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Reply to: Day rate skimming

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Previously on "Day rate skimming"

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  • password
    replied
    Skimming is the wrong word to use here imho. Absolutely creaming it is the correct terminology I think.

    I would regard this as "peak" "creaming it" by the agency and you can't fault them for it... they are winning if they are successful at this with many suppliers, i.e. you.

    As has previously been said, you need to learn to negotiate.. I picked up a contract recently (even in these times) and said I won't be working for quoted rate (and went quiet) they ultimately admitted their margin about £50 per day and we subsequently agreed on a better rate for me and less for them. it was still a significant haircut for me but it was still very much a case of meeting half way.

    Just negotiate.. but also know the market and your skill demand and know when to hold and to fold. Pardon the cliche, but it's true.

    Leave a comment:


  • mgrover
    replied
    Originally posted by WTFH View Post
    OK, you might want to read the contract you signed with the agent.

    You might also want to check whether he was telling you how much he was paying plus VAT, whether you are looking at how much ends up in your back pocket, how many intermediaries there are between you and him, etc, etc
    Doesn't seem to be anything in there about it.

    But that VAT point is a very good ones actually. It would bring their margins inline with whats expected.

    edit: No it doesn't include vat

    edit1: hmm it may fall under what they define as confidential

    “Confidential Information” means any information relating to the business and affairs of both the Company and the
    Client and to the identity and business affairs of either parties’ customers and Clients and potential customers and
    Clients which comes to either parties’ attention or possession and which both parties regard or could reasonably be
    expected to regard as confidential, whether or not any such tangible information is marked ‘confidential’."

    This doesn't fall under both the client and company so who knows.
    Last edited by mgrover; 14 April 2020, 10:19. Reason: update

    Leave a comment:


  • WTFH
    replied
    Originally posted by mgrover View Post
    He asked and I told.
    OK, you might want to read the contract you signed with the agent.

    You might also want to check whether he was telling you how much he was paying plus VAT, whether you are looking at how much ends up in your back pocket, how many intermediaries there are between you and him, etc, etc

    Leave a comment:


  • mgrover
    replied
    Originally posted by WTFH View Post
    Did you discuss your rate with the client?
    He asked and I told.

    Leave a comment:


  • WTFH
    replied
    Did you discuss your rate with the client?

    Leave a comment:


  • mgrover
    replied
    Originally posted by malvolio View Post
    Well that's ok, if the rate you are on is the one you were happy with when you started...

    Look at it this way - the client wants you, the agency wants the continuing income. You are not dropping your rate or you walk away. The agency then has to decide how to react, and logically will take the hit on the basis that 6 months of something is better than all of nothing.

    Of course, you have to sound like you mean it. Talk to the client and make sure they are onside; after all, they have the box with the money in it.

    And lesson for the future: you work on getting the rate you want, don't worry about what everybody else is on.
    I am happy enough, I mean it's a sweet gig in troubled times. And I've not been contracting for very long only about a year or so, so I don't want to basically throw my toys out the pram and be immature about it.

    I mean am not happy at the slice of the pie their getting, but I'll leave that till the next time they want to change the work I do and I'll ask for more.

    Originally posted by BrilloPad View Post
    Thats a shame. Most agencies are on preferred supplier lists so agents take a fixed percentage. There are not many end clients around with proper morals like Goldmine Sucks. I dispise them - but very clever people.
    Meh easy come easy go.

    Originally posted by northernladuk View Post
    Inneresting.
    Oh how so? What part of the north are ya from btw
    Last edited by mgrover; 14 April 2020, 08:54.

    Leave a comment:


  • northernladuk
    replied
    Inneresting.

    Leave a comment:


  • BrilloPad
    replied
    Originally posted by mgrover View Post
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Thats a shame. Most agencies are on preferred supplier lists so agents take a fixed percentage. There are not many end clients around with proper morals like Goldmine Sucks. I dispise them - but very clever people.

    Leave a comment:


  • malvolio
    replied
    Originally posted by mgrover View Post
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Well that's ok, if the rate you are on is the one you were happy with when you started...

    Look at it this way - the client wants you, the agency wants the continuing income. You are not dropping your rate or you walk away. The agency then has to decide how to react, and logically will take the hit on the basis that 6 months of something is better than all of nothing.

    Of course, you have to sound like you mean it. Talk to the client and make sure they are onside; after all, they have the box with the money in it.

    And lesson for the future: you work on getting the rate you want, don't worry about what everybody else is on.

    Leave a comment:


  • mgrover
    replied
    Originally posted by BrilloPad View Post
    How did you find out how much the agency was taking? Are you sure?

    Does this post help https://www.contractoruk.com/forums/...is#post2737124 ?
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Last edited by mgrover; 13 April 2020, 18:06.

    Leave a comment:


  • BrilloPad
    replied
    How did you find out how much the agency was taking? Are you sure?

    Does this post help https://www.contractoruk.com/forums/...is#post2737124 ?

    Leave a comment:


  • mgrover
    replied
    Originally posted by malvolio View Post
    The agency isnt skimming anything. They won the business, you get a portion of their income, not the other way round.

    Learn to negotiate. The agency has recovered most of their initial costs, talk them into reducing their margin. Or walk away...
    Hmm maybe skimming isn't the best choice of word.

    Leave a comment:


  • malvolio
    replied
    The agency isnt skimming anything. They won the business, you get a portion of their income, not the other way round.

    Learn to negotiate. The agency has recovered most of their initial costs, talk them into reducing their margin. Or walk away...

    Leave a comment:


  • mgrover
    started a topic Day rate skimming

    Day rate skimming

    So I had an initial contract of 13 days which was great, turns out the agency was skimming 50% off my day rate. Nothing I can do about it now. Then I was asked to extend for 6 months, even better, but said the client can't afford the same rate as before, you'd have to lose about £50 a day. Turns out they were still taking £200 a day off my rate.

    Now am not an idiot I always knew they'd be making some kind of margin, probably about 20%. But this is like double that. Is there anything I can do about it?

    Aside from either threaten to quit or they give me my monies? Or is there a more appropriate way of going about it?

    Also soon there going to ask me to take on even more work which I was going to up my day rate for anyways so should I just ask for what I want under the guise of that to save any conflict?

    This is a pretty sweet gig so I don't really wanna be dropping the am handing my notice in or less card.

    Cheers

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