Market adjustment: Inflation and price increases in the time to come 2021 Thread poster: Nils Johann
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Nils Johann
Germany
Local time: 03:53
German to Norwegian
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Market adjustment: Inflation and pricing in the time to come.
==Nutshell==
The corona-scare was not the only problem back in 2019, and it topped a large crisis of over-financialization in the economy, that had been brewing for some years.
-As a response to corona, (or using it as a handy excuse?), Germany has been printing money like crazy in 2019, 2020, 2021, and gave most of it to McDonalds and friends of the CDU (owners party). We are talking benefits limited at a ma... See more Market adjustment: Inflation and pricing in the time to come.
==Nutshell==
The corona-scare was not the only problem back in 2019, and it topped a large crisis of over-financialization in the economy, that had been brewing for some years.
-As a response to corona, (or using it as a handy excuse?), Germany has been printing money like crazy in 2019, 2020, 2021, and gave most of it to McDonalds and friends of the CDU (owners party). We are talking benefits limited at a maximum € 3- 900 000 000 p.a. per firm-entity / 90 % of normal turnover, not the € 4 500 max. you got for free. -I just assume other governments did the same?
My conclusion is that we all need to adjust our prices, here on the platform, to this new reality of the largest inflation in most of our lifetimes, at about 25 % for the last two years.
==General==
Hi everyone,
one of the most helpful tools for my start as a translator was the price index on Proz: https://search.proz.com/employers/rates?source_lang=deu&target_lang=nor&disc_spec_id=¤cy=eur&submit=Submit
As an aggregate of prices, It helped me to set prices for translations and to tow the line when it came to giving a cold shoulder to people that did not want to pay normal rates. I also use it to show clients what the normal prices are, and I use it to educate them. It works quite well.
But, now we are going in to have special times, economically speaking. All the corona-benefits / re-financing of big companies, are going to be creating a bubble, and all the indicators are there.
==Real indicators of inflation==
Prices are rising. Most food prices here in Germany are heavily planned and regulated, but certain imports are starting to be affected. My olive jars have shrunk to half the size, cooking oil is up 20 % and so is most meats. Construction materials, like wood, glass, steel, concrete, are in part missing, in part 300 % over priced. The best indicator might be that the price of real-estate, (one of the things we usually spend a lot of our money on), is up by about 50 % since 2019, because all the rich people are buying property to shield their assets from inflation.
I am wondering if anyone else has been thinking the same thing? ▲ Collapse
| | | | Adieu 
Ukrainian to English
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It seems too politically toxic to speak of double digit inflation so governments act like it doesn't exist, but I can most certainly see it.
Plenty of examples like grocery receipts, cars that sell for more than when you bought them years ago, fuel going through the roof, etc
Heck, look at the prices of flagship phones. Those things have extremely little to do with unit cost or materials or necessity and are purely priced around what the market leaders think they can ch... See more It seems too politically toxic to speak of double digit inflation so governments act like it doesn't exist, but I can most certainly see it.
Plenty of examples like grocery receipts, cars that sell for more than when you bought them years ago, fuel going through the roof, etc
Heck, look at the prices of flagship phones. Those things have extremely little to do with unit cost or materials or necessity and are purely priced around what the market leaders think they can charge. There's your real indicator of inflation.
Samsung, Apple, and co. are clearly convinced that our money is now worth noticeably less.
[Edited at 2021-09-23 18:39 GMT]
[Edited at 2021-09-23 18:40 GMT] ▲ Collapse
| | | | | Regulated prices? | Sep 23, 2021 |
Nils Johann wrote:
Most food prices here in Germany are heavily planned and regulated...
Sorry, but what are you talking about? What food prices in Germany are regulated and by whom?
Food prices in Germany are certainly not regulated, they are a result of cutthroat competition between a few supermarket chains, and overall German food prices always have been lower than in most other European countries (much to the annoyance of farmers and food producers in Germany who always have difficulties to get adequate prices from the powerful supermarket chains).
Yes, it is true that prices are rising and that inflation is a real risk in the short term, or even happening already. We can discuss this but get your facts right, first.
| | | | Adieu
Ukrainian to English
+ ...
| I think you misunderstood him | Sep 23, 2021 |
By "regulated", he means that packaging shrinks while "price" remains roughly the same. It's a classic retail response to EXTREME price increases on items.
Less food for a familiar price = higher food prices
[Edited at 2021-09-23 20:19 GMT]
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Nils Johann
Germany
Local time: 03:53
German to Norwegian
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TOPIC STARTER | There are quite extensive regulations for food in most countries, as in Germany | Sep 24, 2021 |
Sorry, but what are you talking about? What food prices in Germany are regulated and by whom?
