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Poll: Would you give an early payment discount?
Thread poster: ProZ.com Staff
ProZ.com Staff
Local time: 01:58
SITE STAFF
Jun 9, 2008

This forum topic is for the discussion of the poll question "Would you give an early payment discount?".

This poll was originally submitted by Sonja Biermann

View the poll here

A forum topic will appear each time a new poll is run. For more information, see: http://proz.com/topic/33629


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Michael and Raimunda Poe  Identity Verified
Brazil
Local time: 05:58
English to Portuguese
+ ...
Savings for Agencies Jun 9, 2008

Just another way to take away earnings from the translators in my opinion. Don't buy into this!

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Elías Sauza  Identity Verified
Mexico
Local time: 03:58
Member (2002)
English to Spanish
+ ...
In principle, no. Jun 9, 2008

Ideally, and considering an average of 30 days for payment after delivery of the work/invoice, any freelance, full-time translator should be expected to have a lag of projects completed to be paid. In this way, there should not be need to think about a discount for an early payment, except if it were a large amount and there was an urge to have the money readily available.

Regards,

Elías


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Lany Chabot-Laroche  Identity Verified
Canada
Local time: 04:58
Member (2009)
English to French
Absolutely not Jun 9, 2008

I see no reasons to accept a lower payment to receive the money sooner.

The only way I could see this acceptable is if you are really strapped for cash and need payment right now, and that could probably be known by the client who would then have more leverage on you and would have more reasons to cut prices.


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Setti Mulari  Identity Verified
New Zealand
Local time: 20:58
Member (2005)
Finnish to English
I give a break on the price for fast payers Jun 9, 2008

I have a 3-tier tariff... payments in 15, 30 or 45 days and of course the faster is cheaper. My 30-day tariff is the industry average for my language pairs and I go a couple of cents up and down for those clients who prefer a different payment schedule.

To be fair, not many clients take advantage of the fast payment savings even if I make it available.


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Tomás Cano Binder, BA, CT  Identity Verified
Spain
Local time: 10:58
Member (2005)
English to Spanish
+ ...
Can you please explain "early"? Jun 9, 2008

I think the meaning of "early" is critical in this discussion.

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Henk Peelen  Identity Verified
Netherlands
Local time: 10:58
Member (2002)
German to Dutch
+ ...
no Jun 9, 2008

provided the client doesn't pay too late, the payment date doesn't really matter so much, to my opinion.

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Tomás Cano Binder, BA, CT  Identity Verified
Spain
Local time: 10:58
Member (2005)
English to Spanish
+ ...
My suggestion Jun 9, 2008

In my opinion, the discount should be balanced with what you will get from a bank when placing the early-paid money in a bank deposit.

In Spain, a deposit can yield about 4% p.a., i.e. 0,01% per day. Ok, if the company usually pays 60 days and they propose to pay in 15 days, the discount would be 0,01% x 45 days = 0,45%. A fair deal I reckon!


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Joan Berglund  Identity Verified
United States
Local time: 04:58
Member (2008)
French to English
maybe Jun 9, 2008

It never occurred to offer a discout for early payment, and I don't think I ever would. On the other hand, if someone had a job I was really interested but they just couldn't meet my regular price, it might be a bargaining point, I could come down a little for early (or probably up front) payment. It is something to think about when these things come up. But I don't see offering it regularly.

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Why should I? Jun 9, 2008

Other side of the coin of the question is what would you do to late payer?
Do you charge late-payment interest? How many of you have successfully collected the interest?
If someone pay early, thank them and accept with no fuss.


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Andrea Riffo  Identity Verified
Chile
Local time: 04:58
English to Spanish
Maybe Jun 9, 2008

I would consider it upon payment on delivery, or within 3 days tops.

Later than that, the answer is a resounding "no".

Greetings


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Nigel Greenwood  Identity Verified
Spain
Local time: 10:58
Member (2008)
Spanish to English
+ ...
Maybe ... Jun 9, 2008

I answered MAYBE ... but why should we?
In fact, why should clients outrightly say they will pay 30, or even more days, after the invoice. Let's face it, the majority are companies, that work with banks and have credits and so forth. We, the freelancers are really acting as banks for our clients, Why should we?


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xxxJPW  Identity Verified
Local time: 09:58
Spanish to English
+ ...
just a thought... Jun 9, 2008

for those that are in favour (in principle) of giving an EPD, would they then also charge more to a client who insisted on paying at 60-day terms? Same difference?

I don't, as a rule, but I would never rule it out completely either, as it would depend on the circumstances.


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Konstantin Kisin  Identity Verified
United Kingdom
Local time: 09:58
Member (2004)
Russian to English
+ ...
no cash flow problems, no need Jun 9, 2008

This would only make sense if you have cash flow problems, imho. I don't have any, so don't offer such discounts (some clients do offer the option).

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María Eugenia Wachtendorff  Identity Verified
Chile
Local time: 04:58
English to Spanish
+ ...
Not even for prepayment! Jun 9, 2008

Some clients (individuals) have been so nice as to prepay my work. Others pay against delivery. Companies pay 30 days after date of invoice, and agencies may pay as late as 60 days. The latter is a practice I can understand only because many years ago, when I started out as a freelancer, I used to provide translation services to Manpower de Chile, and they explained their reasons, which involved cash flow and a really large number of clients and service providers.

When the money is there -and translations, if needed on a regular basis, are an item in a company's budget-, I don't see why a client should take longer than 30 days to pay me. Therefore, should one of my corporate clients come up with an "early payment discount proposal," I'm afraid I would need a lot of explanations before accepting.

Of course, it would be an entirely different story in case of extreme famine, as my partner and I call those rare extremely-slow-business-times (i.e. a whole month with little or no work) that every freelancer must be prepared to go through once in a while. I know you will agree that "extreme famine," wrong as the expression may linguistically be, does reflect the financial and psychological aspects of such situations But beware, guys! "Early payment" and "partial prepayment" were the beginning of a long, sad story of fraud that affected a colleague of ours.

Negotiating with clients may be tough at times, and there are many issues we must soberly consider before accepting a tempting deal. But that would be the subject for a separate forum.

Happy translating, everybody!


[Edited at 2008-06-09 18:40]


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