Alternative compensation models

Candis Bradshaw — Mon, 21 Apr 2008 21:39:43 GMT

From Candis Bradshaw......................http://ncraonline.org/forum/forums/p/3534/12231.aspx#12231

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As I said, I did this when it was a snowy day, had no backload, and really wanted to know if a flat-rate system was feasible. Then my mind wandered into a bunch of different directions (as you'll be able to see from the spreadsheet).

I have done all the calculations for you in this spreadsheet (kind of like what Jim Woitalla's article a few years ago did, but I've done the dirty work for you). You have to put the numbers in, and the calculations will appear based on those numbers. You can either use the rates you bill out as an IC or what you are paid from your firm....or your firm's numbers (if you have those).

You have to input the numbers in the first section. And some of these numbers you may not know off the top of your head, but you need to find out what they are in order to make accurate calculations. All of these assume an O+2 sale (meaning an O+1 and one copy sale).

Here's what you have to enter:

Scopist - What your scopist or proofreader would charge on average (you can change this number once you have the others filled in to see how it would change)

Edit time (at home) per hr at job - If you spend one hour on the job, how much time will you spend editing this transcript at home? If you send the job out to a scopist and don't look at it, enter zero.

Edit time (for RT jobs) per hour at job - Same as above, but only used in the "RT deps" section (as I know good realtimers' edit times can be significantly lower)

Avg prod/proof (short and long) - The average time it would take you to proof and produce a job (either directly to the attys or to your firm). By "short," I'm meaning the 50- and 100-pg jobs. By "long," I mean the 250-pg jobs.

Current O+1, Current Copy, Current App Fee, Current hourly rate, Current RT upcharge - what you currently charge/bill out for each of these services. If you don't use one (such as you don't use an hourly rate but an app fee), leave the requisite column blank.

Total hours at 50-pg, 100-pg, 250-pg job - On average, how much time would you be at a job to yield this many pages. (I know this can vary greatly, but just use an average).

Avg travel time round trip - This is the average time you spend on the road going to and from a job.

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The second part, "Experimental Pricing," is where you can really play around with the numbers.

Conventional O+1, Conventional Copy - By "conventional," I'm meaning where the O+1 costs more and the copy costs less. You can set these numbers however you want, or they can mirror your current rates. These were meant to give another set of rates (if one wanted to use them).

Flat-rate price - Everyone (O+1 and copy) are charged the same price. You don't have to use this cell if you don't want, but it may be interesting just for kicks and giggles.

Lower conventional O+1 and Copy - Same as the first entry, but gives you another set of cells to put in other rates.

Low hourly rate - This just includes your time for sitting at the deposition, nothing else.

High hourly rate - This includes all time spent working on a dep (travel, time at job, editing time, proof/production)

Transcript production rate - This is the hourly rate for just producing the transcript (printing it, binding it, copying exbts, etc.)

Travel rate - Hourly rate for traveling to and from the deposition.

Hypothetical mileage round trip - Plug in your average distance to and from a job in this cell.

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After you plug in those numbers, that's where the real fun starts.
Here's a synopsis of how each system works:

Current system: What you currently use now.

Model 1: Flat-rate system: What we have now but where both sides are charged equally rather than different rates for the O+1 and copy.

Model 2: Conventional with hourly charge: Using lower copy rates than O+1 rates, and hourly charge for our professional service is charged to the O+1 atty, and charge for preparing the transcript (proofing and production) charged to copy side

Model 3: Flat rate with hourly charge: Both sides charged the same page rate, and hourly charge for our professional service is charged to the O+1 atty, and charge for preparing the transcript (proofing and production) charged to copy side

Model 4: Conventional with app fee and hourly charge: Using lower copy rates than O+1 rates, and hourly charge for our professional service is charged to the O+1 atty in addition to preset appearance fee (to compensate for travel time and mileage), and charge for preparing the transcript (proofing and production) charged to copy side in addition to transcript charges.

Model 5: Flat rate with app fee and hourly charge: Both sides charged the same page rates, and hourly charge for our professional service is charged to the O+1 atty in addition to preset appearance fee (to compensate for travel time and mileage), and charge for preparing the transcript (proofing and production) charged to copy side in addition to transcript charges.

Model 6: Conventional with hourly costs split 66/33 between parties: Lower copy rates than O+1 rates. Hourly charge for our professional services is split between attys. O+1 atty pays 66% of the fee, whereas copy side pays 33% of fee. Hourly rate also includes travel and transcript production.

Model 7: Flat rate with hourly costs split 66/33 between parties: Same rates to both sides. Hourly charge for our professional services is split between attys. O+1 atty pays 66% of the fee, whereas copy side pays 33% of fee. Hourly rate also includes travel and transcript production.

Model 8: Conventional with hourly costs split 50/50 between parties: Lower copy rates than O+1 rates. Hourly charge for our professional services is split between attys. O+1 atty pays 50% of the fee, whereas copy side pays 50% of fee. Hourly rate also includes travel and transcript production.

Model 9: Flat with hourly costs split 50/50 between parties: Same page rates charged to both sides. Hourly charge for our professional services is split between attys. O+1 atty pays 50% of the fee, whereas copy side pays 50% of fee. Hourly rate also includes travel and transcript production.

Model 10: Convention with travel fee and hourly fee billed to O+1 and trans. production fee charged to copy: Lower copy rates than O+1 rates. Hourly charge for professional services is paid by O+1, in addition to travel fee (which compensates for parking, tolls, mileage, and time). Copy side pays transcript production fee (based on time to proof and produce transcript) and cost per page.

Model 11: Flat with travel fee and hourly fee and travel billed to O+1 and trans. production fee charged to copy: Same page rates for both sides. Hourly charge for professional services is paid by O+1, in addition to travel fee (which compensates for parking, tolls, mileage, and time). Copy side pays transcript production fee (based on time to proof and produce transcript) and cost per page.

Models 12 & 13: Lower base rates with higher hourly rates and travel fee. Hourly and travel billed to O+1 and trans. production billed to copy: Model 12 uses copy rates lower than O+1 rates. Model 13 uses same rates for both sides. The page rates are much lower in these models than what is currently on the market. However, the hourly charge is increased. O+1 pays for hourly professional fee, travel fee (including parking, tolls, mileage, and time). Copy side pays transcript production fee (based on time to proof and produce transcript) and cost per page.

Models 14 & 15: Lower base rates with higher hourly rate split 66/33 between sides: Model 14 uses copy rates lower than O+1 rates. Model 15 uses same rates for both sides. The page rates are much lower in these models than what is currently on the market. However, the hourly charge is increased. O+1 pays for 66% of hourly professional fee, travel fee (including parking, tolls, mileage, and time). Copy side pays 33% of hourly professional fee, and cost per page. Hourly rate is increased to include for transcript production and travel.

Models 16 & 17: Lower base rates with higher hourly rate split 66/33 between sides: Model 16 uses copy rates lower than O+1 rates. Model 17 uses same rates for both sides. The page rates are much lower in these models than what is currently on the market. However, the hourly charge is increased. O+1 pays for 50% of hourly professional fee, travel fee (including parking, tolls, mileage, and time). Copy side pays 50% of hourly professional fee, and cost per page. Hourly rate is increased to include for transcript production and travel.

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For RT deps section:

Current model - Current system in place

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One last thing -- please feel free to discuss in general terms, but please **do not** quote exact prices or exact figures. Y'all know why. :-)

Have fun!

High-Speed Students and New Professionals : alternative compensation

Alternative compensation models