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LSP Pricing Strategies
by Hélène Pielmeier, Donald A. DePalma
April 25, 2016
April 25, 2016

 
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Summary
Competition in the language services market is ruthless. You can always find competitors that are willing to undercut your rates. And because most buyers view translation and interpreting as commodities, selling based on factors other than price is a tough exercise. Language service providers need to develop solid pricing and quoting strategies to win business predictably and to grow in a controlled fashion, without burning out staff and vendors.

In November and December 2015, CSA Research interviewed 22 LSPs to investigate pricing approaches. Executives, sales managers, and anyone quoting projects at your organization will benefit from this research. They will gain insight into the logic that competitors use to establish prices and learn tactics to improve their odds of closing business.

This report covers:

  • Pricing Approaches. We present findings on how LSPs choose their market positioning, which pricing models they favor, and which pricing strategies they deploy to win new business.

  • Price Lists. We explore how providers develop and maintain their price lists.

  • Pricing Services. We cover how LSPs charge for translation and hourly services. We also discuss practices applied to bundling services, project management fees, and minimum charges.

  • Price Change Mechanisms. We document strategies to add premiums and provide discounts. We also provide alternatives to avoid the race to the bottom and information on how to stay profitable when you drop prices.

  • Recommendations. We summarize advice on designing pricing strategies that increase closing ratios.

  • Information Sources. We provide details on interviewee profiles.

  • Related Research. We recommend other CSA Research reports and briefs that provide additional data and analysis on rates and pricing strategies.

Availability
  • Industry Providers
  • Technology Vendors
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Pages: 47
 

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