What's a standard agency cut / percentage

[timh]

..in South Wales / SW England..?

In the last year or two I've been working through agencies in London who typically take £40-50 of a £340/day rate. Now I've got an agency who wants to take £60 of a £250/day rate in Wales - surely that's excessive?

All feedback welcome.

t.

[Maxamus]

its normally around 15-20%

my agency takes 16.4% to be exact

[tim123]

..in South Wales / SW England..?

In the last year or two I've been working through agencies in London who typically take £40-50 of a £340/day rate. Now I've got an agency who wants to take £60 of a £250/day rate in Wales - surely that's excessive?

All feedback welcome.

t.

Yes it's excessive, bit IME 40 pounds from 340 is abnormally low, not typical.

tim

[malvolio]

Although yuo need to be a bit careful with margins on lthe lower end of rate scale - there is a lower limit to what the agent can take and still make a commercial margin (but £60 a day isn't it... )

The real question is are you getting the rate you want? I guess not, in this case, so walk away.

[timh]

Thanks, I was thinking that 20% is the most I'd be able to stomach.
(And, funnily enough, 20% is exactly the figure me and the end client are happy with.)

(I know 40/day of 340/day is abnormally low - I counted myself lucky on those!)

[timh]

Malvolio - it's a good project, in a really convenient location, for a nice company.. I've spec'd everything up, we've had meetings and organised timescales etc, I consider them my client already - and dropping out of the process without further effort would be letting them down. It's just this agent pissing about which is interfering with the process.

Nobody's signed anything; what's the legal position if after fruitless further efforts we just ditch the agency? I haven't done this before and wouldn't normally contemplate it, but...

[Pondlife]

There is a difference between margin (which is the agency works to) and markup which is your perception of whats happening. For example, with you getting £250 and the agency getting £60, they see an margin of about 20% but you see a markup of 24%.

But as Mal said, you either like the number you're getting or you don't.

[abc]

..in South Wales / SW England..?

In the last year or two I've been working through agencies in London who typically take £40-50 of a £340/day rate. Now I've got an agency who wants to take £60 of a £250/day rate in Wales - surely that's excessive?

All feedback welcome.

t.

My agency is on 12.5% (for me) and 25% for the guy that sits next to me!

And I'm sure they would take even more from a total newbie.

(These are %margin figures).

[timh]

For example, with you getting £250 and the agency getting £60, they see an margin of about 20% but you see a markup of 24%.

Well, I've been trying to see it from their perspective (which is a margin of 24%) and that's too high IMO. From a different angle they're adding 32% onto the £190/day they're trying to palm me off with, which looks even worse!

[malvolio]

Malvolio - it's a good project, in a really convenient location, for a nice company.. I've spec'd everything up, we've had meetings and organised timescales etc, I consider them my client already - and dropping out of the process without further effort would be letting them down. It's just this agent pissing about which is interfering with the process.

Nobody's signed anything; what's the legal position if after fruitless further efforts we just ditch the agency? I haven't done this before and wouldn't normally contemplate it, but...

If the agency is likely to lose you the business, discuss it with your potetnial client. It looks like the agency has done zero work to get the gig, so they should be on a minimum to cover the cost of invoice factoring - no more than 10%.

Then if you want the job and the client wants you, let the client argue with the agency - they're the ones with the money - although it would do no harm to let slip what you expect to receive for your side! I've been in the same position (acting for the client, that is) and I've told an agency to either go with what I'm telling them, or I find someone else. Faced with low income or none at all, the agency is not likely to argue.