In a perhaps not-so-surprising move Veritext bought Diamond. I wish every reporter a great deal of luck and success, but I do want to talk a little bit about why I think this is overall bad for us.
Corporations are entities made to create a profit for their owners. That’s their legal and primary purpose. There’s nothing really wrong with this, it’s kind of how things work. When you buy a stock in a public corporation, generally you can rest assured that the Board of Directors has a duty to protect the value of your shares. Yay.
But this poses a unique problem for reporters. Their duty is to their bottom line. What’s one of the biggest expenses? Labor. What’s labor in reporting? Our fees! So ultimately, Veritext, which I now nickname Gobbler Corporation, has bought its way into having what I imagine to be a pretty hefty book of business. This is bad for the following reasons:
If the reporter shortage continues, they have an incentive to push audio recording. It is cheaper and it will always be cheaper to get someone to take notes during a proceeding while it’s being recorded than hiring a stenographic reporter. This savings isn’t likely to be transferred to the lawyers and litigants, but added to Veritext’s bottom line.
If the shortage does not continue, Veritext has a larger market share of New York and will have a better ability to dictate prices to its reporters.
Honest solutions? We need to be better on our information game. We need to keep instructing reporters on what we are worth and encourage them to be powerful entrepreneurs. I’ve written before in this blog about how people can negotiate or seek information on government contracts. Perhaps soon I can write about becoming an NYC Vendor. Now is the time! More than that: We need to start fighting harder. As they start shifting to recorders, resist. Call up your favorite law firm and offer your services. Become the competition. Make them buy you out too. Reach out to law firms and tell them, hey, they’re cutting us out, and they’re not passing those savings to you, so hire a stenographic reporter today for a better deal!
This is the best damn time to be a reporter that I’ve seen in New York. The court system wants you. The unions want you. The association wants you. The agencies want you. Your skills are in real demand. But your willingness to step out of your comfort zone and really connect with customers, clients, lawyers, and the end users of our services really can alter how everything plays out. What you do actually makes a difference. Why? Strategy. Envision the whole thing as a game of chess. In Chess, if you refuse to move, you concede the game. Most of us are not wealthy, can’t concede and stop working. If you let the other player take all your pieces off the board, the sources you rely on for work, pulling off a win grows ever more challenging. If you start making moves, you force the opponent to react. Their game gets thrown because they can’t account for every move you make. Every dollar an entity gets is a dollar that makes them stronger. What do you think happens if the hundreds of stenographers in the city start taking dollars away by being real competition?
And we’re bothering people that want stenography to fail big time. The fact that we’re catching on and creating a plan to fight back is hurting them so bad that they’re gloating at me in anonymous e-mails about how our days are numbered.
So the choice is simple. Concede and let the current shotcallers decide how things are going to go, or step it up and take the time to read about how to draft responses to city RFPs (requests for proposals) and become true entrepreneurs, and introduce true competition to a needy, living market. Remember that a market is not just “oh, they want to pay me this”, but an amalgam of buyers and sellers, all seeking the best deal for themselves. Remember that as a provider you are the backbone of the market, and it’s your action or inaction that dictates tomorrow.
Veritext bought a Diamond. There’s no reason we can’t build ten more.