Pricing Comparison

Vendor Pricing Comparison

Your enterprise LSP's invoice shows the per-word rate. It doesn't show the 30% you're paying in hidden fees and internal overhead.
What does localization actually cost?

A TCO-based pricing analysis for localization managers. Real cost breakdowns, hidden fee identification, and the data you need to build the business case for switching vendors.

See the hidden costs ↓

Five line items that never appear on your LSP invoice

The per-word rate is the number you negotiate. These are the costs you absorb without noticing — until you calculate the real total cost of ownership.

Hidden Cost 01

PM rotation onboarding cost

Enterprise LSPs rotate project managers every 6 to 18 months. Each rotation means 2 to 4 weeks of your time re-explaining brand guidelines, quality preferences, and workflow requirements. At 2 to 3 rotations per year, that is 6 to 12 weeks of your time lost annually.

6-12 weeks/year of your time
Hidden Cost 02

"Client Review Management" fees

Many enterprise LSPs charge separately for managing your feedback. You are paying them to process your corrections to their work. This fee typically adds 10 to 15% to the base cost and should not exist if the quality is right.

+10-15% on base cost
Hidden Cost 03

Technology platform access costs

Portal access, TMS usage, reporting dashboards — features that should be included but are billed as separate line items. These "technology fees" can add 5 to 10% to annual costs.

+5-10% annually
Hidden Cost 04

Internal quality management time

Your team spending 15 to 25 hours per week reviewing deliverables, managing escalations, tracking issues, and reporting on vendor performance. That time has a salary cost that does not appear on the translation invoice.

15-25 hrs/week internal cost
Hidden Cost 05

Revision cycle costs

Industry average revision rates of 5 to 15% mean every project has a correction loop. Each loop involves: your review time, vendor correction time, re-delivery, and re-review. At scale, revision cycles consume more budget than the original translation.

5-15% of all work needs rework

Three vendor pricing models compared

The per-word rate tells you almost nothing about what localization will actually cost. Here is how three pricing models compare when you account for total cost of ownership.

Enterprise LSP Tiered Pricing

The invoice that grows line items over time.

Technology fee + per-word rate + PM overhead + rush premiums + review management fees + minimum charges. Discount tiers exist but qualification thresholds keep moving. Actual cost is 30 to 50% above the quoted per-word rate.

Every renewal adds new fee categories. "Platform upgrades," "enhanced reporting," "dedicated support tiers" — each one a new line item on top of the base rate you negotiated.

Reality: actual cost 30-50% above quoted per-word rate.
Freelancer Marketplace Pricing

Lowest per-word rates. Highest total cost.

Lowest per-word rates on paper. But you are the project manager, the QA team, and the escalation path. Coordination time costs more than the translation itself. No terminology management, no consistency across translators, no scalability for peak periods.

Every new translator means re-onboarding. Every urgent request means scrambling for availability. The savings disappear into your team's calendar.

Reality: coordination overhead exceeds translation savings.

The business case: what you present to leadership

Building a business case for switching vendors requires real numbers. Here is the TCO framework and the metrics that make it undeniable.

Real TCO Comparison

The line-item comparison most loc managers never build.

Per-word rate + hidden fees (30-50% markup) + internal review time (15-25 hrs/week at your salary cost) + revision cycle time (5-15% of all work) + PM rotation re-onboarding (6-12 weeks/year) + emergency management.

When you calculate real TCO, the "more expensive" specialist partner is often 15 to 30% cheaper. The per-word rate is not the cost. The total cost of ownership is the cost.

15-30% real savings Complete TCO view
The Metrics That Build the Case

Numbers that make the business case undeniable.

Same team for 12+ years (no rotation costs). <1% revision rate vs. 5-15% industry average (internal review time near zero). 98.7% on-time delivery (emergency management near zero). Sub-minute response as standard (no portal lag). No hidden fees (invoice matches quote).

These are not aspirational targets. They are published, auditable metrics from long-term client relationships.

<1% revisions 98.7% on-time 12+ years
<1%
Revision rate to date
5-15%
Industry avg revisions
0
Hidden fees
12+
Years, same team to date
98.7%
On-time delivery to date
<60s
Request to production

What's always included in the price

No add-ons, no premium tiers, no surprise line items. Everything listed here is part of the standard engagement.

Included

Dedicated team

Same linguists and PM for years. No rotation, no re-onboarding. Sub-minute response. Complete project coordination included. Your team does not change because of internal vendor reshuffling.

Included

Quality guarantee

<1% revision rate (published, auditable). Terminology management. Style guide enforcement. ISO 9001 + ISO 17100 certified. All QA included — not a premium add-on.

Included

Operations and reporting

Integration with your tools. Performance dashboards. Scalable capacity. Monthly reporting. No "technology access" fees, no "reporting" add-ons. Operations support is part of the service, not a separate invoice.

Want to see real pricing for your volumes?

Get a transparent proposal based on your actual content mix.

Request a Custom Pricing Proposal

Frequently asked questions

How do I calculate the real TCO of my current vendor?

Start with your annual invoice total, then add: internal review hours multiplied by your team's hourly salary cost, PM rotation re-onboarding time (estimate 2 to 4 weeks per rotation at your hourly rate), revision cycle time for both your team and the vendor, and any technology or platform access fees billed separately. Most localization managers find their real TCO is 30 to 50% above the invoiced amount.

What's included in the retainer vs. the variable component?

The retainer guarantees dedicated team access, sub-minute response times, terminology management, and project coordination. The variable component covers actual translation and QA volume processed. There are no additional fees for technology access, reporting, review management, or rush handling. The invoice has three line items: translation, QA, and coordination.

How does your pricing compare to enterprise LSPs like TransPerfect or RWS?

On a per-word rate comparison, enterprise LSPs may appear competitive. On a total cost of ownership comparison — including hidden fees, internal overhead, revision cycles, and PM rotation costs — specialist partners are typically 15 to 30% cheaper. We provide a transparent TCO comparison as part of every pricing proposal so you can evaluate with complete data.

Do you charge rush fees?

No. Rush handling is included as standard because our dedicated team model means your linguists are already familiar with your content, terminology, and preferences. There is no ramp-up time for urgent requests. Sub-minute response is the standard, not a premium add-on.

How do I build the business case for switching vendors?

We help you build it. Request a custom pricing proposal and we will provide a line-item TCO comparison between your current setup and our model. The comparison includes all hidden costs — internal review time, revision cycles, PM rotation, technology fees — so you have the complete picture to present to leadership.

Can we run a parallel comparison before committing?

Yes. We recommend it. Run a defined scope of content through both providers simultaneously. Compare quality, turnaround, revision rates, and coordination time. Measure everything. The data makes the decision clear. There is no minimum commitment for a parallel evaluation.

What's the minimum commitment?

There is no long-term lock-in. Retainer agreements are structured monthly with transparent terms. You can start with a parallel evaluation at no commitment, then scale based on results. The relationship is sustained by performance, not by contract penalties.

How quickly can you provide pricing?

Within 48 hours of receiving your current vendor setup, content types, and volume information. The proposal includes a transparent TCO comparison and a clear breakdown of what is included. No follow-up meetings required to get the numbers — you receive a complete proposal you can evaluate independently.

Request a custom pricing proposal

Share your current vendor setup, content types, and volumes. We will send a transparent pricing proposal with TCO comparison within 48 hours — the numbers you need to build the business case.

Prefer email? ricard@kobaltlanguages.com