My agency gets 30%
The current contract is coming to an end, but another department wants to offer me another one after in the new year. I don't know if I can switch agencies at that point. I think they have some type of anti poaching clause, but I've had enough of them.
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Reply to: Agency Margins
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Previously on "Agency Margins"
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Originally posted by BlasterBates View PostAre they skimming you or the client ?
If you had negotiated directly with the client they would have given you the rate you asked for and you would be happy. The fact that an agency paid the rate you asked for and is charging the client more means they are skimming the client, because if you'd have gone direct the client would be paying less and you wouldn't earn anymore.
It's up to the contractor to pitch his rate, the agency will try and get the highest margin possible.
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
If you had negotiated directly with the client they would have given you the rate you asked for and you would be happy. The fact that an agency paid the rate you asked for and is charging the client more means they are skimming the client, because if you'd have gone direct the client would be paying less and you wouldn't earn anymore.
It's up to the contractor to pitch his rate, the agency will try and get the highest margin possible.
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
(OK, I approached them, already having the contract).
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Originally posted by Old Greg View PostIf you bring the role to them, Hays have the lowest margins when it come to payrolling - they take 1/21 of the rate to client and calculate YourCo's rate to the penny (and round up IIRC).
Of course if they found the role, then you are taking 82% of their rate. That may be a little low for your liking, so go and find a better rate somewhere else.
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
Of course if they found the role, then you are taking 82% of their rate. That may be a little low for your liking, so go and find a better rate somewhere else.
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Many of my contracts are for specialist services for a few days/weeks to support other consulting companies do stuff they don't have people qualified to do.
On some of these contracts the day rate can be £1000+; the consultancy firm charges their equivalent rates to the client, sometimes that is more than double what I charge, sometimes it is less (but they wouldn't get the work without the role I do and they'd rather lose £200 a day for 10 days than not get 1500 days works at £800 for their staff)
You should never look at what the "pimp" is getting, only ever care about what you are getting, if you are happy with the rate it doesn't matter whether they get £10 or £1010 as their margin
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Had a call a few days back. Asked for my rate, I said £X, they said OK, then later got back in touch saying the client budget won't go that far, will you accept X-£30
I said yes, but the scenario seems so unlikely. The client must have a budget in mind already, surely. So the agent would know if what I was asking matched up.
Anyhoo haven't heard anything since, so perhaps it is moot.
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Originally posted by edison View PostSounds a bit high for Hays, they tend to work high volume and lower margin than some agencies as they are on a lot of PSLs. I had one client recently where they were the exclusive recruitment partner and their contract margin was quite a bit lower than when I used them for a different client a couple of years ago.
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
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Originally posted by malvolio View PostIgnore the 40%. You get a percentage of the agency's fee - in your case 72%. The agency does not get 40% on top of yours. It's their business, after all.
You are right to focus on what you get though. Ignore the agency margin, your aim (and your duty as a director ) is to get the best rate you can.
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Originally posted by Fraidycat View PostThe way margins work, i was only going 15% below market, not 40%.
The numbers were something like this (this was a long time ago).
Market rate was £350 a day. I was happy to take £300. Agent put me in at 420 including agency fee.
Agency mark up on my rate was 40%. (But 28% of the whole)
My rate was about 15% below market (50 quid less than 350)
It was an initial 3 month contract and i was trying to get my foot in the door with this client, so wasnt too fussed about rate.
Agent rate £420
Agency margin = 16% (70/420). A little on the high side but not eye watering.
It's a 20% mark-up though. Take care not to confuse mark-up with margin. They are different.
The £300 you were happy to take was just a £50 a day gift to the agent
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Originally posted by Andy2 View Postanyone with hays ?
they are skimming off 18% from my day rate
The fact you don't like the difference is your problem and not Hays nor your end clients (unless you client has a fixed percentage markup specified in the contract between the Hays and your client and that 18% is above the agreed markup)
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