When was the last time you asked your doctor or your lawyer to give you a discount on his/her fees? Unless your doctor or lawyer is a relative or good friend, it’s very likely you wouldn’t dare ask such a professional service provider to give you a discount, would you? So, if you consider yourself a professional translator, how come you continue to allow others to ask you to reduce your rates? But this fact is not the worst part of the situation. Many professional translators are lowering their rates in a desperate attempt to get business.
Clients are asking for discounts, and translators are honoring their requests more and more every day. When you provide a discount on your services, you are giving permission to others to think your services are not worth much. And, unfortunately, this trend is adversely affecting the entire translation and localization industry.
Price your services right. The price you set for your services must be determined by the value perception your clients are getting in return for their money. Are you meeting your clients’ expectations? What are they walking away with? Why should they buy from you and not your competitors?
Learn to say “no.” When you reduce your rates, you are sending a distress signal, not just about you but also about the entire industry. When you reduce your rates even just one time, it’s going to be very difficult to say no the next time this same client comes back. One of my dearest copywriters told me once when I asked him to come down on his price that he would feel very uncomfortable with himself if he were to reduce his rates. I loved his professional approach to standing behind his work.
Focus on your promise of value. When you know and have proof that what you are offering is of great “value” to your clients, make sure this is consistently displayed in your service delivery. Rather than discounting your rates to match competitors, focus on value-added features. Think about ways you can bundle in certain supplementary services, or create various offerings at various price levels so you can accommodate your client’s budget.
Improve your service offering. In today’s economy there are so many products and services that the market is simply oversaturated. Translation is seen by many as a commodity for the simple reason that everybody is focusing on the same “attributes.” Translation should never follow product-marketing models. In the service business it’s all about that “special touch” you add to your offering. Your clients are simply looking for someone they can trust. They want to make sure you are reliable, that you are consistently delivering good value to them, and that you are always there for them. Benefits and service features are always good selling points. But a great relationship with your client is your best selling point.
Focus on your target market. If you are continually being asked to lower your rates, it is very likely you are targeting the wrong clients. Ask yourself if you are wasting your time trying to attract clients that are not willing and able to pay what you are worth. When you decide to focus on a niche market, it is important you understand what your clients’ practices and preferences are. Furthermore, make sure you have the capabilities and competencies to do an excellent job of delivering a high-value translation offering.
Create a strong brand. Just as big corporations develop their brands, translators can also develop a strong, differentiated brand. When you concentrate on developing a strong brand, you will not only become easily recognized but also create an emotional connection with your clients. Your competitors can try to replicate your processes, business model, technology, etc., but it will be very difficult for them to reproduce those beliefs and attitudes that you have established in the minds of your clients.
Remember, when we are selling a product or service, it’s not about us. It’s about our clients. Focus on your clients’ needs and wants, and always look for ways to enhance the relationship. In the absence of value, price becomes the only decision factor. Do not reduce your rates; instead, increase your competitiveness and the value-added features to your services.
Great article, Marcela! I particularly liked the sections “Learn to say ‘no’ ” and “Focus on your target market”.
Thank you for sharing these very useful pieces of advice.
Maria Karra
Thank you for this article – just another confirmation of my approach to the translation work and pricing! +1 to “no dumping”
Maria and Andrei: Thank you so much for your comments.
This article couldn’t be more current and on target. I agree with each and every point. Thank you!
Marcela,
What a great article! I agree with all my heart and mind that professionals in any area, be it lawyers, doctors, or translators, should not lower their rates as it hurts not only them, but the industry as a whole.
Hi Marcela,
I loved your comparison with doctors and lawyers. You are damn righ!. They never lower their rates and we should not lower our translation rates either.
Hi Marcela,
I haven’t even read the whole thing – only scanned it – I’m supposed to be doing a translation! But, hey you are echoing absolutely one of my most frequent mutterings when I peruse the various translators groups websites. I have to hold back from rudely emailing the poor so-and-so’s who advertise their services at 4 cents US/word etc. Grrr… Idiots! Thanks for this blog- Great stuff!
Hi Marcela,
This article says it all. Thank you.
I’ll be passing it on.
Miranda
Great article! I couldn`t agree more. I will share it with my colleagues.
How can unsubsvribe from this blog. I try to click on Manage Subscriptions | One-click Unsubscribe but it doesn`t work.
I enjoyed reading your article and couldn’t agree with you more … thank you!
The comparison with the doctors and lawyers is a great “anchor” 🙂
Great article. You hit the nail right on the head.
For many years I cultivated my target market (and my clients) and now all that work is paying off (without the need of lowering my fees.)
Regards,
Intichaski
Of course I totally agree with you Marcela and particularly concerning “niches”, as I can translate nearly on an everyday basis from Russian, modern Greek, Latvian and Estonian into French from France.
