Agency implementing a discount grid - thoughts and opinions welcome Thread poster: Rebecca Elliott
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Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. So, for example, after earning €5,000 with the agency within a given year, they would be enforcing a 5% discount on my translation rate; after €10,000, a 7% discount rate, and so on. They told me that this was to encou... See more Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. So, for example, after earning €5,000 with the agency within a given year, they would be enforcing a 5% discount on my translation rate; after €10,000, a 7% discount rate, and so on. They told me that this was to encourage their project managers to send more work to a smaller pool of translators and would, therefore, be of benefit to me as one of those translators. In my opinion, this is tantamount to being penalised for being a preferred translator! I informed the agency that I would not be accepting any discount on my rate. I heard no more until last week when the same agency contacted me with the same 'proposal', which I again refused. As a result, I will not be doing any work beyond that €5,000 limit next year, so it seems this strange policy has benefitted neither me nor the agency. I don't know what other translators think of this policy, but I would be interested to know. ▲ Collapse
| | | | | | milinad 
Local time: 16:50
German to English
Giving discount is service provider's (in this case translator) perogative. Client cannot specify discount but can ask for it. Agency can of course give discount to its clients.
| | | | | Not compulsory | Dec 19, 2017 |
Rebecca Elliott wrote:
Hi Rebecca,
In my opinion, I don't think you are compelled to abide by this new rule. You can just reject their proposal, or they should let you give the discount according to your own criteria.
Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. So, for example, after earning €5,000 with the agency within a given year, they would be enforcing a 5% discount on my translation rate; after €10,000, a 7% discount rate, and so on. They told me that this was to encourage their project managers to send more work to a smaller pool of translators and would, therefore, be of benefit to me as one of those translators. In my opinion, this is tantamount to being penalised for being a preferred translator! I informed the agency that I would not be accepting any discount on my rate. I heard no more until last week when the same agency contacted me with the same 'proposal', which I again refused. As a result, I will not be doing any work beyond that €5,000 limit next year, so it seems this strange policy has benefitted neither me nor the agency. I don't know what other translators think of this policy, but I would be interested to know.
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Erik Freitag
Germany
Local time: 12:20
Member (2006)
Dutch to German
+ ...
| Good idea, actually (if...) | Dec 19, 2017 |
First things first: Of course the agency is in no position to impose these conditions. On the other hand, they are well entitled to drop you altogether if you don't like their conditions.
Maybe it wasn't such a good idea to outright decline this suggestion - I actually think this is an excellent idea that can and should work to your own benefit as well! The only thing you need to do is simple: Raise your rates in a way that, when you reach the highest volume you're prepared to commi... See more First things first: Of course the agency is in no position to impose these conditions. On the other hand, they are well entitled to drop you altogether if you don't like their conditions.
Maybe it wasn't such a good idea to outright decline this suggestion - I actually think this is an excellent idea that can and should work to your own benefit as well! The only thing you need to do is simple: Raise your rates in a way that, when you reach the highest volume you're prepared to commit to this particular client, you'll get the same rate as before.
If the scheme isn't just a veiled effort to reduce rates, the client shouldn't have much to say against your raising your rates accordingly. If they don't agree, at least you know they simply are trying to make you reduce your rate after all.
[Edited at 2017-12-19 13:02 GMT] ▲ Collapse
| | | | | Strange but not worrying | Dec 19, 2017 |
I know the agency in question, and can't quite get my head around what they are doing. They used to give me a fairly steady workload of 10-15 thousand words a month and told me they were very satisfied with my work. In May 2017, they called me to announce the new discount scheme and discuss the opportunities for further collaboration. Immediately after that, the stream of work suddently dried up, with no orders at all for several months, then a few offers that were cancelled at the last moment, ... See more I know the agency in question, and can't quite get my head around what they are doing. They used to give me a fairly steady workload of 10-15 thousand words a month and told me they were very satisfied with my work. In May 2017, they called me to announce the new discount scheme and discuss the opportunities for further collaboration. Immediately after that, the stream of work suddently dried up, with no orders at all for several months, then a few offers that were cancelled at the last moment, and finally ~1500 words in November. If it goes at the new lower pace, I don't think I will achieve even the first threshold in the coming year. But even if I do, I will probably just increase my base price to compensate for that. ▲ Collapse
| | | | Rebecca Elliott
United Kingdom
Local time: 11:20
French to English
TOPIC STARTER | Thanks for all your comments | Dec 19, 2017 |
Thank you all for your support on this issue. The French discussion topic is also reassuring in that it indicates that the vast majority of translators who have come across this agency's new policy are finding it unpalatable and downright odd. Your comment is interesting, Anton, in that it seems the volume of work you have been offered has decreased considerably since the phone call. I also had that phone call back in the spring and have noticed a drop in the amount of work I've been offered by ... See more Thank you all for your support on this issue. The French discussion topic is also reassuring in that it indicates that the vast majority of translators who have come across this agency's new policy are finding it unpalatable and downright odd. Your comment is interesting, Anton, in that it seems the volume of work you have been offered has decreased considerably since the phone call. I also had that phone call back in the spring and have noticed a drop in the amount of work I've been offered by the agency. It suggests there might be a few issues behind the scenes that we can only guess at. I'm going to do as others have suggested and, if I do by some chance reach the 5,000 euro mark, simply increase my base rate. They can choose to take it or leave it. From what I have read, it appears that most translators will be doing likewise. ▲ Collapse
| | | | Thayenga
Germany
Local time: 12:20
Member (2009)
English to German
+ ...
| It will be their loss | Dec 19, 2017 |
Some (the agency) may call it a discount, others call it a penalty for being a good and efficient translator. Their justification for such a "discount" implies that their PM's should contact fewer service providers, which will eventually result in them losing their best translators and/or having to find new (more and cheaper) translators in order to get their projects translated. Sounds like a perfect example of a dog trying to bite its own tail.
