Reply to: Rate increase - how do I achieve it?

[SpontaneousOrder]

Equal Experts?

No, but they were there too.

[kal]

It's already eating away at me!

Just been extended again, did think about upping my rate as I am 18 months into this contract, I'm direct and the rate is pretty good so I went with a different tack and asked for a day work from home (live in Brum and commute to London so a long day and no one does WFH right now), they agreed and that's worth much more to me than an extra 5%. Next up end of September and I do think a 10% rate increase request will be going in then!

[heyya99]

If only you had asked for £485...

Well, there's always next time.

It's already eating away at me!

[nomadd]

I asked for 475 and got 465.

If only you had asked for £485...

Well, there's always next time.

[heyya99]

I asked for 475 and got 465. Thanks for all the input.

[stek]

So, now I know my consultancy makes 200 profit on me, are they likely to allow me to walk if I demand reducing it to 150?

Only way is to try.

[heyya99]

So, now I know my consultancy makes 200 profit on me, are they likely to allow me to walk if I demand reducing it to 150?

[riffpie]

Is there really that much of a mark-up by a consultancy as opposed to an agency? In my experience, I'd say not.

You may not even be charged out on a daily rate by the consultancy. My current client is a consultancy that's doing work for a third party at a fixed price. I'm doing some of that work, and they pay me a daily rate. I've been approached by a small consultancy run by some guys I know, and they've told me exactly what they'll be charging me out at, and exactly what they'll pay me. Difference is £200/day. Is that a lot? Not really. These guys have a never-ending stream of work coming in that they work very hard to get, and only hire people by reputation. I say it's worth giving them that cut to get more-or-less guaranteed work still at above market rates, without having to go through any tiresome recruitment process.

I've also been a permie for a software vendor that often sent us on-site for consultancy, charging us out at £1200/day back in 2001. We never saw any of that, of course, we just got a day out of the office, a hire car and a generous hotel/meals budget which was basically "treat yourself, just don't extract the urine".

[riffpie]

Generally, yes. Unless the client is an important one where there might be a deal done. I did work for o2 as a permie at a consultancy and there was a flat day rate for everyone (junior/senior/contract devs) of £600. Normally it would be a lot higher but o2 gave us a lot of work.

Equal Experts?

[heyya99]

Does the consultancy name start with an 's' ? Just wondering if you're someone I used to work with.

No. J.

Did you have same issues with yours?

[SpontaneousOrder]

Does the consultancy name start with an 's' ? Just wondering if you're someone I used to work with.

[heyya99]

Thanks for all the replies and apologies for my late response.

My rate is £400 for London based gig. I've since found out my consultancy charges £605 for me.

Another colleague's rate went from 430 to 480. He said it wasn't easy getting it and was told at one point that there would need to be a parting if he didn't sign. He asked for 500.

[OwlHoot]

We have a 68 year old on £1000+ a day here doing COBOL, ohh how he laughs at the Java kids, he comes to the scrum meetings and asked yesterday'

'Rather than spending all your time fixing bugs, why not code it properly' and the Stats are.

COBOL lines of code delivered in last 3 months = 13000 (1 old coffin dodger)
JAVE Code = 3200 (12 pair programmers from far away shores)

Production issues caused - Java (11) COBOL (0)

The old boy always brings his 'Java for dummies' book to the meeting to wind the others up.

Hehe - Nice story, although 13000 lines of interminably long-winded horrible Cobol are probably equivalent to about fewer than 3000 lines of Java. (Mind you, for £1000 a day I could probably be persuaded to go back to Cobol! )

[SussexSeagull]

we have a 68 year old on £1000+ a day here doing COBOL, ohh how he laughs at the Java kids, he comes to the scrum meetings and asked yesterday'

'Rather than spending all your time fixing bugs, why not code it properly' and the Stats are.

COBOL lines of code delivered in last 3 months = 13000 (1 old coffin dodger)
JAVE Code = 3200 (12 pair programmers from far away shores)

Production issues caused - Java (11) COBOL (0)

The old boy always brings his 'Java for dummies' book to the meeting to wind the others up.

For all the 'advances' in technologies and methodologies, I maintain delivery time and quality has gone backwards in my 15 years in the industry.

Nostalgia isn't what it used to be.

[Scrag Meister]

My year long Java development contract ends at the end of April. I have been told a 6 month extension is on the cards. My client is with a consultancy that has placed me one of their client sites (direct, no agent).

A colleague got an extension but his rate increase request was turned down (they claimed that my colleague was already on market rates).

I would like to know how to go about getting a rate rise. Are rises normal with extensions? I would like the extension and would be happy to take it at the same rate but would obviously like more.

So, how to I play it when I get the inevitable rate increase refusal. I know the my client is desperate to keep me because basically they are body-shopping me to the end client.

My issue with the end client is that the tech is very poor (1997 standard but there's been talk of newer tech coming in) and I have already let me feelings regarding not learning much known to my client. So they know I could take or leave the place.

How do I go about it and is a rate increase likely?

I've read this but would like contractor opinion.
Contract rate negotiation: How to negotiate a rate rise for IT contractors :: Contractor UK

Firstly you need to be productive, professional, valued etc...
Secondly you have to ask for it.
Third you have to be realistic