Fee Squeeze!

Sorry I haven't been updating this as much as I should've, will try harder!

Up until now I have been building new relationships and making a good few placements. One of the biggest challenges at the moment is doing business at decent rates. I don't know if it is just us, but it seems all of our competion are doing business at rates which don't even cover the admin costs the extra business will bring in.
I went to a meeting today to discuss supplying temps to a client and before we had even begun discussing their needs we were confronted with "this is the charge rate we already pay, we will not pay anymore than that!". Now it just so happens that 3 other agencies will supply them at that charge rate and although we tried discussing the service they are providing we always got the answer "I'm happy with the service and we will not take on another agency who charge us higher!".

Heres the thing, the proposed charge rate leaves only 35p per hour after we've paid the wage, tax and NI of the temporary worker. Thats approx £2.10p a day and £10.50p a week! Now consider that a stamp is what about 34p thats 1 hours profit gone on sending out the workers payslip! Never mind the fact that the payroll lady will have more work to do and if it adds another hour on to her timesheet thats most of all profit gone!

We have decided that we will not be actively chasing this company for their business anymore, if they call us and ask us for temps and we have some people ready and willing to go in without much fuss then we will supply them.

It is just a puzzle to us why anybody would agree to take on extra work for next to nothing? We would ranther work with clients who understand that we are a business and want to build a mutually benificial relationship.

If you are a client who would like a recruitment comapny to work WITH you then please drop us a line: www.cmdrecruitment.com