Low rates bad for your business, our industry.

Sara Freitas-Maltaverne wrote:

Which would lead me to believe that more than one person did the work...further reducing the per-person, per-day earnings before taxes.

Sara

RobinB wrote:

I’d like to pick up on what Jabberwock said, and expand it a bit further. You seek to condemn those who charge lower rates than you yourself do, but at the same time seek to justify your own dumping prices (a fraction of what professional translators charge) by recourse to risible excuses such as “establishing volume” or “dangling the carrot”. I can’t agree with Jabberwock’s suggestion of hypocrisy. That would be too generous. Your argument is pure, unadulterated sophistry of the most utterly egregious form. You are evidently a fully paid-up member of the “do as I say, not as I do” brigade.

I’d also like to echo Sara’s comments about your supposed income. You cite a 25,000 word project, and elsewhere you’ve mentioned a price of 7 cents per word. Let’s assume that this 7 cents per word applies to your 25k word project, and that these are euro cents, not U.S. cents. Given the standard industry average of 2,500 words/day, that means ten days’ work for a daily revenue of EUR 175. Then let’s apply a very tight EBT margin of 80% (i.e. earnings before taxes, after deduction of all business expenses) to give daily EBT of EUR 140. For a standard average 22-day month, that produces an EBT (more-or-less equivalent to a wage-earner’s taxable income) of EUR 3,080.

Not a lot, to be honest, especially compared with the earnings statistics recently published for Germany, which put average monthly salaries at around EUR 3,500. It’s worth noting that Germany is *not* a high-wage country (it’s the non-wage costs that push up the cost of labour), and that high/low pay differentials in Germany are very modest compared with most other countries. Note also that this is the average pay of a salary-earner (white-collar, which I think is a good basis for comparison for freelance translators), not wage-earners (blue-collar).

This calculation shows that the translator’s EBT is lower than the average salary. So where’s the risk premium for self-employment. Are you really going to be able to invest 15-20% of earnings as retirement assets? And what about the contingency reserve that every self-employed person must build (out of *taxed* income)? The golden rule here is: in the first three months of self-employment, you must put away 1 week’s, in the first six months 2 weeks’, and in the first year one month’s fixed costs to hedge against a rainy day (no work, illness, etc.). These are both business fixed costs (e.g. rent and lease payments, if applicable; telecom and similar charges; utilities; consumables; insurances) and personal fixed costs (rent/mortgage, insurances, utilities, food, loan/lease payments, etc.). This should be followed by six months’ fixed costs within the first three years, and one year’s fixed costs tucked away in your contingency reserve within the first five years. After that, you can relax a bit – even if the bottom falls out of your market, you’re not going to end up on the street without any prospects.

Based on your 7 cents per word, it looks to me like this translator is making considerably less than an average salaried income, but without enjoying the benefits of somebody in dependent employment (a degree of job security, employer contribution to social insurance benefits, paid holiday, sick pay, paid training, and so on). But you obviously think this is a very high income (and of course if your “7 cents” are U.S. cents, then the discount to the average salary is even steeper). What exactly is your basis for comparison – window-cleaners in deepest Portugal?

I am, as they say, looking forward to your reply with the greatest of interest.

I’d like to pick up on what Jabberwock said, and expand it a bit further. You seek to condemn those who charge lower rates than you yourself do, but at the same time seek to justify your own dumping prices (a fraction of what professional translators charge) by recourse to risible excuses such as “establishing volume” or “dangling the carrot”. I can’t agree with Jabberwock’s suggestion of hypocrisy. That would be too generous. Your argument is pure, unadulterated sophistry of the most utterly egregious form. You are evidently a fully paid-up member of the “do as I say, not as I do” brigade.

I’d also like to echo Sara’s comments about your supposed income. You cite a 25,000 word project, and elsewhere you’ve mentioned a price of 7 cents per word. Let’s assume that this 7 cents per word applies to your 25k word project, and that these are euro cents, not U.S. cents. Given the standard industry average of 2,500 words/day, that means ten days’ work for a daily revenue of EUR 175. Then let’s apply a very tight EBT margin of 80% (i.e. earnings before taxes, after deduction of all business expenses) to give daily EBT of EUR 140. For a standard average 22-day month, that produces an EBT (more-or-less equivalent to a wage-earner’s taxable income) of EUR 3,080.

What exactly is your basis for comparison – window-cleaners in deepest Portugal?

Rather than wasting your time trying to construct lame insults, you should practice constructing coherent arguments in English. Using 40 dollar words won't hide the bankrupt context.

8. No attacks

Personal attacks on groups or individuals, discussing the personal behavior of other members or inhibiting any person in any way from enjoying the service, is prohibited.

Ralf Lemster wrote:



Having hidden one of your postings before, I would like to formally remind you of the forum rules, which you accept by posting here.

Specifically:



Thank you for your cooperation.

Regards,
Ralf

I can’t agree with Jabberwock’s suggestion of hypocrisy. That would be too generous. Your argument is pure, unadulterated sophistry of the most utterly egregious form. You are evidently a fully paid-up member of the “do as I say, not as I do” brigade.

I think an even-handed application of the rules is important, don't you?

Jabberwock wrote:

90K per two-person household gives 45K per person. Therefore Robin was quite correct in his calculations.

In your argument you seem to confuse the average income and the maximum income. 12.5K words per week was your best result. Would you care us to tell us what was your two-week average? One-month average? One-quarter average? It will certainly be lower.

Even if you are perfectly healthy, even if your clients give you the exact amount of words you are able to translate (no more, no less), even if you do not observe any holidays and do not go on vacations, you and your wife will not translate 1.3M words per year. It is simply not possible. Therefore your 90K (45K per person) is the theoretical maximum you can get. Each day when you do not churn out 5000 words will lower your actual income.

If you do not believe me, ask other translators what is their estimate annual output in words (not mentioning the rates). Then make your calculations again.

90K per two-person household gives 45K per person. Therefore Robin was quite correct in his calculations.

In your argument you seem to confuse the average income and the maximum income. 12.5K words per week was your best result. Would you care us to tell us what was your two-week average? One-month average? One-quarter average? It will certainly be lower.

Ralf Lemster wrote:

PJ,

Indeed, which is why I first sent you a warning note in private, following your previous entry that was hidden.

Coming back to the topic, I think you're barking up the wrong tree - my impression is that you are venting your frustration. Nothing against that, but taking it out on people who consider your prices (as quoted by yourself in this topic) to be way too low is somewhat funny, I confess.

Which is why I don't consider this discussion worthwhile.

Best regards,
Ralf

Coming back to the topic, I think you're barking up the wrong tree - my impression is that you are venting your frustration. Nothing against that, but taking it out on people who consider your prices (as quoted by yourself in this topic) to be way too low is somewhat funny, I confess.