Kind regards
Pierre
Dear Marcela,
I agree with all my heart and mind that professionals in any area, be it lawyers, doctors, or translators, should not lower their rates…
I have written nearly the same article on the website: translationdirectory asking translators not to lower their rates and I was surprised by the answers I got. Some even were going very bad to say that they will lowr them more and more and that they will be more happy…
Hello, Chakir,
Thank you for your comment. In any industry we are always going to find competitors that base their value proposition on being the lowest rate provider. Competing merely on price is not a good business model for most industries. Those that are competing merely on price need to translate a lot more volume so they can make a decent living. I call this kind of business “transactional” business (as opposed to relational business). Do you think you get a client for life with this business model? How can you provide quality when you are in a rush to translate more volume to get some profit? The cost per transaction is actually “higher” since there is more time spent on administrative tasks, etc. My recommendation is not to worry about those that offer lower rates for their work. “You get what you pay for.” Those clients that are really looking for value will look for providers that they can rely on, are dependable, and consistently deliver on their promise of value.
Marcela
Excellent advice, let’s just hope that lots of people read it and understand it!!!
Dear Marcela,
I couldn’t agree more on every point in the article. You’ve perfectly outlined every single trick of the trade in translation, especially the one about giving discounts. We, as translators should start giving more value to our work, otherwise, it’s always going to be underrated.
Thanks!
Valeria
Great article, Marcela, I agree 100%.
Dear Marcela,
You are spot on. I remember telling a potential client who asked for a “volume discount” on a litigation that when I visited my doctor, he didn’t give me any discount if I had more than one complaint! And that I suspected a complicated legal matter did not imply a discount on his services either. Of course I said so politely, but I already knew he was shopping based on price and not value so I chalked it up to client education and to a good way to respond to that particularly galling question!
Your reminder that we are in the relationship business was also very timely. As the industry tends toward “commoditization,” we need to keep the focus on the value we bring by tailoring our services to our clients’ needs, which takes time and a willingness to get to know the client.
Thanks again!
Dear Alison,
Yes!!! Very well said. You’re absolutely right. A service business is all about relationships. Focus on the value and tailor your services to your client’s needs. We should always seek our client’s feedback to learn how we can bring more value to the relationship.
Thank you,
Marcela
Does it strike anybody as funny that the author of this blog offers to have her columns translated by Google Translate?
Which by the way, turns “translation” into “conversion” in French:-)
Hi, Miriam,
Thank you for your comment.
People search the Internet in their own language. Google Translate allows my blog to be found by foreign search engines. I do agree with you. It’s not a translation to be proud of, but it allows me to reach the world. However, I may be removing this plug-in in the near future. My latest research is that Google Translate may actually be counterproductive to my blog.
We need to see the bright side of Google Translate. This kind of technology is going to actually do some “clean up” in the industry and offer an opportunity to the professionals to focus on enhancing their value proposition. Translation is NOT the only thing you do. Professional translators bring a lot more to the value chain than the simple act of translating words. The web is filled with applications that aim to replace professional services ranging from legal services (http://www.freeadvice.com/) and medical advice (http://www.askthedoctor.com/) to website development (http://www.weebly.com/) and financial advice (http://www.mymoneymanagement.net/). My recommendation is to not go against the industry threats but to recognize them and focus on ways to bring value to your offering.
Marcela
“My latest research is that Google Translate may actually be counterproductive to my blog.”
If only because it seems to be an unequivocal endorsement of Google Translate by a professional translator.
My doctor has never encouraged me to get a free consult on askthedoctor;-)
Miriam
Hi, Miriam,
I want to invite you to read the following three articles. Two were published in the last few days. The third one is related to Google Translate and International SEO.
The first is from the Global Watchtower blog “How Google Translate will increase demand for human translation.”:
http://www.globalwatchtower.com/2010/03/09/google-translate-transparent-communication/
The second one is from The Los Angeles Times – “Franz Josef Och, Google’s translation uber-scientist, talks about Google Translate”: (http://latimesblogs.latimes.com/technology/2010/03/the-web-site-translategooglecom-was-done-in-2001-we-were-just–licensing-3rd-party-machine-translation-technologies-tha.html)
Here is the link to the third one: http://www.internationalindustrialseo.com/will-a-widget-give-you-good-international-seo/
Google Translation is simply a tool and should not be used as a replacement for proper written communication in any language. Tools are used to assist – not replace – human intelligence.
Marcela
I mostly agree with the article. And yes, this Google translate column strikes me (hard).
That being said, I think big volume discounts are just a promotional tool like any other. Sure, your lawyer or doctor won’t give you a discount if you visit him twice a week. But what about restaurants? If you go frequently to the same place, or with a big group, you’ll probably have some kind of commercial action at the end of the dinner, like a 5% discount (I do).
