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21/10/2014

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- Viewing thread: A question of rates,
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Message 1 of 5: Ed Trayner on 23/02/2012
Hi all

I had a query for my opinion come into the office about the rates being proposed in some opportunities and in general. I responded direct but thought I would also put my response here.

Begin
Rates is a perennial issue; what is a good or bad rate? That is dependent on the business model of the individual trainer, the sector they train in, the topics they train and whether price is a key competitive factor. The opportunities mentioned are for associate trainers (working for other training companies) and as such rates from £250 up are quite common. A trainer who substantially operates the associate model (working for 5 or more training companies) could expect to deliver on 150+ days a year and have a comfortable (for them) annual turnover of £40k per year. I know some associate trainers who deliver 200 days a year and drive around in very nice cars. That said I have for the most part now stopped posting opportunities were rates are less than £125/day as I feel this is below the minimum wage equivalent.

The majority of opportunities that are posted on the site are for associate trainers and rates secured range from £250 - £600 per day; with the lead provider charging their client anything from £500 - £2,000 per day. Feedback from members suggests that the more lucrative direct contracts (£600 - £1,500 per day) are secured via member profiles (purchasers visiting the site and contacting a trainer direct). This model was not intentional it is just what has happened over the past 10 years.

Have you heard that some public sector clients are instructing their training providers not to submit tenders if their subcontractor (associate trainer) rates are more than £250/day. My belief is that there are more trainers (jobbing [train as only a small part of a bigger job] and hobby [train as a pastime for pocket money]) willing to work for low rates than there are trainers able to charge the higher rates. That’s what comes from an unregulated industry with no barriers to entry, no licence to operate and no ‘union’ to rattle the cages of the powers that be.

Whilst a trainer may rightly consider their knowledge and experience to be worth a day rate; if no one is prepared to pay that rate (for whatever reason), then that trainer needs to reconsider their business model.
End

And whilst I might have an opinion on what consitututes a resonable/acceptable rate, TrainerBase is not in a strong enough position in the market to regulate (through inclusion nor exclusion) more than it currently does what is offered or charged. It's a free market.

Peter
AKA Ed

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