Agency Margins Agency Margins
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Thread: Agency Margins

  1. #1

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    Default 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; 5th December 2019 at 11:37.
    Clarity is everything

  2. #2

    Still gathering requirements...


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    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).

  3. #3

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

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    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...
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  5. #5

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    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

  6. #6

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

  7. #7

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    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!

  8. #8

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    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.
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  9. #9

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    Quote 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.

  10. #10

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    Quote 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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