Translation pricing for today’s “prosperous” translator
I love to read translation oriented blogs, articles on the translation business, and opinions from translators. Translators are very vocal about what they like and do not like about this industry, and there is a wealth of information out there for anyone that wants to learn about this business.
I read a lot of articles regarding translation prices, and a lot of opinions regarding how one, as a translator, should price their services. This blog is meant to be cautionary because I feel that some translators are overpricing themselves above and beyond the market.
The popular opinion is that people pay for quality. If you want quality in anything, you must pay for it. However, translators, you must be sure that you can live up to the quality of the price you are asking for. Charging a higher price may make me, as a translation buyer, perceive that you are a wonderful translator but it will only take one negative review for me to NEVER use you again.
When times are tough, and they are, it is the Wal-Marts of the world who prosper, not the Tiffany’s. Higher end-lower end service providers exist in many other service areas, it is no different with translations. Yes, everyone wants to BE the higher end, the highest quality, but very few actually ARE and even fewer that are quality actually make money. When the going gets tough, the high end stores go out of business.
The Issue of Verifying Quality & Experience
I know a lot of translators personally and not all but some will tell you about the muck they made of their first few projects. Some count years in college as “years of experience”, so a 34 year old linguist with “15 years of experience” is accurate? Probably not. It is difficult for agencies, who field a lot of resumes, to judge whether or not you are being truthful on your resume.
Case in point: Global2Local works out of an office building that houses 70+ other businesses in the heart of Cincinnati. A startup company down the hall from us is a company that advises companies on risk, meaning they will evaluate resumes for companies looking to hire executives. They will find out who may be lying about their background or who didn’t really attend the university they claim to have attended. This company was testing a new software and, over lunch, we jokingly suggested they should take a look at some of the resumes we get from all over the world, claiming degrees from “University of Africa……” places and names we cannot verify without considerable time and effort. The company spent a week on the 50 names we sent them and told us that all but 5 had information they were unable to verify, placing them as “high risk.”
Are they really high risk? Who knows. It just shows what agencies are up against.
I firmly believe that all agencies have tiers of translators depending on the client and the difficulty of the job. We use a different linguist for some of the simple documents we get and another for a technical manual. We charge differently and expect different quality.
How did we end up with our go-to linguists? Well, most of them were middle of the road in price, picked at random and tested. After monitoring their work for a time, they became more and more trusted. Once we knew their abilities, we expanded our relationship with them and negotiated each document. We tell our translators who the customer is and what we will charge. We are fair. Everyone’s work gets a second look from another set of eyes, it is always proofed.
Which leads me to another thought: if I am still going to pay someone to proofread your work, as we do on each document, why should I pay so much? I even tell clients that deal with translators directly, “Send it to us and we will proofread it for free.” I have NEVER had a document that didn’t have at least one error. Human nature, which is prone to error, necessitates the need for another set of eyes. No one is that good.
My main job is to encourage translators and help them find work, of which there is plenty. However, you can “perceive” your own value very high but you are not likely to get clients if you price yourself out of the market. Be honest with yourself and don’t be afraid to negotiate. Like everything else, build a relationship with an agency first before you expect the higher end of the pay scale.
Remember that agencies are run by human beings, who think like normal human beings, and most agencies are fairly small, we work in offices of less than 10 people. We aren’t more likely to choose you because your rates are high.
If you want to work directly with companies, good luck with that, I wish you the best. We are ALL trying to get into companies and that is a challenge. You are much more likely to get work from an agency although I personally would try every angle.
Comments? I feel as if older more established translators might be giving newbies some bad advice. Thoughts on that?
-GB
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Based on some of the comments I have received, I should clarify what I mean when I said that translators are “chosen at random.”
My thought when writing that was a recent request for a technical translation into an African language, a language we have never had a request in before. However, we had 7 or 8 translators on file who were native to this particular language. Not knowing any of them, we chose a few at random and started the qualification process.
With less rare languages, such as Spanish and French, we also receive a lot of resumes for and we sometimes do choose a few at random to test if we simply need to bulk up the amount of available linguists. However, we are much more likely to go with a recommendation from another translator.
That is another piece of advice; translators should help each other. We are much more likely to use someone if an already established linguist says to us, “I have a friend who just graduated but he’s incredibly talented….”.
