Consultancy vs Agency Mark Up
Me again,
A lot of "Consultancies" charge ridiculous mark-ups because they claim that having there organisation and set up behind the contractor adds value. As an agency we are finding more and more clients find this is utter rubbish, the contractor could perform his role quite happily without a consultancy behind him, hell the reason contractors are used is because you are paying for someone to come in and "hit the ground running" and get the job done, therefore our clients are trying to pull guys away from consultancies to run through agencies as the job is still getting done just as well for a more competitive price.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "How much does an agency charge over the rate"
Collapse
-
Ahh, can't quite hit those figures but I do know that a reecnt gig was 500 a day for me, 100 for the agency and then the client charged me out at 1000 to another client who then charged me out at 1500 to the final customer. The end customer thought that this was a cheaper way to operate than using contractors direct.
Leave a comment:
-
Originally posted by Torran View PostI know mate but life is too short. I remember KPMG charging £1500 p.d for one of their Junior consultants. After a few pints he addmitted he was on less than £200 p.d. (permie equiv)
Now thats a mark up
Leave a comment:
-
Originally posted by oracleslave View PostI don't think you can compare a consultancies charge out rate and therefore margin over your rate with that of an agency. Pity really.
Leave a comment:
-
Originally posted by smiff View PostYou say happy, but that "extra" 25% or so over "normal" percentages they are creaming would bug the hell out of me.
Now thats a mark up
Leave a comment:
-
Originally posted by newbie-rookie View PostOk, let me rephrase my question.
Initial my contract is for 4 weeks and the client already asked for my business card and they said they will contact me in the future if they need a php developer again. I am guessing they want to bypass the agency. If this is the case, how much do I need to charge them?
Thanks.
If you were on £250, pitch for £350 (or £42.50 an hour if you expect to work overtime) and see what happens: that's probably not too far away from your original gross cost plus inflation.
Leave a comment:
-
Originally posted by smiff View PostYou say happy, but that "extra" 25% or so over "normal" percentages they are creaming would bug the hell out of me.
Leave a comment:
-
Mine are on 50%. Through a "consultancy" rather than an agency but still
Happy enough with my rate though
Leave a comment:
-
It will depend if theyt have any kind of favoured partner deal with the clientco.
If you're sure they want to bypass the agent; next time round ask how much they were paying outright and then undercut it; clientco will be happy
That said, beware of any - "you can't work with this company for 6 months" subclause in your current contract, some agents can get upset and will cause you grief
Leave a comment:
-
What agencies should be doing
Hi Guys,
Pimp here, won't tell you what company I am from however!
What we do here is find out what rate the contractor is looking for then put our mark up on the top, we do not think it is good business to take anything away from you guys as it leads to bad feeling.
Mark up does vary, for instance I have nearly 400 men with my client so the mark up is only 5% however for companies who take a handful, the mark up does increase. As my mark up us set, I let all my contractors what is being charged for them. This approach leads to a happier working relationship rather than lead to whispering campaigns about the agency "robbing" money from the contractor.
Leave a comment:
-
Originally posted by HankWangford View Postsheesh, when is your renewal
Leave a comment:
-
Originally posted by malvolio View Postthey have overheads to cover
Leave a comment:
-
Originally posted by TheRefactornator View PostReal Resourcing taking 29% of the gross in my case. This is not a guess.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: