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Interview and Rates negotiation

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    Interview and Rates negotiation

    Hi,

    I am going to have my 1st interview as contractor tomorrow. (I was perm for last 6 years). I told my daily rates to the agency and she has forwarded same figure to the company. They (agency) also told me avoid negotiating rates directly with the client! I am concerned that if I don't do that and some other candidate does then I will not be selected (provided we have similar skills and experience).

    If they (client) ask my what rates you will be happy with (lowest figure) then What is your advise about how to negotiate rates (or not) during the interview?

    Thanks

    #2
    Are you going temping or contracting ?

    Welcome good post, question shows your as green as grass to contracting.

    Your contract is with the agent - Not the client (you are a business not a temp) you agree rate (you are happy with) with agent - what the agent charge client is 100% up to them.

    P.s don't ask the client if you get holidays

    Comment


      #3
      Thanks tarbera,

      However if they ask something related to the rates in the interview then would it be wise to suggest something like .. "If you want to come up with an offer then you can contact to the agent... " ?

      PS I promise, I wont

      Comment


        #4
        not going to happen

        Originally posted by acontractor View Post
        Thanks tarbera,

        However if they ask something related to the rates in the interview then would it be wise to suggest something like .. "If you want to come up with an offer then you can contact to the agent... " ?

        PS I promise, I wont
        It wont come up, but you have to be careful that Agent knowing your a newbie is taking a bigger slice of the pie than he normally would. My 1st Agent 14 years ago was skimming 100% markup, and I was happy on my £1500 a week.

        Comment


          #5
          Originally posted by tarbera View Post
          It wont come up, but you have to be careful that Agent knowing your a newbie is taking a bigger slice of the pie than he normally would. My 1st Agent 14 years ago was skimming 100% markup, and I was happy on my £1500 a week.
          Thanks I'll keep that in mind. As its my 1st attempt, I am not much in position to do anything about it at this point.

          Wish me luck..

          Comment


            #6
            Originally posted by acontractor View Post
            Thanks I'll keep that in mind. As its my 1st attempt, I am not much in position to do anything about it at this point.

            Wish me luck..
            I disagree, look at itjobswatch.co.uk, it'll give you a ball park market rate for the skillset you select.

            Its not accurate but will give you an idea.

            e.g.
            London VBA Rates


            Oh yeah, and Good Luck.
            Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

            Comment


              #7
              Don't discuss rates with the client. In most cases the client will have already agreed what they are going to pay the agent so if you mention your rate you're inadvertantlky disclosing the agent's margin. The client will then apply pressure on the agent to reduce their rate which won't do you any favours at all.

              Comment


                #8
                As several have said this can be dangerous ground, but always bear in mind:

                1. It would be extremely useful if you can get the Client to disclose the Agency's rate (once you get the role this is very useful for negotiating with the Agency for a higher rate )
                2. Always get a Client contact number which can be used as a back channel against the Agency's lies (oh yes there will be lies, and lots of them) re: daily rate
                3. Finally, never believe anything the Agency tells you, they always lie (ooh, didn't I already say that?) - making a reasonable (12.5% - 20%) commission is business, beyond this they are taking the p*ss

                Comment


                  #9
                  Originally posted by Gordon Ice View Post
                  As several have said this can be dangerous ground, but always bear in mind:

                  1. It would be extremely useful if you can get the Client to disclose the Agency's rate (once you get the role this is very useful for negotiating with the Agency for a higher rate )
                  2. Always get a Client contact number which can be used as a back channel against the Agency's lies (oh yes there will be lies, and lots of them) re: daily rate
                  3. Finally, never believe anything the Agency tells you, they always lie (ooh, didn't I already say that?) - making a reasonable (12.5% - 20%) commission is business, beyond this they are taking the p*ss
                  Top answer, agree 100% with that except an agents margin can go as low as 5% if they have a lot of contractors and they are preferred suppliers.
                  Free advice and opinions - refunds are available if you are not 100% satisfied.

                  Comment


                    #10
                    Originally posted by Wanderer View Post
                    Top answer, agree 100% with that except an agents margin can go as low as 5% if they have a lot of contractors and they are preferred suppliers.
                    You're unlikely to see an agency drop to 5% for anything that isn't sole/managed service business (IE they control the whole thing). My drop dead margin (ie. the point I walk away and say it's not worth it) is 12.5%. My standard is 20%, and I tend to settle on 15 - 17% if there's some assurances of further business.

                    Hope this gives you a rough idea.
                    "Being a permy is like being married, when there's no more sex on the cards....and she's got fat."
                    SlimRick

                    Can't argue with that

                    Comment

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