Reply to: New job, no agency - best approach to negotiate rate?

[Old Greg]

Yeah, I normally go down the pub and quietly sob into my pint...

Try doing that in Kabul. If it sounds too good to be true...

[gnarledcontractor]

I bloody hate it when that happens

Yeah, I normally go down the pub and quietly sob into my pint...

[northernladuk]

A friend of mine just started a contract. He wanted €750 pd so asked for 850. Ended up with 950 + flights, hotels, taxis to and from airport.

I bloody hate it when that happens

[Old Greg]

I hate it when they rip your arm off.
it means they'd have paid more if you asked.
it's a right bugger.

A friend of mine just started a contract. He wanted €750 pd so asked for 850. Ended up with 950 + flights, hotels, taxis to and from airport.

[GhostofTarbera]

You could have got £250 a day more easy


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[BR14]

Well, I put in my desired rate at the top end, with an additional £50 for expected negotiation, and they accepted it (after seeking exec approvals). So happy days.

I hate it when they rip your arm off.
it means they'd have paid more if you asked.
it's a right bugger.

[kryten22uk]

Well, I put in my desired rate at the top end, with an additional £50 for expected negotiation, and they accepted it (after seeking exec approvals). So happy days.

[Lance]

I've been offered a new contract which I've got direct with client, no agency involvement.

Client may be expecting you to do the job at same rate a permie would - surprised rate has not come up until now? Stop dreaming of top tier rates your client may laugh at

That's a good point.
You can't have any sort of offer without a rate.
What you have is a sales enquiry. Time to provide a quote.

[GhostofTarbera]

Client may be expecting you to do the job at same rate a permie would - surprised rate has not come up until now? Stop dreaming of top tier rates your client may laugh at


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[FK1]

"New job", "Negotiate rate". It is corrupted from the beginning with that mindset. That is why a taxman hunting us.

"New client", "Build a client loyalty". What rate is not that important for profit. In opposite, discounts may help more. Returning customer is the heart of any success.

[jmo21]

Has anyone had success in turning the question back on the client and asking them for their range/expectations for this role? I have seen advice on here and elsewhere that suggests I provide a range, but if I say "from £x to £y" then they will just say £x! Note that I have been referred to HR to negotiate, hence not talking with the actual people i will be working for.

Quote them a rate, and if they don't like it, see if they counter offer - you are over thinking it with talk of ranges and offending them.

You should have a good idea of your market value if an agency was involved, so bump it up a bit if you like.

[BlasterBates]

You've actually highlighted the problem of going direct. It is often easier to go through an agency. A client not using an agency will be going through the hassle in the hope of getting the contractor for a rock bottom rate, not simply to save 5%.

[kryten22uk]

A slight side question. I have one other interview already arranged for tomorrow. What is the most professional approach to managing two negotiations?

For example, if I state my rate to a client, I would be doing it just to see if they would be happy with the rate. It doesn't mean that I'm accepting the job if they agree that rate. But I do need to know that both companies accept my rate before I decide which is the better role.

But if I start mentioning deciding on other jobs then it might look like I'm trying to blag them into a higher rate.

[northernladuk]

I get that, but you still need a view of what they might pay in order to know how negotiations might go. For example whether you're close enough to ballpark to be able to hold ground and say "I'm worth £x", or whether to acknowledge that they may need bit of downward movement to feel like they've achieved a good negotiation. So if I wanted £x then should I start with £x+1, and concede a drop to £x so they "win" the negotiations.

No you don't. You put in what you are worth and they will counter with what they think you are worth. If you really are that good or they really need you then asking what they might pay is seriously constraining your position. Getting to the right price is the whole point of negotiation.

[zonkkk]

What's your normal rate for that type of work and would you be happy to work for them for that rate?
If so, add 20-25% on top of that and give the number to the client.

If they are happy to pay, you win; if they try to negotiate, you've got margin.