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[The recent slash in suppliers' rates]...
Thread poster: Rad Graban

Rad Graban  Identity Verified
United Kingdom
Local time: 07:27
English to Slovak
+ ...
Nov 16, 2013

"...has allowed one of Yorkshire's most internationally focused businesses to pay its highest paid director a bonus in excess of £1.5m."

http://www.insidermedia.com/insider/yorkshire/102793-?goback=.gde_112247_member_5807074102598467585#!

[Edited at 2013-11-16 12:23 GMT]

[Edited at 2013-11-16 12:37 GMT]

[Edited at 2013-11-16 12:37 GMT]


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LegalTransform  Identity Verified
United States
Local time: 02:27
Member (2002)
Spanish to English
+ ...
I keep telling people that... Nov 16, 2013

if you are working for BW, LB or TP at low rates, the directors are laughing all the way to the bank...



[Edited at 2013-11-16 14:11 GMT]


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Philippe Etienne  Identity Verified
Spain
Local time: 08:27
Member
English to French
How surprising Nov 16, 2013

to hear again about this flourishing company.

Their EBITDA profit is lower than last year despite a higher revenue. There is certainly more to do in terms of cutting "production" costs.

Business has never been about fair trade, but this is getting slightly revolting.

I look forward to hearing about their next sympathy-driven e-mail campaign to translators!

Philippe


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Rad Graban  Identity Verified
United Kingdom
Local time: 07:27
English to Slovak
+ ...
TOPIC STARTER
Just sharing... Nov 16, 2013

...in case those who got the same email as myself and agreed to lower their rates, missed it.

Jeff Whittaker wrote:
If you are working for BW, LB or TP at low rates, the directors are laughing all the way to the bank...


[Edited at 2013-11-16 14:11 GMT]


[Edited at 2013-11-16 15:39 GMT]


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texjax DDS PhD  Identity Verified
Local time: 02:27
Member (2006)
English to Italian
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Sadly... Nov 16, 2013

...everyone (except translators) knows that the translation industry is extremely profitable and in great shape.


10 Most Profitable Industries

Net profit margins for the top ten industries ranged from 10 percent (photography and translation services) to 16 percent (investment and portfolio advisors). Almost all of these industries provide services rather than products, which keeps their overhead costs low, protects profit margins, and tends to be more recession-resistant. (And in some cases, this business model also leads to higher than normal cash balances.)


Forbes_2011
http://tinyurl.com/nnlz4ya



The language services industry – which encompasses interpreting, translation, localization, and the accompanying technologies – is worth $33 billion globally, according to the latest market size estimates from Common Sense Advisory.
[…]
the U.S. Bureau of Labor Statistics predicts that the number of jobs for these two professions will expand by 42% from 2010 to 2020, making it one of the fastest-growing professions in the country.


Forbes_2012
http://tinyurl.com/b7ghpyx


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Steffen Walter  Identity Verified
Germany
Local time: 08:27
Member (2002)
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Misleading company name Nov 17, 2013

This 'internationally focused business' should change its name to thebigcash Group

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Robert Forstag  Identity Verified
United States
Local time: 02:27
Member (2003)
Spanish to English
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Substantiation Nov 17, 2013

Jeff Whittaker wrote:

if you are working for BW, LB or TP at low rates, the directors are laughing all the way to the bank...



[Edited at 2013-11-16 14:11 GMT]


****
I was contacted by the last-named of these companies on Friday evening with a job request that would have required turning abound some 6000 words by Sunday afternoon. And what was the fee offered for this *triple-premium* job (i.e., given that it involved rush work on a weekend upon sudden notification on Friday evening)? To my mind, $0.16 would have been more than fair. But taking into account who we are talking about, it was probably not realistic to expect more than $0.13. One might think that even this agency would be ashamed to offer less than $0.11.

The offer was $0.08/word.


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LegalTransform  Identity Verified
United States
Local time: 02:27
Member (2002)
Spanish to English
+ ...
And don't forget... Nov 17, 2013

that after sacrificing a weekend doing this rush project, you will then have to navigate your way through the wonderful RIPS-OFF invoicing system and if you are lucky, you won't have to send more than one reminder letter three months later.

Robert Forstag wrote:

I was contacted by the last-named of these companies on Friday evening with a job request that would have required turning abound some 6000 words by Sunday afternoon. And what was the fee offered for this *triple-premium* job (i.e., given that it involved rush work on a weekend upon sudden notification on Friday evening)? To my mind, $0.16 would have been more than fair. But taking into account who we are talking about, it was probably not realistic to expect more than $0.13. One might think that even this agency would be ashamed to offer less than $0.11.

The offer was $0.08/word.



