Contractor: difficult agency

[snake_oil]

I work in an onsite customer facing role, for a client, via an agency on a daily rate. Client is very pleased with my performance. It's renewal time after over 15 months in the role on my original rate.

Agency are refusing to budge on a small requested rate increase. I have explained the amount of overtime hours I put in (which I don't bill for), I have discussed politely until I'm blue in the face, however all I get is computer says no.

Background. I have a great relationship with client who showed me the rate card and therefore the agency margin. Margin is around 22%! In the past I have worked at margins of 5-10%.

In 'negotiations' with the agency they come out with every story in the book. From stuff like it's the industry norm to reduce rate on renewal so you're lucky to be offered the same, to the project is on a blended rate so your margin is irrelevant as you're subsidising other team members.

I enjoy the job but am hacked off with the agency - it took three months of working without pay at the start of the contract in order to get anywhere approaching the correct market rate for the role in the first place and I'm still well below (100-150pd).

The answer isn't walk as I do enjoy the role and the challenge it brings but the agency are s. All the other guys in my project are via the same agency and have similar experience to myself. Not sure what to do! Has anyone experienced similar?

[Cardinal Hips]

You would have thought they'd just take the hit on their side to give you a bit more. 22% is pretty extreme.

I've dealt with unmovable agencies with ste rates, it doesn't matter what you say, they've got an excuse as to why they can't move on their side, even though they are parasitic middle men that do sweet FA 99% of the time, I've found jobs on my own, off my own back only to then be introduced to an agency who took a cut as the client didn't want to "raw dog" it with my ltd co "it has to go through an agency" Un-fkingbelievable.

I know one place where the jobbing rate has been the same since 2006, and some blokes have been there the whole time just taking it, I ask them why don't you renegotiate the rate and they shrug, if you try and raise it you get binned off basically, any ring leaders are dealt with as the jungle drums get back to the agencies.

If the gig is a good one, it's hard to put your middle finger up, I've worked some bad rates because the role was so fantastic. Might just have to swallow it, ride the 'till the wheels fall off, maybe approach the client and ask for a side bunce of a few £ per hour sent direct to your co, or to go direct, get rid of the agency, sticky ground mind.

That was a load of waffle, sorry, what was the question? Are you ltd?

[bigandclever]

snake_oil said:

The answer isn't walk

Unfortunately, it probably is; either that or suck it up, if there's no successful negotiation.

Also, stop doing unpaid extra hours, you're not a charity.

[Mr Pointy]

Stop being trampled on & start acting like a proper contractor instead of the disguised employee you actually are. Either go direct to the client, find a new agency, find a new job or stop whining & accept you're an employee & have to put up with the crap they are dealing you.

[alfie2244]

You don't sound like a contractor to me.

[Never you mind]

3 options.

1) Tell the agency to stuff and that you are swapping to another agency with a better day rate. May or may not be true but you could ask the client if they use any other agencies.
2) Ask the client if you can go direct.
3) Tell the agency to stuff it and walk.


Also, why did you work for 3 months without pay?

[witko999]

My current agent told me upon starting work for a client, that the rate would go up to x amount after 3 months. Of course, when 3 months came, the agency were highly resistant to any movement at all and full of excuses. After a while of chasing I just emailed them saying that as of the following Monday, my rate would be this.

As a contractor it's up to you what you charge, and then it's up to the agency/client whether they will pay for it or whether your services will no longer be required.

[MagicalTrevor]

I assume you're Ltd Co?

A proper Ltd. co. contractor would advise the client the the rate is going up and then pass that message on to agency. I did exactly this not so long ago, the agency didn't like being left out of the loop but they're useless anyway. It was up to them whether they sucked it up or passed on the increase but that wasn't my issue

[Terminator X]

Same job different agency?

TX.

[Crasher242]

MagicalTrevor said:

I assume you're Ltd Co?

A proper Ltd. co. contractor would advise the client the the rate is going up and then pass that message on to agency. I did exactly this not so long ago, the agency didn't like being left out of the loop but they're useless anyway. It was up to them whether they sucked it up or passed on the increase but that wasn't my issue

^^ this

You're within your right to increase your fees, and its down to the agency to handle the client-side negotiations.
As an observation - 22% margin is taking the piss.

Its money for nothing - a half-decent agency should see this and absorb a rate increase to ensure a continued flow of "free" funds to their coffers.

Otherwise, and its an option i have taken in the past, is decline the renewal (advising the client directly of the intentions), take a 2-4 weeks sabbatical and then get magically called up by the client asking if you are available. go direct.

[redandwhite]

I dont think you have helped yourself by doing the unpaid work - could you bill for these going forward or is it a flat day rate?

Given your current relationship - could you cut the agency out of the deal? (probably not)

Speak with the client and put your concerns forward, with the underlying message that if its not sorted in x amount of time you will be 'forced' to look elsewhere, time to up the ante!

[cat with a hat]

You have a choice... Suck it up or get some balls.