In high-volume jobs the effort per unit falls: the term list is built once, and the context is learnt once. The volume tier reflects this fact in the price. The real question is not whether a tier will be applied but what it will be calculated on.
The logic of the tier
As volume grows, the effort per unit falls. The preparation cost is spread. The structure reflects reality.
Spreading the preparation cost
The term list and the work on context are done once. In a large job this cost comes down to a small share. The gain is shared.
Defining the thresholds
Which tier applies above which volume is written down. The thresholds are defined in the annex. The list is explicit.
Calculation on a single job
The tier can be assessed separately for each job. Small jobs cannot benefit from the tier. The method is simple.
Calculation on the total for the period
The tier can be applied according to the volume built up over the period. Small jobs also contribute to the tier. The method favours the client.
Writing down the method
Which method will be used is stated explicitly. Uncertainty produces invoice disputes. An article is included.
Retroactive application
If a threshold is passed during the period, whether it will be applied retroactively to earlier jobs is written down. Practice varies. The preference is defined.
Definition of the period
Whether the calculation is monthly or annual is determined. The end date of the period is written. The calculation becomes clear.
Combining group companies
The volume of affiliated companies can be combined. This arrangement is set up explicitly. The gain is at group level.
Counting language directions separately
It is determined whether the tier is calculated separately for each language direction or on the total. The difference is marked. The rule is written down.
Separating service types
Translation and typesetting volumes can be counted separately. Mixing them distorts the calculation. The distinction is kept.
Relationship with a minimum volume commitment
Some tiers are tied to a commitment. If the commitment is not kept, the tier may be withdrawn. The condition is written down.
If the commitment is not kept
The consequence of the volume that falls short is defined. A retroactive adjustment may be provided for. The provision is written clearly.
A tier without commitment
A tier can also be applied without a commitment. In that case the volume actually achieved is taken as the basis. The structure is flexible.
Transparency of measurement
The volume for the period is shared with the client. The tier calculation can be seen. Trust is built.
Reporting frequency
How often the volume report will be given is determined. A regular report prevents surprises. The procedure is written down.
Relationship with the repetition rate
The volume tier and the repetition discount are separate items. The two can be applied together. The distinction is kept.
Limits of the tier
Beyond a certain point the effort per unit does not fall any further. An endless tier is not realistic. The structure is kept reasonable.
What the tier means for an organisation
The volume tier is not a bargaining tool but a reflection of the real cost structure; the lower unit fee that results from spreading the preparation effort comes not from the supplier's margin but from the structure of the work. Once this distinction is understood, the discussion becomes shorter. The approach is transparent.
Information on amounts
This page explains the tier structure; thresholds and amounts appear only in the annex to the contract and on the canonical pricing page. Figures are not repeated here. The rule is permanent.