Reply to: Rates - Dealing with agencies

[SandyD]

I look at the role spec/location etc and tell the agents the rate I want, I've been doing this for a long time now so I know how much a role should be paying me... if the agency negotiate higher rate and they pocket the rest then good for them.. I don't care, I got what I asked for and that's that.

[kaiser78]

When agents ask me for my rate I always say that it depends on the job, but usually between £x and £y. Leaves me scope for a bit of negotiation following the interview if it has gone well & I feel the client really wants me in.

I always ask what rate is being offered first before offering what I am asking for and even then would buy time before telling the agent unless there is nothing to hide, especially at initial contact stage. Other may not agree but tried and tested approach so far for me.

[The Spartan]

So what. If you had negotiated harder you would have called his bluff. You have to drop the 'I am a vicitm' view. You had a fair shot and dealing with it and you didn't. If you go in thinking that you are not going to negotiate properly. Deal with it as a business negotiation plain and simple. You want X, he wants Y and start negotiating. Thing is if the agent gets even the slightest sniff you are bluffing he will have you over a barrel. And going in with the attitude that 'you got screwed over' will be easy to spot and he will just treat you like a bedwetter, not a serious proposal.

I'm with NLUK on this one, I called the agent's bluff on this gig and ended up with 15% extra on my daily rate it was made easier by the fact the client wanted me after I had interviewed. Sure it could have gone the other way but that's just the game for you.

Generally I use the following criteria to negotiate my rate:
1. Location
2. Is it commutable
3. The level of skills that the client wants

[GB9]

I agree with this. You may feel you've been screwed over but the truth is probably that, through a combination of naivety and a lack of confidence, you've rolled over when the agent has tried it on. If the client wants you then stick to your guns. The agent will generally back down but also be prepared to walk away.

The other thing to remember is market rate. Just because you feel you are worth 'x' it doesn't mean that there isn't a candidate with a similar profile asking for x-10.

From my current search I am not worth rate-wise what I was 3 months ago.

[heyya99]

You've got to pitch yourself at some particular rate and consider this as an invitation to negotiate rather than a binding offer to do the job at a particular rate. You can always change your rate later, goodness knows that the clients do. Reasons to revise your charge out rate are job was more involved than you thought, commute was long, got a better offer somewhere else or whatever.

How to stop the agent screwing you by padding their margin? You have to tread carefully on this one.

Some people think that the agent's markup is nothing to do with the contractor or the client but I disagree. If a client is paying £550/day and thinking they are getting a £500/day contractor but the agency are ripping it and paying the contractor £350/day then both the contractor and the client are getting ripped off.

Some clients are adamant that all negotiations are to be with the agency and the agency are very cagey about their margins and in this case there is not much you can do.

However, some agencies will openly state their margins and some clients will tell you straight up what rate they are paying.

Get the client's contact details during the interview and tell the agency that you are rejecting the lower rate and you are going to make a courtesy call to the client and tell them why you aren't taking the job. This will send the agent ballistic if they are trying to pad their margin and not passing the saving on to the client. It might piss the client off too, so like I said tread carefully.

The best situation is when the client will openly state a rate for the contract and the agency is a preferred supplier on a fixed margin. I've seen some pretty angry clients when they found out that agencies were screwing contractors because ultimately the agency acting as a middleman screws both the contractor and the client.

When I was working for a client and recruiting contractors, we made it plain to the contractors what the agency margin was and what we expected the agency to pay them - it was the friendliest way to do business. My hope is that over time clients become more enlightened to agency tricks and do this more and more.

I appreciate the effort you put into your reply. It helped a lot.

[Wanderer]

Can anyone give me advice on how to handle agents when they want to put you forward for a role and ask for you rare? Is it best to respond to them by saying you'll until you've done the interview? I've been screwed over before by accepting a lower rate when I know the agent pocketed the rest.

You've got to pitch yourself at some particular rate and consider this as an invitation to negotiate rather than a binding offer to do the job at a particular rate. You can always change your rate later, goodness knows that the clients do. Reasons to revise your charge out rate are job was more involved than you thought, commute was long, got a better offer somewhere else or whatever.

How to stop the agent screwing you by padding their margin? You have to tread carefully on this one.

