[kal]

Interesting, let us know how it pans out.

qh

Will do, watch this space!

[kal]

Seems fair enough. Sounds like the 2 year rule is going to kick in so your business costs have gone up and those numbers sound about right.

True, that's another point I am planning to make, my commute costs are considerable (around a grand a month) and I won't be able to offset that as I will fall foul of the 24 month rule if I extend.

[quackhandle]

Interesting, let us know how it pans out.

qh

[northernladuk]

Seems fair enough. Sounds like the 2 year rule is going to kick in so your business costs have gone up and those numbers sound about right.