In tough times: Raise your fees!
May 14, 2018 § 6 Comments
Globalization has created a world market where we all compete, regardless of our location. Although this has raised professional fees for some colleagues in places with small economies, it has hurt most interpreters to a different degree, depending on whether they stuck to their local economy and clients, or they went to the international market and taking advantage of new technology acquired clients they would have never even considered before globalization. In a market like the United States, with very high speed internet, thousands of airports and flights to every corner of the planet, and a very reliable infrastructure, many of us felt no downturn in our business; in fact, we benefited from the change.
Unfortunately, and without getting into politics, some recent U.S. government decisions, and later changes to the way we did business and conducted our international relations, have created a state of uncertainty, and sometimes resentment, which have affected our profession.
Some of the conferences and international events we had interpreted for many years have been cancelled; others have been moved to other countries due to the uncertainty on the admission of visitors to the United States, as the organizers avoided the risk of investing on a project that a significant segment of attendees could not attend because of their country of origin. For the same reason, many international programs at universities, non-for-profit organizations, and government agencies have been considerably downsized or postponed. The situation for community interpreters is not any better, because less foreigners in the country means less litigation and less foreign investment, which impacts court and legal interpreters; and when foreigners visit the United States less frequently, they use hospital and medical services at a lower rate. This hurts healthcare interpreters.
Faced with this reality, it was time for me to decide how I was to continue to enjoy the same income level despite the new reality we are living; and turn this poison into medicine and even generate more income than before.
Many freelancers get scared when they find themselves in this position, and their first impulse is to lower their fees to keep the clients they have, and to advertise their services at a lower fee than before. They operate under the false idea that money is the main motivator in a client decision making process.
Fortunately, my professional experience has showed me that quality trumps price in everything a client values. That is why people spend more money on a better doctor, a safer airline, and a renowned university. All have cheaper alternatives, but with the things people value the most, there is always a thought that crosses their mind: “It is more expensive but, if not for this, what is money for?” At that point I decided to raise my professional fees.
With this in mind, I carefully studied my client portfolio and classified my clients according to their business value, considering the income they produce me, how frequently they require of my services, the affinity of the type of work I do for them to my personal interests, and the prestige a certain client brings to you in the professional world. I considered a separate category for difficult clients, but to my surprise these were very few, and I needed them for my plan to work.
I immediately realized there were clients on that list I wanted to keep no matter what, and there were others that I would lose regardless of my best efforts. They were in a category where my work was not one of those services that they value the most.
I approached my clients according to how badly I wanted to keep them. If I really wanted them, I would explain this change in person when possible, or by phone or Skype if they were abroad or if their schedule could not fit me within a reasonable period of time. Next, I decided to contact the rest by e-mail on a carefully worded communication that was clear, not too long, and that ended with an open invitation to discuss this raise in more depth in person or by phone if they wanted to do so.
It would be a conciliatory email. No ultimatums, or “take it, or leave it” type of notice. I was out to make friends, not to fight with my clients. I knew that I had two things working in my favor: They already knew my work, and I already knew how they like their interpreting.
For my strategy to succeed, I needed to present my proposal to somebody with the authority to decide. Talking to somebody down the totem pole would be a waste of my time. I decided that I would only talk or write to owners of small companies or agencies, and to senior management in larger corporations, organizations, and government agencies. (There is a video on this subject on my YouTube Channel).
I drafted a talking points memo to be used with my “A” list clients when I told them I was raising my fees. The points I would make to the client had nothing to do with globalization, current American politics, or the uncertain future interpreters were facing in the United States. I recapped the successes we had in the past, and I listed some of the professional things I do for them that are not always found in other interpreting services, but I was not heavy about it. I figured that if they had agreed to talk in person or by phone, it was because they already considered me an asset to their company. It was all about the quality of my professional service and the time and effort I would devote to the success of their conferences, projects, and other events.
I lost some clients, none from the “A” list, all those who stayed with me are now happily paying the new higher fees as they are now getting a more personalized service, and because of this new practice, I have acquired new clients, who were in part, referred by my old clients who stayed with me despite the raise. We now have a better working relationship because they know more about what I do, and their internal decision making process to continue working with me made them realize my true value for their organization.
The lesson learned, dear friends and colleagues, is to face adversity with a cool mind, refuse to give in to fears and peer pressure, and with confidence and self-assurance face the problem and win. It is always better to make more money when appreciated, and an added benefit is that instead of contributing to an even bigger depression of our market, you will do your part to pull it out of the shadows of uncertainty. I now invite you to share with the rest of us what you are doing to win as a professional interpreter in this new reality of globalization and political uncertainty.