The agency mark up is XX%! I'm gobsmacked

notsurewhereIstand

..and a bit stunned.

not 15%, 17.5%, not 20%

but a whopping 50%!!!!!!

and more than £50 a day!

Judas

Your point?
A good whack of that 50% will go on Tax,NI and statutory payments (Holiday entitlement before they even start)

notsurewhereIstand

No, it doesn't.

They are limited co figures not PAYE, apologies for not including this.

Evilm

What are they providing you? Temporary workers or services of some kind? What do you mean they are "limited co figures"?

If it is temporary workers then this is usual. I've worked for a few and being in accounts often get to see the invoices as well. Usually the mark up is around 40-45% over the temporary workers pay rate for even the lower end workers.

Mudd14

We mark up 35%, but when you take into account

Admin
Stationary
Office Overheads
Management salaries
Company cars
Mobile phones
and so on

We are left about 3% for profit!

notsurewhereIstand

But other workers are on 17%, 25% and 30%, so 50% is nearly three times other workers!

Mudd14

You have lost me. Perhaps a longer explanation to the point you are trying to make. Or is there any point at all? Businesses are there to make money!

Hammyman

notsurewhereIstand wrote: »

..and a bit stunned.

not 15%, 17.5%, not 20%

but a whopping 50%!!!!!!

and more than £50 a day!

Correct. If you're getting paidf £50 a day and they're charging you out at £100 a day, out of that £50 they've got £6 holiday pay, £5.50 employers NI leaving £38.50. That £38.50 has to pay for the office staff, the office rent, business rates, phones, mileage to the reps, cover wages when clients don't pay etc etc etc. At one agency I was at which was a 3 person office in a shared building in Hull, their annual costs to keep the office open before paying any wages out to the agency workers was £200,000.

If you don't like it, set up on your own.

FYI, 50% markup isn't that much. My wifes sign company have a 170% markup and their quotes are considered very cheap in the area.

sharkie

how come actors agents can live on 10% then, since they are known by this? Same overheads

We had a temp that was on £25 p/h, he did a stirling job, so we increased his duties for £30 an hour. This lead to him getting a £35 per week incease for his work - not exactly motivating. After a few sharp, harsh words, including that they will loose all the contracts, his salary vastly improved

PasturesNew

I was working for an agency once when a new agency opened up - and the new agency just had a mark up of £1/hour (before the days of holiday pay etc, you were literally just only ever paid for the hours you worked). I spoke to the new agency and my boss swapped agencies, he paid the same rate but my pay went up by over £1/hour.

I always assume the agency is getting 50% more than the rate they're paying me. They found the work, it's only fair. All I did was fill in a form with them, then sat on my 4rse until they rang.... it IS annoying though when, through your skills/efforts, the contract is extended and you're put onto more/new work still on the same rate. It's a shame agencies don't recognise there's a point at which you fulfilled the contract - and there's a point at which you extended the contract and have actually generated further income for them.... as I often do.

sharkie

PasturesNew wrote: »

It's a shame agencies don't recognise there's a point at which you fulfilled the contract - and there's a point at which you extended the contract and have actually generated further income for them.... as I often do.

We still run with 2 agencies - 10% commission, and they pay the people (a) regularly (b) on time (c) the correct pay, so they're still out there. They even take the staff out for Xmas meals, visit the workplace and have private meetings (drinks) about the current situation plus future openings a few times a year - no, I kid you not!