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Samuel Murray  Identity Verified
Netherlands
Local time: 08:27
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EBITDA Nov 17, 2013

Philippe Etienne wrote:
Their EBITDA profit is lower than last year despite a higher revenue. There is certainly more to do in terms of cutting "production" costs.


Can you explain what that means? Why would a lower EBITDA mean that they had probably paid their translators less?


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Philippe Etienne  Identity Verified
Spain
Local time: 08:27
Member
English to French
Sarcastic mode Nov 18, 2013

Samuel Murray wrote:
Why would a lower EBITDA mean that they had probably paid their translators less?

This is not what I mean, but the opposite. I suspect they still paid their translators too much.
More turnover + less profit (EBITDA) = more expenses = translators still paid far too much. This is the underlying sarcastic, oversimplified part.

So as someone knowing nothing in finance and accounts, my £1m consulting assessment would be to cut translators' rates ("production" costs) further, so that profit grow with turnover.

Philippe


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TranslateThis  Identity Verified
United States
Local time: 01:27
Spanish to English
+ ...
Greed Without Borders Nov 19, 2013

Thanks for your post, Rad, and everyone else thanks for commenting. I think it's very important that more translators read this.

Especially because this site's growth relies primarily on attracting newbies and most of them have no clue.

That's not to say that experienced translators are enlightened, either. Some work for the above-mentioned outfits for $0.03 per word while the end clients pay $0.30 - $0.40 per word. This translates into a helluva profit margin.

Jeff Whittaker wrote:

if you are working for BW, LB or TP at low rates, the directors are laughing all the way to the bank...



[Edited at 2013-11-16 14:11 GMT]


The PMs are laughing, too. Let's be friends! So, do me a huge favor, friend. Slash your measly rate in half and I will send you all the work from this client. Promise. You will be my super busy slave and I will get a big fat bonus. XOXO.


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Samuel Murray  Identity Verified
Netherlands
Local time: 08:27
Member (2006)
English to Afrikaans
+ ...
Perspective Nov 19, 2013

Rad Graban wrote:
"One of Yorkshire's most internationally focused businesses paid its highest paid director a bonus in excess of £1.5m."


Putting things into perspective, if we ignore income from interpreting:

The average rate that this agency's end-clients pay is GBP 0.103 per word, and the average pure profit that the agency makes is GBP 0.006 per word. The rest of the money goes to running the company and paying service providers (that's us).

You can say what you want about greed, but making GBP 0.006 profit on a turnover of GBP 0.103 is not exactly evil. You can complain about low rates all you like, but don't say "they pay us low rates so that they can make higher profits", because the figures tell a different tale.


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Rad Graban  Identity Verified
United Kingdom
Local time: 07:27
English to Slovak
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TOPIC STARTER
@Samuel Murray Nov 19, 2013

Samuel Murray wrote:
Putting things into perspective, if we ignore income from interpreting:

The average rate that this agency's end-clients pay is GBP 0.103 per word, and the average pure profit that the agency makes is GBP 0.006 per word. The rest of the money goes to running the company and paying service providers (that's us).

You can say what you want about greed, but making GBP 0.006 profit on a turnover of GBP 0.103 is not exactly evil. You can complain about low rates all you like, but don't say "they pay us low rates so that they can make higher profits", because the figures tell a different tale.


So, if I understand it well. There is no harm caused reducing my rate from £55/1000 words to £46/1000 words, even if the big boss gets a bonus over £1.5 million three months later. Am I right?


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Miguel Carmona  Identity Verified
United States
Local time: 23:27
English to Spanish
Agency's end-clients pay GBP 0.103 per word average? Nov 19, 2013

Samuel Murray wrote:

The average rate that this agency's end-clients pay is GBP 0.103 per word, and the average pure profit that the agency makes is GBP 0.006 per word.



What exceptional kind of a loser is this agency?

[Edited at 2013-11-19 19:37 GMT]


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Robert Forstag  Identity Verified
United States
Local time: 02:27
Member (2003)
Spanish to English
+ ...
All the happy horse$--t... Nov 19, 2013

TranslateThis wrote:

The PMs are laughing, too. Let's be friends! So, do me a huge favor, friend. Slash your measly rate in half and I will send you all the work from this client. Promise. You will be my super busy slave and I will get a big fat bonus. XOXO.


Unfortunately, this pretty much sums up the MO of many of the PMs who work for the company in question: enthusiastic e-mails including smilies (and sometimes childish message lines), urgent pleas for"help," etc. But no real relationship-building or loyalty--unless one offers to be an indentured servant along the lines indicated above.

Definitely hard to feel the love....

[Edited at 2013-11-20 03:52 GMT]


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