to be annoyed that agency is charging 3 x my day rate?

[IamwhoIsayIam]

I'm a freelancer working for an agency. I quoted for a fairly large job based on my time. It was a fair quote accurately based on number of hours it will take me to complete.
I've just seen their quote to the company and they are charging 3 x my day rate and up to 4 x my day rate for some individual items.
Other than securing the work they will have next to no involvement in its delivery, that is all down to me.

I understand that there will be a mark-up but I've never worked with an agency before and that seems steep. Any freelancers/agency owners got an opinion?

Securing the work is what takes time, and money.

Could you approach companies directly for work, cutting out the agency?

You are being a bit U I think - presumably you quoted at a price that you were happy with ?

I work (full time rather than freelance) for a consultancy that charges me out at well over 4x the daily rate I end up taking home - it's just the way business works I'm afraid.

Part of my business involves charging people out to third party companies. I've never gone quite that steep before (in fact if someone has joined us with lower expectations I've told them to have more faith in themselves).

The fact is though that the agent company is the one with a reputation, potentially liable to supply cover, has spent time and money on securing the role etc. If you're not happy negotiate but unless you're particularly niche I'd recommend you bide your time till you're established enough to not need agency help.

@Mattttttt - thats fine by me, I genuinely don't know what the mark-ups in my industry are which is why I asked.

My annoyance is slightly coloured by them quibbling over some charges I made related to travel time, which now seems a bit tight when looking at the overall quote, but then I don't know what margins they are working to.

YABU. They’re taking on the liability, paying endurance, paying for marketing etc. If you did everything they did you’d have to charge the same.

Sales operations are bloody expensive to run - it's a bit like the vet thread

On top of your fee, they need to cover admin time, time for checking your work, liaising with their clients, the salaries for all the people who do those jobs, HR, rent, insurance... oh and making a profit!!!

It's how many agencies work.

YABU - you quoted and presumably the price you asked for has been accepted so it is a price you are happy with. What they get is irrelevant to you surely, as long as you are satisfied.

Even in consultancy with employed staff, the charge-out rates can be 3 or 4 times hourly rate.

Actually, I’ve just done a quick calculation and the charge out rate for staff is way way higher than 3 or 4 times hourjybsalary.

Charge out rate is typically 3x freelancer rate.

I genuinely don't know what the mark-ups in my industry are which is why I asked.

Neither do we, it depends completely on context. In my industry, no-one would pay that mark up- 100% max, usually much less. I don't think it's the norm for most situations.

Perfectly standard. As agency staff my time is billed to cliebts at £270/hour, i certainly don't make anywhere near that!

It's not you that is being employed vy the client, it's the agency. Ultimately it's their reputation and experience that is being paid for.

If you are working PAYE the agency needs to cover paid holidays, pension, employer NI and possibly app levy.....could be around 25% of your rate. Is easy to underestimate what goes into agency work. Also it isn't your business. It was negotiated to the end client....you got what you wanted, the client pays what they've agreed and the agency just did a good deal.

A lot of companies make millions in profit after paying staff, taxes, pension contributions, running the building, HR costs, insurance .....

Its how business works