Reply to: Rate Increase Justification

[TheFaQQer]

Assuming I am offered re-newal, which I will as I am mid-project, I am going to ask for a rate rise of 10-15%. This is based on the following;

a) I took a lower rate initially as the contract was for 3, then 5 months only and given the market back in the summer I had no choice but to take it (although it did appeal to me anyway)
b) The role is below average market rates for Central London
c) I have been asked to take more project work than originally brought on to do, with a wider remit now
d) The agent is creaming off 20% commisison - I won't tell him I know this but will use this as abargaining tool
d) I am pretty good at what I do and can provide justification around this based on what I have completed so far
e) I feel confident I can achieve this rise and am normally okay when I follow my instincts.

renewal

a) Makes no difference - you accepted a rate that you were happy with. Is the market in which you work any better now? Is there a chance that there will be plenty of other people that could do your job for you at the current rate?

b) The client doesn't care what the rest of the market is paying. They might feel a bit smug for getting a good deal on your contract, but no more than that. Is there a chance that there will be plenty of other people that could do your job for you at the current rate?

c) The one point that you make that might make a difference, and has some degree of reason behind it. You are doing something different, and taking on extra responsibility for it, and therefore should be paid accordingly. However, ask yourself whether there is there a chance that there will be plenty of other people that could do your job (including the new responsibility) for you at the current rate?

d) Client doesn't care what the agent is taking. Might be worth trying to get some money from the agency side of things, but I wouldn't bet on it. Could the agency find a replacement for you easily?

d) I hope that you do your job better than you make alphabetical lists. However, you were brought in to do a good job (unless they hired you to do a bad job, and you have failed at that, hence doing a good job ) - you have no decent argument for a raise based on doing your job. Certainly not a 10-15% raise.

e) If you think that you will get it, then you may as well ask for it - no-one else will do it for you. However, what are you going to do when they say "no"? If you were desperate at the start of the summer to take any role, are you prepared to risk having to do that again? Is there a chance that there will be plenty of other people that could do your job for you at the current rate?

HTH.

[The Agents View]

Rate rise, take it out of the agencies margin, because of course in tough times, all agents need to be making less money, whilst the contractors live it up off of the back of all the hard work that went into finding them their placement in the first place.

We're defending margins on the people we have left, and increasing them on new placements - the work that we are getting is so challenging at the moment, that this is proportionate to the amount of effort that goes in.

Anyone who thinks this job is about slinging CV's over to clients willy nilly, doesn't actually know the first thing about working the contract market.

[kaiser78]

You think someone running a business should be asking these type of questions at all, never mind a forum?

Un****ing believable.

If you feel such level of questions to be so beneath you, feel free to not contribute - just keep shining that chip on your shoulder instead.

Many thanks to those CKers who have responsded constructively - very useful.

[minestrone]

You ask for a rise, agent will say no, you say OK, agent might come back with rise, agent might not.

The only thing I could say is hint to the client that you are asking for a bit of a rise rise, the agent might tell them you are being unresonable and another pile of bull.

[badger7579]

and thats about your only real reason for a rise, the rest is just noise tbh, you knew the rate when offered, quoting market conditions dont hold much weight in this climate

WHS. All other reasons you have listed are irrelevant

[Platypus]

Good luck with your rate rise, especailly in these economic times.

The team here are on the same rate today as they were 4 years ago, and no, I'm not lying. The Client don't do rises. Period. (Their words, not mine)

On the brighter side, we've still got jobs and the rate hasn't gone down.

I'm on LESS than I was 4 years ago because the client doesn't do rate rises, but they certainly do rate cuts in bad times.

[moorfield]

In twenty years of contracting the only thing that I have every found that works in gaining an increase in your hourly or daily rate is to say no to a renewal or contract offer because someone is offering you more money.

Agree with that (but nowhere near 20 yrs of contracting for me). I have usually just moved on for a better rate.

If you have the warchest, and are prepared to take the risk, keep schtum and just tell them you're walking in the last week of your gig. If clientco likes and wants you good chance they'll toss you an extra sardine or two.

[Board Game Geek]

Good luck with your rate rise, especailly in these economic times.

The team here are on the same rate today as they were 4 years ago, and no, I'm not lying. The Client don't do rises. Period. (Their words, not mine)

On the brighter side, we've still got jobs and the rate hasn't gone down.

[The Lone Gunman]

If the original rate you agreed was stated as a discount rate then you should be easy with stating that now you have proven yourself you should be on the full market rate.
You can also justify the increase with your point 3. You are doing more work than the original contract stated and therefore require a rise to show that.
They may just tell you to go away though so be prepared.

I think you know all this.

[the_duderama]

You think someone running a business should be asking these type of questions at all, never mind a forum?

Un****ing believable.

What, so someone running a business shouldn't be asking other people in similair businesses how he can increase his profit? Yeah, that works.

[BolshieBastard]

With understanding, insight, knowledge, helpfulness and goodwill such as this it's Un ******* believable that more people don't ask for assistance on these forums.

You think someone running a business should be asking these type of questions at all, never mind a forum?

Un****ing believable.

[Platypus]

What will you do when the agent says, "well the market is still bad, so I can simply tell the client you didn't ask for renewal, then I'll find someone else who will be desperate for the job and I can probably increase my margin. Bye." ?

[worzelGummidge]

In twenty years of contracting the only thing that I have every found that works in gaining an increase in your hourly or daily rate is to say no to a renewal or contract offer because someone is offering you more money.

[northernladuk]

d) I am pretty good at what I do and can provide justification around this based on what I have completed so far

Thats hardly justification for your raise. You were taken on cause you were going to be bloody good at what you do...

I have to agree with someone of the more cynical here as well. I don't see anything with any weight justifying your position for 10-15% at all. You have a little bit of position power with the fact your already in but thats about it. I would forget the 15% top end for a start. Try and get a couple of quid out of the agent and then batten the hatches and wait out the the recession personally.

[nomadd]

a) I took a lower rate initially as the contract was for 3, then 5 months only and given the market back in the summer I had no choice but to take it (although it did appeal to me anyway)
b) The role is below average market rates for Central London
c) I have been asked to take more project work than originally brought on to do, with a wider remit now
d) The agent is creaming off 20% commisison - I won't tell him I know this but will use this as abargaining tool
d) I am pretty good at what I do and can provide justification around this based on what I have completed so far
e) I feel confident I can achieve this rise and am normally okay when I follow my instincts.

a) The market is no better now.
b) All current rates are below average in London.
c) Welcome to the wonderful world of Contracting.
d) I'm with you here. Kick the b'stard where it hurts - in the commission. You've probably go no chance of getting any extra cash out of the client, so this is your only option. Still, your call as to whether you want to push it with the client also.
d) You had two 'd's. I'd give you a rate cut based on that alone.
e) Well, like d (2), this just sounds like bravado on your part. I'll be expecting you on the bench soon with that type of thinking.

Nomadd