Reply to: Economic Crisis & Rate Reduction

[GhostofTarbera]

Economic Crisis & Rate Reduction

Funnily enough got a call from my consultancy this morning starting with the spiel about the situation, clients cutting back etc. Cut the lady off and said I'm assuming you are heading towards a discussion about rates so give it me straight. Client wants a discount on the contract (managed service not just day rates), consultancy can't suffer it all and can I be flexible?
Asked for some numbers and it turns out the periods contract (6 months) needs to be 5% less. They offer swallowing 2.5% and will I take the 2.5% hit? If we don't submit at a discount the whole thing has to go out to tender. Snapped her hand off. I've been a bit nervous about the extension and a few of the team have been canned in the 3 months we've been here so (IMO) an absolute bargain for the extension.
It's a remote gig so advised I'll just be onsite a day or two less a week and they are happy with that. I'll end up with more in my pocket oddly enough.

Appears it was just a service improvement type cut rather than problems with Covid so was able to breath a sigh of relief. Result in my book.

I would have bit her hand off and offered my 1st born child for that deal

Nice one sir


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[krytonsheep]

Dropped my rate by a 1/3 to help secure a new contract with existing client. Probably earning as much as your average landscape gardener, but I figured it's better to be sat at home getting paid, as opposed to being sat at home and not getting paid

[northernladuk]

So they say, could be either taking advantage.

Bird in the hand and all that though.

They could indeed. It's public sector so I am well aware they do push their suppliers for year on year reductions so quite within the realms of possibility. Going out to tender is also a regular thing in PS as well so can believe that if nothing else. Either way I will find out at some point and there is a close relationship with the team and the consultancy.

Even if, in the worst case, they've pulled my pants down then for 2.5% reduction for knowing I've got more work on the horizon then I'll undo my belt for them TBH. If I work one day less away from home a week I'm actually 20 quid up a week on what I get now so pretty content with the situation.

[jmo21]

Appears it was just a service improvement type cut rather than problems with Covid so was able to breath a sigh of relief. Result in my book.

So they say, could be either taking advantage.

Bird in the hand and all that though.

[northernladuk]

Funnily enough got a call from my consultancy this morning starting with the spiel about the situation, clients cutting back etc. Cut the lady off and said I'm assuming you are heading towards a discussion about rates so give it me straight. Client wants a discount on the contract (managed service not just day rates), consultancy can't suffer it all and can I be flexible?
Asked for some numbers and it turns out the periods contract (6 months) needs to be 5% less. They offer swallowing 2.5% and will I take the 2.5% hit? If we don't submit at a discount the whole thing has to go out to tender. Snapped her hand off. I've been a bit nervous about the extension and a few of the team have been canned in the 3 months we've been here so (IMO) an absolute bargain for the extension.
It's a remote gig so advised I'll just be onsite a day or two less a week and they are happy with that. I'll end up with more in my pocket oddly enough.

Appears it was just a service improvement type cut rather than problems with Covid so was able to breath a sigh of relief. Result in my book.

[GhostofTarbera]

I am quoting myself. I have still to negotiate the changes. I was thinking of telling them to keep the rate and work around 3'5 days a week, better than lowering the rate and working 5 days. But after reading the following (and not understanding half of it) I am not sure:

IR35 alert over Lloyds-style offers for 'non-essential' contractors to accept less work

any opinion?

Looks like you are getting a rate cut and a day cut if working for Lloydes then


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[biergarten]

agent sent me yesterday an email saying client is reducing my rate from 600 to 400, and they're doing the same with all the contractors. It will be effective in one week (i don't like this as the notice is 1 month) and will last at least 3 months.

I am quoting myself. I have still to negotiate the changes. I was thinking of telling them to keep the rate and work around 3'5 days a week, better than lowering the rate and working 5 days. But after reading the following (and not understanding half of it) I am not sure:

IR35 alert over Lloyds-style offers for 'non-essential' contractors to accept less work

any opinion?

[biergarten]

Have you had anything from the client direct to confirm this or is the agent gonna do a bodgit and scarper in a few months?

yeah, first thing to ask

[biergarten]

Given the current circumstances, I would want a fairly well formed plan before rejecting this. Particularly if you're now WFH with no expenses.

not thinking in rejecting it, more in negotiating it, at least the time. Expenses are minimal, just £7 a day.

[LondonManc]

agent sent me yesterday an email saying client is reducing my rate from 600 to 400, and they're doing the same with all the contractors. It will be effective in one week (i don't like this as the notice is 1 month) and will last at least 3 months.

Have you had anything from the client direct to confirm this or is the agent gonna do a bodgit and scarper in a few months?

[Old Greg]

agent sent me yesterday an email saying client is reducing my rate from 600 to 400, and they're doing the same with all the contractors. It will be effective in one week (i don't like this as the notice is 1 month) and will last at least 3 months.

Given the current circumstances, I would want a fairly well formed plan before rejecting this. Particularly if you're now WFH with no expenses.

[biergarten]

agent sent me yesterday an email saying client is reducing my rate from 600 to 400, and they're doing the same with all the contractors. It will be effective in one week (i don't like this as the notice is 1 month) and will last at least 3 months.

[Lance]

I never said that they would do either. But you really aren't irreplaceable.

Never claimed to be. That’s called hubris.

I often recommend to clients that if they have anyone who thinks they’re irreplaceable, to replace them now rather than later.

[NeedTheSunshine]

So you have to play it by ear.....
As with all advice on here, we don't know the fuill story, nor the individual's circumstances.

I'm stating the position I'm in. And to be clear, if my client(s) thought they could deliver on time, AND save money, by either binning me or making me take a rate reduction then why haven't they?

I never said that they would do either. But you really aren't irreplaceable.

[hairymouse]

If you do end up walking out over principal, PM me the name of the client so I can eat please.