Cutting out the agent

[flipFlop]

Another 'So...' sentence starter....

Well observed.Why do they do it?

[northernladuk]

So, if "my friend" is working for a client through an agency, at say, 400/day, and the end client wants to renew and is willing to pay the penalty to the agent for re-employing "my friend" directly. The end client has asked how much the day rate for direct contract would be. Obviously agent is getting 400+x per day. Would my friend be taking the mick if s/he said, say, 450 (which is still las than 400+x)?

I hope your friend realises that the client isn't employing him like you do

You need to find out whether the agent was on a fixed margin or not first. That will make a big difference to your negotiations. If so the client will know exactly what you are getting paid and exactly what it is costing him to use the agents services so how much he will save by not using them.

[PerfectStorm]

One thing your mate might have to get used to is chasing the client for cash when they go past what may be some lengthy terms - all part and parcel of regular B2B activity your mate may have been shielded from up until now

[AMH]

does the end client know how much the contractor is currently on?
I would be ballsy and ask for £500 - give room for negotiation

They might say yes cos they are still saving money.

[eek]

Don't forget to ensure that terms and conditions don't change. If your "friend" is currently being paid weekly in arrears and this moved to monthly with monthly billing then you probably want some additional money to cover the change in convenience...

[darrylmg]

I would expect the client to be wanting to make a saving on the deal though. He's having to do the leg work the agent was doing so it isn't a given the full amount can now go the contractor.

This ^
The end client doesn't want to pay the contractor more, they want to save the agency fee.
The end client is taking on all the billing etc, so I don't see them wanting to pay the same costs.

It does mean of course, that you are possibly required for a substantial length of time by the client. Bonus.

[northernladuk]

I would expect the client to be wanting to make a saving on the deal though. He's having to do the leg work the agent was doing so it isn't a given the full amount can now go the contractor.

[TheFaQQer]

So, if "my friend" is working for a client through an agency, at say, 400/day, and the end client wants to renew and is willing to pay the penalty to the agent for re-employing "my friend" directly. The end client has asked how much the day rate for direct contract would be. Obviously agent is getting 400+x per day. Would my friend be taking the mick if s/he said, say, 450 (which is still las than 400+x)?

You're not factoring in the cost of the penalty over the length of time in the contract - so you want something like

((((400+x)*d)-p)/d) - 1

where x is the current daily rate to the agency, d is the number of days left on the contract, and p is the penalty paid by the client to the agency.

Then knock off £1 a day so you can still say they are saving money by cutting out the middleman. Make sure you get decent terms agreed as well.

[stek]

Another 'So...' sentence starter....

[TykeMerc]

If the client has revealed the size of X then X-n is a matter to discuss and establish what's reasonable, unlikely to be too tricky.

If £50 isn't much less than X then the risk of grumpy customer rises.

[Batcher]

It's not taking the mick if it's all done above board. It depends how much the client has to pay the agent as that cost would also have to be factored in.

[chewbacca]

So, if "my friend" is working for a client through an agency, at say, 400/day, and the end client wants to renew and is willing to pay the penalty to the agent for re-employing "my friend" directly. The end client has asked how much the day rate for direct contract would be. Obviously agent is getting 400+x per day. Would my friend be taking the mick if s/he said, say, 450 (which is still las than 400+x)?