Warning: the lowest price may actually harm you

Just read this in a translation company's blog:

The quoting of a project is as important as the process in which the work is actually done. Quoting at the lowest price, for example, will attract clients and provides greater sales possibilities.

I find this simplistic, self-serving and misleading. Yes, other things being equal a customer will choose the lower bid.

Things are seldom equal, however, and customers might actually value other things more than saving the last few pennies. They might, for example, value the better quality provided by a better (and more expensive) translator.

But never fear: that same translation company assures us that

At [XX] Translations, we provide our client with the most competitive pricing and the highest quality in the industry.

I could believe they sell at the lowest price (though that would be difficult to prove, with the translation market as fragmented as it is); or maybe I could believe that they are able to offer the best quality (again, a difficult proposition to prove). That they can provide the lowest prices AND the best quality, both at the same time? Sorry: no, I cannot believe that.

The problem with certain agencies is that they seem so terrified by their competitors, that they try everything to lower their prices. But at what heavy cost! this way they are more likely to lose their best translators, and remain with the worst, thus decreasing the quality they can actually offer (no matter what they boast). And the more they are unable to compete on quality, the more they have to compete on price, in a downward spiral that, I believe, will doom many formerly good and viable translation companies.

Unfortunately, in their fall they are probably going to damage many translators, and many unsuspecting clients who believed exaggerated claims of good quality from companies that are no longer able to sustain them.