Reply to: Client requesting copies of invoices

[Pondlife]

Because it would have been nice to know their cut at least to give me some room at renewal time.

And so why do you think they didn't tell you?

[psychocandy]

Why were you upset? You were happy with your rate, no? He had a specific agreement on agency markup/commissions and wanted to enforce it. Worst case is he forces agency to cut their rate in line with the agreement meaning his cost for your contract decreases and it makes no difference to your rate.

Because it would have been nice to know their cut at least to give me some room at renewal time.

[northernladuk]

Why were you upset? You were happy with your rate, no? He had a specific agreement on agency markup/commissions and wanted to enforce it. Worst case is he forces agency to cut their rate in line with the agreement meaning his cost for your contract decreases and it makes no difference to your rate.

Exactly this. Also in my experience my clients have pretty standard rate cards. If the agent was taking too much of a cut I don't believe the client would bugger about reducing what they pay the agency.

And again, surely you telling them your rate isn't a bad thing as it will get the agent into bother and we know you hate agents even more than your clients.

[northernladuk]

I wouldn't tell the client how much I was getting. I always find out in the end how much the client is paying the agency that's one advantage of being in IT, I get so see all sorts of 'confidential' financial information such as the payments made to agencies! I once found out the agency I was working for was making over 300% mark-up of my rate and I was on £35 per hour (they were taking £120 per hour from the client) needless to say I didn't renew my contract with them and have never worked for that agency again!

Was this an agency or outsource supplier, Accenture and the like. Those mark ups aren't uncommon with people like that. If that's not the case then something is seriously wrong here. I can't believe for one minute an agency can get away with that unless you were being paid way below market rate.

I am tempted to say why leave? Negotiate a better deal but as I say something isn't right here.

[TopCat1802]

Worked one client where manager took me to one side and said we think the agency is taking a large cut. We're not happy about that because we thought it was a fixed margin. Would you mind telling us what you get from them?

So I said yeh ok its £x - thinking good I'll get some info.
So I said, OK so what are they charging you? Manager replies sorry confidential cant tell you.

Wasnt pleased. He expected me to spill my rate but wouldnt let me in on their deal. Mug or what was I?

I wouldn't tell the client how much I was getting. I always find out in the end how much the client is paying the agency that's one advantage of being in IT, I get so see all sorts of 'confidential' financial information such as the payments made to agencies! I once found out the agency I was working for was making over 300% mark-up of my rate and I was on £35 per hour (they were taking £120 per hour from the client) needless to say I didn't renew my contract with them and have never worked for that agency again!

[TheFaQQer]

You were happy with your rate, no?

Consider the poster - I think your question mark is 4 characters to the right.

[Pondlife]

Worked one client where manager took me to one side and said we think the agency is taking a large cut. We're not happy about that because we thought it was a fixed margin. Would you mind telling us what you get from them?

So I said yeh ok its £x - thinking good I'll get some info.
So I said, OK so what are they charging you? Manager replies sorry confidential cant tell you.

Wasnt pleased. He expected me to spill my rate but wouldnt let me in on their deal. Mug or what was I?

Why were you upset? You were happy with your rate, no? He had a specific agreement on agency markup/commissions and wanted to enforce it. Worst case is he forces agency to cut their rate in line with the agreement meaning his cost for your contract decreases and it makes no difference to your rate.

[psychocandy]

Worked one client where manager took me to one side and said we think the agency is taking a large cut. We're not happy about that because we thought it was a fixed margin. Would you mind telling us what you get from them?

So I said yeh ok its £x - thinking good I'll get some info.
So I said, OK so what are they charging you? Manager replies sorry confidential cant tell you.

Wasnt pleased. He expected me to spill my rate but wouldnt let me in on their deal. Mug or what was I?

[BolshieBastard]

If this is the real reason then fair play to your client. Too many clients don't get the best contractors because greedy agents pocket too much. Bit more of this would help wipe them out.

This. I can count on two fingers the number of times Ive been asked in interview what rate I asked the agent for the role. Clearly this was to check (eventually!) how much the agent was charging and passing on to the end contractor.

In one of my last roles, the permie senior manager I was working with commented once that budgets were 'tight' but that wasnt surprising in view of what I cost. I asked how much are the agent charging you then told him I didnt get all of that money.

[psychocandy]

Sounds better to me. Transparency...

[vadhert]

I agree. The more of this proactive behaviour from the client, the better.

[almanac]

Thanks folks, much appreciated! Didn't think there was anything to be concerned about but I feel reassured now :-)

[northernladuk]

If this is the real reason then fair play to your client. Too many clients don't get the best contractors because greedy agents pocket too much. Bit more of this would help wipe them out.

[PavYolk]

100% the client has a fixed commission percentage agreed with the agency and they want a copy of your invoice for compliance and auditing.

[TykeMerc]

Far from routine, but I can't see anything obviously sinister in it.

If the client has a fixed margin agreement then it's reasonable that they should have evidence, personally I can't think of a reason I'd object to my invoices being seen by the end client.