Veritext Buys A Diamond

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.

Audio Transcription, Pricing, And You

First and foremost, happy Thanksgiving. As with most great writers, I’m going to take the time away from preparing to the holiday to write about something I know everybody will want to read about: Audio transcription and pricing. As stenographers, we tend to get very focused on a per-page pricing structure. This often leaves us trying to measure our time by pages, and is not always the most ineffective way of being paid.

For purposes of this post, let’s talk a little about CART, audio transcription, and pricing generally. CART and audio transcription are not the same thing, but they have similarities. One key similarity is that they tend to charge by the hour. For CART it’s per hour of writing, usually with a set minimum, and for audio transcription it’s money per hour of audio, sometimes prorated for audio that doesn’t last a whole hour or end exactly on an hour.

Succinctly, for CART, captioning, and audio transcription, despite having different prerequisite skills, the pricing for all of them must take into account the amount of work we’re doing, the quality of the work we’re doing, and ultimately the time it will take us to do the work. So speaking strictly for transcription: I’ve guesstimated that it takes me approximately one to two hours for every hour on the machine to transcribe with pretty close to 100% accuracy. That means for every hour of audio, there are about three hours of actual work involved. So, for me, honestly, working for less than $30/hr becomes painful, so the transcription deal isn’t sweet until maybe the $100-something range. The bottom line of this story? We must examine our time and really decide what it’s worth.

In examining our time, we can also consider other factors. For example, what are other people charging for the same work? As we can see from this Google¬†search here, there are companies that boast a $1/minute transcription fee. So if we do an independent assessment of our time, and we come to the conclusion our time is worth $2/minute, that’s perfect, but just bear in mind that we may lose a couple of customers to the person who is half our price. A potential solution? Split the difference and charge $1.50 per minute.

There’s a lot that goes into economics, buying, selling, demand, supply, and no one blog post could ever impart all of that knowledge on anyone. Even top economists who have devoted their lives to understanding value and money disagree with each other. The best we can do is urge every reporter, where applicable, to look at what they charge, whether charging an agency, lawyer, or outside consumer, and consider how our pricing practices affect all different areas of the field. There’s tons of literature and articles¬†on price matching and how it can help consumers, hurt consumers, help businesses, and hurt businesses, and the cold truth is that it’s up to us to take the time out and learn about these things, because many of us are our own business, and our business rises or falls on our willingness to learn beyond the machine.