Markup percentage?

[sinbadsailor]

Can someone tell me the average/guideline percentage markup that agencies place on their advertised IT Contract rates to contractors?
Surely this is something that IT contractors need to be aware of?

 

[BetterBiz]

From experience these % are in the 15% range. Some do go up to 20% and some down to 10%.

 

[sinbadsailor]

Thats in or around what I was thinking, any chance you know who the 10% guys are

 

[command]

The minimum is €4 per house but lots of agencies are charging €7. I deal with about 10 different agencies.

 

[BetterBiz]

No sorry I don't! However your best bet is to have in mind the rate you want to earn and will be happy with this. If they will pay you this then whatever they make on top is kind of irrelevant as effectively this is being paid by the end client hiring you. Depending on the skills you have they need you more than you need them as they only get paid if you are working.

 

[sinbadsailor]

they need you more than you need them as they only get paid if you are working

This hasn't been my experience in the last number of years. I have found that they would rather wait out for someone who would accept their offering rate than make less of a % on what you are looking for.

I think I can be quite confident in saying that agencies unwillingness to reduce their % has lost me perfectly suitable roles in the past.

That's the problem, you never actually know what the end client thinks or what they think you are worth, daily rate wise!
You have to take the agent's word for it and that doesn't instill confidence at the best of times.