One final tip! Global2Local recently started attaching letters of recommendation written about us by our clients to some of the marketing emails we send out to potential clients. We have had excellent results with that!! I would even recommend that a translator state, “See my Linkedin profile and see what other clients have said about me!” It makes one curious, it makes one want to look.
Best wishes,
GB
Grace,
If blogging is meant to elicit reactions, then this post is a winner.
It certainly got a rise out of me!
I fear that some of your remarks on pricing may well do a disservice to budding professionals.
The core of your argument – “When times are tough, and they are, it is the Wal-Marts of the world who prosper …[while] the high end stores go out of business” – is plain wrong: Tiffany is doing fine, as are Louis Vuitton, Ferrari, Hermes, 4 and 5 star hotels, resorts and restaurants and so on. The ones who are hurting are the middle-of-the-roaders – the Eddie Bauers, mid-range car lines, or mid-priced restaurants for example.
Yes, the Wal-marts of the world survive – because they leverage economies of scale. As can and do translation agencies. Agencies (Wal-Marts, no offense, it’s your argument)and freelance translators are not working with the same business model.
Agencies sell volumes of words and can negotiate a contract leveraging that volume on a pro rata basis. Freelance professionals, on the other hand, provide a service in which they “spend” their *time and their expertise* to “produce” those words. Time is finite, there is no leverage. “Producing” more in the same amount of time does not provide the same service or the same result (examples abound).
Using pricing as the key factor in purchasing a translation gives the illusion that translations are a standardized product (as those sold by Wal-Mart – you might wish to read Translations: Buying a Non Commodity – available on the ATA website) and professional translators are interchangeable.
The better question to ask is what does the client need and is the translation fit-for-purpose. Thank goodness, there is not ONE translation market (you refer to it as *the* market), but myriads.
There are many other points I’d love to take issue with in your post, but I’m sure colleagues will respond. I’ll just pick this last example with which to close:
“Yes, everyone wants to BE the higher end, the highest quality, but very few actually ARE and even fewer that are quality actually make money…If you want to work directly with companies, good luck with that, I wish you the best.”
There is plenty of room in this economy for the Wal-Marts and for the hand-crafted Hermes and Maseratis. The first compete on price(standardization, machine translation and post-editing- and there will always be someone cheaper), the second on added value, expertise, stellar writing skills and client service.
Thank you for your good wishes. Many of my colleagues and I work mainly with direct clients, earn a good living and enjoy professional and personal satisfaction. We are the “creative creators” Thomas Freidman wrote so eloquently about in his book That Used to Be Us. And in the process, many of us and professional associations strive to help beginning professionals move up the food chain so that they don’t get mired in the assembly lines. Understanding the difference between an agency’s business model and an independent professional’s is key.
Dear Patricia-
Well, I didn’t mean to get a negative rise!
From where I sit, I see a lot of translators trying to survive. I have a lot of interpreters coming to me asking for translation work. I don’t feel that most of them are at the level you likely are at, nor at the level of most of the translators active in the community. It might help to note too that we work with several colleges in the area, helping some of their linguistic students transition into the real world. I have an example of a translator who sent a mass email out, that I received, restating his “new pricing levels for 2012.” Upon query, he told me that he is making sure that he sets his pricing at the “highest professional level.” Sounds great but he is only three months out of school, not even grad school. As for the high end stores, the big brand do survive the hard times, but many specialty stores locally do not/did not. I compare that to translations; YOU may survive and a lot of your established colleagues, but the average translator may not.
I appreciate your comments because I think about these issues a lot. We have been called upon to create a “Translation 101″ class at a local college, beginning this fall. Part of what the college we are working with wants us to do is prepare these students for a REAL job. We are spending a lot of time thinking about these issues as the portion of the college sponsoring the class is called “Workforce Development.” It is more of a trade school, they prepare people, usually older, to immediately go out and work.
Does this help explain where I am coming from? I hope so!
GB
Hi Grace,
Thank you for publishing my comment and responding to it.
Though I understand the perspective you paint in the reply, I remain convinced that your fundamental premise (as expressed in your blog article) is off-base.
