On behalf of fairness, a roundup, and some transparency | Apr 16, 2018 |
Years ago, I decided to separate 'translation costs' from 'financial costs', in order to let my clients have a choice. My RATE for my translation or other services alone doesn't change. If the client chose me to do a job, they chose my rates, too. Unless the requirements change, I won't grant any discounts on my initial bid. AMOF I'd consider it dishonest if I did, since... See more Years ago, I decided to separate 'translation costs' from 'financial costs', in order to let my clients have a choice. My RATE for my translation or other services alone doesn't change. If the client chose me to do a job, they chose my rates, too. Unless the requirements change, I won't grant any discounts on my initial bid. AMOF I'd consider it dishonest if I did, since I'd be ripping off by default the less assertive clients, those who didn't ask for a discount. However I think my client should be free to choose the FINANCIAL SERVICES they'll hire. As a professional translator, I'd be an eternal amateur in financial services, something I'm not interested at all in providing. Large banks compete against each other on which one offers loans at the lowest interest rate. As an amateur in their trade, my interest rates should be - by far - the highest around. PayPal is owned by - and hence supposedly devised for - eBay, i.e. selling 'stuff' online. It's a different setup than for providing translation (or any other) services on the web. In its policies, PayPal strictly and explicitly forbids surcharging the 'buyer' for the fees it deducts from the amount receivable. Penalties range from freezing the account to scooping the balance. In Brazil, PayPal deducts from the payee's receivables ~6.5% in fees, and openly (it's in their help screens) adopts a 3.5% lower-than-market foreign currency exchange rate. Hence a translator in Brazil 'pays' ~10% for the privilege of getting paid via PayPal. In view of the aforementioned penalties, I state my "standard" rate for payment via PayPal due in two weeks (payment term being discussed below). I offer the client a 10% discount (= PayPal total cost to me) if they choose any other payment method from bank/wire transfers, Payoneer, or P2P services (e.g. Moneygram, Western Union). As PayPal will not be a party in the transaction, they cannot impose me any penalty whatsoever. Some comments on these methods: Bank/wire transfers - Each party (viz. translator/client) is free to choose the bank they use, so it is fair that they pay the associated fees. My bank (Itau) charges be BRL 115 (~USD 40) to receive a wire transfer. A while ago, I learned that HSBC in Brazil (bought over by Santander) charged a fee 3x higher for the same servicr. Since Itau was MY choice, it is fair that I should pay these fees. Banks also vary in the fees they charge from the sender. I've seen these ranging from USD 10 to 65 overseas. As the client is free to choose the bank they use, I think it's fair that they pay for the associated fees. However it is understandable that they won't include "payment fees" in the budget for a translation job, so I include them in my total price, when it's the case. Payoneer, I've only used it once. It seems similar to PayPal, however the fees they charge are capped to a considerably low amount, so I have no objection to charge these to the cost of doing business. P2P services are cheap, often USD 5 for payments up to USD 3K. However they are - as the name says, person-to-person. IOW they require someone at the client receiving payment in cash on the translator's behalf, and then sending the funds as an individual. In a Mom & Pop translation agency, this is simple. In a larger operation, it is too easy for the cash to vanish in the process, leaving no trail. Then there is the payment term issue. A translator accepting payment later than COD is tantamount to granting his/her client a loan for the time elapsed between delivery and payment. In countries where interest rates are low, a small fraction of 1% per month, this is just a matter of cash flow. However if the translator is located in a country where the interest rates charged by banks, credit cards, and other companies are two-digit in monthly percentage (e.g. Brazil - where I am - Argentina, and some others), that translator will be paying a high price - at no other benefit than goodwill - to fund his/her overseas clients' operating capital. If the client abroad doesn't have the cash to pay on delivery, and secures a local loan, it will take them years to accrue as much interest as it does to the translator located in a high-interest country to pay his/her bills with the payment received after one month, or later. So if my client chooses to pay earlier, say, in two business days after delivery instead of the stated two weeks, they can get an additional 6.6% discount from me. Of course, if they want to pay a month or more later, my total price will be way higher, on account on my improperly located and admittedly amateur financial services. Who - in order to pay for a translation job - instead of getting a loan, say, from a reputable bank at their location, would rather "borrow" money from an unwilling amateur financier (a professional translator) in Brazil? For the sake of record, I asked, and my bank does NOT offer translation services of any kind. Well, the truth is that many translation agencies do. The smarter ones pay me COD, and get the same service 16.6% cheaper! Nevertheless, I briefly (in three lines) state my basic rates for the different payment methods and terms to all my prospects, so they have a CHOICE on financial services. I love transparency! ▲ Collapse | |