Im being fleeced!

[mailman]

I just found out that Im being fleeced by the agency that landed me my contract to the tune of £1000 pounds a week! While Im not unhappy with my daily rate I am unhappy with the fact that the agency is creaming me for 40% of my daily rate!

Is there anything I can do to claim back some of this money OR am I as rooted as my friends say I am?

Regards

Mailman

[malvolio]

Err, no. It's not your money, it's theirs. You're getting what you asked for (presumably) - and so are they. That's why it's called "business".

The only way to complain is if the agency told the client they would charge one rate of commission and are actually charging something different. But unless the agency bumped up the price by telling the cllient that your rate is higher than it is, it probably doesn't affect the amount the client is paying and nobody will really care very much. In any event, the likely outcome is that you wouldn't have a contract and the agency would have someone else in there.

[SupremeSpod]

No you're not.

If you're unhappy, try and renegotiate! But, remember, you are a professional, so do it professionally!

Spod.

[mailman]

grrr!

Malvo,

I was originally told the contract was for £200-£400 a day and that they would put me down for £200 a day as my contract rate.

When I got the contract they said my rate had moved up to £300 a day and now I find that the actual rate was always £500 a day!

Do I have a leg to stand on since I never told them specifically that the £200 was my daily rate (as I was lead to use that figure by the agency)?

Mailman

[malvolio]

Re: grrr!

Ah. Rule one of contracting - never believe the agent!

From their viewpoint, the client is willing to pay £500 and they have found a resource that costs £300. At the outset both sides are happy and the agent gets to keep £200. They would argue that you got £100 a day more than you were asking for, so what are you moaning about.

To put it another way, next time you're in the pub, offer to pay £1.40 for your pint because you've discovered the landlord makes 40% on all the beer he sells and why shouldn't you have some of it.


You can try to renegotiate but only if you have something to negotiate with, and at a sensible point in the cycle, like renewal or change of requirement. Arguing about someone else's margin is not it.

As I said, the most likely end result is no contract. Be careful.

[datestamp]

As a matter of interest, 'mailman', are you going to drop us some subtle clues about the identity of the agency ??

[mailman]

Im happy

Im not complaining...I just reckon the agency used some rather under handed tactics to screw me for as much money as possible...is nothing sacred these days?

Ill tell you what though...my contract is up for renewal in a couple of months so Im going to utterly screw the bastards for every cent I can get!

Mailman

[DimPrawn]

Talk to the client.

Speak to the client, along the lines of:

"You do realise that the average agent margin is around 15%. You are paying 40%."

1st step is to make client feel cheated by agency.

Once agency is booted or margin is dropped, then of course there is room for you to hike your rate at renewal time, since the client is no worse off than they were at the outset.

Good luck.

All agents are scum.

[Cojak]

Re: Talk to the client.

Decide what your lowest acceptable rate is and stick to it.

Then if an agent comes and asks you to go lower you can refuse. If they're trying to scim the fee they'll give you what you want after a lot of pleading (they want the work after all...). If they don't then no hard feelings.

I'm happy with my rate and I never get involved with how much they're charging the end client unless I'm told I'm expensive, then I take great pleasure in tell them how much I'm paid.

I don't hold with this "don't tell the client" business, you can bet that the agent is being crafty/dishonest if this happens.

[BlasterBates]

Re: Talk to the client.

Neither the client nor the agency are obliged to divulge the details of their contract, and if you do happen to find out because of people babbling when they shouldn't, then when you come to judge the agency, this particular piece of evidence is "inadmissable", because whether you like it or not it's not your business.

Having said, knowing what the agency can charge is useful in the polite and fair negotiations you undertake once the contract is up for renewal. In certain exeptional circumstances where the agency or consultancy through which you work has some special relationship, eg because they provide fixed price support, they can afford to take a high margin because the client is tied to them, and they can throw you out.

The lesson you should learn is that you are responsible for finding out what you are worth and charging that amount. If you really are worth an extra £100 a day you'll get it when you ask, if not you won't, and they'll replace you.