Reply to: Contract Negotiation

[gamble1234]

All, thanks for all the support and advice. Took the contract at £375 as couldnt afford to miss out on the contract. Even though I got a feeling the agent is ripping me big time, guess will try and find out when I start work!

[Murder1]

I understand your reluctance to trust agents but exploitation is a bit far - you do have the freedom to not sign a contract if you're not happy with it.

[Pondlife]

Agreed. You have secured 94% of your asking rate... and have got a 25% increase on the original amount, those are pretty good terms.

It's negotiation, after all. The client will feel that they are getting a good deal, the agent will be happy and you have a 6 month contract. Get in, show that you're worth the extra and get the last £25 at renewal.

++1

JFDI, get your feet under the table and prove you're worth the extra £25.

[rd409]

So they can maximise their income. I unfortunately don't know what any of the other contractors are on here nor what the agency gets.

Well I call this exploitation. I was naive when I thought that the rate cut was due to the client offering less money, and the pimp saying that they are on fixed percentage. I no longer believe anything that comes out of the mouth of an agent. I don't mind them taking a 90% cut of the rate, provided I get what I believed the rate was when the process started. If it was 350 I should be getting 350; I don't mind the agency charging the client whatever they want. But the issue here is they are not charging a fixed % and then lied to me to reduce my expected rate.

This has now made me believe that all the agents are habitual liars. </rant>

[Murder1]

I applied to a role which was 350+ pd. After the interview, got offered the role the very same day. The agent said that the client is only ready to pay 300. Through negotiations, it was agreed at 325. I was about to be benched, so took it as it is better to be in a role, than be on the bench.
couple of weeks later, had a view of the contract between agency and client and they are charging 425.
I don't mind them having a larger cut, but why squeeze money out of both the client and the candidate? But on a positive note, I now know how much margin there is during the renewal.....

So they can maximise their income. I unfortunately don't know what any of the other contractors are on here nor what the agency gets.

[rd409]

I applied to a role which was 350+ pd. After the interview, got offered the role the very same day. The agent said that the client is only ready to pay 300. Through negotiations, it was agreed at 325. I was about to be benched, so took it as it is better to be in a role, than be on the bench.
couple of weeks later, had a view of the contract between agency and client and they are charging 425.
I don't mind them having a larger cut, but why squeeze money out of both the client and the candidate? But on a positive note, I now know how much margin there is during the renewal.....

[Jason]

In other words, split the difference, then if they still say no, either accept or move on.

[Jason]

OK,

You said you needed X, agency said I can only pay Y. This is called a first offer. You are expected to move a little, then they will move a little. and meet in the middle, or you could say split the difference.

Nobody will dump you for a simply first counter offer.

[AnthonyQuinn]

The first rule of negotiation .....

is that there are no rules of negotiation.

You alone can decide. but if a rate was advertised as 300 + extra then you have done VERY well to squeeze out 375. A rate advertised at 300 + extra will seldom, if ever, end up being 400.

If one believes their worth to be above 400 then they will probably not respond to 300+. if I am the agent I would guess you are bluffing and dont have a 400+ rate to go back to. If you had you wouldnt have bothered with an advertised rate of 300+.

I am actually of the opinion that they need you and have stretched to 375. But they are humans and might baulk at the psychological barrier of 400 especially if they feel that you dont have anything better to go to.

[7of9]

They have already told me they are on a fixed percentage of 15%. They have said that they client will not give anymoree. How easy is it to squeeze the agent ti lower their rate??

15% is not unreasonable, especially if you are outside of London. If you are 100% sure that the agency won't be able to find someone else, then negociate.

[SueEllen]

Agreed. You have secured 94% of your asking rate... and have got a 25% increase on the original amount, those are pretty good terms.

It's negotiation, after all. The client will feel that they are getting a good deal, the agent will be happy and you have a 6 month contract. Get in, show that you're worth the extra and get the last £25 at renewal.

WMRS and WPS.


The thing is you asked for £400 now if you are use to haggling £375 is a reasonable mark up from £300. If you had asked for £450 then maybe you would have got slightly closer to the £400 you want.

But then again you could have been told to forget it..........

[fullyautomatix]

HI all,

In a contract (coming to an end) and have been offered another originally advertised for £300 +more for exceptional candidates. I got offered the job straight away and agent starts closing the deal however I explained I would want more and said i would like £400.

They went back to the client and told me that the client is willing to offer £375 and not any more. I really want the job but want it for the £400. I dont think they have any other candidates with my skills and client has communicated they are more then happy with me.

Do you think I can secure £400?How can I proceed to secure??

Thanks
gamble

I would recommend that you gamble on this and ask 500£. If there is no other candidate with your skills the client will pay anything.

[Wanderer]

They have already told me they are on a fixed percentage of 15%. They have said that they client will not give anymoree. How easy is it to squeeze the agent ti lower their rate??

Hard to know. If they are Preferred Suppliers to the client then they may get someone else in there if you don't accept their best offer but then again another agency may second choice candidate that the client will take so they agency may lose out if they can't get you in there.

Depends if you want the job of if you are willing to sit tight and wait for something better to come along.

[MrRobin]

You have done well to get £375 from the agent. Why quibble over an extra £25 a day? Yes, in the big scheme of things, it will add £4,500 over the 6 month term, but you have to ask yourself, which is better... to lose £4,500 or to lose £67,500 (based on working 180 days constant with no holidays, sick days, public holidays, etc)? You are lucky to get that type of rate. If I were you, I would be keen to take the rate offered rather than to fight for an extra £4,500.

Agreed. You have secured 94% of your asking rate... and have got a 25% increase on the original amount, those are pretty good terms.

It's negotiation, after all. The client will feel that they are getting a good deal, the agent will be happy and you have a 6 month contract. Get in, show that you're worth the extra and get the last £25 at renewal.

[pmeswani]

Hi its 6 months, and agent playing hardball was expecting a call first thing this morning and havent heard anything, getting nervous, should i make a move?

You have done well to get £375 from the agent. Why quibble over an extra £25 a day? Yes, in the big scheme of things, it will add £4,500 over the 6 month term, but you have to ask yourself, which is better... to lose £4,500 or to lose £67,500 (based on working 180 days constant with no holidays, sick days, public holidays, etc)? You are lucky to get that type of rate. If I were you, I would be keen to take the rate offered rather than to fight for an extra £4,500.