Yes, a lot of translators (interpreters, graphic designers, copywriters etc.) have a hard time starting out (the vicious circle of how to get experience and develop an expertise) and/or are so desperate to bring money in that they start competing on price, thinking cheaper is more seductive. [Aside: I get a fair amount of emails from translators looking for work; when their experience/expertise and rates don't mesh, they lose credibility in my eyes].
What most independent professionals need (and I’d venture to say translators in particular) is solid grounding in business skills, small business marketing skills, self-confidence, and CPD.
Case in point, your recent graduate and his mass email with his 2012 pricing sheet. Rather than encouraging him to quote low in order to get work (at all costs) and experience, there is much greater ROI in educating him to define one or two areas of expertise he’d like to develop (and how to get there), figure out what his ideal project and client are (positioning), what differentiation points can he leverage (advanced skills in a hobby he can parlay into an expertise in translation for example), and training in how to present himself orally and in writing to specific, individual targets (not via mass emails that get tossed in the trash).
This would serve him much better in the long run than the “quote low” approach, which may be great for agencies but suicidal long term for independent professionals (when you start too low, it’s very hard to bring your rates up to a professional level).
Does that help your thinking about how to design your course??
Dear Patricia-
It does help, quite a bit. Please know that I really appreciate your comments.
What, however, would you say to the same translator if he doesn’t seem to be able to break into the industry? I would never encourage a translator to drop their rates as long as their rates were reasonable but I think that lack of work is the reason they DO. Some income is better than no income. Then I feel that the responsibility is thrown back on the agency to pay their translators reasonably, and I know as well as anyone that most of them won’t, they will go as low as the translator will go.
I cringe when I see this: we send an email to a translator we know asking for a quote and they respond with, “this is my quote but let me know if it needs to be lower.”
My thought pattern on this issue is really centered on this: is there a difference between what we WISH worked in translation pricing and what REALLY works for the majority of translators? I am struggling with that question.
GB
Hi Grace,
I’m enjoying this exchange and feel that Steve’s comments are right on the mark.
I’d like to offer a two-fold answer to your question about a translator who is just starting out or seems to have difficulty breaking into the industry.
Over the years, I’ve had many conversation with young (in experience) translators and with some having a hard time earning their keep. Some took up my suggestion of taking a part-time job (unrelated to their profession as translators) to have some measure of predictable income. This takes some of the pressure off and enables them to focus on developing their skills, a differentiating offer and their business in a viable fashion. You can’t negotiate from a position of strength – or with any confidence/passion/conviction if you’re anguishing over how to pay your rent (remember, you can even hear a smile over the phone!).
The second answer is a less happy one: not everyone is capable of being a good translator (wish they might — I’d love to be an artist, and I’ve worked at it, but I have no talent!) and/or not everyone is wired-up to be an independent professional. It takes a heck of a lot more than translation talent to thrive as an independent. Those skills can be learned, yet the entrepreneur drive is perhaps part of one’s DNA.
You ask “is there a difference between what we WISH worked in translation pricing and what REALLY works for the majority of translators?” I think Steve answered that well: discussing price without discussing differentiation and immediate/long-term added value to your client’s business is a dead end game. I’m hard pressed to name another industry that struggles so hard with that question. Why that is is an interesting question….
Dear Patricia-
Your answer was a good one. I think translators that expect instant success may be disappointed.
I would honestly like to hear from some translators who started their careers in the last 1-5 years and to honestly hear how their experiences have been. I see a big gap in our own ranks, there are very experienced linguists with years in the field, and there are very new translators. I sometimes wonder if the new translators don’t realize that they need to bulk up their experience to even get a second look; they take their chances with the testing process!!
When you have a stack of resumes for Spanish translators and they are all experienced and all say they have background in one subject, it is hard for the agency to choose the person on the high end of the rate scale, it just is.
Once upon a time I made a living as a translator (JE) and I still do some translation for my own purposes (mostly poetry, some math). I am now the CEO of a software company that provides a pricing platform for B2B companies (DuPont, Parker Hannifin, Eastman, …). And I work with Tom Nagle, author of The Strategy and Tactics of Pricing and founder of the Strategic Pricng Group.
Some quick thoughts. The statement that in tough economic times the Wal-Marts do better than the Tiffanies is simply wrong. The two do not even compete. Wal-Mart may do better than K-Mart though.
Price is based on differentiated value. Differentiated value is relative to the next best competitive alternative (NBCE). If the price of the NBCE goes down you have to either add more differentiated value or lower your prices.