Some people think that the agent's markup is nothing to do with the contractor or the client but I disagree. If a client is paying £550/day and thinking they are getting a £500/day contractor but the agency are ripping it and paying the contractor £350/day then both the contractor and the client are getting ripped off.

Some clients are adamant that all negotiations are to be with the agency and the agency are very cagey about their margins and in this case there is not much you can do.

However, some agencies will openly state their margins and some clients will tell you straight up what rate they are paying.

Get the client's contact details during the interview and tell the agency that you are rejecting the lower rate and you are going to make a courtesy call to the client and tell them why you aren't taking the job. This will send the agent ballistic if they are trying to pad their margin and not passing the saving on to the client. It might piss the client off too, so like I said tread carefully.

The best situation is when the client will openly state a rate for the contract and the agency is a preferred supplier on a fixed margin. I've seen some pretty angry clients when they found out that agencies were screwing contractors because ultimately the agency acting as a middleman screws both the contractor and the client.

When I was working for a client and recruiting contractors, we made it plain to the contractors what the agency margin was and what we expected the agency to pay them - it was the friendliest way to do business. My hope is that over time clients become more enlightened to agency tricks and do this more and more.

[SarahL2012]

When agents ask me for my rate I always say that it depends on the job, but usually between £x and £y. Leaves me scope for a bit of negotiation following the interview if it has gone well & I feel the client really wants me in.

[kingcook]

Man, what on earth is a sockie?

The locals are paranoid

Sockpuppet (Internet) - Wikipedia, the free encyclopedia

[heyya99]

Sorry, but what's a 'rare'? And did you check your gammar!?

Sorry, but this must be a sockie.

Man, what on earth is a sockie?

[BolshieBastard]

Can anyone give me advice on how to handle agents when they want to put you forward for a role and ask for you rare? Is it best to respond to them by saying you'll until you've done the interview? I've been screwed over before by accepting a lower rate when I know the agent pocketed the rest.

Sorry, but what's a 'rare'? And did you check your gammar!?

Sorry, but this must be a sockie.

[SimonMac]

Give them a price you are happy to accept on the information given, if at a later date (after interview) reality differs from the picture the agent painted don't accept the contract

[MyUserName]

Do not forget that agents are not your friends. They are trying to make money off this deal and they will make as much as they can.

I am not sure that being screwed over is the right phrase to be honest.

We play our game and they play theirs. If you want more money then ask for it, the agent will say no the first few times and will claim they are already taking the lowest percentage they can (and, of course, policy rules dictate they cannot take lower), he will then say he will have to take it to the client and the client will be unhappy and just so you know someone else has applied on a lower rate than the one you offered BEFORE you pushed your rates up etc etc etc.

Eventually he will give you the money or you walk away. How good are you at playing chicken? If you are bluffing then the agent will probably sense it - they do this for a living and are often quite switched on when it comes to this sort of thing.

I suggest not bluffing. Take the rate or demand more if you are actually prepared to walk away.

[northernladuk]

I know what you mean but the agent told me that i had the gig but that the client decided to offer me x amount per day less. I've read about this tactic and it's used by most agencies, so yes, I was screwed over. The agent lied.

So what. If you had negotiated harder you would have called his bluff. You have to drop the 'I am a vicitm' view. You had a fair shot and dealing with it and you didn't. If you go in thinking that you are not going to negotiate properly. Deal with it as a business negotiation plain and simple. You want X, he wants Y and start negotiating. Thing is if the agent gets even the slightest sniff you are bluffing he will have you over a barrel. And going in with the attitude that 'you got screwed over' will be easy to spot and he will just treat you like a bedwetter, not a serious proposal.

[Runs With Scissors]

But you have the choice to accept or not. If you arten't happy then don't take it or counter offer and see what they say.

I agree with this. You may feel you've been screwed over but the truth is probably that, through a combination of naivety and a lack of confidence, you've rolled over when the agent has tried it on. If the client wants you then stick to your guns. The agent will generally back down but also be prepared to walk away.

[GB9]

I know what you mean but the agent told me that i had the gig but that the client decided to offer me x amount per day less. I've read about this tactic and it's used by most agencies, so yes, I was screwed over. The agent lied.

But you have the choice to accept or not. If you arten't happy then don't take it or counter offer and see what they say.