atw: Re: Agency Rates

Can't agree with you there Dennis.  I think its important that you know what 
the end client is paying for your services; how can you expect to manage 
expectations.  Though it is almost never openly stated by any party, it all 
very silly I think because you almost always end up finding out anyway!
50-75% is high but not unheard of.  I too have worked in a similar 
circumstance; but was aware of what the client was being billed.

I don't have a lot of experience with the large agencies but am currently 
working through one that has an open book policy in terms of charges.  Everyone 
is aware of what all parties are paying and receiving.  It was a refreshing 
approach and much healthier for all concerned: BTW the agency in this case is 
receiving about 15% of what I'm receiving as a margin.

Pete










> Your client is the agency. 
> Likewise, if I buy a widget from the hardware store and I pay $10 for it, I 
> don't care if the stoe paid only $1 for the widget. i was happy with the 
> price, paid it, and thats the end of the matter.
> Negotiate the price with the agency, and if you're happy with what they are 
> paying you, that's it. 
> Otherwise, you go and get the job from the agency's client.
> Some agencies 'buy' better than others. It's not a crime, it's good business.
> Good luck.
> 
> Dennis
> Roy and Diane Chester wrote:
> A few years ago, a range of agencies made a special point of advertising
> that they charged only 7% above the money the contractor was receiving. 50%,
> to me, is obscene. 75% ought to be grounds for legal action by both client
> and contractor.
> 
> I recently worked with a group of contractors direct with a company, and
> thought I had hit the lodestone. The others were very dismissive of the
> rate, and said it was low by their standards. Maybe I have been milked by
> too many vulturine agencies like Chris's.
> 
> Roy Chester
> ----- Original Message -----
> From: "FreeLists Mailing List Manager" 
> To: "austechwriter digest users" 
> Sent: Sunday, October 31, 2004 6:01 PM
> Subject: austechwriter Digest V2 #302
> 
> 
> > austechwriter Digest Sat, 30 Oct 2004 Volume: 02 Issue: 302
> >
> > In This Issue:
> > Agency fees [Was: Unreasonable/ Ineffective Contract term]
> >
> > ----------------------------------------------------------------------
> >
> > Date: Sun, 31 Oct 2004 09:03:59 +1000
> > From: Chris Curnow 
> > Subject: Agency fees [Was: Unreasonable/ Ineffective Contract term]
> >
> > Just to revive this thread from a couple of weeks ago.
> >
> > I am interested in the range of fees agencies charge - ie the
> > percentage increase on our fee they add when charging the client.
> >
> > I don't do contract work all that often, more of a fill in when my
> > consultancy work is a bit quiet or, as at present, I am reworking the
> > focus of my consultancy practice.
> >
> > Anyway, for that reason, I don't bother about the details of the
> > contract too much. I read it and am prepared to cross out obnoxious
> > clauses, but don't usually worry about the ones that just annoy me.
> >
> > Just now though, I am doing a contract that started out as a nice two
> > month fill in and will turn out to be six months commitment. Sort of
> > change my focus a bit.
> >
> > In the recent re-negotiations to extend my current contract I asked
> > what rate the agency was charging the client. I guessed it was around
> > 50%. (ie I charge them $60 ph and they charge the client $90 ph) The
> > agency didn't want to tell me but in the end the client did.
> >
> > I found out that the agency was charging 75% above my rates.
> >
> > Am I alone in thinking this is obscene?
> >
> > How many of you know what the agency charges.
> >
> > What is the range of fees?
> >
> > regards
> > --
> > *-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-
> > Chris Curnow
> > Director, The Riverside Group
> > +613 9587 8727 mobile: 0413 514 893
> > mailto:chris@xxxxxxxxxxxx
> > http://www.theriversidegroup.com
> > http://www.chriscurnow.com
> >
> > ------------------------------
> >
> > End of austechwriter Digest V2 #302
> > ***********************************
> >
> 
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> 
> 
> Dennis Frankel
> 
> Help Systems Development
> 
> 0425 736 733
> 
> 
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