Live data from Hacker News

Ask HN: I cannot afford to scale…

news.ycombinator.com

31–40 of 47 posts

Re: Ask HN: I cannot afford to scale…

#31
> I can't increase costs because of competition, even though I am sure my service provides a much higher quality translation.

Self-limiting belief. Self-fulfilling prophecy. Whatever you want to call it, this one single sentence will kill your business.

If you are providing a higher quality service than the competition, then guess what? You should be charging more.

If you're not getting the clients you need when charging more ... well, your marketing sucks. Position yourself as a premium service. Provide a better experience and charge for it. Get customers by encouraging referrals, etc, etc.

Look at Apple. They charge twice as much as their competitors for the same hardware. Why? They provide a premium experience and they charge extra for it.

Why are you competing on cost?

Re: Ask HN: I cannot afford to scale…

#32
Hi! This is the Market Economics Fairy! I help supply and demand equilibrate everywhere! If you're turning away customers it means you've set your prices too low! Raise your prices until you have exactly as many customers as you can handle!

Sincerely, the Market Economics Fairy!

Re: Ask HN: I cannot afford to scale…

#33

I think you have an 'easy' choice here. 1. Like other people have said, increase your price and fewer people remain. It is polite self selection 2. Outsource the actual job. make your job relating with the customer and pay people to do the translation (per job). your work will be to review what they have done and interact with the customer. 3. Focus on the one that had higher money/time ratio. So if it is the highly…

There's always the possibility you increase your price and no one leaves. Companies do this all the time.

Again, a great problem to have. More cost effective to hire help if you want to expand. Or repeat increases to diminish demand. Profit!

Re: Ask HN: I cannot afford to scale…

#34
You could follow the advice of many commenters here and increase prices. I recommend you increase prices on new customers, but maintain similar prices for current customers, since they've been early adopters of your service. The danger of suddenly raising prices on existing customers (or radically changing the service) is that you might lose them (see Netflix).

Re: Ask HN: I cannot afford to scale…

#36
Do you get much repeat business? Can you speak to old/previous clients and find out what they would be willing to pay?

Can you improve your own productivity, what takes up most of your time when managing the translation?

Re: Ask HN: I cannot afford to scale…

#37
Look for free ways to scale before you pay for them.

Aim to get to the point where it takes you the same amount of time to deal with 1 customer or 100. What would that process look like?

Maybe something like...The client hires you, you assess the requirements, send details to the translator and then all future project messages go straight to the translator (or a virtual assistant), you fix unusual/unique issues and issue the invoice. Rinse & repeat.

If you're entering into lengthy e-mail discussions try to find recurring topics/issues across all of your clients. Can you refine the requirements gathering process at the beginning of a project to save you time at the end?

Anticipate the standard number of hours needed for support and add a percentage onto your prices for "support issues". You can happily say this price also includes x amount of after-care.

If your client chooses not to have this added on up front you can say that unplanned support hours cost $xx. Knowing that your time is a premium ensures they are clear and concise with you from the start. Fixed price jobs are prone to requirements creep.

You're paying in so much time by reading long client e-mails, replying to them and then forwarding important info onto your translators. Maybe by discussing with a client on a recorded Skype call instead of e-mail you cut time needed down to 1/3.

Analyse your working day. Any repetitive task can be automated/outsourced made quicker or eliminated completely.

What types of task take up your day?

How long does it take to get your computer ready in the morning? Add programs to start-up, get frequently used websites saved to permanent tabs. Is filing paperwork/accounts simple? Any task over 10mins needs to be considered.

I know it sounds wrong but you've got to work yourself out of the business as a critical cog. You (i.e your time) are the bottleneck stopping you making more money.

Maybe having a virtual assistant for a few hours per day would be a low cost way of helping with communication back log. They could take info out of mails and forward to the translator working on it in a template. Or they could read mails and highlight the critical info for you consider.

It sounds as though your business is at a turning point where your job role needs to change to progress, move away from day to day work and more towards finding new clients and streamlining.

Your overall job is to remove obstacles for yourself and those that you employ.

Best of luck!!

Re: Ask HN: I cannot afford to scale…

#38
This post piqued my interest because I've been working for one of the bigger players in the translation industry, and I have a lot of thoughts about your predicament.

You are a commodity. That's the reason why it's difficult to raise your prices. App developers could easily find alternatives to your service quite easily... they can go to myGengo or tens of other services (including the company I work for), and they could probably get it at a cheaper price. When you have a situation like that, then you have no leverage.

You need to find your differentiation. For example, a good niche some translation companies we work with specialize in medical translation. You can't easily substitute translators with medical expertise... They have more price leverage than your regular run-of-the-mill translator. I'm not sure what specialties you have in your skillset, but you need to find a niche that you can serve.

Another differentiator is speed. The translation industry is changing rapidly. In the past, most translation jobs were completed in the order of months (think documentation for Microsoft). Nowadays, most jobs require translations to be done in less than a few days (think blog posts). Running an efficient and scalable operation is quite difficult.

I have much more to say, but I'm at work, so I'll reply later.

Re: Ask HN: I cannot afford to scale…

#39

Hi Guys, Thanks for all the answers so far - much much appreciated. A few points I should clear up. 1) I do outsource translation. I work closely with a group of freelance translators who I interviewed back in January when I started up. I wish I could speak 20 languages, but I don't ;-) 2) Running a business unfortunately isn't just Project Management and Project QA. There's also finances, marketing, the website to m…

If you are really concerned about raising prices (I wouldn't be; I think you should raise them across the board), you could try just charging new clients/users the higher rate. Adds complexity to your system, however.

Edit - just saw the question. The problem right now is not that you don't have a partner; it's that you don't charge enough for the work you're doing. Adding a partner is going to create another set of distractions and issues.

Re: Ask HN: I cannot afford to scale…

#40
post #14

Charge more. You seem to be stuck with the idea that if you charge more you will lose clients. Do you have any evidence that this is true? Have you talked to existing clients and said "I'm pretty busy, but if you pay X I can fit you in this week?" What did they say to that? Did you try putting out a new ad with higher rates? Do you get lower feedback? Or the same feedback.

You sound like your working in the apple software space. This is good for you, since mac app developers are more likely to be small, indie and not bigco enterprise shops. They are more likely to want to "be cool" and not want to be greedy uncle scrooge.

So that's the story you tell them when you want to raise your prices.

Tell them that you're a small indie shop, that you love working for other small indie developers working with teams that "get it" and love to produce beautiful apps. Tell them you're glad you're not working for soulless megacorporations who want to turn software into Walmart. Then tell them that you'd love to keep working with cool people like them, but you're running out of money, and would they mind paying more. Hopefully they will want to not be seen as heartless corporations like Microsoft that peddle cheap junk, and will agree to a rise.

Post reply on HN