Monday, June 10, 2024

Making price exceptions – a case study

 

[axe in wood*]

Quite recently, one of my longest-standing clients, a smaller translation agency,  contacted me and requested a quote for translation of a death certificate from Hebrew to English. The project manager wrote that the customer budget was limited and offered me two thirds of my standard rate. It is important to note that in recent years, I have received far less business from this agency. As I was in the quiet period of the feast or famine work cycle, I considered the pluses and minuses of compromising on my rate.

In theory, when deciding on whether to bend on price, three elements, among others, are relevant. First, the freelancer has to take into account how much work is coming in at that moment since more getting work  in busy times is less important than during a dry period. The second question is whether the customer is established or new. It can be good practice to show some flexibility with established customers as a way of strengthening the business relationship. On the other hand, new customers have this nasty tendency to come to the conclusion that the “exceptional” discount is the rule. Finally, when a special request comes after or during a large project, the translator easily makes up any “loss” that is incurred on the larger project. The supermarkets called this a loss leader. Thus, I balanced all these factors in my mind and made a decision.

I responded by telling the project manager that, while I understood the situation,  I do not compromise on quality and expect not to have compromise on price. What I was really thinking was that the difference in price was the cost of a coffee and croissant in many countries. Not only that, if I didn’t get the project, I still would be able to buy bread next month.

I did not get the project but did not lose the client either. In my opinion, there is a justification for making discounts in certain circumstances, but they are truly the exceptions.

 

* Picture captions help the blind fully access the Internet.

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