TRANSLATION MEMORY and PRICING USING TRADOS™

Pricing is often confusing and intimating to not only our translation customers but to the translation provider as well. For example, how does one set pricing? How do you take into consideration the repetition of contentwhen quoting updated versions? Do you set pricing per word, per fuzzy match, or by file type?

There are a few widely used pricing guidelines and methods that are common in the industry. These may be helpful in setting up, reviewing and approving the pricing.

Understanding of “Matches”

TRADOS provides an analysis tool that compares a new project against an existing translation memory. The resulting analysis will provide precise visibility into what percentage of the new document can be recycled from the previously translated material. Further, the analysis will reveal to what degree the words in each sentences can be recycled. This analysis result plays a key role in setting the translation price.

Three levels of matches are identified in the analysis:
1. 100% Matches or Repetitions – Exact sentence matched are known as “100% Matches”

2. Fuzzy Matches – Sentences that are similar but not exact are known as “Fuzzy matches”. The degree to which a fuzzy match is similar to a sentence in the new project is identified by a percentage. The higher the percentage, the closer the match.

3. No Match or New Words – No records are found in the TM.

Translation agencies and professional translators charge by the word and, when using Trados, find it advantageous to use the 30/70/100 rule.

30/70/100 Pricing Rule

1. Repetitions or 100% Matched - 70% discount of the base rate per word applies. Although the word-to-word translation is avoided, translators still need to verify the contents and maintain the translations in place.

2. 99% - 85% Fuzzy Matches - 30% discount of the base rate per word applies.

3. 84% Fuzzy Matches – No Matches (New Words) – The base rate per word applies. No discount. Although fuzzy matches in this category will save you considerable translation time, they will require significant editing and are thus priced with the full per word rate.

The 30/70/100 rule allows for translation vendors to offer transparent savings to clients through the use of Translation Memory. On top of the savings, shorter turnaround and high content consistency can be achieved. In the meantime, the translation vendor ensures the generation of revenue from the previous translated materials because of the proper use of them.

In addition to per word pricing

Pricing is not just set on a per word basis when complex file types are involved. If file types other than Word like web pages, or desk top publishing formats are required, file maintenance fees will be added to compensate within such file types. Typically, a 10% - 20% surcharge (depending on the project complexity) is customary.

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