Caveated Boomed - form of words?

[pjclarke]

So - an offer of a contract extension for another 3mths. But when I took the role 3mths ago I requested a higher rate and was rebuffed, with the message there was nothing in the budget right now, but they would review at renewal time. So I signed; I wanted the role. Now, the offer is for the same T&Cs and the offer of a review seems to have been forgotten.

Now I am loving the work, the team and the client and will stay on even at the lower rate which is below market for my skillset and experience, at least in London, and less than some other contractors are getting, but allows me to turn a decent profit.

So my question is this: what form of words would you use in requesting an uplift in the day-rate to maximise the chances of getting one, given one is negotiating from a position of weakness, but the other party don't know that (unless they're reading this of course, Hi Karen!).

Serious answers pls.

[northernladuk]

The rate I want is £xxx.
Sorry we can't pay that.
That's a shame. It's been nice working with you.

Are you direct or through an agent.

If you are not willing to walk you have no negotiation power I am afraid.

[pjclarke]

The rate I want is £xxx.
Sorry we can't pay that.
That's a shame. It's been nice working with you.

Are you direct or through an agent.

If you are not willing to walk you have no negotiation power I am afraid.

We must play poker some time. I know that I won't walk, they don't. I'm thru an agent, basically a monopoly supplier, don't think they do direct.

Rather than me naming a figure, I've asked them to review the offer as we discussed, but I think you're right - the most likely outcome is I'll re-sign on their terms. I just was wondering if anyone better versed in game theory or nuanced negotiations than I had any experience they'd share....

[northernladuk]

You have to convince them that you will, which will be difficult if you have signed once already. Agents do this for a job and it's his money you are trying to take. He deals with contractors meekly asking for a bit more every day so knows who he can ignore and who he can't. If you can stick it to him and make him sweat you might as well not bother at all.
Name your terms. People aren't going to offer you more if the decision is up to them. It's a business negotiation.

[northernladuk]

Oh and if he is a monopoly supplier are you sure he isn't on fixed margin?

[SueEllen]

We must play poker some time. I know that I won't walk, they don't. I'm thru an agent, basically a monopoly supplier, don't think they do direct.

Do you know how the monopoly supplier is getting paid?

Some only get a percentage uplift on your rate i.e. 8% so the client knows how much they are paying for you.

If it's this you need to spend the last month of your contract looking for better paying contracts in the same location and then tell them you are leaving. You can delay signing extensions right up to the last few days of your contract.

[I just need to test it]

Rather than a straight "I want £££" could you perhaps offer some justification for the raise.

"I have achieved X, Y and Z in the three months I have been here. I have built good relationships with the business/team, and gained experience in <client-specific tool/process> . This knowledge will be invaluable in months 4, 5 and 6 for <insert reason here>.

I've had to do this on a number of occasions. I've been knocked back more often than not but once it got me a ton a day extra.

[northernladuk]

Rather than a straight "I want £££" could you perhaps offer some justification for the raise.

"I have achieved X, Y and Z in the three months I have been here. I have built good relationships with the business/team, and gained experience in <client-specific tool/process> . This knowledge will be invaluable in months 4, 5 and 6 for <insert reason here>.

I've had to do this on a number of occasions. I've been knocked back more often than not but once it got me a ton a day extra.

I assume you were direct? This wouldn't work with an agent. He doesn't have a clue or give a toss.

[Antman]

Do you know how the monopoly supplier is getting paid?

Some only get a percentage uplift on your rate i.e. 8% so the client knows how much they are paying for you.

If it's this you need to spend the last month of your contract looking for better paying contracts in the same location and then tell them you are leaving. You can delay signing extensions right up to the last few days of your contract.

+1 BATNA

[pjclarke]

Its technically an agency, but with a relationship that makes it effectively part of ClientCo's business, like an outsourced IT Dept. My contact (its a 'she' BTW) will have received feedback from people on the ground requesting my renewal.

It will go like this: she'll come back with 'Sorry, no more on the table: X is our best offer', I'll counter with 'OK, I was hoping for X+A so I'm outta here', she'll come back with 'OK we can stretch to (X+B) where B<A' and I'll accept or she'll say 'X' - and I'll accept.

All a bit ritualistic, but that's how the game goes.