Same thing for a lot of other services or goods. So why not doing it with words? It helps customer loyalty. And it can be just a symbolic discount, not a 50% price decrease!
Of course, it also depends on your culture. This type of negotiation is widespread in Italy and other Latin countries, much less in France…
Hi Laurent,
Oh, I totally agree with you. One of the most effective marketing strategies is creating loyalty programs. Let me share with you an example with airlines. About 30 years ago American Airlines launched AAdvantage, its frequent flyer program, a pioneer of loyalty programs among airlines. Since then, these programs have become a single sector that is constantly growing, thanks in part to the participation of hotels, car rental companies and credit cards. Today, hundreds of businesses have programs with their own rules for earning points.
Professor Dreze from Wharton, who has written extensively about loyalty programs, carried out research to study the importance of points as an ongoing goal. For a loyalty program to succeed, says Dreze, the reward system must be carefully designed so that customers are always eager to reach a new goal. “If my goal is to learn French, I learn it and that’s it,” he explains. “But with a loyalty program, when I purchase a cup of coffee, I can start earning points for the next one.”
Investigations conducted by Dreze suggest that, once people have experienced the feeling of changing points for a prize, they will do everything possible to get more points so they can redeem them once again. “Until you start accumulating points, you do not know how easy it is to get awards,” says Dreze. “Once you get it, you’re thinking of starting again.”
However, Dreze warns that loyalty programs must carefully weigh “the price” of their awards. A free trip every two or three years is not enough to make a client remain faithful to the program. “That’s the problem with passengers who do not reach frequent flyer status. They never reach that point where they can get the prize. It is in these cases that affiliated program companies can come into play,” says Dreze. “How often you get the reward should be enough to produce a reinforcement effect. But neither can it be too frequent. That would not make sense.”
So, Laurent, the bottom line is to always look for ways to reinforce the relationship with your clients, either by offering a volume discount, creating a loyalty program like the ones used by the airlines or any other value-added feature that improves your service offering. The possibilities are endless!
Marcela
Thanks for your answer. I totally agree with this point. We just have to figure out what prize we’ll give our customers in exchange of their loyalty points 😉
Great article and great comments. I wish our outsourcers read it:)
When I buy a car, i ask for discounts, When I hire the services of a plumber or a constructor, I ask for discounts.
There is nothing wrong with asking or willing to give a discount. Translators must be experts in pricing in order to keep making profits in todays global world.
Hey!
First of all , I want to thank you for all this informations , and I’d like it so much .
Thanks for this sharing!
Good work ! 😉
The article is excellent. However I still do not know what current rates are – how much is the current rate for translations — Why is this never mentioned anywhere? This way it is impossible to know what are the correct rates to ask.
Hi Pamela,
I’ll be posting a new article about researching your competition this week. Stay tuned!
I am a professional translator and have been since 1995. My rates are published in my website for anyone to see, client, colleague or competitor.
I agree with Marcella’s article all the way, thanks a lot, but there are some factors that must be taken into consideration.
The other day I bought a combination tool, pliers, knive, scissors, screwdriver, folding with a carrying belt case. I paid the equivalent to US$2 (two USD).
You can’t buy a sandwich – any sandwich – here for that amount!
It was made in China, where government policies and wages allow them to manufacture and ship these gadgets to my country to be sold, with a profit, for that price.
There will always be price competition and a professional must find where to supply services for the price that will allow a decent living for someone who has an Engineering degree and a post-grad course in translation (me… :-).
My suggestion for beginners is to determine how many words they can translate in an hour, multiply that by 6 (hours/day – the other regular 2 will be spent chasing work, in admin chores and updating) and consider 20 days/month. Divide the monthly budget by that number and you’ll have your word rate. Stick to it and find clients that will pay you that.
Really you writing very well. Thanks for good informations.
Dear Marcela,
I love your blog! I attended your webinar on 30th March and decided to check it out. I agree with everything you said and with the articles published here. Thank you very much for all your valuable advices!
Regards,
Livia
Thank you Livia. I’m on a mission to transform this industry into a respectable and profitable industry.
Great article, Marcela – I am with you 110%. People expect – and I repeat: expect – to pay an adequate fee for a quality service, so we should not disappoint them! This principle applies to any knowledge-based service, not only translation. BTW, I don’t see anything wrong in using Google Translation in your blog or any other website, whether it is translation-related or not. It is just a practical tool to get the job done “quick and dirty”, no one should expect a proper translation out of it. It actually highlights how valuable professional translators are ;o)
Well said, Robert!!!
Dear Marcela,
I found your text very useful for novice translators and would like to share it specially with my translation students on our website. Is it ok?
Thanks and keep up the good work
Nivia Marcello
Hello Nivia,
Absolutely! Please, spread the word. We need to fight back against commoditization of the translation industry.
Dear Marcela,
Soon enough professional translators will be replaced by low-priced amateurs, working for peanuts to companies based on India, Brazil, or the like.