Food prices in Germany are certainly not regulated, they are a result of cutthroat competition between a few supermarket chains, and overall German food prices always have been lower than in most other European countries (much to the annoyance of farmers and food producers in Germany who always have difficulties to get adequate prices from the powerful supermarket chains).
Yes,... See more Sorry, but what are you talking about? What food prices in Germany are regulated and by whom?
Food prices in Germany are certainly not regulated, they are a result of cutthroat competition between a few supermarket chains, and overall German food prices always have been lower than in most other European countries (much to the annoyance of farmers and food producers in Germany who always have difficulties to get adequate prices from the powerful supermarket chains).
Yes, it is true that prices are rising and that inflation is a real risk in the short term, or even happening already. We can discuss this but get your facts right, first. [/quote]
The facts are straight. The whole chain of food is regulated and planned in Germany.
Here you have some information about it:
http://ernaehrungsdenkwerkstatt.de/fileadmin/user_upload/EDWText/TextElemente/Lebensmittel/Preis-OEkonomie-LM/Preise_Bioprodukte_Braendl_MMFI_06_2005.pdf
"Lebensmiittelpreise sind in besonderem Maße politischen Regeln unterworfen, es gelten hier keine klassischen "freien" Marktgesetze." -Publikation - Stat. Bundesamt - Preise in Deutschland - http://ernaehrungsdenkwerkstatt.de/fileadmin/user_upload/EDWText/TextElemente/Lebensmittel/Preis-OEkonomie-LM/Preise_in_Deutschland_StaBuA_2006.pdf
Now lets get back to the subject at hand. ▲ Collapse
| | | | Nils Johann
Germany
Local time: 03:53
German to Norwegian
+ ...
TOPIC STARTER
Adieu wrote:
By "regulated", he means that packaging shrinks while "price" remains roughly the same. It's a classic retail response to EXTREME price increases on items.
Less food for a familiar price = higher food prices
[Edited at 2021-09-23 20:19 GMT]
Supermarkets are legally hindered from speculating or making windfalls, and increasing prices on most indexed/subsidised/regulated good, so we are not seeing the full inflationary effect on most consumer good yet.
-My example with smaller olive jars is an exception from this, since the old product was dropped and replaced with a "new" product, 220 / 110 gr. net, and German agriculture does not produce olives, thus they can not regulate the price of the import.
(And if there are any doubts about prices being legally/politically locked in most developed economies, just ask yourself,; why the price of pasta and toilet paper did not rise while the shelves were empty.)
| | | | | Food for thought | Sep 24, 2021 |
When inflation appears on the scene of the great economic theater, I wonder if we aren’t helping inflation if we start increasing prices. The volatility in inflation over 2020 and 2021 can be attributed to a host of temporary factors that should not affect long-term inflation dynamics. On the other side, is this the right moment when competition is fierce as it is now and there has been for some time a pressure to lower prices?
| | | | Nils Johann
Germany
Local time: 03:53
German to Norwegian
+ ...
TOPIC STARTER | Inflation is not caused by people raising prices | Sep 24, 2021 |
Teresa Borges wrote:
When inflation appears on the scene of the great economic theater, I wonder if we aren’t helping inflation if we start increasing prices. The volatility in inflation over 2020 and 2021 can be attributed to a host of temporary factors that should not affect long-term inflation dynamics. On the other side, is this the right moment when competition is fierce as it is now and there has been for some time a pressure to lower prices?
Inflation is not caused by people raising prices, inflation is caused by the fact that more money is "printed" relative to the goods that are produced. It just means that money gets worth less compared to what we can buy for it.
There is always pressure by clients and bosses to lower the price of labour and services, and they will squeeze. My rates have almost been standing still for the last 10 years.
The questions that I would like to ask every translator, and you, is; do you feel that you are making too much money, and deserve less?
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I am not making too much money (that was never my idea), but for the last 35 years I have been making enough money to live comfortably doing what I love doing and hopefully what I deserve…
| | | | Arianne Farah
Canada
Local time: 21:53
Member (2008)
English to French
| In my experience, the market is already bearing higher rates | Sep 24, 2021 |
I was already on the higher end of what agencies pay for French (Canada), but after almost a decade of rate stagnation, my rates are up a healthy 20-30% over the last 2 years, to the point where I had to go back to existing clients and tell them I needed to charge more or risk having to drop them entirely because even though they were wonderful clients, I was losing money turning down better paid projects each time I booked a project with them.
