Reply to: Different margins, same agency?

[JRCT]

Heinz have just realised M&S are charging 2p more for tins of baked beans than Sainsburys, they're angry, upset, and want to renegotiate their contract.

Stop press!!! Tesco are selling 1p lower than Sainsburys.

You guys are running a business, you need to stop blaming other people for your business decisions.

This is, absolutely, the correct way to approach this. You agree a 'sale' and you sell. If you discover information about the market that is in your favour, then you can charge the next customer more, whether that be the one that walked in your shop for a tin of beans or on your next contract. You can't run after the last customer and demand an extra 2p from him.

However, it is always an interesting and emotive subject. On my current contract I was told the top end was £15 per day less than what I was ideally looking for. I can live with that. When they offered it to me, they offered a rate that was another £135 less. The agency even laughed it off, but asked me how low I was prepared to go. I stuck to my guns and said I was already giving up £15 a day. And that worked.

It could have back fired, but if I'd have accepted lower than that, I'd have been kicking myself over what I could have won. It's ok to be annoyed with yourself for settling for less, but not to be annoyed by what other people get. Just learn from it.

[Taita]

I managed to avoid telling him what I charge

He basically said that the agency quoted a range of rates prior to interview, and he'd gone in at the top rate in the range on the basis that they told him they'd put forward another candidate at that rate already.

Turns out that the range is a little wider than he thought

I can see why he's unhappy, but what can you do!

They took six of us on at the same time. Two have already jacked it in (job not as described apparently), and one is thinking about leaving as we speak - the agency already know this, and are not happy at all! He plans to ask the agency for the margin back, on the hope that they'll lower their margin rather than lose yet another person.

It'll be interesting to see what happens!

You didn't tell him but you know what the others get and so does he or he would not worry about getting 5% less than the 'others'! Go figure.........

[TheFaQQer]

+1 I really don't get the 'how come the bloke sitting next to me is getting more money for doing the same job' argument, especially from contractors who have agreed a rate. I know for a fact a fellow contractor (who I am good mates with) working on the same project is on a higher daily rate than me. Am I bothered or upset? No. Good luck to him, I negotiated a rate and am happy with that rate. The time for negotiating increases is at renewal not mid contract

I'm in a similar situation - guy I work with who brought me into the project is on £25 a day more than I am; functional consultant who came in after I did is on £50 a day less than I am. Swings and roundabouts.

[kal]

He picked a rate that he wanted. Agent got him the rate that he wanted. Client is paying a rate that they wanted.

Nothing to see here, move along.

+1 I really don't get the 'how come the bloke sitting next to me is getting more money for doing the same job' argument, especially from contractors who have agreed a rate. I know for a fact a fellow contractor (who I am good mates with) working on the same project is on a higher daily rate than me. Am I bothered or upset? No. Good luck to him, I negotiated a rate and am happy with that rate. The time for negotiating increases is at renewal not mid contract

[TheFaQQer]

In this case, probably not - the rest of us ended up on the same (higher) rate. Seems like the agent quickly took advantage of the guy!

He picked a rate that he wanted. Agent got him the rate that he wanted. Client is paying a rate that they wanted.

Nothing to see here, move along.

[TheFaQQer]

He plans to ask the agency for the margin back, on the hope that they'll lower their margin rather than lose yet another person.

Agency will already be looking to replace the people who have left, so adding in an extra person isn't going to make any difference to them.

Heinz have just realised M&S are charging 2p more for tins of baked beans than Sainsburys, they're angry, upset, and want to renegotiate their contract.

Stop press!!! Tesco are selling 1p lower than Sainsburys.

You guys are running a business, you need to stop blaming other people for your business decisions.

Lucky for you that you're not in the baked bean business

[Barley]

Heinz have just realised M&S are charging 2p more for tins of baked beans than Sainsburys, they're angry, upset, and want to renegotiate their contract.

Stop press!!! Tesco are selling 1p lower than Sainsburys.

You guys are running a business, you need to stop blaming other people for your business decisions.

I've been in his shoes when I was a student and I let the agent have it. No way was I going to accept 5.50/hour when others who'd started a couple of weeks before were on 6. I didn't get a rise but it was entertaining.

If it were me, I'd probably just suck it up. I would definitely let the agent have it though... especially if they'd told me an outright lie like that!

[BigTime]

I've been in his shoes when I was a student and I let the agent have it. No way was I going to accept 5.50/hour when others who'd started a couple of weeks before were on 6. I didn't get a rise but it was entertaining.

If the guy had pitched it 5% higher he might well be twiddlng his thumbs at home because the agency talked up another guy.

In this case, probably not - the rest of us ended up on the same (higher) rate. Seems like the agent quickly took advantage of the guy!

If you want "a rate for the job" you need to join the TUC.

[BlasterBates]

Stop contracting become permanently employed and join a union.

This getting jealous about a few percent or getting angry because the agency negotiated a better margin for himself is unbusiness like.

As contractor it is your responsibility to pitch your rate which gets you the job.

If you're without a contract by pitching in with a lower rate than the competition the agency will push you harder and you get the contract.

If the guy had pitched it 5% higher he might well be twiddlng his thumbs at home because the agency talked up another guy.

If you want "a rate for the job" you need to join the TUC.

The next time he goes for a contract he needs to negotiate with several agencies and he needs to be trying out different rates, playing agencies off one another. He's now signed the contract so he has to stick with the rate.

If I was you I would keep away from any rate discussions with any other contractors in future as well.

I managed to avoid telling him what I charge

He basically said that the agency quoted a range of rates prior to interview, and he'd gone in at the top rate in the range on the basis that they told him they'd put forward another candidate at that rate already.

Turns out that the range is a little wider than he thought

I can see why he's unhappy, but what can you do!

They took six of us on at the same time. Two have already jacked it in (job not as described apparently), and one is thinking about leaving as we speak - the agency already know this, and are not happy at all! He plans to ask the agency for the margin back, on the hope that they'll lower their margin rather than lose yet another person.

It'll be interesting to see what happens!

[northernladuk]

+1 to the above. If he starts getting upset about it it could destroy his motivation and become a problem to the client. What could have been a great gig could now just make him miserable. Finding out rates can be a bit of a nightmare.

There is sod all he can do now anyway. He's contracted to it. Best he can do is suck it up and push the agent for the 5% at renewal or walk.

If I was you I would keep away from any rate discussions with any other contractors in future as well.

[jamesbrown]

Nothing. He was happy with the rate when he took it, and the agency's margin is irrelevant in that context (it's also the agent's business). He may want to negotiate harder next time, based on an understanding of what he's worth.