Musings from an overworked translator

Bulk discounts – yea or nay? May 30, 2008

There’s an interesting discussion on the ATA German Language Division listserv at the moment about bulk discounts (a.k.a. volume discounts). The general consensus is not to offer them. I wanted to summarize the main points why translators should not consider offering bulk discounts.

• It is not beneficial to work more at a lower rate – in fact, it’s worse, because you would have to decline assignments from your regular clients who pay your standard rates.
• These regular clients will then go elsewhere when you are not available, and you would lose a good client.
• Most professionals – and even most non-skilled workers – who work over 8 hours a day get paid time and a half overtime – and double time on weekends. Freelance translators unfortunately do not have this luxury. And offering volume discounts ensures that the opposite is true – you are paid LESS for working MORE.
• Many jobs that require volume discounts also have extremely tight deadlines, which would make it a rush job for which you should be paid more – not less.
• You don’t know if the client will really come through with the kind of volume he is promising (one savvy member suggested drafting up a contract to “contractually commit to a legally enforceable minimum (annual) volume” and if the client doesn’t hold up its end of the bargain you can consider the contract null and void).
• If such a contract were signed, you might be legally considered an employee.
• Why spend time working for a client who doesn’t respect you enough to pay a competitive rate?
• Prices keep rising (gas, food, housing, etc.) and agencies keep trying to depress prices. Volume discounts are just another way to lower the price. Globalization may be rampant, but the fact remains that U.S.-based translators cannot afford to work at extremely low rates and still make a living. If you continue to offer quality translations the clients who choose to outsource will eventually come back. If they don’t, there is still plenty of work to go around. With globalization the need for translation is increasing exponentially and there aren’t enough skilled translators to handle the load as it is.
• Agencies that ask for volume discounts are most likely trying to get a bargain and negotiate the best price. Most agencies will be willing to pay your rate once you tell them you do not offer volume discounts.
• The supply and demand in the industry means you can safely turn down volume discounts and still have plenty of work from other clients. I get contacted by one to two new clients a week who found my profile on the Internet or ATA database or heard about me from colleagues or clients.

If anyone else wants to add something to the list I would love to hear it.

BTW, if you work in German you should definitely join the ATA and subscribe to the GLD listserv. The GLD list has 297 members despite the division itself having over five times as many members (currently close to 1200 members). Those members don’t know what they are missing. I find the listserv to be one of the most valuable tools out there. It is a virtual water cooler for home-based workers (and even some in-house translators). We help each other with terminology and discuss business practices and anything else you can possibly think of (even German stores and food). Most of the things I will bring up here I have learned from the GLD list or PT, which is a Germany-based listserv for translators with 1331 members as of 3/30/08 (the lingua franca is of course German).