Reply to: 40% agent cut!!

[Not So Wise]

Seems theres been a spate of agents whom to offset the loss of volume in the contracts bizz have increased their margins - time and time again though it all comes out in the wash - and you see the upshot here - as the market picks up over the next few months I forsee many 'budget' contractors abandoning contracts as quick as you can say ' a fiver more an hour ....'

Yep and i am one of them, client is getting me cheap for my skills (and they know it), only reason i took position is mid last year saw the writing on the wall and wanted a safe harbor for at least a year

Though client is already talking about rate increase at renewal time (Dec) but honestly doubt they can raise it enough (15% to match my normal min plus another min 10% more to start making up for this year) to keep me beyond Apr next year.

[Sysman]

Have you checked your contract, there is normally a statement saying that you can't go direct for X months after the contract finishes .. the X figure is also dependant on your opt in/out status ..

On my second contract I saw a chance of doing that. The contract contained a fixed fee for doing so, and I would have been happy paying that if I could have grabbed a decent extension direct.

[The Agents View]

Since they are clearly accepting that 40% was taking the liquid, I presume they will be backdating the new percentage to the start of the contract and paying you the difference, yeah right. No doubt this is changing from 'date the chump found out'.
Burn 'em at the first opportunity and don't lose a seconds sleep.

I assume you're clear on the difference between margin and markup?

bear in mind that 40% mark up = about 28.5% margin.

28.5% margin is still too high - 22% is premium end (which is roughly where I sit - low volume, higher margin people).

18% is standard relationship level.

I might negotiate to 15% for a very large, long term account.

7-15% is managed service monkey territory, and those with any sense, or hard to find skills niche, don't go anywhere near these people!

If it's 40% margin, that is absolutely taking the Michael - seriously these people should be shot. If it's 40% markup - that's also taking the P, but not so much. if you are on a very long term contract, that is daylight robbery!

I've seen 28% charged in my company in two circumstances:

- 1) Client wants to negotiate the direct transfer, or temp to perm fee, and absorb it into the daily rate (budget shennanigans)

- 2) We are charging a retainer fee - i.e. Critical delivery, therefore charge £50 per day extra, and pay that amount to the contractor on completion of the contract, thus (hopefully) ensuring they don't leave 3 weeks before the end of the contract and cause chaos! (yes contractors shaft clients too!)

Any other explanation is part of the reason I hate other recruiters so much!!!!

HTH

TAV

[AlfredJPruffock]

Seems theres been a spate of agents whom to offset the loss of volume in the contracts bizz have increased their margins - time and time again though it all comes out in the wash - and you see the upshot here - as the market picks up over the next few months I forsee many 'budget' contractors abandoning contracts as quick as you can say ' a fiver more an hour ....'

[lukemg]

You're not wrong. However I work in the niche market, a market that is currently doing very well at the minute, I don't want to start burning bridges.

Since they are clearly accepting that 40% was taking the liquid, I presume they will be backdating the new percentage to the start of the contract and paying you the difference, yeah right. No doubt this is changing from 'date the chump found out'.
Burn 'em at the first opportunity and don't lose a seconds sleep.

[scooterscot]

Let's make this simple: screw the agent - they'd screw you given half a chance.

You're not wrong. However I work in the niche market, a market that is currently doing very well at the minute, I don't want to start burning bridges.

[scooterscot]

On the narrower margin, is it that client pays less or you get paid more?

The client pays the same, or they'd be walking right out the door.

Spoke to the client director today, I'll allow the agent to absorb a few £k then scrap them... leeches so they are.

[ChimpMaster]

Let's make this simple: screw the agent - they'd screw you given half a chance.

[HairyArsedBloke]

On the narrower margin, is it that client pays less or you get paid more?

[scooterscot]

I think you've been overly generous to the agent, they're screwing both you and the client, you're on a much lower rate than the client was ok if not happy to pay and the client feels that the contract is plain expensive.

In your shoes I would have had no compunction over letting (even actively helping) the client totally shaft the agent as frankly the agent deserves it for taking the mickey.

I've got the agent down to 12% since the first post, I comforted them - I should not have had to though.

[TykeMerc]

I think you've been overly generous to the agent, they're screwing both you and the client, you're on a much lower rate than the client was ok if not happy to pay and the client feels that the contract is plain expensive.

In your shoes I would have had no compunction over letting (even actively helping) the client totally shaft the agent as frankly the agent deserves it for taking the mickey.

[scooterscot]

I'll let you work it out. Teach a man to fish and all that...

OK let me re-phrase, The agent wants my company to provide services for their client

[ratewhore]

Goodness no.

Why do you ask?

I'll let you work it out. Teach a man to fish and all that...

[scooterscot]

You PAYE then?

Goodness no.

Why do you ask?

[ratewhore]

The agent wants me to work for them...

You PAYE then?