| Pages in topic: [1 2] > | Economy downturn: Has any of your clients asked for a rate reduction? Thread poster: Aniza Borhan
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Aniza Borhan 
Malaysia
Local time: 01:08
Member (2007)
English to Malay
+ ...
Hello & Happy New Year to All!
I was just wondering if any of your client asked the question above, giving the excuse: current financial crisis, current rate is too high in comparison to their other resources; stating it is like 4 to 5 times higher! (btw, my rate is actually at par or just a level lower than the industry's rate!, depending on the genre) and yada, yada, yada.
How best should I reply? It's to a quite reputable agency without hurting their, shall I say "... See more Hello & Happy New Year to All!
I was just wondering if any of your client asked the question above, giving the excuse: current financial crisis, current rate is too high in comparison to their other resources; stating it is like 4 to 5 times higher! (btw, my rate is actually at par or just a level lower than the industry's rate!, depending on the genre) and yada, yada, yada.
How best should I reply? It's to a quite reputable agency without hurting their, shall I say "ego" ...
TIA. ▲ Collapse
| | | | Christian Manuel (X)
France
Local time: 19:08
English to French
| Keep your rate as is | Jan 8, 2009 |
I would advise you not to change your rate. If your client could have better rates elsewhere, in any case they would not have worked with you in first place.
| | | | Lingua 5B
Bosnia and Herzegovina
Local time: 19:08
Member (2009)
English to Croatian
+ ...
Aniza wrote: How best should I reply? It's to a quite reputable agency without hurting their, shall I say "ego" ...
What about:
"I respect your budget concerns, however, I have my rate standards and my own budget requirements that I cannot afford reducing. All my bills are more expensive now, so the logic says my work rate should be more expensive, too.
Sincerely,
"
[Edited at 2009-01-08 14:03 GMT]
| | | | Jan Willem van Dormolen (X)
Netherlands
Local time: 19:08
English to Dutch
+ ...
| Ignore or hit back | Jan 8, 2009 |
Two options:
Either tell them politely that your rates remain as they are,
or,
Tell them, funny you should mention rates and the economic crisis, I was just going to raise my rates because of the economic crisis.
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Only one of my clients asked me to lower my rate. I reply with a long mail explaining that everything is going up for me and thus, either we would keep it as it was or raise it. That happened some 3 months ago. They decided to keep it as it and I am still working for them as much as I was before this mail.
For me, given the current economic downturn, it is time to raise my rates, so I can afford to keep on paying my mortgage, food, school for kids, utilities, etc. All of which, keep... See more Only one of my clients asked me to lower my rate. I reply with a long mail explaining that everything is going up for me and thus, either we would keep it as it was or raise it. That happened some 3 months ago. They decided to keep it as it and I am still working for them as much as I was before this mail.
For me, given the current economic downturn, it is time to raise my rates, so I can afford to keep on paying my mortgage, food, school for kids, utilities, etc. All of which, keeps on going up.
My advice… don’t accept any decreases in rates!
Good luck
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| | | | | Yes, but I said "no, thank you!" | Jan 8, 2009 |
Just yesterday I received an offer from my regular client with a rate almost 50% lower than my usual rate (which I believe is a standard rate for my language pair). I told them I could deliver the job, but only if they can pay me my standard rate. They apologized for trying to lower the rate and promised not to do it any more. No harm done!
I believe it's for the good of a business relationship to set your standards at a certain level and not to let them be changed by anyone. Your ... See more Just yesterday I received an offer from my regular client with a rate almost 50% lower than my usual rate (which I believe is a standard rate for my language pair). I told them I could deliver the job, but only if they can pay me my standard rate. They apologized for trying to lower the rate and promised not to do it any more. No harm done!
I believe it's for the good of a business relationship to set your standards at a certain level and not to let them be changed by anyone. Your good clients will respect you for it. And it often is true that when one door closes, the other one opens. I had a situation like that a couple of years ago, when a client (agency) tried to lower my rate, which I refused, and they stopped working with me. But less than 2 weeks after that I started working with a great agency that had no problems with my rate and was very satisfied with the quality of my work. And the work flow is abundant and steady!
Best regards,
Ingrid ▲ Collapse
| | | | kringle
Local time: 19:08
Italian to English
| Strange you should mention this... | Jan 8, 2009 |
.. before Christmas I was asked to lower my rate by 20% (no typos here) by an agency for one particular client of theirs for whom I did about four hour's work a week. I politely declined and strangely enough have not been offered any other work for any other clients by this agency since, apart from a job that needed turning around on a Saturday morning and I couldn't do. I actually asked them when I refused to lower the rate as requested if they would be penalising those translators who work for... See more .. before Christmas I was asked to lower my rate by 20% (no typos here) by an agency for one particular client of theirs for whom I did about four hour's work a week. I politely declined and strangely enough have not been offered any other work for any other clients by this agency since, apart from a job that needed turning around on a Saturday morning and I couldn't do. I actually asked them when I refused to lower the rate as requested if they would be penalising those translators who work for this particular client (from what I gather there are about 10 or so of us) who couldn't accept this drop. They assured me they wouldn't.
