Direct Contract negotiation

[voodoo child]

Hi guys and girls, I've searched the forum but I couldn't come across any answer to my question.
Basically I might have the chance to get a direct contract with a client. This is the first time, if my usual rate is around 600-650 what could be fair to ask in the direct contract?

Thanks for the help!

[MarillionFan]

Hi guys and girls, I've searched the forum but I couldn't come across any answer to my question.
Basically I might have the chance to get a direct contract with a client. This is the first time, if my usual rate is around 600-650 what could be fair to ask in the direct contract?

Thanks for the help!

About a £1000 would be fair. Lest that way you get an increase and the company gets a discount on normal contract rates.

[JamJarST]

About a £1000 would be fair. Lest that way you get an increase and the company gets a discount on normal contract rates.

Rubbish, you need to back that up with some better reasoning than that.

[northernladuk]

What is the going rate for your type of work? IMO Just because you are going direct doesn't mean you can charge over the odds or expect the agents cut to be included as well. The client pays the extra to the agents for their services. Just because they are not using an agent it doesn't mean you can have the money the agent would have got. You didn't say what you did so just plucking a number out of the air means nothing.

[SarahL2012]

There's a paper out by Institute of Interim Managers that has got some survey data. Agencies typically get 20% - 25% of your day rate and when they're out of the equation interim managers can typically negotiate around a 6% increase to their day rate.

Personally I go for 10% on the basis I'm then splitting the difference with the client. They need to feel that they're getting a saving by not using an agent to bring you on board.

[Murder1]

I agree with Sarah that a 10% increase on your normal daily rate would be acceptable

However one warning I'd add is that few companies like contractors direct and instead prefer agencies (for various reasons not worth discussing here), so why not initially keep your rate the same to get the contract (you're not losing out on what you would normally invoice anyway) and then look to increase the rate once you've secured the position and proven your worth the the end client?

[Scrag Meister]

As others have said, 10%, depends on the normal margin for the agencies at the client though.

I went direct for my current role, but the client still through an agency into the mix, presumably to put some distance between MyCo and ClientCo.

Agency on this gig is getting very low rate, due to volume and not having done any work to recruit me. So basically only providing payroll services and even that is only on a "Client pays us we pay you" basis.

Has worked fine for the last 18 months so can't complain.

[Alias]

Business is business IMO, I'd ask for 12% and if needed negotiate down to 7.5% but make it clear that 10% is more realistic for you

[voodoo child]

Thanks everyone! I have a better overview now.
I'll start with 725 to possibly hit 700.

Cheers.

[MyUserName]

Thanks everyone! I have a better overview now.
I'll start with 725 to possibly hit 700.

Cheers.

Percent? Wow, I like your style!