Reply to: Rate Renegotiation

[lukemg]

Good advice given here I think. I usually pitch for a rise after 12 months and would not be happy if I didn't get a few percent but anything over 5% is usually optimistic.
Only time I have kicked in a big request is because I was happy to leave and only a big raise would change that so had much less to lose.
They said no but tried to talk me round, I left but hit the bench for 5 months !
Unless agent is robbing you blind, this means a chat with client and you can look like a cheeky f**ker with a big request AND they will have to justify it up the chain and look like they can't manage budgets. Won't make you any friends when they choose who to bin later on...
Oh - beware the agent saying ok will ask, then coming back the next day saying sorry, client says no without even talking to them...
GLA

[Peter Loew]

You got to ask

I just had a contract extended to end of year, but a month prior I requested a rate rise. I initially asked for a £100 addition to my rate as I had originally agreed to sign this contract at a very low rate. They came back and said no, but they offered a 50 rise instead.

It would have been easy to accept the 50, but I didn't. I went onto itjobsboard.co.uk and justified my request. Given that I have inside knowledge of the client budgets I am surprised they offered me any rise at all.

Anyway, I got back to them declined the 50 offer, and said I will settle on 75, and the end of year extension. 'Let me know asap, please'.. The agent was reluctant to do this, but had to anyway. 2 hours later, and after a mention from my direct report that they were discussing my rise internally, I got a confirmation call from the agent. He said to me, 'well done, you don't ask, you don't get'.

Although I can still earn more elsewhere, for the time being I like it where I am and I am being exposed to new and interesting things, rather than just standard stuff. I'm happy and now at least my rate is semi-decent!

P

[Project Monkey]

Northernlad - Yes....doofus I know!! Still I will learn by my mistake.

Project Monkey - Yeah bad timing though...because when I first raised the request I had two other potential gig's on the cards with a similar or better rate.

Was hoping to get offered one.....however neither came to fruition as other contractors were "supposedly" more available. Hey ho...

LG

My point is, have something to negotiate with next time and either be prepared to walk or have a face saving backout up your sleve in case they refuse to budge and you decide to stay.

In my experiance, rate increases either just happen (offered out the blue) or are very hard won.

[Lloyd1981]

Yep that's the main thing - Keep on invoicing eh.

Specialism is Software Asset Management/Licensing....in particular Oracle/IBM/Microsoft.

Good area to be in....cos no bugg$r wants to do it or even understand it :-)

[Brian Potter]

Northernlad - Yes....doofus I know!! Still I will learn by my mistake.

Project Monkey - Yeah bad timing though...because when I first raised the request I had two other potential gig's on the cards with a similar or better rate.

Was hoping to get offered one.....however neither came to fruition as other contractors were "supposedly" more available. Hey ho...

LG

Oh well...at least you secured another gig. What's your specialism?

[Lloyd1981]

Northernlad - Yes....doofus I know!! Still I will learn by my mistake.

Project Monkey - Yeah bad timing though...because when I first raised the request I had two other potential gig's on the cards with a similar or better rate.

Was hoping to get offered one.....however neither came to fruition as other contractors were "supposedly" more available. Hey ho...

LG

[Project Monkey]

So you asked for something which was refused and that's it? Not much of a negotiation.

[northernladuk]

Hi all,

Thought I would reply to my own thread as an outcome occurred. Although not the one I wanted

My London agency "claimed" they sent my rate increase request over a month before the current contract expired, however I figure they left it till last minute . Anyway the end client basically said no chance!! So looks like I'm not that desperately required after all.

I'm gonna put it down to maybe lack of experience on my part too as I've been contracting 4 years now and probably went in way too high....should've asked for 6-10% like someone here suggested. Oh Well!

Still, not all bad news.....got another 3 month contract.

Cheers all, LG

So you ignored all the advice given and now realise you should have put a figure in that happens to be almost exactly what a number of posters advised.

