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Why should volume discounts exist?
Thread poster: Bill Greendyk

Bill Greendyk  Identity Verified
United States
Local time: 03:26
Member (2002)
Spanish to English
+ ...
Jan 14, 2003

Thanks for your interest in this issue. I\'ve moved the thread to Business Issues, where it seems to get more coverage.



Bill

[ This Message was edited by:on2003-01-14 16:18]


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Mary Worby  Identity Verified
United Kingdom
Local time: 08:26
Member
German to English
+ ...
Less admin and guaranteed work. Jan 14, 2003

I think the standard arguments behind volume discounts in translation involve administration, i.e. you obviously have to do less admin for one 100,000 job than for 100 one thousand word jobs, in terms of logging, invoicing, etc. Arguably, terminology research is also easier because you are unlikely to be confronted with one hundred times the terminology, and you are more likely to come across a term in more contexts.



The flip side of this argument is that larger projects often involve more coordination, liaison, etc.



The other argument often cited is that it is guaranteed work. So you don\'t have to spend time on marketing, negotiating new jobs, etc. All well and good if you wouldn\'t have been working anyway, but if you\'ve got plenty of customers who will be disgruntled by you being \'off the scene\' for a few months, the argument starts to look as if it doesn\'t hold water.



And the advantages of a high-volume job, even one of 8 million words, would never justify going down 50 % of your normal rate.



FWIW



Mary


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Dyran Altenburg  Identity Verified
United States
Local time: 03:26
English to Spanish
+ ...
Just say no Jan 14, 2003

The translation is either for charity (in which case I would not charge at all), or it is a paid job (in which case I would charge full price).



8 million words sounds like way too much trouble for what they want to pay. I wouldn\'t even do it for three times that much.


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xxxHIROSE  Identity Verified
Japanese to English
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Agree! Jan 14, 2003

> The translation is either for charity (in which case I would not charge at all), or it is a paid job (in which case I would charge full price).



I like your wit. And this is so true!


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Ralf Lemster  Identity Verified
Germany
Local time: 09:26
English to German
+ ...
Depends on the relative bargaining powers Jan 14, 2003

In this respect, translation is no different from any other client/provider relationship: If you have more than enough business at your normal prices, and the client asking for a discount accounts for, say, 10% of your turnover, it\'s relatively easy to say no.



If, however, you struggle to make a living (worse: if the client knows that...), and the client accounts for 25% of your revenue, you probably think twice. I\'m not saying that\'s fair - it\'s reality. For me, that\'s the most compelling argument in favour of a diversified client base, and building your business on factors other than price...


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