The pricing of your translation and interpreting services is a key element to determine how profitable your business will be. However, sometimes it can be a bit difficult to do it right.

If you price your services too high, you can find yourself struggling with finding clients, and if you price them too low, you can find yourself working long hours and without generating enough revenue, and what is more important, damaging the translation and interpreting market.

So…

Why is it that important?

• The pricing of a service is why influence the most in the procession making process of our clients.
• That is why we will have to analyse how much our prospective clients are willing to pay and how sensitive our clients are to changes in price.

During February, I am going to talk about:

• What to bear in mind when pricing your services.
• Pricing strategies and tactics.
• How to communicate the pricing of your services to your clients.
• How to submit quotes that your clients will accept.
• How to communicate price changes to your clients.

For that purpose, I want to talk first about…

The difference between cost and value.

These are two different terms that are commonly mistaken when pricing services and products. Let’s see:

̶  The cost of your service is how much you send to perform it.

̶  The price is the financial reward that you obtain from performing such service.

̶  The value is what costumers think that your services are worth to them.

So, let’s imagine a legal translator. The cost of the services he provide could be the CAT tool that he uses (20£), and his hours of work (let’s say 50£). However, the client is going to earn £1500 thanks to the deal that he is going to close with the translation of that contract. That is why the translator may decide charge £120 for the translation of the document; price that the client will gladly pay in exchange of his £1500.

This is just a mere example to illustrate the terms above explained. This is a pricing guide to know more about these concepts.

Next week I will talk about things to bear in mind when pricing our services. Do you want to know something in specific? Drop me a line at blog@circalingua.com

 

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