Is the per-word model the right option for you?
The most popular and common pricing model in the translation industry is certainly per-word billing. Why is that? Well, on the one hand, words are easy to country and can thus be calculated with the help of professional tools. Not only that, CAT tools, i.e., computer-aided solutions, can be used here to facilitate the work. You probably already know the “Word Count” function in Word. The principle is similar here. CAT tools can detect text passages that have already been used in a translation and thus have a positive impact on the price.
The Germans are European champions – not in soccer, admittedly, but when it comes to saving money. According to calculations by ING Deutschland and Barkow Consulting, German savers set aside an impressive 388.5 billion euros in 2020. Not unrelated to this, companies are also always on the lookout for new ways to cut costs. But is translation a way to save a few euros? One thing is for sure: High-quality and professional translations are worth the money. Nevertheless, it is worth taking a closer look at the pricing models and rates used in the translation industry. This is the only way to identify differences and clarify open questions that may exist about pricing and localization fees.
Those who are not familiar with the translation industry may wonder why translations that look so similar at first glance can be differently. However, there are actually quite a few factors that can influence translation costs. These include factors such as the language combination(s), the time frame, the topic, the scope, layout and many more. For example, a last-minute translation costs more than a text for which there are longer lead times. A lecture in neuropsychology needs a translator who knows the subject matter, a special design takes longer than a normal Word document. Therefore, accurate pricing is based on a project’s unique characteristics. The following pricing models are common in the industry: Your service provider will charge either per word, per line (usually standardized), per page, or per hour. There are flat prices, minimum prices and customized price lists.
Or does billing per line fit your needs better?
Standard lines (55 characters including spaces) and the target language of the translation are other criteria that can be used to calculate translation quotes. In most cases, the prices for a standard line are between one and two euros. Agencies work with this option because the number of words may vary in different languages. For instance, some long nested sentences containing many words in German, can turn out much shorter in other languages, such as English.
What about calculating by page?
Another option offered by translation agencies is a price based on the number of pages in a document. This option is good for content where automatic word counting may not be possible, such as scanned PDFs. This means additional work for the language service provider, as the document has to be recreated before it can be edited. If your document contains additional tables, graphics, and schematics, your translation partner will have to spend time and effort recreating the content. This will affect the cost.
So how about an hourly rate?
You can probably imagine: Different translators often take different lengths of time to complete a job. While experienced translators usually complete jobs faster, newcomers may have more work to do, they may need to double-check again, etc., and thus take longer. Therefore, an hourly rate is often more suitable for editing and updating already translated content. It is also the best price model for localization, transcreation and copywriting services, but also any services that involve that certain dash of creativity.
How about a flat rate or a custom price?
Flat rates are not very popular or common, as they can lead to ambiguity. But there are also cases where they are helpful. Take translation into Chinese, for example: Here, a price per word or per page is not very useful, because often several syllables and words can be combined into a single character. If, on the other hand, your project is complex, your translation partner can offer a pricing model that is tailored to your needs. Aspects such as the complexity of a topic, specialist terminology, special time requirements, fees for editing or layout can all come into play here. Discounts can be arranged for large projects. There can also be minimum prices for projects with a specified length, for example 300 words. This is because the administrative costs are often higher than actual translation costs.
Cost-saving tips:
- It makes sense to ask in advance how the word count is calculated, what factors determine the cost, and what pricing and rate models are available. If a flat fee is being charged, you should discuss with the language service provider how the price has been calculated.
- If a translation is needed from a language where the words are very long, choose a translation partner that offers a per-word pricing model. To reduce translation costs, combine documents with a low word count into a joint translation project to avoid being hit by multiple minimum prices.
- Be sure to plan and prepare well. Ad-hoc translation requests are significantly more expensive than projects for which more time is available.
- Are you planning a long-term collaboration with your translation partner? In that case, ask if you can arrange a fixed discount or a master agreement. These contracts contain individual word prices for languages or scales. When a certain volume is reached, the customer is granted discounts.
You can find more interesting and useful tips on how to save on translation costs in our article “How to save on translation costs.”
Together, we will find the right pricing model for your translation project.
