How FRATCH Helps to Save up to €30,000 Per Freelancer

In today’s business world, indirect procurement faces significant challenges, especially when it comes to sourcing professional services such as freelancers and interim managers. Costs are rising, quality varies, and dependence on existing suppliers can be risky. This is where FRATCH comes into play – our AI-driven platform not only saves companies money but also delivers better results. Here’s why and how FRATCH can save you up to €30,000 per freelancer.

The Cost Structure of Traditional Freelancer Agencies

Traditional freelancer agencies typically charge high fees, often up to 35% of a freelancer’s daily rate. These high markups are often a result of rising salaries for recruiters and account managers who are affected by demographic changes. These additional costs are inevitably passed on to the clients, significantly increasing the overall project expenses.

The Freelancer Agency Death Spiral: A Vicious Cycle

Demographic changes have profound impacts on the staffing industry. To attract qualified staffing and account managers, higher salaries must be paid. This cost increase leads to higher markups on freelancers’ daily rates. The result? A spiral of rising costs and declining quality.

1. Higher Costs for Clients:

The rising salaries for recruiters mean that the costs of placing freelancers increase. These costs are inevitably passed on to the clients.

2. Lower Quality:

To keep costs low, some agencies might try to underpay freelancers. This can lead to less engagement or quicker turnover of freelancers.

How FRATCH Reduces Professional Services Costs

1. Lower Markups:

FRATCH charges only a 15% fee on a freelancer’s daily rate compared to the industry standard of 35%. This significant difference in markups leads to substantial savings over the course of a project.

2. Efficient Use of AI:

Our AI-driven platform can search and evaluate up to 10,000 resumes in seconds. This means we can find the most suitable freelancers faster and more accurately, increasing the quality of hires and reducing costs.

3. Transparent Pricing:

At FRATCH, we follow an open-book policy. This means you know exactly how costs are structured, with no hidden fees. This transparency builds trust and allows for better budget planning.

Case Study: Savings of Up to €30,000 Per Freelancer

Let’s look at the savings in concrete terms. Suppose you need a freelancer for a project lasting nine months. With a traditional agency, the additional costs could be up to €200 per day. Over nine months, this adds up to as much as €30,000 in additional costs, which you can save with FRATCH. Our AI-driven matching technology and reduced markups ensure that you achieve these significant savings without compromising on quality.

Quality Improvement and Faster Delivery

FRATCH not only offers cost savings but also higher quality and faster delivery of freelancer profiles. Our platform typically needs only four hours to provide the first two matching profiles. This speed and precision are crucial for completing your projects on time and successfully.

Diversification and Risk Minimization

Another advantage of FRATCH is the reduction of dependency on existing suppliers. Our platform allows you to diversify your portfolio of freelancer agencies, thereby minimizing risk. You gain access to a broader pool of freelancers, further improving the quality of your projects.

What Can Be Done About It?

Thorough due diligence of the agency is crucial:

• Are there transparent prices and standardized margins / fixed margins or buying and selling prices?
• What does the placement process look like (manual vs. AI-supported)?
• How and what is the incentive structure for account and staffing managers?

At FRATCH, we have a clear opinion on how to escape the spiral. With FRATCH GPT and AI-powered freelancer x project matching, we offer an efficient and cost-effective solution.

Conclusion: Why FRATCH Is the Best Choice

Overall, FRATCH provides a compelling solution to the challenges in the indirect procurement of professional services. Our AI-driven platform saves you up to €30,000 per freelancer while delivering higher quality and faster results. If you want to learn more and experience the benefits of FRATCH yourself, visit us at FRATCH.IO.