Doing business with geeks
As a computer geek, I tend to like things to be cut and dried. When shopping for a product or service, I like to compare the prices and what I'm getting for them, and make a rational decision. That's why I can't stand places that try to make as much as they can off of every customer. I expect to be offered a reasonable price, and not have to haggle.
I recently needed some legal work done. A law office I'd hired in the past (Firm A) quoted me $1,000. I happened to have one of those postcard ads from another law firm (Firm B), and called them up. They quoted $500. I called Firm A, and told them that another firm quoted me $500.
Firm A offered to lower their price to $400. That really ticked me off, because it meant that the extra $600 was just sucker money. I crossed them off my list forever, and went with Firm B, even though it was $100 more. If Firm A had initially quoted me $600, I would have gone with them over the new place. Trying to get greedy, they lost my business forever. And Firm B actually turned out to be better.
For Firm A, charging the $1000 and getting some percentage of the suckers to agree may be more profitable than offering reasonable fees. And from their non-geek perspective, they'd assume that a reasonable non-sucker would negotiate the lower fee, and be happy with it. I guess that they either don't have the psychology of geeks like me down, or there aren't enough of us to make a difference.
Incidentally, I would out Firm A, but Japan's screwy libel laws say that I can be sued for slander for making damaging statements about a person or business, even if they're true.
If we transfer this situation to translation, I guess Translator A would have a chance to get the job if they didn’t lower the rate, as bigger price can presuppose better quality. Of course, there must be basis for the price. And the price must be reasonable.
It seems that Firm B asked a reasonable price and stood its ground. That’s the formula for success
@Mykhailo
I think you’ve got it about sticking to your rates. When Firm A told me they’d lower their fee from $1,000 to $400, they were basically telling me that they had been trying to rip me off for $600. If they had stuck to $1,000, I still might not have gone with them, but I might consider them for future work.
As it was, worse for them I actually liked B’s service better. Letting other suppliers have a crack at your clients isn’t a very good idea unless you’re the best…