Economic Crisis & Rate Reduction

**NotAllThere** · 7 April 2020, 12:26

Working 3 days rather than 5 would be better.

**LondonManc** · 7 April 2020, 12:27

If you have a good relationship with the hiring manager, ask what they were thinking. There's no way I'd be leaving it to the agency.

**LondonManc** · 7 April 2020, 12:27

Originally posted by NotAllThere View Post

Working 3 days rather than 5 would be better.

4 would be better.

**northernladuk** · 7 April 2020, 12:30

Originally posted by aft View Post

I received comms from hiring manager at client co that they had asked the agency for a reduction in rate, and as such we should expect to hear from them today.

The agency tried to get in touch this morning but I was busy doing work for the client.

I believe the agent will ask me to choose a reduction as client co haven't given a target figure.

I don't really know how to play this. I am tempted to suggest the agent that we agree to dropping our prices in an equal amount, e.g. take £40 from my day rate and £40 from their cut.

Realistically I am sure they wont want to budge on their margin and will pressure the majority of the reduction is on my side.

Has anyone been in this situation before? Is there an alternative to sucking it up? What is a reasonable amount to suggest, either as % or a fixed amount?

I get £600 p.d. and agency takes 12.5 on top

So you think it's fair for you to take a 40 quid hit on 600 quid and they take 40 quid on 12.5%?

Theoretically they could shave a few single points of that, arguably up to 5% but not at risk of them going bust. Their fixed costs haven't changed.

You could play hardball if you want but not sure where that's going to get you. Everyone is being absolutely screwed by what's going on so throwing the teddy out of the cot for a rate reduction won't look very good for you.

You could of course accept it as it's still 100% more than nothing and having outside IR35 income coming in over this period is absolutely king. I'd take a wild guess there are many thousands of contractors that would have chopped their own left nut of with a butter knife to be in your shoes rather than on the bench.

I assume your expenses have also dropped because you are now working from home as well so your effective take home has gone up somewhat?

**Cirrus** · 7 April 2020, 13:26

Maybe Steer Clear of Financial Services

Originally posted by northernladuk View Post

it's still infinity% more than nothing

FTFY

**GhostofTarbera** · 7 April 2020, 13:36

Economic Crisis &amp; Rate Reduction

The client will be looking for 40%-50% cuts, they would not bother even asking for £40

The people that take biggest cuts will stay, £40 quiders will be terminated

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**Lance** · 7 April 2020, 14:14

Originally posted by GhostofTarbera View Post

The client will be looking for 40%-50% cuts, they would not bother even asking for £40

The people that take biggest cuts will stay, £40 quiders will be terminated

depends on the contractor, and the client.

I've been asked three times, on three different contracts, what cut I'd accept.
Everytime I've said no.
Never have I had to leave due to that. On two occasions I've been there for at least 6 months afterwards.

**ladymuck** · 7 April 2020, 14:16

Originally posted by NotAllThere View Post

Working 3 days rather than 5 would be better.

I'd propose this. Part time is a better option than reducing your rate.

Leaves you potentially available for other work.

**northernladuk** · 7 April 2020, 14:22

Originally posted by NotAllThere View Post

Working 3 days rather than 5 would be better.

Just work 3 and bill them for 5. Everyone thinks it's OK.

Economic Crisis & Rate Reduction