Margins while Extension

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ratewhore replied

26 September 2008, 11:31
Originally posted by schindler View Post

Fair Enough..But it was'nt me who started this with the client...on the other hand it was the client who started talking about the agency saying that 'u wanted a rate rise to take an extension 'and all that follows....

But to go back to the original question ...what is an acceptable margin for agencies come renewal time?

I've worked through agencies taking between 8 and 15%. I know there are some as low as 2% on PSL's but also there are others who take upwards of 20%.

The question you should be asking yourself is 'are you happy with your rate or not?'. Not what is their margin.

Having said all that, margins have been done to death on these boards and it always, always, comes down to being one of those subjective things...

Last edited by ratewhore; 26 September 2008, 11:31. Reason: typo
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schindler replied

26 September 2008, 11:20
Originally posted by ratewhore View Post

This is why I never discuss extensions and rates directly with the client. You can run into all sorts of bother. Your contract is with the agent, they know what rate rise you want. If they can't provide that rate rise then you have the choice to stay or go, regardless of what the client is saying unofficially to you.

Fair Enough..But it was'nt me who started this with the client...on the other hand it was the client who started talking about the agency saying that 'u wanted a rate rise to take an extension 'and all that follows....

But to go back to the original question ...what is an acceptable margin for agencies come renewal time?
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ratewhore replied

26 September 2008, 11:05
Originally posted by schindler View Post

I appreciate that...But the client has told me that the agent talked about extensions(I had told the agent in an extension i need a rate rise of x%) and rate rise and they are glad to keep me at the same rate....so to have an extension with a rate rise abviously means the agency dropping its cut....

This is why I never discuss extensions and rates directly with the client. You can run into all sorts of bother. Your contract is with the agent, they know what rate rise you want. If they can't provide that rate rise then you have the choice to stay or go, regardless of what the client is saying unofficially to you.
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schindler replied

26 September 2008, 10:58
Originally posted by scooby View Post

i got my agency to drop about 8%, they still take about 7% for nothing tho... but i was offered 18mths...

So how did u ask about the agency's margins...are they open about it or it needs prodding?
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schindler replied

26 September 2008, 10:56
Originally posted by ratewhore View Post

If you want a rate rise, you tell your agent. It's their business whether, if they agree, the rise comes from the client or from the margin.

If they say no, you have the option to stay or go...

I appreciate that...But the client has told me that the agent talked about extensions(I had told the agent in an extension i need a rate rise of x%) and rate rise and they are glad to keep me at the same rate....so to have an extension with a rate rise abviously means the agency dropping its cut....
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scooby replied

26 September 2008, 10:43
Originally posted by schindler View Post

if the client does not agree for a rate rise during renewal, is it Ok to ask what the agency's margins are and ask them to drop it to meet the rate rise i am asking for? I have worked out the agency's margins as around 17%

Has anyone negotiated this before? What is the typical agency margin for an extension if the client does'nt agree to a rate rise?

i got my agency to drop about 8%, they still take about 7% for nothing tho... but i was offered 18mths...
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ratewhore replied

26 September 2008, 10:39
If you want a rate rise, you tell your agent. It's their business whether, if they agree, the rise comes from the client or from the margin.

If they say no, you have the option to stay or go...
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Sausage Surprise replied

26 September 2008, 10:36
No, but I've had the client cut the agent's margins before agreeing to an extension for me. Didn't affect my rate but obviously made me cheaper for the client.
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schindler started a topic Margins while Extension

26 September 2008, 10:32
Margins while Extension

if the client does not agree for a rate rise during renewal, is it Ok to ask what the agency's margins are and ask them to drop it to meet the rate rise i am asking for? I have worked out the agency's margins as around 17%

Has anyone negotiated this before? What is the typical agency margin for an extension if the client does'nt agree to a rate rise?
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