Only one vendor can occupy the ‘lowest cost’ position so most translators (and agencies) need to develop differentiation – subject matter expertise, technical adeptness, turn around, value-added services, etc. Translators need to understand what they can do to make agencies more profitable and focus on those points of differentiation. Agencies should be searching for translators that understand their business model and are working hard to make the agency more proftable. And the agencies should be paying the translators to do so.
My two cents from an interested external observer. I came across this while checking the hashtag #pricing on Twitter!
I used to be a trader at Fidelity Investments and I remember going to a talk once by one of the fund managers. He was telling us that, in tough times, stocks in lower end companies and companies that sell cheaper products go up. I also heard a few months ago that the Dollar Tree and Family Dollar had done really well last year, outperforming the market.
I realize Tiffany’s and Wal-Mart are not direct competitors and Tiffany’s was probably not a good example but, in tough times, if you need a trash can or socks, are you not more likely to go to Wal-Mart for those rather than spend more money on a name brand, even if the brand name promises higher quality?
Perhaps I need to brush up on my economics though!! It has been awhile…..I will certainly rethink my theories.
GB
I think the key is a positioning (and pricing) based on differentiated value vs. a positioning based on low cost. There is always a position as low-cost provider, but this is a tough game to play as one has to constantly be driving down costs and squeezing out ineffeficiencies. Competing on differentiated value is a better position for most. But you need to understand what value means in B2B – it is the impact you have on your customer’s business. Basically the question has to be, how do I make sure that my customer makes more money by choosing my offer? The translators I know are generally skilled writers, researchers and have dheep domain knowledge in several areas. They need to package and position these skills to help agencies make more money. And the agencies have to compensate them accordingly.
Differentiating is a big deal in the language services industry because it is so hard to do. You won’t find a language services company that says they have low quality translations and most promise that they follow this procedure and that procedure even if they don’t.
From an outside perspective, such as a business looking to buy translation services, my agency and the one across town may appear the same and promise the same, except one is likely to be less expensive.
The struggle too is to get translation buyers to realize that not all translation agencies are equal, they unfortunately don’t generally realize this until they get burned by a low quality translation.
Agencies and translators alike struggle to differentiate ourselves, a difficult task with buyers who are generally uneducated about our industry.
GB
In my experience translators price themselves based upon what they perceive to be market rates. What they fail to recognize is that different skills elicit different pay… Or at least it should.
If an agency calls with a manual that needs to be translated, and the company requesting the translation needs to use the new translated manual for a division in Brazil, the new document is going to have the company’s letter head on it and be an official corporate document only in Portugese instead of English, then the document needs to be returned in the same format that the translator received it. Well, or as close as possible since word and/ or paragraph sizes can throw things off a bit.
If a translator does not have the skill with MS Office or Adobe to handle the formatting then they should never quote the same rate as a skilled translator.
This example is just one where an established translator is a known commodity. It is really ridiculous for someone just coming into the industry to expect to be paid like a veteran translator.
I am not a financial or business guru, but what I hear being talked about in Grace’s post is really simple market capitalism. If someone is willing to do a job for less than someone else and they have the skills to do the work, then they should get the job. Whether or not its ‘enough’ is not her problem, its the translators. The translator is making the bid, its up to them to know what the market rates are and where they are pricing themselves. If Grace gets a bid from a ‘green’ translator for .35 a word, plus she is going to have to pay for the proofreading at .05 a word as well but then she gets a bid from a ‘veteran’ translator for .15 a word with .05 to proofread, obviously she will go with the vet.
Its up to the newbie to call around to some agencies and find out what the going rate is for translations and to understand he might need to go a little cheaper in his bids to get established. instead of .15 maybe bid .10 a word or whatever…
It is a tough argument to make that people starting out deserve the same rate as the established in any industry.
Hey there, Grace,
Clemenza sent me.
If your post was merely a rant against clueless translators and/or newbies who pull prices out of thin air and slap them on substandard work, I’d be shoulder to shoulder with you. But the argument you construct about pricing doesn’t make sense, as Patricia and Stephen have pointed out.
For your own business, in fact, it might be worth pondering their wise words on differentiation, since this is how prosperous translators (and other prosperous professionals) build their client portfolios.
