- February 15, 2017
- Posted by: Wordminds
- Category: Uncategorized
It is verified that 1% improvement in your pricing strategy can add up to 11% to your profits. With bad pricing, you’re missing out on profits. Pricing is also a big factor in your branding and reputation. Prices that are too high can make you come off as arrogant, while prices that are too low can call the quality of your product into question.
In translation industry a project requires an accurate pricing based on its distinct features. Some companies offer a price guide for its clients. We researched the rates in translation industry and came up with the following pricing structures:
This is the most popular and common equation you will find in the industry. Per-word pricing is very convenient and fair for all parts involved. According to a survey on overall average rate across 10 target languages and across 75 LSPs (language service providers), it turns out, in the United States, USD 0.21 per word is the magic number. Another survey on rates on Germany’s market for translation and interpretation displays a remarkable consistency across language combinations. For translation services the magic number seems to be around EUR 0.15—still a fairly solid price point considering that many global agencies now offer end-clients a lower price.
But, based on industry experience, for instance translation from English to Spanish comes with a much more expansive text due to its context comprehension. In other words, 2,000 English words all become 2,400 Spanish words after translation is completed and the price comes closer to the sky. Some companies quote “per thou” aka per thousand words. Therefore, if charged on US territory, a 2000 words article will cost around 420 $.
In Central Europe prices are often based on standard lines and the target language for the translation. This is the normal basis of calculation of normal difficulty translation, so it makes price comparisons easier. A standard line contains 55 characters including spaces between words. In this case prices vary from EUR 1.50-2.20.
Let’s take German as an example. When you translate a text from German to English, the target text is going to have more words than the source text. Many agencies prefer to charge by DIN line, where, according to European standards, 1 line = 55 characters with spaces in the target language. This seems to be the standard, and calculation is as easy as clicking on “word count” in a Word document to determine the number of words, characters, lines, paragraphs, and number of pages.
It gets tricky when we need to compare rates for words vs. lines. In the case of German to English translation:
German text = 1 line = approximately 8 words.
Some companies charge to translate the content based on the number of pages the document contains. Per‐page pricing works well for documents where an electronic word count cannot be obtained. A good example of this would be any documents that were scanned to a PDF file, such as medical records, court documents. The language services company quotes about $100 per page.
Let’s use Italian as an example for this. Many translation agencies prefer to calculate the cost for their translation projects by the page. Again, European standards measure1 line = 55 characters with spaces in the target language. So, a documented translated from English to Italian is going to have more characters in the target language. It’s got to be worth it, though, for such a romantic language!
It’s not very often companies charging for translation services by the hour. It’s hard to estimate the amount of effort each translation project will take. Per‐hour pricing is more suitable for editing and updating content that’s already been translated. Sometimes it doesn’t make economic sense for the language services company to charge for such updates per word. Instead, the updates should be completed on an hourly basis. And this usually works in favor for both parts.
A flat fee can be agreed upon when it comes to translation of Chinese, or other CJKV characters (Chinese, Japanese, Korean, Vietnamese) texts. Per‐word and per‐page pricing doesn’t make sense for such a project since the contents are files with CJKV characters.
It is worth noting that certain projects cannot be calculated per page, but are better calculated according to volume or quantity. These projects usually require additional project management, research, and additional services. Such projects often include handwritten texts, scanned pages, engineering content, and retyping projects.
Minimum fees charged by language services companies are usually for small projects, considered to be any document that contains up to 250 words of content.
There are some others factors that shape the price of translation service to suit an individual project:
- the complexity of the subject matter that needs a specialized expert in specific industry for a high technical content of the document
- the language combination especially for Asian languages request increase in service price
- a discount can be negotiated for an ongoing commitment with a client looking for partnership based on the consistent volume of work
- a quicker turnaround time for translation service demand a rush higher fee. It may carry up to a 50% charge above the regular rates
- in order to provide accuracy and precision of the project results it is required an efficient project management. A project manager will be required to plan the budget, track the workflow to ensure the project is completed on time, and control all the phases of the project to make sure its outcome will meet the client’s requirements. Usually, projects as such can be charged on an hourly basis or for a fixed price for the entire project.
- editing and proofreading are related services and can be priced separately in specific cases. This service might require the use of a second translator in each language to edit and proofread each file
As far as translation companies are in the red ocean with buyers the only figure to look at is the bottom line, no matter how you did your maths. Therefore, now that you got some detailed information about the models and structures of translation service rates we hope that you will design your service’s price too good and too attractive to be true.