Yes, I’m noticing some slowdown, but if you have less clients, and on top of that you reduce your rates, how are you going to eat in the first place? Are the bills getting any cheaper? And when things start moving again, will your customers not go away because you suddenly start raising your rates faster than inflation? Or are your going to maintain those low rates forever?

In my particular case, I am not exactly cheap – but I maintain a loyal circle of clients because they know that I provide quality and go that extra mile if necessary to meet a deadline or provide some extra service. And the *only* discount I make is for high-volume clients, not because it gets cheaper to translate but because it incentivates them to get back with more work if they want to maintain that discount (my discount has a time limit).

So I stick with my rates, recession or not. The “cheap” agencies will be the first to go, they will not survive the crunch because they’ve cut prices so much that they will no longer cover costs. But the ones providing quality, and charging for it, will survive as long as they pay for such quality, because the customers NEED quality for certain things.

Two months ago, I received a request to translate a publicity catalog. I was told I was “too expensive”. So I told him that I estimated that the cost for the preparation of the catalog would be around 7000-8000€ (I found out later it was in the 9k€ range), and my translation was only 1.5k€. Since he had spent so much money on a quality document, why was he thinking that he should spend less on quality in another language? However, if he really thought I was too expensive, I pointed him to some translator websites where he could find some alternatives. To cut the story short: He came back after one month, after spending 900€ on a totally worthless translation, and paid without hesitation my rate.

Yes, times might be getting tougher, but cutting rates is not the solution. Better stick to your rates, and provide quality work.

Stick to your guns, Freelancer. I promise there are lots of good agencies and direct clients out there who appreciate what we do and are willing to pay well for it.

Happy holidays, everyone!

Personally, I choose not to ‘justify’ my rates at all. I have developed rates that I feel reflect the market (specialization, languages), my qualifications and my own financial needs. They are certainly too high for some customers, and perfectly acceptable to others. The only thing that I choose to do in terms of ‘justification’ is to offer a brief test translation (I know, I know, very controversial topic among translators!). Occasionally, I do have requests to lower my rates for a specific project, and if I like the project and the team, I may do so. But for a new, untested client, I simply will not lower my rates.

Now it’s time to enjoy the holidays – see you all in 2009!

What happens in the times of economic recession? The rates are already dropping, and the number of clients (and work) is dwindling.
We need a strategy and argumentation for such times – which we are already facing. What I’m currently facing is a choice: either lower the rates, or lose majority of work. To be honest, I’m thinking about a career change….

Peter Quinn