No comment.
I am still working flat out for other agencies who pay at least as much as the un-reduced rate... ▲ Collapse
| | | | Lia Fail (X)
Spain
Local time: 19:08
Spanish to English
+ ...
I was asked to drop my rate by what amounted to 0.0625%. I know them well and they give me a lot of well paid work and they also pay in 30 days (very unusual in Spain). They were terribly apologetic about it, and they haven't actually lowered my rate as such: I was put on a scale for people living in wealthier countries originally and now they have readjusted that. But they have seen one of their main customers cut back and need to cut costs so I can understand that. And needless to say, I trust... See more I was asked to drop my rate by what amounted to 0.0625%. I know them well and they give me a lot of well paid work and they also pay in 30 days (very unusual in Spain). They were terribly apologetic about it, and they haven't actually lowered my rate as such: I was put on a scale for people living in wealthier countries originally and now they have readjusted that. But they have seen one of their main customers cut back and need to cut costs so I can understand that. And needless to say, I trust them.
As a general rule of thumb, I wouldn't normally do it, although I wouldn't rule out the possibility of one-off reductions (e.g, a scientist or academic - as sometimes happens - paying for editing out of his/her pocket).
I haven't implemented any price increases this year, though.
Yes, my costs are rising too, but to be honest, I think we need to accept that everyone has to tighten their belts just a little bit, all the way up and down the ladder. I want to ride out the recession, so I'll try and keep my clients, absorb some of the extra costs of living and working, and compensate by less consumerism:-) ... until times get good again.
Aniza, one approach would be to point to why you are worth being paid what you are paid, in otehr words, shift the focus away from the product you deliver to the service you provide.
[Edited at 2009-01-08 14:01 GMT]
[Edited at 2009-01-08 14:02 GMT] ▲ Collapse
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| I don't think that is fair | Jan 8, 2009 |
I don't think it is fair that if they lose a big customer, you have to pay for it. They should work harder to replace this client.
This morning I called the bank freaking out because my mortgage installments have gone up by a 100 €/month (almost the same as last year's raise). I asked him to lower it and (obviously) he told me that it was impossible. It's either you pay it or you'll lose your flat.
When I order my food through the Internet and I see that most items a... See more I don't think it is fair that if they lose a big customer, you have to pay for it. They should work harder to replace this client.
This morning I called the bank freaking out because my mortgage installments have gone up by a 100 €/month (almost the same as last year's raise). I asked him to lower it and (obviously) he told me that it was impossible. It's either you pay it or you'll lose your flat.
When I order my food through the Internet and I see that most items are going up, I cannot call the company and ask them for a reduction in prices given that one of my main clients is asking me to lower my rate. They would tell me, too bad! you cannot get your food if you don't pay the full price which by the way, we keep on raising.
Etc, etc. etc.
Lia Fail wrote:
I was asked to drop my rate by what amounted to 0.0625%. I know them well and they give me a lot of well paid work and they also pay in 30 days (very unusual in Spain). They were terribly apologetic about it, particularly as I was actually on a scale for people living in wealthier countries. But they have seen one of their main customers cut back and need to cut costs so I can understand that.
As a general rule of thumb, I wouldn't normally do it.
(I did really call the bank almost in tears this morning when I found out about the raise). ▲ Collapse
| | | | Vadim Pogulyaev
Thailand
Local time: 00:08
Member (2007)
English to Russian
| Check this thread | Jan 8, 2009 |
http://www.proz.com/forum/money_matters/123029-agency_reducing_rates.html
I have stopped working with this company, I really hope that other collegues have done the same thing...
Rates are low already, we can't afford to let them push the price even lower. Consumers, and enterprize customers won't learn English just because of crisis, and manufacturers... See more http://www.proz.com/forum/money_matters/123029-agency_reducing_rates.html
I have stopped working with this company, I really hope that other collegues have done the same thing...
Rates are low already, we can't afford to let them push the price even lower. Consumers, and enterprize customers won't learn English just because of crisis, and manufacturers won't be selling their products without localizaton support. Law, and financial documentation will always need translation to local language — crisis won't change it. You name it.
Don't submit!
[Edited at 2009-01-08 14:10 GMT] ▲ Collapse
| | | | liz askew
United Kingdom
Local time: 18:08
Member (2007)
French to English
+ ...
| Stand up for yourself! | Jan 8, 2009 |
Well, interestingly enough an agency asked me to do a couple of translations, offering a rather low rate and even telling me the number of words involved. In the first place I did my own word-count (at least 200 words more!) and in the second place I replied by giving them my own quote. I ended up getting $10 dollars more [the initial rate was $25.00).
