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Veteran Mother tongues: French, English Posts: 227 Joined: January 21, 2006 Location: France
Rates issues: the US-Euro condundrum
Though this poll targets two of the major currencies in which translations are quoted, the underlying question applies of course to any currency pair.
Assuming you are expected to quote a standard rate per word that will be valid over time (in the case of repeat clients -direct or agencies) and not establishing a quote per project, how do you handle shifts in currency exchange that swing wider than the usual range? Do you integrate the fluctuations:
Expert Mother tongues: English, German Posts: 7848 Joined: September 26, 2003 Location: Canada
RE: Rates issues: the US-Euro condundrum
There is a standard rate, parting from which projects are calculated depending on complexity, time consumption etc. I have voted "other" because I do not quote an all-time rate, though I can give an approximation. The rate is the same regardless of how it is calculated. I suppose the currency is one that must be worked out between outsourcer and service provider. Sometimes an outsourcer has limitations, especially if they are a large co.
Expert Mother tongue: French Posts: 5569 Joined: December 31, 2003 Location: France
RE: Rates issues: the USD-Euro conundrum
I voted 1.
Being based in France, I have a rate in Euros, even for clients outside the Eurozone (mainly the US and UK), and have never had any problem with such clients accepting to pay in Euros.
This has been an advantage since the Euro was introduced: this currency is treated by business clients on an equal footing with other 'major' currencies, such as the USD and GBP.
And I have always found it a shame that rates advertised on TC profiles can only be expressed in USD. There should be a currency menu to be able to select between major currencies when you specify your rates.
Just my two (euro!)cents...
Laurent
[Edited by Laurent Chiacchierini on November 10, 2006 5:16 PM]
Veteran Mother tongues: French, English Posts: 227 Joined: January 21, 2006 Location: France
RE: Rates issues: the US-Euro condundrum
Hello Maxi and Laurent,
I am in France too but some clients outside the EU insist I quote in USD - regardless of whether in the end they pay me in Euro or USD. Notwithstanding agencies that often ask you for a fixed rate per word for XYZ type of project, let's say one has either a long standing client or is working on a long project. In the first instance, it is very difficult to make a client suddenly accept that your rate is going to reflect the large swing in the Euro/USD pair, and in the second, one takes care in determining a bid proposal, which, by the time the project is done and payment comes in (even if done in phases) can be rendered incoherent for the translator (living in Euroland) when the "value" and associated purchasing power of his fee melts.
I was wondering how other translators handled that because, at least for me, it is starting to pose "interesting" challenges sometimes...
Mother tongue: English Posts: 2 Joined: December 5, 2005 Location: United States
(removed)
RE: Rates issues: the US-Euro condundrum
Hello Patricia,
The problem you described is related to what is known in economics as 'exchange rate risk.'
If you are expecting payment in a currency other than that used for the quote, the details of the payment, including the exchange rate that is to be used, should be settled as part of the contract. The contract can include a specific ratio or some other mechanism for determining what the ratio will be. This applies generally.
Mother tongue: Polish Joined: February 18, 2003 Location: Poland
RE: Rates issues: the US-Euro condundrum
As a rule of thumb I tend to revise my rates (never downwards! ) once the swing hits 10% which means never before the lapse of 6 months so in my case no one single project is affected. Below the 10% I tend to absorbe the exchange rate fluctuations.
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) once the swing hits 10% which means never before the lapse of 6 months so in my case no one single project is affected. Below the 10% I tend to absorbe the exchange rate fluctuations.