Concretely, that means forget the trash can, sock and other bulk segments altogether. Instead you target areas where there is not a big pool of fungible folk sloshing around. There are plenty of these in translation, and it always surprises me (though maybe it shouldn’t) that so many translation suppliers, both freelance and agency, persist in trying to be all things to all people. Bad strategy!
Please do raise this issue with any students you come into contact with: specialization is what they should be aiming for, along with top-notch internships with prosperous translators and the networking opportunities these brings. Suggesting that they lowball their way into the market is not a good idea in my opinion.
You also say “I feel as if older more established translators might be giving newbies some bad advice.” Who might those irresponsible people be? I’m curious.
Chris
hey Chris-
irresponsible might be a strong word. you literally “wrote the book” on translation pricing and I think your points are valid; I simply question if your way makes sense for every translator. Here is a situation that came up just yesterday in our office: a client of ours asked for an interpreter outside of the normal city radius, the location of the assignment was actually in a city we don’t have a strong presence in. Because the client does not want to pay mileage, we tried to find someone who lived in that part of town. After making many calls, we found a interpreter who came recommended by a long time interpreter of ours. This interpreter had a nice resume, she used to be a professional interpreter for Toyota for nearly 20 years. She was willing to take the assignment until she asked us about pay. We generally pay approximately $20/hr with a 2 hr minimum. When we told her this, she insisted that she was always paid $30/hr. Now, what you have to know is that our company is by far the highest paying agency in our area, one company is paying $12/hr with a one hour minimum (which is ridiculous). I asked her what company paid her $30/hr and she gave me the name of a company whose owner I know very well, and I know they don’t pay $30/hr. I asked her when the last time she had worked for them, and she said it had been since last summer! Naturally, I didn’t tell the interpreter that I knew the other company well, I simply told her that $20/hr was the best we could do and that we would love her to take the job. We do jobs for businesses that pay interpreters MORE than $30/hr, but this particular client was a non-profit and we simply don’t charge them very much. Interpreter called back later and took the job, which we were grateful for.
The point is that the interpreter is likely in the other company’s system with her pay rate set at $30/hr, and they never call her because she is too expensive. The company besides us that she works for has 2 major medical interpreter contracts and this particular woman could be working 40-60 hrs a week if she wanted! She could have said no to our job and stuck to her pay rate, but then she would have been paid nothing and she will be letting her skills lay dormant too.
Isn’t it better sometimes to take the happy medium and just work? One can hold on to their price and not work when being flexible might open up more opportunities. The posting was just my own musings, I have more questions than answers. I enjoy your thoughts and you are by far more knowledgeable on this than I, thank you for weighing in!
GB
Hi Grace,
I’ve thought about this over the weekend, and would like to stick with “irresponsible.”
That is, people who write crazy stuff dressed up as advice/insights for a public forum are irresponsible. Or clueless. Or — wait a minute — perhaps “misguided”: yes, that’s kinder, and heaven knows the world needs more kindness.
The same goes for books and other publications that rant in a vacuum.
Moving right along, your example — fascinating, incidentally — speaks for itself. How much is an interpreter or translator who charges the equivalent of $20/hour netting in the US? Hmm, let’s all think about that.
The anecdote reminds me how fiercely translators, interpreters and brokers of their services who get settled in a (non-)comfort zone can hunker down and refuse to budge, for a variety of reasons. Refuse, too, to see what is going on around them, in other niches and segments. (Sometimes even claim those other segments don’t exist.)
For any readers here who are not familiar with “The Prosperous Translator” (which can be perused for free in snippets at Translation Journal (online) or bought through http://www.prosperoustranslator.com), note that it is not “a book on translation pricing” much less “*the* book on translation pricing.”
It mentions pricing, of course, but actually does a less thorough analysis than Patricia and Steven here (thank you, Patricia and Steven!).
What it does do is give practical advice on deciding whether you have the skills to make it, and describe how you might enhance existing skills to produce the kind of work that will get you into areas other than Wal-mart translation. It also walks readers through various ways to find and win good clients, in areas where the payback — in terms of respect, intellectual satisfaction and money — is attractive. (And no, that’s not $12, $20 or even $30 an hour.)
