Agencies Markup

[pmeswani]

So what you are saying is that some agents dont take advantage (the piss)?

What I was trying to get across is that if the agent was taking the piss I would be looking for a rate rise on renewal to reduce his/her margin (simple business practice really), this was brought on by the fact that I had already negotiated a higher rate but it had fallen on deaf ears.

Stop putting words in my mouth. What I am saying is that the agent is entitled to earn a fee as a result of placing you in a contract. Either they take a hit on their margin to ensure they get an income stream, pass it onto the client or say no to you. They are not in the business of being generous to the people they place with their clients.

[steveweaver]

So what you are saying is that some agents dont take advantage (the piss)?

What I was trying to get across is that if the agent was taking the piss I would be looking for a rate rise on renewal to reduce his/her margin (simple business practice really), this was brought on by the fact that I had already negotiated a higher rate but it had fallen on deaf ears.

[pmeswani]

I dont know why people are so sensitive about this lol.

I didnt sting myself, you misunderstood, I was just saying that it was a double hit rather than a single hit. I thought maybe the agency and the consultancy shared the margin, but apparently they dont.

I am happy with the role and I did negotiate at the start but the agent ignored me. I could of walked away if there were other contracts available.

All I was doing was establishing the facts of markup and if they were taking the piss why wouldnt anyone want to get a rate rise on renewal its maximising your market value.

Understand now??

Don't really understand where you are coming from. Agents are not taking the piss. They are bringing in some commission out of placing you on a role. If you ask for a rate rise, either they take a hit, or get the client to match the increase to compensate.

[steveweaver]

I dont know why people are so sensitive about this lol.

I didnt sting myself, you misunderstood, I was just saying that it was a double hit rather than a single hit. I thought maybe the agency and the consultancy shared the margin, but apparently they dont.

I am happy with the role and I did negotiate at the start but the agent ignored me. I could of walked away if there were other contracts available.

All I was doing was establishing the facts of markup and if they were taking the piss why wouldnt anyone want to get a rate rise on renewal its maximising your market value.

Understand now??

[pmeswani]

So effectively I am getting stung twice so to speak. I wouldnt mind the agencies markup/margin if they did something, so far the service has been appauling, lack of communication and paperwork, but once your stuck with an agency thats it I guess. Dont get me wrong have nothing against agencies :-p have had some really good ones in the past.

So in order to get a rate rise on renewal they would be looking to the clientco for this.

Thanks all.

As far as I am concerned, you only stung yourself. If you are not happy with the set up, walk away and let someone else do the role. If you are not happy with the rate, you should have negotiated before you accepted the role.

[jmo21]

So effectively I am getting stung twice so to speak.

While some agencies do take the piss, thinking about it like this is not getting you anywhere.

You accepted the role at the rate offered. The agency offered the rate and you accepted. You didn't have to accept it, you could have negotiated. Maybe you did and the agent held fast.

This is the way it works unfortunately for us, the agencies currently have more candidates for roles, so they hold all the cards.

This is simple supply and demand, it's business.

[steveweaver]

So effectively I am getting stung twice so to speak. I wouldnt mind the agencies markup/margin if they did something, so far the service has been appauling, lack of communication and paperwork, but once your stuck with an agency thats it I guess. Dont get me wrong have nothing against agencies :-p have had some really good ones in the past.

So in order to get a rate rise on renewal they would be looking to the clientco for this.

Thanks all.

[Wanderer]

Well the consultancy company have quoted the price but not sure if it includes VAT, probably not?

It will be ex-VAT

[The Agents View]

Well the consultancy company have quoted the price but not sure if it includes VAT, probably not?

If it doesnt include VAT then the markup is approx 30%, if it does then the markup is roughly 18%.

30% Markup = about 22% margin.

In theory, the consultancy is taking 11%, and so is the agency.

Not alot of room in that IMO - agencies and consultancies (and every other business generally) measures profit on MARGIN, not markup.

The quoted price is Ex. VAT - I am 99.999% sure of that!

[steveweaver]

On renewal I would be aiming to get the agent's margin to <10% if possible. A bit tricky if you have a consultancy and and agency involved. What percentage of the client's money gets paid to you at the moment?

Well the consultancy company have quoted the price but not sure if it includes VAT, probably not?

If it doesnt include VAT then the markup is approx 30%, if it does then the markup is roughly 18%.

[Pondlife]

What should or would be a typical combined markup be on a gig going through an agency and an consultancy company.

Also I know what the clientco is being paid, so am I able to divulge this information to help me get a rate rise on renewal?

Thanks in advance.

You want to know what a typical markup would be for both agency and consultancy.

If it's one of the big ones (e.g. IBM) upto 100% if they can.

[Wanderer]

What should or would be a typical combined markup be on a gig going through an agency and an consultancy company.

On renewal I would be aiming to get the agent's margin to <10% if possible. A bit tricky if you have a consultancy and and agency involved. What percentage of the client's money gets paid to you at the moment?

[steveweaver]

What should or would be a typical combined markup be on a gig going through an agency and an consultancy company.

Also I know what the clientco is being paid, so am I able to divulge this information to help me get a rate rise on renewal?

Thanks in advance.