Day rate skimming Day rate skimming
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  1. #1

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    Default Day rate skimming

    So I had an initial contract of 13 days which was great, turns out the agency was skimming 50% off my day rate. Nothing I can do about it now. Then I was asked to extend for 6 months, even better, but said the client can't afford the same rate as before, you'd have to lose about £50 a day. Turns out they were still taking £200 a day off my rate.

    Now am not an idiot I always knew they'd be making some kind of margin, probably about 20%. But this is like double that. Is there anything I can do about it?

    Aside from either threaten to quit or they give me my monies? Or is there a more appropriate way of going about it?

    Also soon there going to ask me to take on even more work which I was going to up my day rate for anyways so should I just ask for what I want under the guise of that to save any conflict?

    This is a pretty sweet gig so I don't really wanna be dropping the am handing my notice in or less card.

    Cheers

  2. #2

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    The agency isnt skimming anything. They won the business, you get a portion of their income, not the other way round.

    Learn to negotiate. The agency has recovered most of their initial costs, talk them into reducing their margin. Or walk away...
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  3. #3

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    Quote Originally Posted by malvolio View Post
    The agency isnt skimming anything. They won the business, you get a portion of their income, not the other way round.

    Learn to negotiate. The agency has recovered most of their initial costs, talk them into reducing their margin. Or walk away...
    Hmm maybe skimming isn't the best choice of word.

  4. #4

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    How did you find out how much the agency was taking? Are you sure?

    Does this post help https://www.contractoruk.com/forums/...is#post2737124 ?
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  5. #5

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    Quote Originally Posted by BrilloPad View Post
    How did you find out how much the agency was taking? Are you sure?

    Does this post help https://www.contractoruk.com/forums/...is#post2737124 ?
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Last edited by mgrover; 13th April 2020 at 18:06.

  6. #6

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    Quote Originally Posted by mgrover View Post
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Well that's ok, if the rate you are on is the one you were happy with when you started...

    Look at it this way - the client wants you, the agency wants the continuing income. You are not dropping your rate or you walk away. The agency then has to decide how to react, and logically will take the hit on the basis that 6 months of something is better than all of nothing.

    Of course, you have to sound like you mean it. Talk to the client and make sure they are onside; after all, they have the box with the money in it.

    And lesson for the future: you work on getting the rate you want, don't worry about what everybody else is on.
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  7. #7

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    Quote Originally Posted by mgrover View Post
    Spoke to the client, they were pissed because effectively their paying way over the odds. So realistically I might get nothing out of this when they threaten to cut the prices.
    Thats a shame. Most agencies are on preferred supplier lists so agents take a fixed percentage. There are not many end clients around with proper morals like Goldmine Sucks. I dispise them - but very clever people.
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  8. #8

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    Inneresting.
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  9. #9

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    Quote Originally Posted by malvolio View Post
    Well that's ok, if the rate you are on is the one you were happy with when you started...

    Look at it this way - the client wants you, the agency wants the continuing income. You are not dropping your rate or you walk away. The agency then has to decide how to react, and logically will take the hit on the basis that 6 months of something is better than all of nothing.

    Of course, you have to sound like you mean it. Talk to the client and make sure they are onside; after all, they have the box with the money in it.

    And lesson for the future: you work on getting the rate you want, don't worry about what everybody else is on.
    I am happy enough, I mean it's a sweet gig in troubled times. And I've not been contracting for very long only about a year or so, so I don't want to basically throw my toys out the pram and be immature about it.

    I mean am not happy at the slice of the pie their getting, but I'll leave that till the next time they want to change the work I do and I'll ask for more.

    Quote Originally Posted by BrilloPad View Post
    Thats a shame. Most agencies are on preferred supplier lists so agents take a fixed percentage. There are not many end clients around with proper morals like Goldmine Sucks. I dispise them - but very clever people.
    Meh easy come easy go.

    Quote Originally Posted by northernladuk View Post
    Inneresting.
    Oh how so? What part of the north are ya from btw
    Last edited by mgrover; 14th April 2020 at 08:54.

  10. #10

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    Did you discuss your rate with the client?
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