Virtual Assistant Forums | Work from Home

The Perfect Word · #1 (**permalink**) 03-15-2011

Hi all! In 15 years of business I had my first question regarding discounts for volume work today. This rather new client (insurance company) ask what volume they would need to give me to get a discount. They're being billed at a per-audio-minute rate. This rate works out to more than my hourly rate so I could easily reduce it some and still cover myself for the few recordings that aren't clear. (I gave them the choice of hourly rate or per-audio-minute and they chose the minute option.) They started with me 10/10, but their volume increased a lot last month.

These are transcripts that are invoiced per claim, meaning I send an invoice for each claim, which most of the time is only one transcript per invoice due to their need to bill back to the claim. The invoice is sent when the transcript is sent.

I obviously can't control their volume and won't know until the end of each month if the volume is what we agreed upon to get the reduced rate, which I would have already given them. Unless I give the reduced rate on the next month based on the volume of the past month?!? Should I ask them what volume they were thinking about first? Could be they would have enough volume that going under x-amount wouldn't be an issue.

This is new territory for me. I'd really like to keep this client because they are a large, stable company, nice to work with, pay quickly, and the recordings are super clear so far. But just don't know the best way to go about this and I don't want to sell myself short either.

Any suggestions would be extremely welcome!!

eXPERT Business Support · #2 (**permalink**) 03-15-2011

Wow, first of all, congratulations on such a great client. It sounds as though you will work great with them.

I am very familiar with what you are talking about. I do a lot of investigative transcription, which in reality turns out to be for insurance claims. And yes, it is very hard to determine the quantity, as this can be very sporadic. But this sounds like a fantastic client.

However, with that being said, I know how difficult some of these audio files can be. There are times that they can be so terrible that you will end up spending way too much time transcribing -- because of poor audio.

As their audio has been good so far, that is definitely a plus. In my experience, however, claims interviews can be good, bad, or downright ugly! I would definitely bring into discussion any type of audio quality issue when negotiating your discounts -- especially for insurance claim interviews.

Did I help, or did I ramble? I have so much more to say on this subject but just don't want to bore you to death!

PamH53 · #3 (**permalink**) 03-15-2011

Can you give them a discount on some sort of sliding scale? One rate for the first 10 hours. A smaller rate for transcription between 10 and 20 hours. Every 10 hours the rate gets less per minute. I don't know how much you do so those times might not be accurate, but hopefully you get the idea. You said you invoice as you go along so you shouldl know how much work you have done.

Balancing Act · #4 (**permalink**) 03-15-2011

What about some sort of coupon system? Say for x amount of audio minutes per month, they "earn" x amount off of their next invoice.

The Perfect Word · #5 (**permalink**) 03-15-2011

Last month I sent them about 15 invoices because I did transcripts for 15 claims, so I can't give the discount on one invoice and not the rest, that's why it's so complicated. I can't just send them one invoice and deduct a credit. But I guess I could say if you reach x amount of audio minutes/dollars in a give month then next month I'll reduce your per-audio-minute rate to x-amount and do the same thing each month as long as the previous month reached or exceeded the agreed-upon volume.

I've worked with insurance recorded statements for so many years I think I've heard every good and bad quality there is including tapes that sounded like squeaky mice and listening to a guy use the bathroom while answering the adjustor's questions (this wasn't bad audio, just unbelievable!). Most of my clients are hourly, so if something is more difficult to transcribe it takes longer and therefore I get paid for the extra time. For per-audio-minute I have a higher rate that I use when the quality is REALLY bad. For these guys I haven't had to use it yet. (The really awful ones can drive you insane, can’t they—LOL!!)

bridiej · #6 (**permalink**) 03-16-2011

I had a similar enquiry last week (first one for me too!) and I quoted a reduced rate based on a minimum 10 x sound files. I will still invoice after each transcript. Does that make sense?

The Perfect Word · #7 (**permalink**) 03-16-2011

Bridie, so for a minimum of 10 hours worth of audio (sound files) a month you give the reduced rate on each invoice. (Just making sure I read the "x" correctly as hours.) Makes perfect sense! Now all I have to do is come up with the numbers I feel comfortable with! Thank you!

bridiej · #8 (**permalink**) 03-16-2011

Nope, 10 actual sound files/interviews .... the interviews would be around 1 - 1.5hrs each (so I guess technically it adds up to similar!).

10 hours is a good idea though as at least you'll know where you all stand and it'll make it much easier to work out!!

The Perfect Word · #9 (**permalink**) 03-17-2011

Thanks, Bridie! The audio files I receive to transcribe very so much in length (from 5 minutes to 45 minutes) that counting transcripts might not work that well for me. So I guess I'll use either audio hours or dollars. Hmmm, now I just have to decide!