Grace, if you send me the contact details for your ex-Toyota interpreter, I’d be happy to post her a copy for free. Sounds like it could be useful to her as she rebuilds her practice.
Chris
The premise of this post (message to translators: compete on price so that you can become a supplier to the Wal-Marts of the translation world) is pretty cringe-inducing. Patricia and Steve and Chris have already summed up most of my thoughts, sooo…
I’d like to talk for just a moment about the students who will be taking your course and what I think they should be learning (note: I teach an entrepreneurship module in a university-level translation program and volunteer as an “established entrepreneur” at our local Chamber of Commerce’s business start-up club).
For your course, I hope you plan to develop a chapter on B to B marketing (positioning, pricing, and delivering value), the fundamentals of which you seem not to be too aware of (at least according to this post). Young translators need to be encouraged to aim high (and, yes, that includes high rates) and learn the skills they need to get there (translation skills, of course, but also the skills needed to understand their clients’ businesses, market themselves accordingly, and, yes, make sure they deliver…no, wait…OVER deliver…on their marketing promise each and every time).
One thing in this post was spot-on: “Charging a higher price may make me, as a translation buyer, perceive that you are a wonderful translator but it will only take one negative review for me to NEVER use you again.” Very true. So does that mean if you work with Wal-Mart translators/agencies you can/should expect several negative reviews (how many would that be, exactly?) before deciding not to work with them ever again?
I think on some level we all know (even the author of this post) deep down inside that you get what you pay for.
Dear Sara-
I would absolutely encourage all translators, especially those coming out of our course, to aim high. Their success would likely even reflect on our course.
BUT what should they realistically expect when starting out? And how long/through how many projects is a translator considered new? The difficulty with translation is that, in many professions, a newer person is working for a more established person or firm who mentors them or helps them along until they are at a higher level; like a lawyer making partner or even a tattoo artist doing an apprenticeship. In the translation industry, translators work alone and the lines can be more blurry.
Thank you for your comment though, any other chapters you would recommend?
GB
Grace, I would make sure that your students understand that there is not one translation market (THE market you mention in your post) but (like many professional services – translators are far from unique, here) a plethora of niche markets. And learning the basics of B to B marketing is the only way to understand how these niche markets work and position your services accordingly. I think the “translation is different” myth (which you mention in your post) is an excuse for not doing the entrepreneurial work needed to successfully position (any) small business. And, although you do work for an agency, it would be great if you could give your students some straightforward information about how the “independent professional” and “translation agency” business models fundamentally differ. I think it is possible (and necessary) to do this without value judgments or falling into the typical “agencies or direct clients” dichotomy…that’s a zero-sum game. As Patricia said, there’s enough room in the market for everyone, but up-and-comers need realistic information about what the standards for service are on the various niche segments.
I’ll say it briefly. There is a difference between translation agencies (Walmart) and translation companies (Ferrari). (please, not intended to offend, I am not speaking about your agency, but about the market structure)
The former are mere «translation brokers» that not deserve to be on the market. They only litter it: they underpay the providers and charge a lot more to the customers. And that’s all they do.
But today, the reality is that with the given technical means a translator can do everything an agency does, etablishing smart strategic alliances to offer turnkey projects to the customers.
No need at all to work with Walmart, if we can do it at Ferrari, Louis Vuitton or elsewhere…
I really love to read opinions from agencies – I remember that some of them are run by human beings, who think like normal human beings and… undoubtedly witness generosity: “We generally pay approximately $20/hr with a 2 hr minimum”.
The best point (IMHO) is that they can give translators some terrific ideas: “If you want to work directly with companies [...], I wish you the best”.
And thanks to the efforts of professional associations and the helpful advice from Fire Ant and Worker Bee, “impossible” becomes translatable into the terms of “independence” and “prosperity”.
Who said that “In the translation industry, translators work alone”?
Grace, I hadn’t been here for a bit. But in passing through today note your selective “deletes” — both here and in other posts. Disappointing.
Our company has a different way of paying translators which is by the hour rather than by the word. Not all translators are equal and our theory is that if you are more productive this should be rewarded, we know this model is not for everyone but it does work really well for a lot of the translators who work for us. It’s only possible as all the translators work inside our online workbench so we can track time and efficiency (again not for all). There is more information on this model on our website http://www.strakertranslations.com that explains how the model works for translators.
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