Did I just ask for too much?

[Insanity]

How do you know if you asked for too much of a raise?  I do software security work as a self employed 1099.  The consulting company has to go through an approved vendor in order to get the contract with the ultimate customer.  I am currently clearing 50% of my billing rate.  I asked for about a 20% increase due to the fact the customer is only willing to do 3 month contracts.  It wasn't shot down right away, but I was given the "thin margin" comment.

The basis for the raise:
1) I am doing all sales to bring more work in on the contract.  The consulting company is at the client doing other work.  I happened to get in as a result of a mutual contact between myself and the consulting company.   The original contract between the client and the consulting company called for only part time hours for 10-12 weeks.  Less than 6 weeks in, the client and the consulting company signed a new contract for 3 months for full time work.  And there is enough work to go into next year given that I am now engrained in multiple parts of their process.

2) The original agreement was to be on site for 50-70%.  That is now going up to 80-100%.   I do not get to expense travel.

3) I am needing to hold on to a second contract because the current billing rate for this contract is less in both money and terms.  Therefore I cannot bill the full available hours.

4) the contract term between the client and the consulting company is only 3 months.  Without having other streams of income, operating on a basis of every 6-8 weeks finding work is not something I am okay with.  If the contract does not renew, I want to have the buffer.


I realize that 2-4 are kind of "whiney" type statements.  But they are factual.  I am a sole employee business.  I wouldn't have signed a 3 month contract at the beginning (the consulting company made it a 6 month contract claiming the client had agreed to six months but would  only extend by 3 month intervals- which turned out to be a bit misleading).

I like the work.  I'm learning a lot as well as providing a lot of value.  I'm just torn and hoping that I didn't overreach.

[brewer12345]

Nothing wrong with asking.  You don't ask, you don't get.  They will probably come back with a counter.  Think seriously about whether the current arrangement is something you can live with.  If not, be ready to find another gig and walk.

[sobezen]

What you are asking for Insanity is reasonable and you provided good reasons to support your raise request.  Let us know how it goes and good luck!

[bacchi]

What does "clearing 50% of the billing rate" mean? They charge the client $100 and they pay for $50 as a 1099? You should definitely get the 20% bump even if it passes through 2 vendors. Thin margins my ass.

As far as travel, you can expense it on your tax form. You're 1099. If the IRS questions it, it'll go back to your agency, who is controlling your location and time of work, which makes you more of a W2 employee.

If there's a staring contest, can you afford to lose? Will they blink first?

[Insanity]

What does "clearing 50% of the billing rate" mean? They charge the client $100 and they pay for $50 as a 1099? You should definitely get the 20% bump even if it passes through 2 vendors. Thin margins my ass.

As far as travel, you can expense it on your tax form. You're 1099. If the IRS questions it, it'll go back to your agency, who is controlling your location and time of work, which makes you more of a W2 employee.

If there's a staring contest, can you afford to lose? Will they blink first?

Yep, that is what the 50% means. 

I am writing the travel off, but it is still only a percentage.

I'm torn as to whether I'd drop it. The work and people are much better than the second contract. 

[Insanity]

Well, not the response I was hoping for.  I am a little confused as now the consulting company is saying they haven't signed an extension but they are working on a year one.   I don't get it. When I talked to him the guy rushed me off.


so, now I am not sure what to do. Ugh.