Reply to: Asking for a rate increase

[Sockpuppet]

I think he possibly has already asked about the raise (or binned) considering it was over 2 years ago.

[MarillionFan]

Pah! He's already had it.

[Wanderer]

Get it into your head that you get a cut of the agency's money, they are not taking anything out of yours. Understand that it gets much simpler.

If that's the way you do business then that's fine but it isn't true.

The fact is that for a business person (as opposed to a disguised employee) EVERYTHING is negotiable, there is no hard and fast rules about how much a client pays the agency and how much the agency pays you.

If the agent is taking 30% then at renewal time they can cough up a rate increase, 15% would be about right. If they want to pass this on to the client then that's their perogative.

[BolshieBastard]

When asking for a rate increase, you really do have to take into consideration many things; state of the market, niche skills, first contract or not etc, etc.

I think someone who's on their first ever contract and has no track record is taking the piss asking for a rate increase at the end of that first 3 months. They probably got that first contract by pleading they'd take a lower rate because it was their first contract and they were new to it.

So they've become a seasoned contractor in 3 months have they? Yeah right.

If I was a hiring manager and a first time contractor asked the agent for a rate increase with their first ever contract due for renewal, I'd say provide a business case for it. Then when they did, tell 'em to **** off cos we got another first time contractor who'd do it cheaper!

[vlc]

Commitment

A contract is a commitment or promise. If either side is only willing to commit for three months then that's fine, but it's also completely fine to re-negotiate at the end of that commitment. Remember, before you started they (I assume) did not know you. So, now that they do, they should have a good idea of what they are prepared to pay you. Don't raise your rate just because you're comparing with the rate the other contractors get. Set your rate according to the value the client perceives you bring to them. It could be that you're extremely good and should be charging much more than other contractors in a similar role. Or maybe you're not and should stay on your current rate. In any case, 3 months would normally be more than enough time for a client to access the value you bring and have a good idea of the risks.

[arthur_cider]

if u dont ask u dont get , dont u know it from the birds ?

what a numpty

[2uk]

3 months of a first contract and you want a rate increase to renew?

Who the hell do you think you are?

if u dont ask u dont get , dont u know it from the birds ?

[arthur_cider]

3 months of a first contract and you want a rate increase to renew?

Who the hell do you think you are?

[thunderlizard]

Get it into your head that you get a cut of the agency's money, they are not taking anything out of yours. Understand that it gets much simpler.

That is true but only in a literal sense. The Marxist in me says that the contractor still controls the means of production, and shouldn't let repressive constructs like that keep him down. Whether I'm getting £100 of somebody else's £120, or somebody else is getting £20 of my £120, I'm still going to have a go at getting as much of the pot as poss.

[malvolio]

I am in the same boat , 3 months end approaching and I am thinking to ask for 10 percent increase.

It is out of pure greed really , since I am content with my rate , HOWEVER.

There are 2 agents in the chain , the second one slipped and I know my direct agent is making over 30 %. ( I suspected something like that since they actually offered me 10 pounds more than what I was originally offered )

Secondly , in the past month I’have 3 calls per day , without submitting my CV , not that I answer the calls but …..

Asking 10 percent increase in Jan…

Get it into your head that you get a cut of the agency's money, they are not taking anything out of yours. Understand that it gets much simpler.

IF you like your rate, fine. If you want a rise, negotiate. If you want more than inflation, prove that you've added value to the work you do (and as I keep saying, you're being paid to do the best job you can already - added value is the key). Then if you don't get it and there's better offers out there, walk.

There's no emotion involved, you do what's best for you, within the boundaries of your agreed contract. Simple, isn't it.

[2uk]

OK - I've just finished 3 months of my FIRST contract so I'm still really new to the whole contracting game. I was offered another 3 months and I asked for an increase in my rates. Is 3 months too early or is a contract renewal the perfect time to ask regardless of how long I've been working?

I wasn't being greedy, I just think I was asking for a rate that is more in line with what other developers are earning.

I am in the same boat , 3 months end approaching and I am thinking to ask for 10 percent increase.

It is out of pure greed really , since I am content with my rate , HOWEVER.

There are 2 agents in the chain , the second one slipped and I know my direct agent is making over 30 %. ( I suspected something like that since they actually offered me 10 pounds more than what I was originally offered )

Secondly , in the past month I’have 3 calls per day , without submitting my CV , not that I answer the calls but …..

Asking 10 percent increase in Jan…

[backgetyou]

If you have been extended then you should have negotiated with your agent before now. If you want more money then you should ask its that simple, you have to decide do I like this job? Am I getting paid enough to gamble losing it? Can I afford to lose it? Is the boss a difficult so and so? From this you make the decision what to do but one thing that I cant see anyone talking about is agency rate. You are a FT contractor - the agency unless fixed margin will have screwed you lets say 30% (most contractors think they are on 9% or know their rate but the agency will lie, I just ask the client what they pay for me and work it out). If you are earning lets say £175 per day as its a FT (just picked a figure) then the client is paying £250. Rather than trying to up the client ask for half of this back (they still get 15% which for doing naff all is a lot of money). From my first contract many moons ago to current date I always ask usually after putting my CV out to see the climate. Often I will get a small raise from client and a small cut from the agent but this might give me an extra 20% in my pocket. The best time time to do this is in the middle of a project where only you know part of this they you can bump you're rate up but you do not need to justify as some claim just say this is what I want if its a decent raise they will then try and get you to sign a longer contract which if you are happy working there will give you some security although your tax situation may change if you are not getting good tax advice but thats another thread....

[Jog On]

Fair enough - I've just been extended, and haven't signed the contract yet.

[DimPrawn]

By the same token, during the last big downturn, when there were more suppliers than clients, several times my rate was reduced, often mid-contract.

I was told "it is market forces, get used to it or leave". Simple as.

Supply and demand.

I don't expect my Esso garage to justify why diesel is now 115p a litre when it was 90p a litre. I pay it or piss off.

[ratewhore]

I have to agree with DP on this one.

My personal view is that I'm not interested in market rate or what my added value was or whatever. My business supplies services - this is how much the services will cost - negotiate if necessary. If they don't want to pay it then move on.

A few friends of mine were asked by their agent to write a business case to justify a rate rise. I personally would tell the agent to p1ss off as it's a B2B relationship and if anyone needs to write a business case, it is the person who needs the extra budget to pay for a given product or service.

Just my opinion of course...