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fees being cut - do you take reduced rate or not?

3 replies

jujumaman · 12/12/2008 12:34

Have to be a bit vague about my job but basically I offer a freelance service and have been doing it for years and am v well respected in my field

One service I do for a client always gets paid a flat rate - sometimes it involves loads of work, sometimes v little. However today they called me asking me to do this for them at v short notice. I said fine, at my usual rate. They called back and said no, it'll involve less work than usual we'll pay you 40 per cent less than we normally do. I said absolutely not you'll have to find someone else to do the job and that was the end of the conversation.

I am now wondering what to do. I know this company is violently costcutting and making people redundant but I feel to just accept a 40 per cent pay cut is to set a very dodgy precedent.

OTOH of course I'm worried these people will now never ask me to work for them again as they'll think I'm too expensive. Are other people experiencing this kind of thing? They are not my main employers but I do usually enjoy working for them and want to keep communciations open. Is it worth getting in touch and saying, look, I realise you're cutting back but I was a bit shocked to have the price drop so dramatically or do I just go and look for work elsewhere? Thanks.

OP posts:
mumof2222222222222222boys · 12/12/2008 12:43

I work in recruitment and a lot of companies are imposing cuts of 10-15% on temps (obviously the business' margins are hit too, but this directly impacts people.

ingles2 · 12/12/2008 12:43

Difficult Juju. My agency have let me know that various big clients have sent out letters saying there will be price cuts from January. The feeling is either I work for that, or I won't work for them at all. We've agreed to tell them, that yes, I'll work for this fee during the current financial crisis with a review when things improve.
40% is a significant cut though and I don't think I'd agree to that either. Do you know anyone within the company on a friendly basis to sound out the financial situation? do you have an agent to help?

jujumaman · 12/12/2008 13:00

Hmm

Thanks chaps. I have an agent but not for this line of work, so am on my own here.

I think saying I'll work for this during the financial crisis but then let's review it is a good idea

Normally I deal with someone I'm v friendly with at this company but today I was called by someone I've never spoken to in my life who was not a charmer to put it mildly (and I wasn't very charming back as hungover and pissed off at sudden, drastic pay cut .)

I think I may call my friendly contact (who is more senior) next week to discuss. I don't want to call her back straight away as it'll look like I want this work and am reneging and in fact I don't massively want it as I have a lot else on. In fact the pay cut provided a good excuse to turn it down, but I would like to work for them in future but not feel exploited. Grrr.

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