What to do in negotiations

[BlackenedBiker]

I have been offered a 13 months extension to my contract. I know that this is good news given the current climate and I am very grateful. However, the rate is not stellar and I am keen to negotiate a rise.

I am looking at a rate rise of about 22%.

However because it is a 13 month extension I think that the agency should lower their % cut. I have insider knowledge (the Agents are not aware of this) that they are charging 20% for me. I think that for a 13 month extension they should be charging around 13%.

I would be very grateful for strategies on how to make all parties see my point of view.

Thanks in Advance.....

[singhr]

The only time I've managed to get a rate rise on renewal is by letting it go down to the wire before getting the cards on the table and saying 'sorry I've been offered more elsewhere and will have to pass'. You have to have balls to do it and it runs the risk of the client thinking you are holding a gun to their head but it has worked for me and boy does the agent moan when the client tells em to reduce their margin. However, in current climate I would either swallow it or go for shorter period so you get a chance for another haggle in a couple of months. In my sector all I am hearing is war stories from contractors who have been told to cut their rate 5-10% or walk. Good luck.

[BlackenedBiker]

The only time I've managed to get a rate rise on renewal is by letting it go down to the wire before getting the cards on the table and saying 'sorry I've been offered more elsewhere and will have to pass'. You have to have balls to do it and it runs the risk of the client thinking you are holding a gun to their head but it has worked for me and boy does the agent moan when the client tells em to reduce their margin. However, in current climate I would either swallow it or go for shorter period so you get a chance for another haggle in a couple of months. In my sector all I am hearing is war stories from contractors who have been told to cut their rate 5-10% or walk. Good luck.

Sure, I hear that, however I am particularly keen to get full disclosure from the agent and get them to reduce their rate. Do I just go to the wire or are there other tricks????

[The Lone Gunman]

Sure, I hear that, however I am particularly keen to get full disclosure from the agent and get them to reduce their rate. Do I just go to the wire or are there other tricks????

If you are going to join in this dance then you need a fall back position, another contract should they call your bluff. If you havent got that then it is a dangerous game.
Your only real negotiating point is the withdrawrel of your services. They might let you.
Tell the client that the agent is taking too much and you dont like it. Tell the agent that what you are getting is at odds with the work you are being asked to do.
Point out to both that you have a track record, you can do the work, you get on with the staff and management and that should you leave they take the risk of being able to replace you with a similar person and it will take some time for any new bod to acclimatise.

But they may let you walk. Have somewhere to go. Or have plans for your bench time.

[BlackenedBiker]

If you are going to join in this dance then you need a fall back position, another contract should they call your bluff. If you havent got that then it is a dangerous game.
Your only real negotiating point is the withdrawrel of your services. They might let you.
Tell the client that the agent is taking too much and you dont like it. Tell the agent that what you are getting is at odds with the work you are being asked to do.
Point out to both that you have a track record, you can do the work, you get on with the staff and management and that should you leave they take the risk of being able to replace you with a similar person and it will take some time for any new bod to acclimatise.

But they may let you walk. Have somewhere to go. Or have plans for your bench time.

Thanks for the reply.

Yes, you're right it is a dangerous game, but it is the game that we are in. It is up to us as contractors to stand up for ourselves and the services that we provide.

I am working on another position as we speak and I should find out today, whether I have an interview etc.

I think that if the negotiations don't go as planned (meet the stop loss that I have set) then I will simply accept it and say nothing but I will insist my notice period is 1 week and look for another position.

How does that sound, sensible???

[singhr]

Agents are handling this situ every week whereas we only get to practice once every 6 months or whatever. All the tricks are in the public domain and agencies have pre-thought how to handle you, so you really have no option but to walk to get their attention. My tip is to treat others how you expect to be treated yourself, so no underhand tricks.

[DimPrawn]

I've found threatening to delete all their source code works.

[swamp]

I know a contractor who got a 60% rise. He was exceptionally good, but was straight off the boat and naive about contracting. On renewal he threatened to leave unless he was paid the going rate.

I don't think you will get 22% unless you directly threaten to walk. You may get 5 or 10% by arguing your case with the agent (and possibly the client too). Possible angles:

* You were on a 'discount' rate before but now you're just reverting to your normal rate.
* You have increased responsibility; the role has changed.
* You have other tempting possibilities on better rates.

Remember it's none of your business what markup the agent is getting.

[BlackenedBiker]

I know a contractor who got a 60% rise. He was exceptionally good, but was straight off the boat and naive about contracting. On renewal he threatened to leave unless he was paid the going rate.

I don't think you will get 22% unless you directly threaten to walk. You may get 5 or 10% by arguing your case with the agent (and possibly the client too). Possible angles:

* You were on a 'discount' rate before but now you're just reverting to your normal rate.
* You have increased responsibility; the role has changed.
* You have other tempting possibilities on better rates.

Remember it's none of your business what markup the agent is getting.

I understand that it is none of my business but knowledge is power, and considering that this is an extension (therefore no work required to place me this time) I think that a reduction in rate is justifiable. Am I incorrect?

[Sysman]

I understand that it is none of my business but knowledge is power, and considering that this is an extension (therefore no work required to place me this time) I think that a reduction in rate is justifiable. Am I incorrect?

Erm, remember that the agent is negotiating your rate with the client.