MT and, at least in my country, COVID... See more I was already on the higher end of what agencies pay for French (Canada), but after almost a decade of rate stagnation, my rates are up a healthy 20-30% over the last 2 years, to the point where I had to go back to existing clients and tell them I needed to charge more or risk having to drop them entirely because even though they were wonderful clients, I was losing money turning down better paid projects each time I booked a project with them.
MT and, at least in my country, COVID unemployment benefits just took out the whole bottom of the market as doing a little non-professional translation work on the side was no longer lucrative, add to that more investment in the written word by companies that can no longer rely on in-person training, networking and marketing and demand has soared for high quality translations.
The retainer model is also back in full force as agencies scramble to place quick turn-around translations, and that's great because you can work on longer-term projects while promising to be available for emergencies and still have guaranteed income when business is slower (not only found in the translation industry - 'overemployed' has become the new buzz word for remote workers). ▲ Collapse
| | | | Adieu
Ukrainian to English
+ ...
| Which begs the question | Sep 24, 2021 |
What is the new target income to aim for?
Not rates per se, but actual income per week or per month?
And is the raising strategy to risk raising rates on your main clients, or to look for new clients at higher rates?
I already raised rates significantly on existing clients once several months ago, so I figure the safer next step would be to take a few days off to hunt for new clients at higher rates instead and test the waters without endangering existing r... See more What is the new target income to aim for?
Not rates per se, but actual income per week or per month?
And is the raising strategy to risk raising rates on your main clients, or to look for new clients at higher rates?
I already raised rates significantly on existing clients once several months ago, so I figure the safer next step would be to take a few days off to hunt for new clients at higher rates instead and test the waters without endangering existing relationships first. ▲ Collapse
| | | | LIZ LI
China
Local time: 09:53
French to Chinese
+ ...
| Power supply in China : "1 ON vs 6 OFF" | Sep 26, 2021 |
Nils Johann wrote:
Inflation is not caused by people raising prices, inflation is caused by the fact that more money is "printed" relative to the goods that are produced. It just means that money gets worth less compared to what we can buy for it.
An on-going proof to back this idea up:
Currently in China, a power supply plan has been announced recently to cap the industrial consumption across the whole country.
In where I live, Guangdong province or Peal River Delta if you like, the strictest ever regulation named " 1 ON v.s 6 OFF" plan, imposes the factories to shutdown their production for 6 days in a week.
Last time it happened, as I remember, was back in 2008.
Thus, manufacturers have to bear much higher costs, which results in higher prices in their price tags, so that's when the newly prints cash into circulation.
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Adieu
Ukrainian to English
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| That sounds troublesome | Sep 26, 2021 |
But why? Energy shortages? Market manipulation?
[Edited at 2021-09-26 15:06 GMT]
| | | | LIZ LI
China
Local time: 09:53
French to Chinese
+ ...
Adieu wrote:
But why? Energy shortages? Market manipulation?
[Edited at 2021-09-26 15:06 GMT]
That will be my questions as well, except for the last question mark, given the economic volume of my country, no government or entity of any nature can do it, alone.
There's also a verbal fight among local netizens about whether was it CORRECT to light up & consume so many ressources to put together a "ceremony" and celebrate the return of Ms.MENG Wanzhou from Canada, whilst factories across the country have to turn off their machines.
The Cold War 2.0 coming soon? No clue at all.
| | | | Adieu
Ukrainian to English
+ ...
| That Canada thing was messed up | Sep 27, 2021 |
By the looks of it, it amounted to little more than taking a random family member hostage for extortion purposes. And a daughter no less. NOT A GOOD LOOK!!!
It is refreshing to have a US administration (since it hardly sounds like something Canada would decide on its own) that doesn't openly stoop to such a level again.
Although the questions about how the Trump administration managed to get the Canadians to do something that wild do remain...
So yeah, I ca... See more By the looks of it, it amounted to little more than taking a random family member hostage for extortion purposes. And a daughter no less. NOT A GOOD LOOK!!!
It is refreshing to have a US administration (since it hardly sounds like something Canada would decide on its own) that doesn't openly stoop to such a level again.
Although the questions about how the Trump administration managed to get the Canadians to do something that wild do remain...
So yeah, I can understand the Chinese government's decision to celebrate their diplomatic success in restoring some modicum of sanity and normalcy. That was some gnarly Wild West crap...
[Edited at 2021-09-27 06:01 GMT]
[Edited at 2021-09-27 06:03 GMT]
[Edited at 2021-09-27 06:05 GMT] ▲ Collapse
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