Reply to: Agency Margins

[herman_g]

What steps are you going to take to make sure that the agency doesn't just pass the extra cost onto the client?

Absolutely, this is the key.

Tell the agent straight up you know the billing rate is 300, how you know, and also you expect the billing rate to remain the same ( my how Bobs have done a job on the market - I have never worked anywhere close to 300, nevermind less ).

Make it clear you are happy with the job, the client, the agent, the agency, etc. and would love to help him build up his portfolio at the client. Let him offer an increase first and then bring that up to 250.

Whatever you do, keep the client out of it until he asks why you are leaving ( if it goes that far ) and then be straight up with him - with a liberal helping of compliments ( true or otherwise )

All pimps will take 50 per day over 0 per day.

Good luck. You are entering an critical part of the overall contractor learning curve.

[TheFaQQer]

No, I don't want my cost to the client to go up, so I wouldn't go beyond £300, it was more a case of whether £260+ would make the margin too slim for a agent, plus I've been told I could have a 6 month renewal, not just 3 months.

What steps are you going to take to make sure that the agency doesn't just pass the extra cost onto the client?

[Jeebo72]

That's the other thing, I'd like to opt in..... They convinced me it was all about IR35. But from what I've read on here it's more about them having to pay me, regardless of whether the client pays them?

Just get weekly payment terms and relax...

[Hockeynut]

And opting in or out has nothing to do wth it.

That's the other thing, I'd like to opt in..... They convinced me it was all about IR35. But from what I've read on here it's more about them having to pay me, regardless of whether the client pays them?

[Jeebo72]

No, I don't want my cost to the client to go up, so I wouldn't go beyond £300, it was more a case of whether £260+ would make the margin too slim for a agent, plus I've been told I could have a 6 month renewal, not just 3 months.

I had an agent take 0% to keep the client happy, I also know a friend who had the agent add £15 a day above what the client was paying, again to ensure he stayed and keep the client happy. You're not there yet, but they will be more than happy to make £40 a day from you. They will be more happy to make £100 a day from you so will try everything in their power to be closer to 100!

Let us know how it goes!

J

[Hockeynut]

Only you will know that. Are you so key you are willing to go beyond 300? The fact you are on here, and prob lack the confidence to go the whole way, stick to 250. That way the agency still get a good margin and won't push you too hard... then learn for the next time.

No, I don't want my cost to the client to go up, so I wouldn't go beyond £300, it was more a case of whether £260+ would make the margin too slim for a agent, plus I've been told I could have a 6 month renewal, not just 3 months.

[Jeebo72]

Given that I have little to lose, how much is realistic to push for, but still leave the agent willing to do it.....

Only you will know that. Are you so key you are willing to go beyond 300? The fact you are on here, and prob lack the confidence to go the whole way, stick to 250. That way the agency still get a good margin and won't push you too hard... then learn for the next time.

[Hockeynut]

Given that I have little to lose, how much is realistic to push for, but still leave the agent willing to do it.....

[Antman]

Go for it. All I'm doing is making sure you understand their side, so you understand the opposition. That Sun Tzu bloke got it right some time ago...

Keep your friends close but your enemies closer?

[Jeebo72]

Whoop di doo... It was a different world then.

For the crap contractors that are going around now yes. Not the good ones...

[malvolio]

Thank you for all the responses. I am fully prepared to go, because I do have another offer. In the back of my mind I don't want to hack the agent off so much that it might affect my last month's invoice which comes soon!

And yes Malvio, I understand they still have the same fixed overheads, invoice processing, payment risk etc. That's why I was asking on here. On the surface of it to me, it looks like a massive margin, but I simply don't know, which is why I asked.

I was considering pushing him to £250, take it or leave it.

Go for it. All I'm doing is making sure you understand their side, so you understand the opposition. That Sun Tzu bloke got it right some time ago...

[Jeebo72]

In the back of my mind I don't want to hack the agent off so much that it might affect my last month's invoice which comes soon!

.

You will never ever hack an agent off. They may say all sort of things but if they can make money off you they will be your friend. Trust me on that one.

[lukemg]

do it ! do it ! do it ! do it !

[Hockeynut]

Thank you for all the responses. I am fully prepared to go, because I do have another offer. In the back of my mind I don't want to hack the agent off so much that it might affect my last month's invoice which comes soon!

And yes Malvio, I understand they still have the same fixed overheads, invoice processing, payment risk etc. That's why I was asking on here. On the surface of it to me, it looks like a massive margin, but I simply don't know, which is why I asked.

I was considering pushing him to £250, take it or leave it.

[northernladuk]

Remember the agent does this day in day out. If you are not prepared to stick to your guns he will walk all over you. He has proved that with this rate situation. He has heard bluff and bluster from every single contractor in his time.

Be strong and make it stick. If you don't believe in your ability to nail him to the wall then only ask for a tiny percentage and hope he is feeling generous.