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Agents who take huge cuts , renewal time strategy.

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    #11
    Although a late reply to this thread I've had a similar situation in the past (early in my contracting career), not by comparing rates of other contractors, but by having a frank discussion with the end client about the rate I was being paid.

    In the particular contract in question, the agency were pulling a fast one with a markup of just over 30% at the time. When the end client found out they went ballistic, suffice to say that my rate was increased accordingly. The ultimate cherry on top was that the agency was removed from the approved suppliers list and eventually folded.

    The moral of the story here is for contractors to know their worth and more importantly for agents and agencies to not take the proverbial as you will get found out, unwise when the majority of your contractors are placed at a single client.

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      #12
      In this environment, it will be fair if you ask the agency to cut their rate to the minimum. I don't know if 10% is the minimum. You may start from 5-6%, the bare minimum at which they could run their accounts without making a loss.

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        #13
        Contracts I have had often carry a clause that restricts you from discussing rates / contracts with other contractors and the end client. (might be dressed up as keeping commercially sensitive information confidential)

        So, take care with the "X is on y rate" and "client Co are paying A rate for me" - you could inadvertently demonstrate breach of contract.

        M

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          #14
          Originally posted by mjcp View Post
          Contracts I have had often carry a clause that restricts you from discussing rates / contracts with other contractors and the end client. (might be dressed up as keeping commercially sensitive information confidential)

          So, take care with the "X is on y rate" and "client Co are paying A rate for me" - you could inadvertently demonstrate breach of contract.

          M
          And this is precisely the reason why they have such clauses.
          I’ve known agencies/consultancies walk people off site for having these discussions.
          See You Next Tuesday

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            #15
            Originally posted by Lance View Post
            And this is precisely the reason why they have such clauses.
            I’ve known agencies/consultancies walk people off site for having these discussions.
            Really? An agency has walked somebody off site for this? I'm aware that their business model is based on smoke and mirrors but they'd remove a fee-earner for them and then oblige the client to go through the rigmarole of interviews again, what did the client make of all this?

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              #16
              Unless you are 100% prepared to walk, don't bluff.
              The greatest trick the devil ever pulled was convincing the world that he didn't exist

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                #17
                Originally posted by Antman View Post
                Really? An agency has walked somebody off site for this? I'm aware that their business model is based on smoke and mirrors but they'd remove a fee-earner for them and then oblige the client to go through the rigmarole of interviews again, what did the client make of all this?
                An agency can walk the contractor off site and use innuendo to cover up what the actual reason was - so unless the contractor was very quick it's highly unlikely the client finds out the truth.
                merely at clientco for the entertainment

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                  #18
                  in 20 years of contracting, seen a couple of nasty situations develop from agents taking larger than expected cuts.

                  1. client insisted I tell them my day rate at interview. Only happened once, but client insisted on a cut to reduce the agency margin. Agency insisted I take the cut. In the end, I accepted it, as I was in a bad market. This was around 15 years ago.

                  2. client found out about agency cut being higher. Client furious and terminated contract with agency. Contractors were told by client to use another agency if they wanted to stay. They moved to another agency. The original agency found out, and threatened to sue the existing contractors for lost income. One contractor got sick of the drama and left. The rest carried on using the new agency, and eventually the old agency gave up on the idea of suing them. But the threats, and drama at the time were nasty.

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                    #19
                    Originally posted by LondonManc View Post
                    Unless you are 100% prepared to walk, don't bluff.
                    This is the key, there is no point playing any games unless you are prepared to walk.

                    Secondly, if money is the only factor you should get out of contracting, if someone is getting 12.5% more than you there could be a myriad of reasons as to why. If you were happy with the rate to begin with what has changed, if you weren't happy why did you accept it then?

                    Thirdly, agents don't take a cut, it's their relationship with the client and you take a cut of their money.
                    Originally posted by Stevie Wonder Boy
                    I can't see any way to do it can you please advise?

                    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

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                      #20
                      Originally posted by SimonMac View Post
                      This is the key, there is no point playing any games unless you are prepared to walk.

                      Secondly, if money is the only factor you should get out of contracting, if someone is getting 12.5% more than you there could be a myriad of reasons as to why. If you were happy with the rate to begin with what has changed, if you weren't happy why did you accept it then?

                      Thirdly, agents don't take a cut, it's their relationship with the client and you take a cut of their money.
                      Absolutely this ^^^.

                      It's scary how many contractors think they are the ones winning the business. It's a commodity market these days, you are merely cannon fodder (or, to be a little more Keynesian, a cash cow). You want more money, learn to negotiate or find the work yourself and go direct. but foirst, understand the market you are in.
                      Blog? What blog...?

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