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Mario Chavez (X)
Local time: 06:20
English to Spanish
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| Too many agencies | Dec 19, 2017 |
I think no discount can be imposed, only requested and, as others have said, it's the service provider, the professional who has the prerogative to agree on giving a discount or not.
The agency's discount mechanism is clearly (to me) a way to keep more profit for the agency. It seems to me that this agency doesn't want to raise its rates to its customers, so it's passing the extra cost of doing business to its translators.
While we're on the subject of agencies, someti... See more I think no discount can be imposed, only requested and, as others have said, it's the service provider, the professional who has the prerogative to agree on giving a discount or not.
The agency's discount mechanism is clearly (to me) a way to keep more profit for the agency. It seems to me that this agency doesn't want to raise its rates to its customers, so it's passing the extra cost of doing business to its translators.
While we're on the subject of agencies, sometimes I'm puzzled by the apparent unwillingness on the part of translation agencies to raise their rates. They seem to be operating on fear, and fear is a poor motivator in business. Such agencies seem to suffer from a dangerous kind of risk aversion.
I'm convinced that there are way too many translation agencies anyway in the world. Some of them don't deserve to be in business, period. ▲ Collapse
| | | | | So, their PMs are getting rewards for getting projects done cheaper | Dec 19, 2017 |
Rebecca Elliott wrote:
... They told me that this was to encourage their project managers to send more work to a smaller pool of translators ...
The only way this wonderful idea would encourage PMs to send work to less people is if said PMs are receiving bonuses for getting the translation done for cheaper rates.
No need for further comment, I think.
| | | | | Patently false | Dec 19, 2017 |
Rebecca Elliott wrote:
Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. ... They told me that this was to encourage their project managers to send more work to a smaller pool of translators and would, therefore, be of benefit to me as one of those translators.
If they really wanted to 'encourage their project managers to send more work to a smaller pool of translators' they should've just instructed them to do so (preferably to a pool of their most trusted, capable and reliable translators, who should be paid more for that, not less...). Using that as a reason to enforce "discounts" on vendors sounds like the umpteenth (poor) excuse to lower costs and increase margins.
| | | | Robert Forstag
United States
Local time: 06:20
Spanish to English
+ ...
| The Road to Serfdom | Dec 19, 2017 |
Mirko Mainardi wrote:
Rebecca Elliott wrote:
Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. ... They told me that this was to encourage their project managers to send more work to a smaller pool of translators and would, therefore, be of benefit to me as one of those translators.
If they really wanted to 'encourage their project managers to send more work to a smaller pool of translators' they should've just instructed them to do so (preferably to a pool of their most trusted, capable and reliable translators, who should be paid more for that, not less...). Using that as a reason to enforce "discounts" on vendors sounds like the umpteenth (poor) excuse to lower costs and increase margins.
If what the agency alleges is true, this would logically mean that the supposed elite pool of trusted translators is being penalized for its high performance and productivity.
The real reason must surely be that top management at the agency simply wants to increase its profits. One thing you can be sure of: it will not be the top management that agrees to cuts in salary, less vacation time, reduced benefits, and the elimination of juicy bonuses to compensate for lower revenues and profit margins. It will be everyone else who pays the price: project coordinators and managers, secretaries, the cleaning lady -- and, of course, the "valued vendors."
One thing does puzzle me here. If this is the agency that I think it is (and Anton's remarks make me think that it is) it has a "VIP Rewards Program" whereby it rewards its most productive vendors with a choice of gifts depending on annual revenue produced. Under the proposed new system, those hoping to earn such rewards would really have to bust a -- er, work pretty damn hard -- to be eligible for even the lowest "Bronze" level of the program. The very highest "Diamond" and "Platinum" levels would be entirely unattainable under the new regime by even the most Stakhanovite linguist. To fully appreciate my point here, it needs to be remembered that this agency is known for offering scandalously low rates except in cases of certain rush jobs.
[Edited at 2017-12-19 18:58 GMT]
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| If an agency wants to offer this to their customers | Dec 20, 2017 |
of course they can do so. But they still have to pay the translator the fee that the translator charges. It is that simple. Your customer (the agency) cannot "implement" anything in regard to your fees.
| | | | Kay Denney
France
Local time: 12:20
French to English
Mirko Mainardi wrote:
Rebecca Elliott wrote:
Earlier this year, a translation agency I have been collaborating happily with for the past few years informed me that, as of the new year, they would be implementing a discount grid whereby the more words you translate for them, the higher the discount they would be charging. ... They told me that this was to encourage their project managers to send more work to a smaller pool of translators and would, therefore, be of benefit to me as one of those translators.
If they really wanted to 'encourage their project managers to send more work to a smaller pool of translators' they should've just instructed them to do so (preferably to a pool of their most trusted, capable and reliable translators, who should be paid more for that, not less...). Using that as a reason to enforce "discounts" on vendors sounds like the umpteenth (poor) excuse to lower costs and increase margins.
I think that if you don't try to impose anything but quality, PMs naturally go for a small pool of translators, they get a feel for who does what best and go for the best translator each time, working down the list if they're unavailable.
For the boss, it makes better business sense to have a fairly large pool of translators so that there's always someone available.
A bit like milking goats: the goat produces more milk when it's always the same milkmaid, so both milkmaid and goat tend to always work together, but the boss prefers to have a changing rota because then the goat will produce much less on his favourite milkmaid's day off.
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