Comments on: Negotiating temp margins. It’s not the rate – it’s the cost! http://gregsavage.com.au/2009/06/17/negotiating-temp-margins-it%e2%80%99s-not-the-rate-%e2%80%93-it%e2%80%99s-the-cost/ By Greg Savage Thu, 17 May 2012 05:46:34 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: earn online http://gregsavage.com.au/2009/06/17/negotiating-temp-margins-it%e2%80%99s-not-the-rate-%e2%80%93-it%e2%80%99s-the-cost/comment-page-1/#comment-110 earn online Fri, 21 Aug 2009 18:12:42 +0000 http://gregsavage.com.au/?p=141#comment-110 Your content is very interesting, bookmarked regards khhudf Your content is very interesting, bookmarked
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]]> By: David Byrnes http://gregsavage.com.au/2009/06/17/negotiating-temp-margins-it%e2%80%99s-not-the-rate-%e2%80%93-it%e2%80%99s-the-cost/comment-page-1/#comment-28 David Byrnes Mon, 22 Jun 2009 00:01:55 +0000 http://gregsavage.com.au/?p=141#comment-28 Greg, I concur with your comments. Unfortunately, there are many of our competitors who are "cutting the guts" out of the market in increasing desperation. My view is that they simply do not value themsleves, their service, and as such will not translate this to their clients either verbally or through body language. I also suggest this starts at the top as the fish generally rots from the head down. Strategically this is a massive blunder for many reasons too lengthy to go into detail with here. At my company we are not cutting margins despite the pressure, and our margins have held steady throughout. We have also remained extrememly pro-active with our clients, focussing on quality, and while our gross sales have reduced compared to 8 months ago, we have not lost any staff at all, and our company remains in a profitable situation every month. For the record we are a blue collar labour hire company and commenced business in only 18 months ago. Greg, I concur with your comments. Unfortunately, there are many of our competitors who are “cutting the guts” out of the market in increasing desperation. My view is that they simply do not value themsleves, their service, and as such will not translate this to their clients either verbally or through body language. I also suggest this starts at the top as the fish generally rots from the head down. Strategically this is a massive blunder for many reasons too lengthy to go into detail with here. At my company we are not cutting margins despite the pressure, and our margins have held steady throughout. We have also remained extrememly pro-active with our clients, focussing on quality, and while our gross sales have reduced compared to 8 months ago, we have not lost any staff at all, and our company remains in a profitable situation every month. For the record we are a blue collar labour hire company and commenced business in only 18 months ago.

]]> By: Anonymous http://gregsavage.com.au/2009/06/17/negotiating-temp-margins-it%e2%80%99s-not-the-rate-%e2%80%93-it%e2%80%99s-the-cost/comment-page-1/#comment-27 Anonymous Fri, 19 Jun 2009 11:27:17 +0000 http://gregsavage.com.au/?p=141#comment-27 I ran a very lucrative temp desk for many years before moving into a Management role. One thing that I was taught by a previous Manager and that has remained with me in every price negotiation deal is that if you give 50 cents extra p/h away (to the candidate or client but especially to the client) over a 6 month period, then you may as well redraw $520 (0.50*40*26) from your own bank account and hand that over to your candidate or client. We all know that in reality we only earn a % of that $520 but never the less you are still handing over your own earning potential when you are forced to drive your price down. Multiply this by the amount by the amount of temp roles that you fill per quarter and calculate what money you have lost. It can be a very empowering exercise and a fantastic motivator to drive your margins north. I ran a very lucrative temp desk for many years before moving into a Management role. One thing that I was taught by a previous Manager and that has remained with me in every price negotiation deal is that if you give 50 cents extra p/h away (to the candidate or client but especially to the client) over a 6 month period, then you may as well redraw $520 (0.50*40*26) from your own bank account and hand that over to your candidate or client. We all know that in reality we only earn a % of that $520 but never the less you are still handing over your own earning potential when you are forced to drive your price down.

Multiply this by the amount by the amount of temp roles that you fill per quarter and calculate what money you have lost. It can be a very empowering exercise and a fantastic motivator to drive your margins north.

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