tranfree issue 50 - 13 August 2002

Has TheBigWord become 2Big4itsBoots?

By Alex Eames

Attempt to Reduce Rates

TheBigWord (a.k.a. Link-Up Mitaka) has sent out two emails recently. One to translators that they already use and another to translators who have applied for work but not yet received any.

The emails are essentially the same in that they state that thebigword clients are negotiating hard, resulting in rate reductions of around 15%. They say that this is an industry-wide issue...

"However, the market for translation is tightening and we are experiencing real pressure on our prices, experiencing reductions in the region of 15%. Customers are negotiating very hard before placing work with us and we believe this situation is not just for thebigword but is industry-wide. In order to ensure our continued competitiveness we are expecting you to reduce your prices also. We hold our translators in the highest regard and recognise their immense contribution to the success of thebigword."

So why this insulting and patronising email then?

"We would like to carry on the good working relationship already existing between thebigword and its suppliers. We will only be able to do so if our suppliers (this means you) accept to reduce their rates."

"As from July 1st 2002, with immediate effect, we expect our translation suppliers to reduce their rates significantly. As you know thebigword is regarded as highly professional and pay their suppliers on time. I hope that you will continue to be part of thebigword and I look forward to our future relationship."

So, cut your rates or we won't use you any more. They even give us a hint about how much to cut them by at the top of the email. How nice of them.

For translators who have applied and not yet received work, the strategy is...

"Our records show that we have not have used your services so far and a reduction in your rates might be an opportunity to develop further a working relationship with thebigword. "

So they're playing off the existing translators against the others that they have in their records. It's like a blind auction.

Cost Reduction Ensures Survival

Don't misunderstand me. I have nothing against the idea of a company reducing its costs.

What I do not like here is the thinly disguised contempt in the tone of the email.

"thebigword, one of Europe's largest Language Management companies, has been chosen by over half of the FTSE 100 for translations between 115 languages. This is due to exceptional responsiveness and quality. We continue to grow our business and secure major new contracts with some of the largest companies in the world."

A Few Questions to Consider

Will their 'responsiveness and quality' be assured or improved by these new measures?
I think not.

Will the relationships with translators be strengthened and improved by this?
I think not. If they hold translators 'in the highest regard' they'll not accept contracts for which they cannot pay proper rates.

If they are continuing to grow and secure new contracts, why can't they afford to dump the clients which are not so profitable?

Turnover without profit is a drain on resources.

"Turnover is vanity Profit is sanity"

I saw that on the back of a truck last week. And it's really true.

Why not just dump the unprofitable clients? Since they're obviously planning to dump the less profitable suppliers.

Or are they so driven by greed, that the possibility of turning down work is unattractive?
I can't answer that as it calls for speculation

What Can You Do?

Easy one. If thebigword is 'yourbestclient', you'll probably have to go along with this scheme until you can get yourself some other clients.

If thebigword is 'oneofmanyclients', I suggest that you resist any price reductions and see what they do. If you don't get any more work from them, don't fret. Just find another client who's willing to pay you what you're worth.

If thebigword is 'notyetaclient', just forget them until they contact you with a project. When they do, ask for your normal rates. If they don't want to pay them - goodbye!

Resist Rates Erosion

Resist rates erosion. If everybody does, this attempt to squeeze suppliers will fail, and they'll have to pay you what you're worth.

Never forget that you are your own boss and you can accept or refuse any project at any price, at any time. From discussion with agency owners I have been amazed that many translators out there ask agencies...

"How much do you pay?"

You should set your own rates, not allow yourself to be dictated to by the client (but by all means negotiate).

What Shouldn't You Do?

If you received the email from thebigword and you are offended by it, just don't even bother to reply to them. Anything you might say would just not be worth your time. If you must reply, a polite comment that you are not interested in lowering your rates might help them get the message.

Other Information about thebigword.com

On review of the activities of this company on the web, their reputation as friendly, professional and paying on time is not in question. I have not seen negative comments about them except in regard to the email requesting rate reductions.

thebigword have posted many large jobs on Proz in the last year or so (including two in June). So they are obviously getting in plenty of work and also looking for new translators.

What The Translator Community Thinks

Here are some sentiments about this situation that I have found by translators in various discussion forums and personal correspondence...

"It's the only agency I've received this kind of message from" "I'm happy with my rates the way they are and I'm not considering lowering them at the moment" "There are other language businesses out there that do pay on time, every time and honour the translators Terms of Business, who do hold their translators in very high regard as they are well aware that without you, they do not have a business. They are fully aware that you do have a Choice" "Once you show me audited accounts showing that you and your colleagues have cut your salaries by 15% I will reduce my fees accordingly"

That last one is my favourite potential response. It makes the point rather well, I think, although it may be too 'in yer face' to actually use on a client.

Finally, we have some feedback from a project manager at thebigword regarding their policy...

What a PM from thebigword sent to a translator...

"PS Just a few comments as regards rates: there is a general company drive towards lowering costs, which is why our translators were contacted and asked to reduce their rates. There will be no blacklisting of anyone whose rates are high and/or remain unchanged, and individual project managers may still not have a problem in using such people where they feel they are right for the job. However, we will be encouraged more and more to approach the cheaper translators where we have that option."

Alex Eames is the founder of translatortips.com,
editor of tranfree and author of the eBook...

How to Earn $80,000+ Per Year as a Freelance Translator
http://www.translatortips.net/ht50.html

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