Reply to: Paid £400 A Day - Recruiter Charging Client £550 - Feel Raped

[Brussels Slumdog]

You are worth £400 in the IT Contract market

This is how the free market works.
There are 2 markets one for IT Contractors and one for clients.

The gap between the two depends on your skill set and the number of
contractors available with the same skill set.

You are worth £400 a day in the IT Contract market.
You are worth £550 a day in the Client market.

The more you quote the less chance you have of your CV arriving at
the clients desk. If you had quoted £425 a day you would not be working for the client.
The client would not have received your CV
or
The client would have been told that you were now unavailable or were too expensive.

NEVER LET THE AGENT KNOW THAT YOU HAVE FOUND OUT HOW MUCH
HE IS BILLING THE CLIENT. Use the fact that you know how much you
are worth to clients as your futur pricing stategy.

If money is your object keep yourself on the market and when the time
comes to hand in your notice tell the client that you have been offered
£425 a day

[Mr.Whippy]

I wouldn't believe that - how do you know the client didn't change the email? I think even the client would accept that the recruiter is entitled to make more than that!

The client manager that interviewed me was annoyed that the agency was trying to shaft applicants by advertising it a lower rate. Because they were the sole agancy for the role I presume they thought they could get away with it.

There was a real urgency for someone to start and it's a specialised skillset and a few other factors which meant he was very keen to get me in. He made sure the agency messing about didnt ruin that because I was sitting on an extension offer from the place I was currently at.

I dont see why they'd send an email and change the rate just so I'd think they were getting less.. they'd just remove it entirely....So I don't think it's been changed.

Besides, I don't really give a rats arse if it has or not... I got a 6 month gig at 45/day more than I told the manager I wanted and then another 6 months at the same rate so I'm not exactly complaining...

[d000hg]

And anyone who only raises questions and doesn't provide answers is a moron.

Actually I'd me more likely to listen to someone who was more interested in asking questions than giving answers.

[JoJoGabor]

Fortunately there are some rare cases.....

The agency forwarded an email to me from the client without sanitising it and left the client charge rate which showed they are now only making £14.21/day out of me

I wouldn't believe that - how do you know the client didn't change the email? I think even the client would accept that the recruiter is entitled to make more than that!

[NotAllThere]

Think twice...
...I'd then check my database with 800 other suitable candidates, call a few of them up with an offer of £350pd.

I'd call you back to say it's not possible and that your last day is "xx/xx/xx" as per the signed contract.

I'd then put the new resource in place ...

You've missed out the fact that agents can't swap resources without client consent, and that most contractors do, from time to time, communicate directly with the client. Assuming of course, that your not in some kind of dead-end semi-skill where one contractor is pretty much the same as another.

[Pondlife]

Because you let it happen and it is legal.

It is not your salary. It is your LtdCo's income.

It is not 40% either.

It is a 27.2% margin, or a 37.5% markup.

In that case it is a fair margin. First time contractors are a dodgy bunch: very high maintenance, whingy and prone to go back to permie at no notice.

No it is not.

When you get to your first renewal - i.e. provided you are not another dodgy permietractor - you can ask for a rate increase.

Now shut up and get on with your job.

Covered everything quite well there RC. Good work.

[chris79]

Think twice...

If I were the agent, here's what I would do if you rang up now, or on renewal.

I'd first of all tell you I was checking your request out with my management team and would get back to you.

I'd then check my database with 800 other suitable candidates, call a few of them up with an offer of £350pd.

I'd call you back to say it's not possible and that your last day is "xx/xx/xx" as per the signed contract.

I'd then put the new resource in place and make £200pd instead of £150pd, giving me a nice little monthly bonus as repayment for my 10 mins hard work.

Feel free to roll that dice, you may land a 6.. or maybe a 1.

[Bagpuss]

The OP wouldnt have got the extra £150 a day or even 50% of it anyway so I dont see what the fuss is about.

He was happy with the rate he was getting in the first place so he should shut the **** up and learn from it.

Exactly, the cut is a bit steep, but the OP would not have got all the £150. The client will almostly certainly pay more for having an agency remove some of the greif of direct assignment, I'm not implying it is good, thats just the way it is as Bruce Hornsby said.

[RichardCranium]

Don't be daft. You have just found out there is another £150/day that you didn't know about sloshing around in the system. You should be happy at the possibility of trying to get some of it.

[RichardCranium]

How on earth is this possible?

Because you let it happen and it is legal.

How can a recruiter take 40% of my salary for just placing me??

It is not your salary. It is your LtdCo's income.

It is not 40% either.

It is a 27.2% margin, or a 37.5% markup.

Yes it is my first contract

In that case it is a fair margin. First time contractors are a dodgy bunch: very high maintenance, whingy and prone to go back to permie at no notice.

but this is a serious piss take!!!

No it is not.

When you get to your first renewal - i.e. provided you are not another dodgy permietractor - you can ask for a rate increase.

Now shut up and get on with your job.

[Doggy Styles]

I am constantly surprised by how many managers I come across manage the Companies money as if it were their own.

That is one of the most desirable attributes to a business a manager can have. I was once told that I didnt treat the money as my own and that was my weakness as a manager. I can see the point now

Couldn't agree more JJ.

Inefficient use of resources at all levels is what's f***ing the economy, from Brown wasting it left right and centre, down to a useless contractor getting an extension.

If it is good for the company's bottom line, it is good for me. (Unless I am the useless contractor of course.)

[Shimano105]

Beacuse if the client is paying £550 a day then they most likely are Financial Services or Banking. The vast majority of these have a Preferred Supplier List. If they have a PSL they will have pre-agreed with those on the list what their cut is going to be, which will be in the 15-20% range. Believe it or not the Raison D'Etre of the Client is not to make agency directors rich.

I am frequently now asked in interviews what rate I am looking for as the clients are so used to the agencies trying to take the p**s. They don't want to be paying an extra £50 a day if they don't need to. I am constantly surprised by how many managers I come across manage the Companies money as if it were their own.

Jealousy because some comments seem to have the theme "count yourself lucky to be earning that much". Maybe it was his tone which upset people.

I can't fault your argument one bit.

Unfortunately some scousers show their true colours if you start waving money under their noses and claim poverty.

In retrospect you should have just quoted the % markup to avoid upsetting people in the current climate (although most of the touchy ones were actually waving their wads around in the good times, but I digress).

[Ruse]

Fortunately there are some rare cases.....

I was asked at interview for my current contract what the agent was advertising the rate as and what I was after.... he was a little surprised at how low it was so went back to them and made them offer me 75/day more than they were advertising, which was also more than I asked for....

The agency forwarded an email to me from the client without sanitising it and left the client charge rate which showed they are now only making £14.21/day out of me

Most excellent, am assuming he must have them over a barrel for some reason as that will now be loss making for them.

[Mr.Whippy]

I am frequently now asked in interviews what rate I am looking for as the clients are so used to the agencies trying to take the p**s. They don't want to be paying an extra £50 a day if they don't need to. I am constantly surprised by how many managers I come across manage the Companies money as if it were their own.

Fortunately there are some rare cases.....

I was asked at interview for my current contract what the agent was advertising the rate as and what I was after.... he was a little surprised at how low it was so went back to them and made them offer me 75/day more than they were advertising, which was also more than I asked for....

The agency forwarded an email to me from the client without sanitising it and left the client charge rate which showed they are now only making £14.21/day out of me

[EternalOptimist]

You been necking the beers again mate? Very harsh for EO.

no beerios tonight. and yes a bit harsh, its just the baldy assertions get right up my beak

if you aim to speak seriously about something, you should get the facts first