Reply to: agency margin

[Another Dodgy Agent]

I have found that most agencies up up-front about this these days. 8% to 12.5% is good but it can go up to 25% beware of contractors being hired out at £1000 per day and only getting £200-£300 from the agent.

as long as you are happy with what you get don't worry about what the next guy gets.

WHS!

[DodgyAgent]

wrong way round. 15% markup = 13% margin.

[agent]God you are stupid.[/agent]

WHS

[XLMonkey]

Margin and mark-up.
"No! you are mistaken my foolish friend. When I said 10%, I meant mark-up, this means 15% margin. That is why it looks as though I have lied through my teeth to you about a dozen times. God you are stupid."

wrong way round. 15% markup = 13% margin.

[agent]God you are stupid.[/agent]

[expat]

IMHO - If I’m happy with the rate – then a huge margin means if anyone is getting ripped off, it is the client, not me.

If the client is getting ripped off on your contract, do you really think that will not reflect on you?

[Ken Dodd]

don't forget the difference between......

Margin and mark-up.

Apparently there is a difference and you need to ask the right questions if you want to know the answer. When you say,
"I though your commission was 10%? It looks like 15% on this invoice I have seen to client."
and they say,
"No! you are mistaken my foolish friend. When I said 10%, I meant mark-up, this means 15% margin. That is why it looks as though I have lied through my teeth to you about a dozen times. God you are stupid."

Er, thanks. That's ok then.

You know who you are. Revenge will be so sweet. Even when served cold......

[Paddy]

hey all,

is it allowed to ask an agency for how much margin they charge on my rate?

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

I have found that most agencies up up-front about this these days. 8% to 12.5% is good but it can go up to 25% beware of contractors being hired out at £1000 per day and only getting £200-£300 from the agent.

as long as you are happy with what you get don't worry about what the next guy gets.

[Another Dodgy Agent]

It helps you to know where you stand in the scheme of things so I would advise you to make it your business, unless of course you are working through "Dodgy Enterprises" in which case it is none of your business.

I would agree BUT split opinion between DA and RateWhore. Whilst being "none of your business" and also "helping you to know where you stand..." it is not unreasonable to expect the agency to have "an open book policy" - largely because the agency should have nothing to hide. I am always open on my margins as I find this works best with both candidate and client.

[XLMonkey]

Would you take a rate of 800/day when really it should only warrant 400?

not sure its really a question of ethics. If the client thinks its worth 800/day, then that's what its worth. Its not the supplier's job to decide the value of the work, its the customers job to do that.

so yes, I would take it....

[XLMonkey]

hey all,

is it allowed to ask an agency for how much margin they charge on my rate?

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

Yes, of course it is. For most large corporates/government departments the agency margin is fixed in advance under their contract with the agency, so it makes no difference to you.

The agency doesn't have to tell you, of course. But that shouldn't stop you asking.

[ratewhore]

Would you take a rate of 800/day when really it should only warrant 400?

I call that good negotiating...

[Jubber]

IMHO - If I’m happy with the rate – then a huge margin means if anyone is getting ripped off, it is the client, not me.

I suppose it all comes down to what is good business? Are your business ethics any better? Think about it. Would you take a rate of 800/day when really it should only warrant 400? Would you take the gig at that rate or would you say to the client, sorry, I only want 400?

[Beefy198]

I hear some agents saying stuff like the more money you get, the more I get so i will negotiate the best rate for you.

To a degree, yes. But there's only so much haggling they'll do with an end client (especially true at renewal time) before the extra effort isn't worth it and/or they worry about pissing the client off.

Think about it - you could negotiate and extra £50 a day with each of you getting £25, or spend that time placing someone else in a placement for £300 a day with you taking £75-£100..............

[ratewhore]

It helps you to know where you stand in the scheme of things so I would advise you to make it your business, unless of course you are working through "Dodgy Enterprises" in which case it is none of your business.

An alternative and equally viable opinion. I've always taken the view that my negotiations take the agency margin to a reasonable level and, if I'm happy, who cares!!

[DodgyAgent]

Which is correct. It is none of your business.

It helps you to know where you stand in the scheme of things so I would advise you to make it your business, unless of course you are working through "Dodgy Enterprises" in which case it is none of your business.

[ratewhore]

...or tell you it's none of your business.

Which is correct. It is none of your business.