[Lloyd1981]

Hi all,

Thought I would reply to my own thread as an outcome occurred. Although not the one I wanted

My London agency "claimed" they sent my rate increase request over a month before the current contract expired, however I figure they left it till last minute . Anyway the end client basically said no chance!! So looks like I'm not that desperately required after all.

I'm gonna put it down to maybe lack of experience on my part too as I've been contracting 4 years now and probably went in way too high....should've asked for 6-10% like someone here suggested. Oh Well!

Still, not all bad news.....got another 3 month contract.

Cheers all, LG

[GB9]

One thing that might work in your favour is whether or not the market rate for your skills has risen. If you were taken on at £420 18 mth ago but they are taking people with your skills at £500 now, you may stand a chance.

Of course they may be desperate to keep you because you work below market rate and if you ask more you become just another bum on seat.

[Lloyd1981]

Morning all!

Cheers for all the replies....really appreciated.

Advice taken around the 24 month contract ruling around claiming certain expenses as well.

Just pinged the mail off to my lovely London agency asking for the £500 with a few justifications etc.

Any increase is good of course but will let you know the outcome in the next few weeks

Cheers, LG

[ChimpMaster]

Two things:

1. You don't ask, you don't get. Sometimes it's enough that the client needs you to stay the extra 6 months and so would agree to paying that little more - otherwise how much hassle would they have to go through to replace you? In addition to this, the agent would rather make something out of you than lose you altogether. So - perhaps you can get the agent to stretch a few £ and the client to pay a few £ extra, to get you closer to £500.

2. Monsieur Psychocandy raises a good point: get a 5 and a half month extension rather than a 6 month one. If the client wants you beyond that then all fair and well if you can live without the expense claims for subsequent renewals.

[psychocandy]

In that case point out the agent your operating costs have gone up. This is because you can no longer claim travel and subsistence. Don't tell the agent this, just tell him enough to justify you need a bit more money to cover the extra expense. You won't be able to claim anything for the entire 6 month period.

Why do you think you need to move on after 2 years?

I would be very surprised if you can get an £80 rise out of an agent. He would have to be proper fleecing you have that much that he can give away and still make it worth while. Do the sums on various percentages he might be taking for you and it will give you an idea how much wiggle room you have.

I can't help thinking 420 to 500 is pretty unrealistic as well. Others might disagree. That's quite a rise for not doing anything extra for your work. I would expect people would have to change level of role to be commanding that type of rate, not just squeezing the agent... but that said the agent could be on a huge margin. Really need to find out.

Have you asked the agent if he is on a fixed margin or not. Trouble is whether you can believe what he says but it might be worth a start. Am a bit surprised you have been at a client 18 months and still aren't aware of the billing rate and the like. Someone normally cocks up and reveals it at some point.

To clarify what NLUK says. If you've been there 18 months and then get a 6 months you've got to stop claiming now. Not when it gets to 24 months.

Its when you know its going to be 24 months. So at 18, you know you're likely to be there at 24 so have to stop now. Bummer I know.

Which is why sometimes it works out better to have a 5 monther running up to month 23.

[Scrag Meister]

If you don't ask you don't get, and you can never negotiate upwards from the starting point. I learnt this recently by asking for 5% and getting it without any questions, Doh!


So personally I would go in at £500, if this is a reasonable market-ish rate for your skillset, experience and location and see what the client says.

[BlasterBates]

Realistically you can get 5%. 10% means the market's booming and you're underpaid.

Normally to get a decent hike you actually have to go and find a new contract on that rate. Once you're getting the offers then that's your rate.

If you can accept a small increase stay where you are if you really want to get your rate up move on.

Companies are understandably normally reluctant simply to agree to big rate rises, otherwise all their contractors would do it, so the purchasing dept usually puts limits on it. In other words in many cases they would just get someone new in on principle, even if it doesn't seem justified for that one case.

In a booming market they usually have a lot to spend and the rewards are worth it to them to jack the rates up, i.e. they want to expand the business.