Reply to: fellow contractor on higher rate then me

[northernladuk]

You've put agency advertising at a higher rate below the client upping their rate card. The first happens nearly every gig, the second very rarely happens.

Whatever the case is the only thing you can do is stuck it to agent and see if he gives you something.

[AnotherGuy]

A while host of things to consider here. Firstly it's pretty underhand of an agency to poach you for the same client. Am sure your handcuff wouldn't allow a move and the client should be pretty unhappy his agencies are poaching like this. Try not to get involved. It won't end well.

The fact they are trying to poach you means they have to offer something better which would be a higher rate. I wouldn't be surprised at all if this is a lie just to get you interested.

Sorry I didn't express myself well.

The agency who contacted me didn't know at first I was already with the same client. Also, they need more than 1 resource, all of them at said higher rate, which is why I don't think they are trying to trick me, but instead could be one of the following possibilities:

- A genuine client-side rate increase to attract talent due to several projects kicking off.
- My agency getting a higher cut than this other agency (no idea, no proof).
- This other agency playing a bait and cutting the rate at a later stage (not unheard of).

[northernladuk]

A while host of things to consider here. Firstly it's pretty underhand of an agency to poach you for the same client. Am sure your handcuff wouldn't allow a move and the client should be pretty unhappy his agencies are poaching like this. Try not to get involved. It won't end well.

The fact they are trying to poach you means they have to offer something better which would be a higher rate. I wouldn't be surprised at all if this is a lie just to get you interested. If you weren't sign I'd bet my last dollar that the rate would suddenly drop back to something like what you are on. Don't be mislead by agents being liberal with the truth to get you interested.

So we get to the situation where you don't really know if they are on more or not. To be honest it doesn't really matter. Your rate is your business and up to you to increase. So.... Yes you do approach the agent for a rise. Not because the others are on more but because the agent has made his money and reasonable to expect his margins can be lowered.

First off you need to know if he's on a fixed percentage. You should have found this out right at the very beginning. If he is there is little you can do. If he's not then tell him as soon as possible you have other opportunities out there and would require an increase of £XX per day to stay. Make it a reasonable number. I've no idea what you are in and what to scope of increase is but you are normally eating in to his margin so it won't be a lot.

Stick it to him and make it clear it's what you want or you are gone. Don't namby pamby around asking him. He deals with this all the time and is very experienced. He can sniff a Chancer a mile off so unless you go in hard you will lose.

[AnotherGuy]

Sorry to refloat this rather old thread, but I did a search and I came up with this as similar to my situation.

I've been poached by another agency, with the same client, on a higher rate (~15%) and I know for a fact the client is going on a hiring rampage, several of the roles identical to mine, for a few ongoing projects and new ones about to start, which probably explains the higher rate (skills shortage, deadlines to meet, whatever...)

My current contract is about to end and will be getting an extension to sign anytime soon, probably in the next 1 or 2 weeks. The chance of this is 99% given the need for resources.

Given this information, would it be wise to ask my current agency for a rate increase (and if so, when? before or after getting the renewal to sign), to go with the other agency once my contract ends (risky and maybe not possible), or to just stay put, just knowing all new contractors sitting around you in the following weeks are on a higher rate (and doing the very same as me).

Thanks.

[Flopsy]

I dealt with this before. Checked the other contractors timesheets and invoices. It easy to do when they leave them on the fax/photocopier etc.

Ensured that the client was very happy with my work. Then waited for my contract to end. Asked for a wage raise (but didn't give a reason) and when the agent said no suggested that he cut his margin and hinted. The client wanted to keep me and I won in the end.

It's business and everything that you know helps. I wouldn't have walked if I didn't get the raise but it did work and it was worth the hassle.

The important bit is the happy client as the agent didn't want to explain to them.

Hope this helps.

[tino]

Like any buying & selling its all about the price you are willing to accept/pay and what consequences you are willing to accept if it doesn't go your way.

In the current climate and having been on the bench a while, I would rather than have a contract than be on the bench therefore my negotiating stand point is weaker. Once the war chest has been restored I will push harder on rate even if the economy has not picked up.

HTH

My personal tactic is to get in the door, do a great job and then pitch for 1 or 2 days a week from home (not possible in all roles I know) but whilst working away it's like an extra days cash in your pocket

[Mustang]

Like any buying & selling its all about the price you are willing to accept/pay and what consequences you are willing to accept if it doesn't go your way.

In the current climate and having been on the bench a while, I would rather than have a contract than be on the bench therefore my negotiating stand point is weaker. Once the war chest has been restored I will push harder on rate even if the economy has not picked up.

HTH

[Mustang]

My first instinct is to tell the agent to up my rate immediately or I'll walk ...

In this current economic climate?! Are you mad???!!!

Stay put and learnt to negotiate better next time!!

[Ruprect]

Perhaps his/her english is better?

[BlasterBates]

I would take this up with the shop steward.

[tino]

How would you approach this? Be straight about what I know or pretend that I have a better offer? I'd rather be straight but in the current market if he just says no dice I haven't got a lot of options.

Depends if you would actually walk. Lets be clear here, he knows the current market situation as well as you do. He may call your bluff with the intention of giving you the uplift at the very last minute, he may not.

Personally I'd suck it up and learn for the next time.

Summary

I'd only go looking for it if I was genuinely prepared to walk if I didn't get it

[hammerip]

Information is power

Now you are also in the know, so use this information at renewal time to your advantage

How would you approach this? Be straight about what I know or pretend that I have a better offer? I'd rather be straight but in the current market if he just says no dice I haven't got a lot of options.

[BlueElise]

rate tip

Something I have learnt from experience to do at renewal time is to tell the client if you are asking for a raise (or in my case keeping the same rate). I once had the comment "we would love to keep you on but we cant afford the rate increase you have asked for" - I hadn't asked for one, the agent was just trying to get more money for himself.

Agents - shoes so shiny you can see both their faces in the reflection.

[DodgyAgent]

[QUOTE=oracleslave;823475]

Go on DA. Make the 5000th a good un. A contractor rant would be perfect

I am getting ready OS

[tino]

Hi,

I started my current contract 2 months ago and a couple of other guys started at the same time, one with the same agent. The guy with the same agent as me let it slip that he is on £50 per day more than me which I'm obviously a bit miffed about.

I am planning to challenge the agent as the guy is less experienced than me and I'm pretty sure the agent has increased his margin rather than the client offered less as the permies told me I was the best candidate they interviewed. The other guy was on a higher rate in his previous contract and I suspect this is why the agent offered me less - becuase he though I'd go for it and I did - what a mug!

I'd just like some of advice on how to handle this situation. The contract has 4 weeks left to run but I'm expecting a renewal. My first instinct is to tell the agent to up my rate immediately or I'll walk ...

Be thankful you have a contract at all - it's grim out there.

or:

Call the agent and demand parity or you'll walk off site.