Reply to: Can an agency find out what rate you were on previously?

[NotAllThere]

Locked.

[speling bee]

I just don't understand why people argue for the sake of arguing

You may have come to the wrong place.

[Hireonomy]

Indeed. It's not like we haven't already done this to death in General.

indeed.. happy to continue in General.

I just don't understand why people argue for the sake of arguing

[d000hg]

Indeed. It's not like we haven't already done this to death in General.

[Taita]

No, not at all. Not sure why/how you feel that.

In the example, I used an arbitrary figure of 12% Margin as being a competitors rate.

On a day rate of £1000 @ 12% Margin, the Client would be charged £1136.36 versus our charge of £1070.00 @ 7% mark-up.

It's not deliberate (or unnecessarily) misleading at all. We're stating our charge in comparison to another Agencies charge - quite clearly

My point is: Why compare mark-up with margin,; why not mark-up with mark-up or margin with margin? Answer: Because doing it your way, the difference is greater and therefore more impressive. It does not fool contractors why should it fool clients?

[Hireonomy]

So £1000 per day pay = £1120.00 @ 12% mark-up - which means that your comparison is deliberately (and unnecessarily) misleading by an extra £16.36.

No, not at all. Not sure why/how you feel that.

In the example, I used an arbitrary figure of 12% Margin as being a competitors rate.

On a day rate of £1000 @ 12% Margin, the Client would be charged £1136.36 versus our charge of £1070.00 @ 7% mark-up.

It's not deliberate (or unnecessarily) misleading at all. We're stating our charge in comparison to another Agencies charge - quite clearly

[northernladuk]

[Taita]

ok... go on...?

£1000 per day pay = £1136.36 charge @ 12% Margin
£1000 per day pay = £1070.00 charge @ 7% mark-up
£1136.36 - £1070.00 = £66.36

£66.36 * 5 = £331.80 per week

So £1000 per day pay = £1120.00 @ 12% mark-up - which means that your comparison is deliberately (and unnecessarily) misleading by an extra £16.36.

[speling bee]

Who is comparing?

We're stating that we apply a Mark-up rather than Margin... which is much more transparent and easier to calculate; I'm sure you'll agree.

to quote Taita: "If anybody has the most basic maths ability then Mark-up is as easy to calculate as Margin."

Yes, yes, yes. But we're talking about recruitment agents here (at least in part).

[Hireonomy]

Which was easier to calculate?

to quote Taita: "If anybody has the most basic maths ability then Mark-up is as easy to calculate as Margin."

[speling bee]

ok, sorry

So roughly £70 margin / £65 mark up - so the contractor would get 930 / 935 of the 1000

Which was easier to calculate?

[Hireonomy]

The question was about £1,000 pd inclusive of margin / mark-up.

I am a client. My budget is £1,000 pd (ex VAT ). That is what I will pay you. How much in £ is a 7% mark-up and how much a 7% margin?

ok, sorry

So roughly £70 margin / £65 mark up - so the contractor would get 930 / 935 of the 1000

[speling bee]

How much does the agency take on a 7% margin of £1,000 pd inclusive of margin (i.e. cost to client)?
How much does the agency take on a 7% mark-up of £1,000 pd inclusive of mark-up (i.e. cost to client)?

£1075.27 - margin
£1070.00 - mark up

ok... go on...?

£1000 per day pay = £1136.36 charge @ 12% Margin
£1000 per day pay = £1070.00 charge @ 7% mark-up
£1136.36 - £1070.00 = £66.36

£66.36 * 5 = £331.80 per week

The question was about £1,000 pd inclusive of margin / mark-up.

I am a client. My budget is £1,000 pd (ex VAT ). That is what I will pay you. How much in £ is a 7% mark-up and how much a 7% margin?

[Hireonomy]

SORRY! Who is comparing??? If anybody has the most basic maths ability then Mark-up is as easy to calculate as Margin.

However, when you quote your competitors' margins against your mark-up you are quoting a greater figure in opposition to your lower figure........so no comparison arises but you do muddy the waters which I think is as unnecessary (in view of the big difference) as it is deliberately misleading.

An 18% margin is around a 20% mark-up but that does not look too good in an advert. But, Hey, Good Luck to you. You are successful and deserving of our praise AND our custom!

All of that is fine - but we are not charging 20% mark-up... we're charging 7% mark-up versus (say) 12% Margin... which is about 13/14% mark-up

[Hireonomy]

When did I berate agencies for charging the earth?

And your comprehension / maths is wrong.

ok... go on...?

£1000 per day pay = £1136.36 charge @ 12% Margin
£1000 per day pay = £1070.00 charge @ 7% mark-up
£1136.36 - £1070.00 = £66.36

£66.36 * 5 = £331.80 per week