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Relationship between salaries & rates
 
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Relationship between salaries & rates

 
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#0 Relationship between salaries & rates
 
Rudgey
09.01.9 00:00
 
Are there any rough ways for working out what a 'normal' ballpark charge out rate might be, based on salary?My company’s charging what I think are some daft rates in one area, which makes it really hard to get work. The company blames high salaries, but I really don’t think that’s the root of it…
 
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#0 RE: Relationship between salaries & rates
 
Random
09.01.9 00:00
 
£230 an hour, £71K
 
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#0 RE: RE: Relationship between salaries & rates
 
Anon
09.01.9 00:00
 
Recruiters always ask about rates and stuff. I think they like to give this information to their clients as a "value added service". I think the MCA publish a fairly detailed report on this.
 
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#0 RE: Relationship between salaries & rates
 
Officers Club
10.01.9 00:00
 
Nominal or actual rates? Some firms have very high nominal rates but never actually charge these - every client ends up getting a "special discount" to show how valued they are, or a bulk-buy discount.
 
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#0 RE: RE: Relationship between salaries & rates
 
Anon
10.01.9 00:00
 
Bulk buy discount? This aint a cash and carry you know.
 
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#0 RE: RE: RE: Relationship between salaries & rates
 
BigFourTune
11.01.9 00:00
 
Try telling that to the Big4 and other bodyshops. Even MBBB have gleefully picked up the trick gleefully in recent years.I even worked on a project last year where resourcing was sold on a BOGOF basis, but done in such a way to artificially prolong the project - buy one month of consultant's time, get another month's free. However, you can't have both months simultaneously, and you can't take use it towards two separate one-month engagements. The offer is only valid sequentially.Obviously there are dependencies within the project, so delaying one piece of work by a month in order to get it "free" has a knock-on effect on resources in other workstreams who have to be kept on too, working below capacity but being paid at full day rates. It's like the free gift worth 20p, on the front of the £4 magazine - the client goes for it, although it makes no economic sense, just so that they can tell their superiors they "negotiated a great deal". Turning down that "free time" feels like turning down cash itself, even though it has no inherent value. It all helps to make the client as reliant on you to get their work done as they are on their supermarket to get their farming done. Totally irresponsible consulting, but who gives a f*ck, it helps sell the long-term outsourcing (whether real or effective) contracts.
 
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#0 RE: RE: Relationship between salaries & rates
 
Rudgey
13.01.9 00:00
 
<Nominal or actual rates?> Same thing in this case. We&apos;ve got a very high rate - but snr mgmt won&apos;t allow discount under any circs, which is what&apos;s causing the problems.
 
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