Rate increase due to inflation

[Bluebird]

I think it depends on the work you are doing, from a PM point of view if you are 12 months into a contract, then concievably you are "more" valuable to the client than you were 12 months ago.

It's all about supply & demand - you are now in a better position, same as any other consultancy business - fill your boots.

By the way you can bet that the agency will be asking for a mark up in it's rates...

[shoes]

It's going to be too small an increase to justify 'rocking the boat' with the client. If you're going via an agency its worth trying it on with them at renewal time, the client won't hear about it.

[rootsnall]

i'm onto a good thing with this contract. it's easy work, and i have other things happening outside of the 9-5 contract that require my attention, so i don't want to price myself out.

Head down, don't rock the boat and renew at the same rate. No brainer.

[SizeZero]

Is it a direct contract or are you going via an agent? If the latter, tell the agent you want more and let him either negotiate with the client for you or (for the sake of regular money for very little work) they might absorb it from their cut.

You are a business though, and reasons like inflation or cost of living don't cut it. If your business has put it's prices up then you put the new price on the table at the next review - if they choose not to accept it then so be it, that's the contractor life. 9-5 and security are for employees - if you get it as a contractor 'for a while' then you've done well. If you value the working conditions more than the cash at the moment, you've answered your own question.

[malvolio]

I have worked at clients who gave all contractors an across the board rate cut, take it or leave now. Their justification was that market rates for IT staff had fallen in the industry and now the sames skills could be sourced more cheaply. This was M$ by the way, who that year had reported record profits (again). This was back around 2001/2002.

HTH

You don't think that "an across the board rate cut, take it or leave now." and "had reported record profits (again)" might no somehow be related?

[wendigo100]

I have worked at clients who gave all contractors an across the board rate cut, take it or leave now. Their justification was that market rates for IT staff had fallen in the industry and now the sames skills could be sourced more cheaply. This was M$ by the way, who that year had reported record profits (again). This was back around 2001/2002.

HTH

I'm at M$ now. I work here for the honour.

[DimPrawn]

never heard so much non sense. It this a joke thread. Do you then ask for a pay rise everytime the BOE increase rates. Does the client lower your rate because oil prices go down or the FTSE drops 2% in one day.
Are you for real?

I have worked at clients who gave all contractors an across the board rate cut, take it or leave now. Their justification was that market rates for IT staff had fallen in the industry and now the sames skills could be sourced more cheaply. This was M$ by the way, who that year had reported record profits (again). This was back around 2001/2002.

HTH

[TheRightStuff]

never heard so much non sense. It this a joke thread. Do you then ask for a pay rise everytime the BOE increase rates. Does the client lower your rate because oil prices go down or the FTSE drops 2% in one day.
Are you for real?

[wendigo100]

I agree with what is said. The inflation that you suffer is your problem, not the client's.

Inflation is only their problem if your competitors put their prices up as well.

If you have a good relationship with them have a quiet word. They might agree to pay more. After all, inflation is only 3%

[BrilloPad]

no need for sarcasm

i'm onto a good thing with this contract. it's easy work, and i have other things happening outside of the 9-5 contract that require my attention, so i don't want to price myself out.

i just wondered if it was something other people had used to justify a rate rise, other than conventional arguments (ie having knowledge of company / procedures / being able to work quicker than a new resource that has to get up to speed etc).

i'm not particularly fussed about a quid or two extra an hour, it's more the principle of earning less than i was a few months ago for doing the same work.

jim

Problem is that inflation is nothing to do with client. You could give it a try - risk is that client will think you being silly so less likely to take your other arguments seriously.

Best way I found is get another job - best form of negotiation there is. Or at least pretend to have another job.

[malvolio]

Or you take the viewpont of your client - I'm paying this guy a set amount to deliver a piece of work. If he isn't adding any more value to it than what he is contracted to deliver, why should I pay him more? Or, equally, if he hasn't factored medium term inflationary values into his original rate, why should I pay more to bail him out?

I agree incremental raises are nice things to have, but the manijmint want a quid pro quo to justify them spending more of their money. That prices have gone up is not it, nor is it their problem.

[jim2406]

no need for sarcasm

i'm onto a good thing with this contract. it's easy work, and i have other things happening outside of the 9-5 contract that require my attention, so i don't want to price myself out.

i just wondered if it was something other people had used to justify a rate rise, other than conventional arguments (ie having knowledge of company / procedures / being able to work quicker than a new resource that has to get up to speed etc).

i'm not particularly fussed about a quid or two extra an hour, it's more the principle of earning less than i was a few months ago for doing the same work.

jim

[Sockpuppet]

Geez....did you just complete Economics 101.

Just re-negotiate your rate rise at the end of the contract. If your after the real cash you should use each contract as a step up charging more for each contract.

[jim2406]

Question

If any of you have been working at a client for over a year, and you are happy with the rate, have you ever told the client the rates have gone up due to inflation?

i've just realised that although I'm happy with my rate, if I don't up my rates in line with inflation, i'm actually earning less money than this time last year. which is a bit rubbish really.

jim