Prices for transcription services seem to be all over the place. Some companies charge a flat fee for a monthly plan while others charge per minute of each audio file. Some companies charge extra for timestamps while other companies just automatically include timestamps in every transcript at no extra charge. So, how on earth are you supposed to figure out how to price your transcription services appropriately? Keep reading to learn everything you need to know about what goes into transcription service prices.
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What To Consider
Several factors will impact the price you should charge for transcription services. First, your niche market, and the type of transcription services you provide, will determine a price range. Medical and legal transcription are priced the highest because the education and industry-specific knowledge required are extensive. Additionally, medical and legal transcription requires strict adherence to laws, style guides, and turnaround times. General transcription is easier and does not require as many skills or experience as other more complicated types of transcription, so general transcription rates are typically lower.
Also, consider whether you and the freelance transcriptionists working for you are certified. Transcription companies can charge higher rates for work done by certified transcriptionists when the work is particularly difficult, turnaround times are short, or customer expectations are demanding.
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Finally, think about exactly what will be included in the price you charge for transcription services. For example, if you plan to include speaker identification in every transcript by default, make sure your rate fairly compensates for the time and work involved in getting speaker names from your client. However, if you plan to include speaker identification only when requested by the client, you could consider charging a base transcription price and then, an additional charge for the inclusion of speaker names. Other transcription-related services to consider include the transcription style you plan to offer (verbatim, clean verbatim, or something else), whether you’ll offer your own style guide or customize transcripts for each client, your turnaround time, offering certified transcripts, and removing background noise from audio files.
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Determine Average Price
Next, you’ll want to find the average going rate that your competitors are charging. Look for other transcription services in your niche serving the same geographic area that you serve and offer the same or similar service offerings. You might have to pretend to be a potential client to find out their rates, but this information is critical. If you charge significantly higher than your competitors, price-conscious clients will not consider you, but if you don’t charge enough, some clients will correlate low prices with poor-quality work, or you’ll be leaving money on the table. It’s also a good idea to ask potential clients what they would be willing to pay for your transcription services.
Determine Your Costs
It’s essential to determine how much it costs you to offer transcription services. The price you charge must cover all your costs or you’ll go out of business. Add up how much you’ve spent on your computer and other hardware, software subscriptions, cloud storage, and document transfer services.
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The time spent on the actual work involved should be considered a cost as well. Calculate your turnaround time and the turnaround time of your transcriptionists. Add up the time it takes to proofread and edit each transcript, clean up the audio, the time you spend communicating with clients about each transcript, and the time it takes you to download and upload files.
Lastly, don’t forget to consider how much you plan to pay the freelance transcriptionists who work for you. The rate you pay transcriptionists, the amount you’ve spent on hardware and software, and the time involved will help you determine how much it costs you to offer transcription services.
Determine Profit Margin
Your price must provide you with a profit so that you’ll have income after all expenses have been paid. Profit margins are affected by the following:
- The type of transcription services you offer – The more specialized your niche is, the bigger the profit margin due to the experience and expertise required by the industry you serve.
- How much competition you have – If you have a lot of direct competition, you can expect a lower profit margin as you’ll be working harder and spending more to attract and retain clients.
- Your service offerings – Clients are willing to pay more for unique offerings, like a style guide custom-made to fit their specific transcription needs. They’re also willing to pay higher prices for services that save them time, like removing background noise from audio files.
- Your overhead costs – In addition to the costs directly related to producing transcripts, you have other expenses like insurance, business license fees, taxes, and the cost to get and stay certified. The lower you can keep these costs, the higher your profit margin can be.
- Your efficiency – Time is money and the more time you spend on repetitive or unnecessary tasks, the lower your profit margin will be. Streamline your processes and automate your workflows for higher profit margins.
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Put It All Together
Compare your costs and desired profit margin with the average price your competitors are charging for transcription services. If you charged the average rate, would all of your expenses be paid and would there be enough left over to provide you with a decent income? If your costs exceed the average rate, consider tweaking your service offerings, getting certified so you can charge more, or looking for ways to reduce expenses. You could also think about a tiered pricing model that allows your clients to choose a price and level of service that suits their needs.
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Pricing your transcription services can be tricky. After all, you want your prices to be competitive, but your prices also have to cover expenses and provide you with an income. Analyze all of the factors that go into pricing your transcription services and choose a price you feel is appropriate. You can always change your prices up or down if the price you start with does not seem to resonate with your clients.
