Reply to: Poll : Rate increase

[ContractorHardman]

He'll either get it and be happy to tell us all about it to prove us wrong or he won't get it but he'll still tell us he got it to prove us all wrong...

.... Yeah, that sounds the most likely.

[northernladuk]

And?

He'll either get it and be happy to tell us all about it to prove us wrong or he won't get it but he'll still tell us he got it to prove us all wrong...

[ContractorHardman]

I'll let you all know the outcome, should find out next week.

And?

[No2politics]

contracting is just a game like poker. you need to be making moves with positive expectation - ie raising your good hands. those of you not regularly asking for a raise are whats called in poker -passive. They hardly ever raise and therefore don't get maximum value from their hands. this strategy has worked for me, of course its harder to play the game if you have bad cards!

[WordIsBond]

Which is what I said. If you're working faster/more efficiently/more accurately/ creating fewer testing failures then you have a case. If, like me, you are having a positive effect on the client's bottom line, then you have a case. If your expenses have gone up, you have a case.

All I said was don't ask for a rise without a good commercial reason to make your case.

I think you're making a big deal of something that isn't a big deal.

Clients happen to know that the cost of living goes up, and that if a supplier is going to take care of their workers, marginal increases will happen. If you are asking for more than 3-4% a year increases, you'd better have a good reason. No one is going to bat an eye at 5% after three years.

And it is a lot cheaper for them to renew someone whose work they are satisfied with at a 5% increase than go through the cost of getting someone new, bringing him up to speed, and then perhaps finding out he can't (or won't) do a good job. How many contractors don't work out as well as someone who's been around for three years? Probably at least 1 in 4 don't pan out that well, that was my experience in permie days. An extra 5% for six months for a guy who does a good job vs a 1 in 4 chance of replacing him with a plonker who we had to jettison after a month and start over again?

If you are doing a good enough job to be offered a renewal, 9 times out of 10 you'll be able to get an increase within that scale. The only time you won't get it is if it really was a borderline decision whether to keep you or not. If they wanted to dump you and inertia took over and they decided to keep you, asking for an increase might change their mind. But if they are satisfied with your work, five percent is an easy decision.

Especially if the agent eats half of it, which could happen.

[malvolio]

Which is what I said. If you're working faster/more efficiently/more accurately/ creating fewer testing failures then you have a case. If, like me, you are having a positive effect on the client's bottom line, then you have a case. If your expenses have gone up, you have a case.

All I said was don't ask for a rise without a good commercial reason to make your case.

[Whorty]

Clients budgets are typically annual where I've been privy to them, but it doesn't really mattter, the contracts have MOO and you're still cheaper than the risk of hiring someone new if you do well at anything remotely interesting.

The idea that we forever have to stay on the same rates is folly. Supply and demand works both ways, it's a new contract so it's fair game.

.... this ....

I get to contract renewal and ask for a rate rise. They can either say yes or no (I've never had the no BTW). With the yes it's then a decision between the agent and the company on who coughs up. Sometimes it's the client, sometimes the agent, sometimes they share. If they say yes BUT this is the only one so don't ask again (one client/agent did) I got them to give me a longer contract to cover my risk and to hold their rate for longer.

I make sure I don't just ask for the cash though with no firm argument. Whether this be the extra value I'm adding, or something similar, I make sure I have my ducks in a row to get what I want. I'm also not greedy either.

You're running a business, it's your decision how much you ask for. If the answer is no, then it's your decision if you stay or go and get another contract. There is plenty work out there for good people, you know your value, go and earn it.

Of course, if you're not very good, stay in the same contract at the same rate for the new few years as a permi-contractor

[Unix]

I got a 15% increase on my day rate at last extension. The agent asked for me to give reasons so they could pass them on to the client. I explained that as I had been in the role for nearly 2 years claim travel costs anymore, my other costs had increased and also rates had increased for my skillset in the marketplace. Client was happy and gave me a 6 month extension.

I'll let you all know the outcome, should find out next week.

[doconline]

Extension time again and been at the place for 3 years. I've not had a rate rise since I started but told the agent my new rate is old one + 5%. Reasoning is lose of expenses and inflation as well as delivering many successful projects.

What are my chances of success? (Poll)

I got a 15% increase on my day rate at last extension. The agent asked for me to give reasons so they could pass them on to the client. I explained that as I had been in the role for nearly 2 years claim travel costs anymore, my other costs had increased and also rates had increased for my skillset in the marketplace. Client was happy and gave me a 6 month extension.

[Unix]

Clients budgets are typically annual where I've been privy to them, but it doesn't really mattter, the contracts have MOO and you're still cheaper than the risk of hiring someone new if you do well at anything remotely interesting.

The idea that we forever have to stay on the same rates is folly. Supply and demand works both ways, it's a new contract so it's fair game.

WHS

They are free to say no, but then the agent has to contend with another agent placing and them losing the whole margin. The client has to contend with hiring someone new with same skill set, good looks and great personality. Then they need them to gather years of business knowledge to get up to the same level.

It's a no brainer for the 5% im asking.

[Unix]

You're in a commercial deal. Your value was established at the outset. If you want more you will have to find a reason for it. Since the end client will be the ultimate decider, you will have to prove to them that you are now delivering more than you were originally contracted to do. If they refuse, then you have to go back to the agent, who will not really want to sacrifice his own income, since he gets paid by your margin, to boost yours. Sorry if that's a bit hard to understand, but that is the reality.

You may get lucky. However, without making a credible threat to walk away, you probably won't get very far. If you have enough available work to move on to and make more money, including that you lose by stopping this gig, then go ahead.

But don't complain when people who know the other side of the equation ask embarrassing questions.

I could take a year off without worrying, I wouldn't sell my integrity or under price myself to save a few grand.

[fool]

No, renewals are there because client's budgets (or perhaps more accurately, agencies sales techniques) work in three month chunks. And if you're marginally useless you can get canned with no fuss or bother (if you're really useless, you'll go a lot quicker).

By all means ask for a rise, but at least understand what's going on behind the scenes.

Clients budgets are typically annual where I've been privy to them, but it doesn't really mattter, the contracts have MOO and you're still cheaper than the risk of hiring someone new if you do well at anything remotely interesting.

The idea that we forever have to stay on the same rates is folly. Supply and demand works both ways, it's a new contract so it's fair game.

[Unix]

I think you will still find the end client would rather place someone with another agency @ way more than 20% cheaper than you. Supply & demand!

Pay peanuts...get NLUK.

[uk contractor]

The agency would rather have 8% then 0%, if I go they role is opened to other agencies and they might not place one. Agent loses, client loses 3 years of bushiness knowledge and might get a dud. They'll do the right think if they are smart.

I think you will still find the end client would rather place someone with another agency @ way more than 20% cheaper than you. Supply & demand!

[malvolio]

To be fair, "I already know your stack" is a very good argument, especially when there's no guarantee that a replacement will perform, and you technically have more experience than the last time you made a deal.

I generally ask for a rate bump on every renewal. That's what I they're for, otherwise why aren't the clients signing us up for contracts? YMMV. Depends on your market, your talent and your ability to just not really care about having to move on or not.

No, renewals are there because client's budgets (or perhaps more accurately, agencies sales techniques) work in three month chunks. And if you're marginally useless you can get canned with no fuss or bother (if you're really useless, you'll go a lot quicker).

By all means ask for a rise, but at least understand what's going on behind the scenes.