Reply to: Renewal increase vs percieved to be greedy

[northernladuk]

Hmmm, not sure I'd agree with that sweeping statement...

+1 To this. Play the game and try your best but don't assume they will always come back.

[SteelyDan]

Just take it as a lesson learnt and don't budge on rates. The agent/client will usually come crawling back.

Hmmm, not sure I'd agree with that sweeping statement...

[NorthWestPerm2Contr]

This.

To be fair, everybody who is starting out contracting is more vulnerable to being taken advantage of by an agent, as experience grows and you begin to understand agents you know how to play the game better....

Just take it as a lesson learnt and don't budge on rates. The agent/client will usually come crawling back.

[psychocandy]

Thanks for the responses, if im honest id pretty much made up my mind the right thing to do is agree the extension at current rate. Im pretty sure the budget for me has been agreed by exec. Chasing an extra 25pd is a bit petty and would need reapproval. I know I could get more elsewhere but this really is a pretty good contract, good client which makes a massive difference.

Northernlad - Im confident all is above board, I have worked with the agent before on a previous contract (hes one of the few good guys) ive also seen the resource budget for the whole project, including the gross being paid to the agent. I also know the agent has given his consent in writing to waive the necessary clauses in my original contract.

I do consider myself fortunate, had already prepared myself to decline a FTC offer or a further rate challenge, guess there's just part of me that inclined to push for the best I can get. For me, in this case I think all other factors outweigh chasing the rate and probably wise not to burn the good will for the sake of £25pd.

So you know the gross the agent is getting so you know the margin they're making then? This will tell you whether the agent stiched you up for that £50.

Agent one of the good guys? hmmm. Some are better than others admitedly but I dont know about that statement.

And why on earth are they stepping away after 3 months? That sounds nuts. They've got a nice income and they're tossing it away.

As for clients upping the rate unfortunately IMHO they tend to think the rate you start with is good for the next 30 years! Budgets get done in advance and they assume costs are going to be the same....

[Boney M]

My comment was from the client's pov. I'd be inclined to let him go if his answer was 'because that's the going rate'.

exactly the same and this is what the OP;s concern is

[cojak]

My comment was from the client's pov. I'd be inclined to let him go if his answer was 'because that's the going rate'.

[Cenobite]

Why do you think that you deserve the rate rise? Are you doing anything differently (and better) now from what you were doing at the start of the contract?

Doesn't matter: if the market rate for your skill has gone up, or you feel they need to pay you more to keep you there, then a rate rise is fair play. If they say no, you leave.

[Boney M]

For me, perception isn't the point : it's the earning potential.
When you reduced your rate was it to something that still gave you enough profit to keep you happy ? I would suggest it did or you probably woudn't have taken the gig.

The key points for me are :

If they up your rate, any saving they made from the agent being out of the equation is lost.

They are taking on FTCs at half your rate but are happy to give you a 12 month extension.

This shows they want to keep you - do you want to keep them ? If 12 months at a decent ( if below your usual ) rate looks ok, then I would take it to retain the goodwill.

Everyone of course is different, only you can decide

WHS

[SpontaneousOrder]

Being greedy (from your post title) is trying to take more than you have earned/is rightfully yours.

If you ask for a raise and don't get it, and you aren't being greedy, then you can just go somewhere else for that rate.


As others have said though, £25 pd doesn't equal many weeks out of work, so if the work is good then do you really want to risk it?

[cojak]

Nothing wrong with increasing your rate generally; I increased mine by 20% at the beginning of this year, however my policy is to keep existing clients on my old rate unless I have a good reason not to as I like my clients to think that I value them and wouldn't want to jeopardise future business with them, especially an ongoing contract.

That's not to say they will pay my old rate forever, but I wouldn't up it at extension time unless the scope of the work had significantly changed.

This is what I do.

[Barley]

Thanks for the responses, if im honest id pretty much made up my mind the right thing to do is agree the extension at current rate. Im pretty sure the budget for me has been agreed by exec. Chasing an extra 25pd is a bit petty and would need reapproval. I know I could get more elsewhere but this really is a pretty good contract, good client which makes a massive difference.

Northernlad - Im confident all is above board, I have worked with the agent before on a previous contract (hes one of the few good guys) ive also seen the resource budget for the whole project, including the gross being paid to the agent. I also know the agent has given his consent in writing to waive the necessary clauses in my original contract.

I do consider myself fortunate, had already prepared myself to decline a FTC offer or a further rate challenge, guess there's just part of me that inclined to push for the best I can get. For me, in this case I think all other factors outweigh chasing the rate and probably wise not to burn the good will for the sake of £25pd.

[jmo21]

Who agreed the reduction? The agent?

This.

[SteelyDan]

If it was me, and I was happy with the work, the client, the location & the rate, AND I'd just been offered a 12-month extension, then I'd be inclined NOT to rock the boat & not risk pi55ing the client off.

I also think, given they have recruited others but on FTCs, that I would count myself fortunate. They could have offered you a FTC, but seems you've made them aware you wouldn't have accepted that. Clearly they don't want to lose you, so are prepared to let you carry on outside of a FTC. Again, I think I'd consider myself fortunate.
What's the alternative? The bench? Back in the pool? Not a pleasant place to be.

My advice (FWIW): Put the green-eyed monster back in the box.



P.S. Oh, and sort out your spelling and punctuation; it's effing dire. Rant over.

[DirtyDog]

You are aware of the 24 month rule aren't you? It looks like it is going to catch you out at some point, particularly when you are talking 12 month extensions.

Three months originally plus 12 month extension. Plenty of time before the 24 month rule kicks in.

[DirtyDog]

Question is - Do I pitch for a small increase (say £25pd) based on me taking the hit for the initial period, it being nearer market average, that theyre now saving 15% agent margin etc? Ordinarily I would ask but am hesistant as the client is very cost sensative and id imagine their has been intense negotiation to retain me on a per day basis (I made it clear id not accept Fixed Term). I fear asking for an uplift could make me come across as greedy in this small client and impact longer terms prospects here (potential for 18 months)? Also aware that im probably on double what the HR/Budget Manager and/or the Project Manager I report to.

What happens if you ask for a rate increase and they say no - what are you going to do? If you are going to stay anyway, then it's probably not worth the risk of termination in asking for something that you are content with in the first place. If you are going to walk, then be prepared to do that.

Only you can answer the question of what to do - how likely are you to find a new contract at the higher rate? Is that going to happen straight away? For example, if you walk and earn nothing for two months while you look for a new project, would you have been better off just sticking to where you are and the extension on offer?

Also, how lazy are you? For me, £25 a day isn't worth the hassle of looking for a new gig, talking to agents etc. if it gets canned. It might be enough for you, but at the end of the day, you're talking £25 for a year so £6525 if you worked every day of the year (excluding weekends).

Finally, this becomes a different matter if you aren't enjoying the work. If I hate a project, then I'd risk losing the work for an increase.