As a result of the COVID-19 pandemic, many businesses have shifted their work to a digital platform. This newfound change presents both benefits and challenges in increasing revenue and profitability. This blog will explore the challenge of compromising profit in order to gain business.
What Does This Look Like?
Some Canadian language service providers (LSP) have, or will begin to, lower prices for their services in order to gain more business and satisfy clientele. Procurement people love the idea of low prices; although lowering prices can do more harm than good. Lowering prices means lowering profitability and driving small players out of business in some cases. For example, a language service provider may offer perspective clients 40% off of their services in order to gain moderate profit. However, lowering the price of services inevitably correlates to lowering the quality of translation, customer service, and the reputation of the LSP.
As discussed in a previous blog, Nimdizi Insights Research statistics presents the top factors that are important to companies when purchasing localization; namely: on-time delivery, quality of translation, and customer service. These factors will be compromised if LSPs lower their prices, consequently pushing away purchasing professionals.
Wrapping it Up
In conclusion, language service providers in Canada should hold the line on pricing, value the profession, and offer moderate pricing on their services. I will leave you with this quote from Benjamin Franklin: “The bitterness of poor quality remains long after the sweetness of low price is forgotten.”