Does anyone know what a reasonable profit margin is for an agency. I have accidentally come by figures that show my agency is charging the client 30% more for me than I get from them ?
Any pointers useful.
Mark
Any pointers useful.
Mark
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You mean you're getting £100 per day and the agency's charging the client £230??
Generally, anything from 10% - 30% is the norm - the agency should be charging the client £110 - £130 pd.
Unless this is your first contract and they knew they had a live one....
Last edited by cojak; 20 April 2007, 09:52."I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
- Voltaire/Benjamin Franklin/Anne Frank... -
It varies so much on the client, agency and contractor. I was with Hays for quite a while and their margins were more like 10%. If a client really wants a particular contractor and he is playing hardball then the agency would have to lower it's cut. I personally don't care what their cut is as long as I am being paid market or above.Originally posted by marknComment
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No - If I was getting 100, they are getting 130Originally posted by cojakYou mean you're getting £100 per day and the agency's charging the client £230?? Comment
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It sounds like you are getting overpaid.
If I were you I would speak to your account manager immediately and reduce your rate until the agent is getting a 50% markup. Otherwise you might not find work again in the business because you are too expensive.
HTHComment
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To be clear - they charge 130, and of that I get 100, so they get 30Comment
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My agent is getting about 27% at the moment but he best be willing to take a cut off his margin come renewal time
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Why? Just so long as you get the rate you want why should the agency take a cut?Originally posted by BarriebazgMy agent is getting about 27% at the moment but he best be willing to take a cut off his margin come renewal timeComment
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Originally posted by Churchill
Well come my renewal point the contract is changing hands and more work will be involved = higher daily rate or walkies
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Exactly. Also the company risks to lose a good candidate just because of too much greed of the agency if the contractor shops outside and finds a better rate. I think the margin should be legally forced to be transparent, at least for the companies that hire contractors.Originally posted by BarriebazgWell come my renewal point the contract is changing hands and more work will be involved = higher daily rate or walkiesI've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.Comment
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