Rate Negotiation Tactics for Translators

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Written by Karen Hodgson

Rate negotiation is an expected (if sometimes uncomfortable) part of freelancing, much like bargaining is in many cultures. The sooner you as a translator accept the reality of negotiation – and of negotiation tactics – the sooner you will achieve a rate that is acceptable to you.

In this article, I will suggest two useful tactics you can use to gain an upper hand. By being strategic in your approach to rate negotiations, you can definitely come out a winner!

Tactic #1: Base your negotiations on the client’s perception of value

All too often, freelance translators price their work based on their own perceptions of what their services are worth. Wrong approach! Instead, do the opposite: price your services according to your client’s perceived value. Yours is not the most important opinion when it comes to rate negotiation – it is what your client thinks that makes all the difference.

So, the next time you are faced with a request for rate negotiation, stop and analyze your client’s situation and the nature of the project. The rate you can charge depends more on the value of the project to the client than perhaps any other factor. Knowing how your translation services will ultimately benefit the client and the client’s bottom line will help put you in the rate negotiation driver’s seat.

You may be able to capitalize on the following situations:

Urgent Projects – A recent article in the Translation Journal (“How to Get Premium Rates for your Services”) listed how you can achieve a higher rate on urgent projects. In the case of translation requests that come in at 4:00 p.m. on a Friday with a Monday or Tuesday delivery deadline, it is completely reasonable to charge 30 to 70% surcharge for weekend work.

Projects that directly benefit the bottom line – Some examples of translation projects that can make or break a company’s bottom line include bid proposals and contracts for potentially lucrative deals. For important projects such as these, clients tend to accept higher rates.

Disruption to the status quo – If a client’s usual translator is sick, unavailable, or on holiday, you may have an opportunity to negotiate higher rates for your services. Knowing if your client is experiencing these or similar situations could greatly influence your negotiation tactics and result in achieving a higher rate for your services.

Tactic #2: Start high and negotiate lower

If you’ve done your research, you may already know your client’s price limits and you might want to employ the “start high and go lower” tactic, in which you make your first offer as high possible without completely putting off the client. In cases where negotiation is expected, unless you are well out of the ballpark, it is unlikely that your client will reject your rate outright.

Starting with a high rate creates a symbolic “anchor.” If your bid seems reasonable, the client may take it, resulting in you getting a higher prices for your services – sweet. But it can also work to your advantage to employ the “split the difference” method. If a client can haggle you down to a number that you would have accepted anyway, the result is that the client feels they have gained something from the process, and you will still be pleased with the agreed-upon rate.

The difference between your starting rate and your final rate indicates to the other party how much you have conceded to them, and a significant difference will make them believe that they have achieved a real bargain. Your client’s sense of accomplishment may sometimes even persuade them to paying a bit more than they had set out to at the outset.

Rate negotiation can be a tricky business and will not always work out in your favor. As a freelance translator, you are the one who will ultimately decide how to price your services and what methods you will use in achieving your desired income. As with any advice, you should carefully consider all potential outcomes – bargaining too aggressively could result in the loss of profitable and desirable work. On the other hand, being too soft in your negotiating can cost you money that easily could have been in your pocket.

The negotiation tactics suggested here can often yield higher profits, but you can’t expect to win every time, particularly with persistently price-sensitive clients. However, losing a client who does not honor the value of your work can often be a blessing in disguise: by turning away low-paying, difficult projects, you leave the door wide open for projects truly worth your time and effort.