Don't go down the road of lowering your rates...this will inevitably reduce quality too.
[BTW I was contacted by the ... See more Well, interestingly enough an agency asked me to do a couple of translations, offering a rather low rate and even telling me the number of words involved. In the first place I did my own word-count (at least 200 words more!) and in the second place I replied by giving them my own quote. I ended up getting $10 dollars more [the initial rate was $25.00).
Don't go down the road of lowering your rates...this will inevitably reduce quality too.
[BTW I was contacted by the same agency yesterday to do another translation, with an equally low rate...I did the same and replied by saying I would do the job for more. I have yet to hear back from them, but hey they must have liked my initial work to contact me again
Liz Askew
[Edited at 2009-01-08 15:01 GMT]
[Edited at 2009-01-08 15:03 GMT] ▲ Collapse
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Hello everyone,
About one month ago, an Italian agency sent me the "new" rate grid for 2009 arguing that the rate remained unchanged because of the recent financial crisis.
I checked with the grid they sent me in 2005: the rate was exactly equal.
I congratulated them for their capacity to anticipate the events and declined the collaboration.
Out of this issue, I can't resist to telling you the success story of another client which won an award ... See more Hello everyone,
About one month ago, an Italian agency sent me the "new" rate grid for 2009 arguing that the rate remained unchanged because of the recent financial crisis.
I checked with the grid they sent me in 2005: the rate was exactly equal.
I congratulated them for their capacity to anticipate the events and declined the collaboration.
Out of this issue, I can't resist to telling you the success story of another client which won an award and sent an email to thank the translators for participating to this success. The conclusion of the email was: we ask you a 6% discount of your rates...
Happy New Year, dear colleagues! This year will be tough... Hang on ▲ Collapse
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Paul Cohen
Greenland
Local time: 16:08
German to English
+ ...
| A question of supply and demand | Jan 8, 2009 |
No one can say how bad the economic downturn is going to be, and we are all bracing ourselves for the worst. If things turn out to be half as bad as some experts are predicting, then we'll definitely be in for a rough ride.
Obviously, if there is a global recession, then there will be less work to go around and that will put pressure on our rates. For the time being, however, I haven't noticed any decline in the amount of work coming in and I certainly do not intend to lower my rate... See more No one can say how bad the economic downturn is going to be, and we are all bracing ourselves for the worst. If things turn out to be half as bad as some experts are predicting, then we'll definitely be in for a rough ride.
Obviously, if there is a global recession, then there will be less work to go around and that will put pressure on our rates. For the time being, however, I haven't noticed any decline in the amount of work coming in and I certainly do not intend to lower my rates. In fact, I've even asked for a substantial increase from one of my main clients.
I have no problem with an agency asking me to lower my rates. It's good business practice to try and get the best deal possible. Why should agencies treat their translators differently than they treat other service providers, such the phone company or the local computer repair shop? I know for a fact that an increasing number of clients have been shopping around lately looking for the best deal. We are not the only ones feeling the pinch. It's simply a question of supply and demand. I wouldn't take it personally.
Just remember two things:
- Good translators don't grow on trees
- Most agencies are painfully aware of this fact
Stick to your guns, if you can. My advice is to respond that you are happy to continue working for the same rates, if that is indeed the case. You might also mention that by maintaining your current rates you are actually giving them a discount because virtually all of your basic expenses (food, electricity, fuel, etc.) have continued to rise.
[Edited at 2009-01-08 21:11 GMT] ▲ Collapse
| | | | Elenka Ganeva
Local time: 20:08
Member (2007)
English to Bulgarian
+ ...
| Translating devices? | Jan 8, 2009 |
Mid of December I was INFORMED by an agency I work for (1 order/2-3 months) that they reduce the price with 6%. It was simply a declaration. Not a sign for discussion or what-so-ever... I felt humiliated and did NOT answer.
Now, when I read what you think, how you interpret such situations, I find I was wrong not answering.
Thank you, all!
| | | | | Recession and Inflation | Jan 8, 2009 |
I haven't implemented any price increases this year, though. Yes, my costs are rising too, but to be honest, I think we need to accept that everyone has to tighten their belts just a little bit, all the way up and down the ladder. I want to ride out the recession, so I'll try and keep my clients, absorb some of the extra costs of living and working, and compensate by less consum ... See moreI haven't implemented any price increases this year, though.
Yes, my costs are rising too, but to be honest, I think we need to accept that everyone has to tighten their belts just a little bit, all the way up and down the ladder. I want to ride out the recession, so I'll try and keep my clients, absorb some of the extra costs of living and working, and compensate by less consumerism ... until times get good again.
I think you're right Lia! Everyone should do their best to avoid recession and inflation. You find yourself in a live nightmare!!
This is the first economical crisis that has not affected Brazilians as hard as it did in the past, I mean - for the time being... Government measures are of the utmost importance, but it will only work if all of us - the people - join hands. ▲ Collapse
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