It’s just business. Someone will say “barely accetable” is cost-effective.
Corporate shareholder eyes see quality as an expendable luxury.
Weren’t for the Boards there would be amateur physicians and solicitors, too, and they would lower their prices, too.
Cheers,
How can unsubscribe from this blog?
I tried to click on “Manage Subscriptions | One-click Unsubscribe” on the email, but it didn`t work.
I don`t see any link on this page.
Hello Walter,
I couldn’t find your email address in the list of subscribers. Sorry about any inconvenience this may have caused you.
Well, then there is something wrong with the layout of the site. No wonder I cannot find any link, you can`t even find my email address. You might want to review this lay out for the future.
My email is wland@adinet.com.uy
Even thouh I enjoy and agree with the article, I am getting too many emails in my in-box. Thanks if you can help.
Hi, Marcela.
I would like to ask your kind permission to, well, in fact, translate your article, which is not only great but NECESSARY, into Spanish and share it as much as I can (on mail lists, sites, my own blog, etc.) with a link here, of course. Please let me know if that is ok; I won’t move a finger, promise, until you say so.
Thanks and keep the good work up!
Hello Micheliu,
Thank you for your posting and encouraging words. Absolutely. You can translate the article in Spanish. Thank you!
Hi Marcela,
One more who wants to use your texts – with credits and blog URL, of course.
I intend to spread them as much as my creativity allows.
Visit http://www.proqualitrans.com
Awaiting your approval… 🙂
Hello José Carlos,
Sure. You can use them. Thank for helping to spread the word.
Nice post Marcela…I tottaly agree with what you says 🙂
Hello Marcella. May I repost your article in the Resistance section of the No Peanuts! blog – http://nopeanuts.wordpress.com/? Many thanks!
Absolutely. Thank you.
Dear Marcela
I’m about to put online my new website (you can see the old version at the address indicated in this form) and I’d like to re-publish your article.
I have written a couple of articles to ‘educate’ clients to respect translators, and I’d like to add yours to mine.
My intention is to translate it and add a reference and credits to you and your blog at the end of the article.
Thx a lot for your reply
Maria Antonietta
Hi Maria Antonietta. Sure. You can republish my article in your website. Thank you!
many thx Marcela
I will let you know when the new site is online 🙂
Anto (Maria Antonietta)
Marcela, I totally agree with the fact that translators are professionals and shouldn’t accept discounts and non-professional rates. However, I think there’s a huge difference between a translator and a lawyer or a doctor: doctors and lawyers need a degree to work. Translators don’t. Anyone can call himself a translator. Apart from that, our service is easily outsourceable.
I like this website very much so much excellent information.
To the point and accurate – I like it.
I haven’t actually, interestingly, EVER been asked to lower my rates by existing clients – only new ones. I’ve encountered resistance when raising my rates, but that is it.
I’m actually pleasantly surprised, but perhaps slightly worried, by my very high retention rate of new clients – even if it is just a one-off job posting. I wonder if I am undercharging….
There are lots of unprofessional translators, who can do what they like with their rates, but the professionals among us will have the translation skill to justify our rates and the business skill to negotiate them at a decent level.
Hi Marcela,
I think the message in your article is clear – a good psychological dimension of client education in the translation industry.
Thanks a lot!
WHO THE HECK said that a translator does not need a degree to do his/her job???
Of course, people who think translation is not a “big deal” and don’t know ANYTHING about the skill and the expertise involved. That’s the main misconception and the reason for which we have so many amateurs that ruin the market for us. I sweated blood and paid a nice amount of money to get my translation degree and specialization courses, thank you.
Congratulations, Marcela, keep up the good job!
Humor works best sometimes.
Here are some new tees “I’m a translator. My cleaning lady earns more than I do” to protest the low rates with some dark humor and raise awareness for the issue!: http://lamirabelle.wordans.fr/t-shirt-category/t-shirts-traduction-7411
I’ve written a few articles on translation & subtitling: http://www.leblogdelamirabelle.net/category/38/
I like the way of your opening. I can easily why we should be a professional and others people too..
Now, I can a material to explain to my customers, why the price is so high. My additional argue is the translator is also faced by the risk. We should pay attention to our translation target language.
I like this.
It will my supporting reason to explain to my customers.
Thank you.
Hi Marcela,
Thank you for your article. I’m passing it around immediately to my network. This is a must-read.
We as translators need to educate our clients to the value of translation. The work we do for them allows them to reach new markets. The work we do for them generates revenues and drives sales. Thus, translation shouldn’t be seen as a necessary evil, but as a marketing tool with great ROI. Lowering our rates works against us, as it can only reinforce the perception that translation is an expense and not an investment. Translators who know and understand this can then educate their clients accordingly.
Thanks again for highlighting this!
-Alex Leclerc