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Rate Increase Justification

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    Rate Increase Justification

    Hi all - firstly I appreciate that there may be similar other posts to my situation, this post will help me run through my thought processes and also get input from my fellow CUKers...

    My contract is up for re-newal next month - it was initially for 3 months but agent suggested I sign up for 5 months when offered the role, which I was happy to do for continuity.

    Assuming I am offered re-newal, which I will as I am mid-project, I am going to ask for a rate rise of 10-15%. This is based on the following;

    a) I took a lower rate initially as the contract was for 3, then 5 months only and given the market back in the summer I had no choice but to take it (although it did appeal to me anyway)
    b) The role is below average market rates for Central London
    c) I have been asked to take more project work than originally brought on to do, with a wider remit now
    d) The agent is creaming off 20% commisison - I won't tell him I know this but will use this as abargaining tool
    d) I am pretty good at what I do and can provide justification around this based on what I have completed so far
    e) I feel confident I can achieve this rise and am normally okay when I follow my instincts.

    I however do enjoy it there and need to be careful not to pitch my discussions as '10% rise else I am off" as this is not what I want. I need to hide this from the agent in my discussions who will be desperate for the ongoing commission and so hopefully can to some agreement.

    Thanks for reading / any thoughts welcome.
    Last edited by kaiser78; 5 October 2009, 19:43.
    ______________________
    Don't get mad...get even...

    #2
    Originally posted by kaiser78 View Post
    c) I have been asked to take more project work than originally brought on to do, with a wider remit now
    and thats about your only real reason for a rise, the rest is just noise tbh, you knew the rate when offered, quoting market conditions dont hold much weight in this climate

    Comment


      #3
      Jesus. People who are supposed to be capable of running their own business have to ask such questions on a forum!?

      Un ******* believable!
      I couldn't give two fornicators! Yes, really!

      Comment


        #4
        Originally posted by BolshieBastard View Post
        Jesus. People who are supposed to be capable of running their own business have to ask such questions on a forum!?

        Un ******* believable!
        With understanding, insight, knowledge, helpfulness and goodwill such as this it's Un ******* believable that more people don't ask for assistance on these forums.

        Comment


          #5
          Originally posted by BolshieBastard View Post
          Jesus. People who are supposed to be capable of running their own business have to ask such questions on a forum!?

          Un ******* believable!
          Struggling to see what is so unbelievable ?? Please enlighten...actually don't worry about it.

          (BTW - thanks but I am more than capable of running my own business.)
          ______________________
          Don't get mad...get even...

          Comment


            #6
            Originally posted by downsouth View Post
            and thats about your only real reason for a rise, the rest is just noise tbh, you knew the rate when offered, quoting market conditions dont hold much weight in this climate
            Thanks and point noted, although I will bring in the other elements during discussions if required.
            ______________________
            Don't get mad...get even...

            Comment


              #7
              You could always claim you were on a 'discount' rate before and you want to return to business as usual. Don't think it will work though. Only thing that will really swing a big rate rise is increased responsibility and/or change of role.
              Cats are evil.

              Comment


                #8
                Originally posted by kaiser78 View Post
                Thanks and point noted, although I will bring in the other elements during discussions if required.
                The other reasons are in fact reasons for them to refuse a rise, I would avoid those like the plague.

                The selling points you have are about responsibility increase, proven ability to deliver and your site knowledge/experience. You've got to convince them the extra cash is worth something.
                Ignore Bolshie, he's just having a marginally more stroppy moment than usual.

                Comment


                  #9
                  Originally posted by kaiser78 View Post

                  a) I took a lower rate initially as the contract was for 3, then 5 months only and given the market back in the summer I had no choice but to take it (although it did appeal to me anyway)
                  b) The role is below average market rates for Central London
                  c) I have been asked to take more project work than originally brought on to do, with a wider remit now
                  d) The agent is creaming off 20% commisison - I won't tell him I know this but will use this as abargaining tool
                  d) I am pretty good at what I do and can provide justification around this based on what I have completed so far
                  e) I feel confident I can achieve this rise and am normally okay when I follow my instincts.
                  a) The market is no better now.
                  b) All current rates are below average in London.
                  c) Welcome to the wonderful world of Contracting.
                  d) I'm with you here. Kick the b'stard where it hurts - in the commission. You've probably go no chance of getting any extra cash out of the client, so this is your only option. Still, your call as to whether you want to push it with the client also.
                  d) You had two 'd's. I'd give you a rate cut based on that alone.
                  e) Well, like d (2), this just sounds like bravado on your part. I'll be expecting you on the bench soon with that type of thinking.

                  Nomadd
                  nomadd liked this post

                  Comment


                    #10
                    d) I am pretty good at what I do and can provide justification around this based on what I have completed so far
                    Thats hardly justification for your raise. You were taken on cause you were going to be bloody good at what you do...

                    I have to agree with someone of the more cynical here as well. I don't see anything with any weight justifying your position for 10-15% at all. You have a little bit of position power with the fact your already in but thats about it. I would forget the 15% top end for a start. Try and get a couple of quid out of the agent and then batten the hatches and wait out the the recession personally.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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