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Agency Margins

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    Agency Margins

    Recently had interview for role, went well, sounds good.
    We discussed rates, & it transpires agency margin is £100+/day which I think is unreasonable.
    Thoughts?
    Last edited by SteelyDan; 5 December 2019, 11:37.
    Clarity is everything

    #2
    So long as you end up with what you are happy with why worry about any other parties.

    If your agency gets £100 each day but you also end up with what you wanted then everyone wins. Looking at the agency thinking "...but that's not fair. I could've got more!" isn't the right way of thinking.

    You charge £X per day. If someone is happy to pay that then everything else shouldn't matter (it's their business).

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      #3
      Current gig the agent gets 150 . Accepted norm is 14-15% though I believe.

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        #4
        So negotiate - or don't take the gig.

        Don't forget, they don't take a cut of your income. You get a cut of theirs.
        You need to secure the rate you want, and generally speaking their margin is irrelevant: 100 a day is quite a lot if you get £250 a day, but not all that much if you get £1000...
        Blog? What blog...?

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          #5
          All good & reasonable points, thanks. Normally it's been £50 margin but this £100+ seems a bit OTT.
          Yes Mal, next step is negotiating with agent to see if I can push it more in my favour.
          Not really the climate to be not taking opportunities I know. One of those times when I wish I hadn't asked, I think; sometimes it's best not to know these things.
          Clarity is everything

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            #6
            you should be happy agency went with you rather than the guy that can do the same job for 50 quid cheaper

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              #7
              That's nothing. In one of my previous roles, I realised the agency was getting £350/day. Though I was fine with my rate but.....damn!

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                #8
                Most IBs are on a fixed percentage structure based on length of stay - 1st year c10%, reducing to 5% by the end of 20 months for example. They manage to make a lot of money on a volume basis.

                Up to the client to cap it so they're not paying £600pd for a £300pd contractor as has happened in the past.
                The greatest trick the devil ever pulled was convincing the world that he didn't exist

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                  #9
                  Originally posted by SteelyDan View Post
                  Recently had interview for role, went well, sounds good.
                  We discussed rates, & it transpires agency margin is £100+/day which I think is unreasonable.
                  Thoughts?
                  It's capitalism at its finest.

                  You can refine it still further through negotiation.

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                    #10
                    Originally posted by simes View Post
                    It's capitalism at its finest.

                    You can refine it still further through negotiation.
                    WIP...
                    Clarity is everything

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