Tag: money

Shortage Solutions 3: Private Labeling

One shortage concern is a stenographic (stenographers’) aversion to the colloquial big-box companies. Some reporters have reported that even when the company acquiesces and pays proper rates, they don’t want to take it for whatever perceived reasons. The other day I was lucky enough to catch a profound and interesting idea put out there by MA Payonk on her current blog space, Steno Jewels.

To put it in simple terms it’s the age-old idea of private labeling. Example: Imagine all the resellers out there that take Coke, slap their label on it, and sell it away. Perfectly legal, functional, conceptual example of private labeling. You see this all day, every day in probably every store you walk into.

How would this work in steno? Well, if an agency is asking you to cover and they’ve agreed to pay what you want paid, but you have an aversion to building their brand for whatever reason, it’s perfectly sensible and allowable for you to make an agreement with them that you will cover production, and/or billing, and/or read & sign or services that are normally under their purview. Imagine a world where it’s your name, transcript cover, brand, on all the materials. That’s what we’re talking about here.

Succinctly whatever their cut is, it is for the marketing side of what they’ve done. In this private label example, the reporter is becoming more of a focal point, face, and name attached to the full service.

There is some merit to this idea. Many steno and reporting companies today follow a strict corporate brand strategy where their name is on every transcript, and this is something you see all over the country from McDonald’s to From You Flowers. That said, money is money, business is business, and if you can sell the idea of the private label strategy or an alternative branding strategy, you can take advantage of this novel shortage solution. As a matter of fact, we have seen this strategy before in reverse. For example, if ABC Company asks CBA Company to cover, CBA often goes “as” ABC. This idea would be the company “going as” Reporter Doe.

The only real question is: Would a company agree? And my money is on yes. I truly believe that companies would agree, especially if there was a dialogue or agreement. Maybe the answer would be middle of the road: We want to handle production but you can put all your contact information on the certification. In this country there is literally no limit to what can be in an agreement except that an agreement may not be illegal, so it is a sincere hope that every freelance reporter would read this and maybe come to their own conclusions or come up with their own ideas about being a self-employed person and the advertisement decisions that need to go along with that. It’s a hell of a lot more corporate friendly than my previous suggestion to poach clients, and you can bet that given the option, these companies will choose to work with us.

A Word On Raises

The bottom line of this story is going to be, “you need to ask for a raise.” What was quite common in my New York freelance years was many of us accepted, year after year, what agencies handed out. It is time for us to step out of our court reporting skins and be business people.

There’s something called inflation. The really low level summary of inflation is that as more money is produced the value of existing money decreases, meaning item values go up. That’s why you could live off less money back in the 50s or 60s, and why everything is so expensive now.

The buying power of the money in the bank goes down every year, and every year, the services you provide need to be charged at a higher rate so that you have the same buying power.

Try it for yourself. Get an inflation calculator, type in your very first page rate or salary, the year you started, and the year it is now. A reporter told me that in 1989 they made $2.50. That’s worth $5.11 now. If they aren’t making $5.11, their buying power is shot.

I did it myself. I sat down and said what’s a good starting rate for 2018? I was given $3.25 in 2011. Inflation calculator says that’s worth $3.66 now. I had a few friends who started at $4. That’s worth $4.50 now. But who wants to work for the same exact money every year? No. We want a raise. So what would a raise of 3% a year look like? Year 1, you start at $4.00. By year 6, you should be making $4.60. Look at those numbers again. Just to have the same exact buying power 2011 to now, you need $4.50 a page. To give yourself a $0.10 raise after six years, you need $4.60. Your cost of living is going to go up, and unless you make more money every year, your quality of life is going to go down.

That’s really it. This is my case and my explanation for why we have to start talking about our rates. We have to start informing each other about simple business principles. We need to keep an eye on that inflation rate. We need to really take a close look at what we make on all our services and ask ourselves why our money for our associations, charities, and causes are so tight. We need to admit one thing: You need to ask for a raise.