Agency rates negotiation

[starburst89]

Hi!

I have recently secured a contract which I have not started yet and now very recently been invited to another interview for a contract with a higher rate and longer contract length.

First question is....I am due to start this contract that I have secured in the next week or so but just trying to work out how to play it if I secure the other contract. The notice period in the first contract is one month and the other contract is not likely to start until after a month anyway due to screening process. Do I take the first contract and just hand in notice if my other interview goes well? It doesnt seem professional to hand in notice after a week or two but business is business....got to do best for myself. What are your opinions? Would you jump ship for better terms and rates?

Second question is...with the second contract that I have been invited to interview for. I originally discussed this with the agency and they agreed that the rates were between a certain range but we had not specifically discussed a rate that they would put me forward for. However I do remember telling them my current rate which may not have been so wise. Now after a month they have came to me saying that the client wants me for interview and they have put me forward for a certain rate. He didnt really give me a choice to negotiate as he had already put me forward without discussing the rate put forward for....and I had forgotten that we had a conversation a month ago about the range of rates.

How do I play this...do I wait until after interview and if the client want me I negotiate with the agency and mention that rates were never discussed. Or do I mention rates now to the agency before my interview....I just dont want the agency coming back to me and saying that we put you forward for this rate and thats the rate the client want to take you on at. Whats annoying is that there were originally two agents who wanted me for this same position and I went with the agency who I `trusted` but feel as if they are in it for themselves rather than get the best rate for me. He did originally say that its also in their interests to get me the best rate as then they get more...opinions please.....help out a newbie!

[starburst89]

[northernladuk]

You disappointed no one has answered your question in less than 4 hours on a Saturday?

[northernladuk]

Q1. A contract length is only as long as its notice. You could jump ship and get canned during your notice. It's not uncommon. A month won't go down well with a client that wants a quick start. They also won't be too impressed if they have to wait while you bail on another client.
Can you really afford to be going mercenary so early in a contracting career? Personally I'd say you are better staying with what you know, do a good job, get extensions and keep them in you back pocket for future work.

Q2 You've not got anything yet. What the agent says and what you get offered can vary a lot. Personally Q2 isn't relevant due to my answer in Q1.

You currently don't have any decision to make. If you are hell bent on pissing customers off for the chance of a little more money then wait until you've been offered the gig and then you can see where you are. Maybe your decision will be clearer.

In the meantime you need to do some sums. If you bail you can kiss your last payment goodbye. Will the new gig pay enough to cover that as well?

[starburst89]

Q1. A contract length is only as long as its notice. You could jump ship and get canned during your notice. It's not uncommon. A month won't go down well with a client that wants a quick start. They also won't be too impressed if they have to wait while you bail on another client.
Can you really afford to be going mercenary so early in a contracting career? Personally I'd say you are better staying with what you know, do a good job, get extensions and keep them in you back pocket for future work.

Q2 You've not got anything yet. What the agent says and what you get offered can vary a lot. Personally Q2 isn't relevant due to my answer in Q1.

You currently don't have any decision to make. If you are hell bent on pissing customers off for the chance of a little more money then wait until you've been offered the gig and then you can see where you are. Maybe your decision will be clearer.

In the meantime you need to do some sums. If you bail you can kiss your last payment goodbye. Will the new gig pay enough to cover that as well?

The screening process takes around 3 to 4 weeks anyway and I dont think they are bothered about a quick start as they are taking on a few people. Who said I have to inform the new client that I have started a contract and handed notice in, it doesnt need to go on my CV does it....

[northernladuk]

Good start to you career hiding gigs offyour CV. Contracting can be a surprisingly small world. I'm sure your new clients screen process won't find out......

Up to you though and I know there are plenty here that will say go for it.

[northernladuk]

You need to find out if agents are on fixed margins. If so there is no chance to negotiate and they will be putting you at top rate to increase their take home. Agents do this for a living. They can negotiate harder than someone new to the game, they also tend to have a pack of lies to help them.You'll be lucky not to be on a newbie rate and them pocket far too much, unless that is the reason you are on a lower rate at your current gig.

All agents are the same. The same thing would have happened with which ever agent you went with. Even if they have put you forward there is still wiggle room. You can get him to reduce his margin. Always makes me smile when they say 'they have put you forward at X'. It's bollocks. They charge the client Y and pay you X so it's just not true.

[starburst89]

You need to find out if agents are on fixed margins. If so there is no chance to negotiate and they will be putting you at top rate to increase their take home. Agents do this for a living. They can negotiate harder than someone new to the game, they also tend to have a pack of lies to help them.You'll be lucky not to be on a newbie rate and them pocket far too much, unless that is the reason you are on a lower rate at your current gig.

All agents are the same. The same thing would have happened with which ever agent you went with. Even if they have put you forward there is still wiggle room. You can get him to reduce his margin. Always makes me smile when they say 'they have put you forward at X'. It's bollocks. They charge the client Y and pay you X so it's just not true.

So basically what you are saying is the agent has already agreed a rate with the client and then offers the contractor a lower amount and pockets the rest???

[MrMarkyMark]

So basically what you are saying is the agent has already agreed a rate with the client and then offers the contractor a lower amount and pockets the rest???

Agents in a nutshell

[northernladuk]

So basically what you are saying is the agent has already agreed a rate with the client and then offers the contractor a lower amount and pockets the rest???

Correct. The negotiation is about reducing the agents profit margin. The client will likely have a rate card and that's it. The wiggle room is how much you can take off the agent. Newbies often get stung very hard and can easily be 20% upwards because the new guys just don't have a clue.

If they are on a fixed margin then there is no negotiation so much easier and their margins are pretty low already.