Specific tips for negotiations with library materials vendors depending upon acquisitions method

Library Collections, Acquisitions, & Technical Services 28 (2004) 433 – 448

Specific tips for negotiations with library materials vendors depending upon acquisitions method Janet L. Flowers * Academic Affairs Library, University of North Carolina at Chapel Hill, NC, USA Available online 1 October 2004

Abstract The significant impact that negotiations can have upon the cost and delivery by library materials vendors of library materials is of greater importance than ever as the result of rising prices, increased resources to acquire, and shrinking library budgets. This article describes points to consider in negotiating for all types of business relationships from approval plans to standing orders to subscriptions. It builds upon an earlier article that described the planning and preparation processes for vendor negotiations and, in specific, tips for firm orders. Charts that can be used as checklists are included, along with background information about the considerations. D 2004 Elsevier Inc. All rights reserved. Keywords: Negotiation; Library materials vendors; Subscription agents; Monographic vendors; Publishers

1. Some perspectives on negotiations Exponential price increases (especially for electronic and serials material), dramatic increases in resources available to acquire, and shrinking library materials budgets are having a devastating impact upon library resources. The skill of the acquisitions librarian as negotiator for needed library materials can have a critical and positive impact upon the library’s purchasing power. The point of negotiations is to meet the needs of the individuals or companies doing the negotiations, while providing mutual benefit or the best possible * Fax: +1 919 962 4450. E-mail addresses: [email protected]. 1464-9055/$ - see front matter D 2004 Elsevier Inc. All rights reserved. doi:10.1016/j.lcats.2004.08.003

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outcome for each. The acquisitions librarian is in a position to influence these costs significantly and must be well prepared to present the Library’s interests in every situation that can result in expanded purchasing power and increased services. Acquisitions librarians are the stewards of large amounts of financial resources. The fact that they must employ a number of different acquisition methods, and hence a large number of sources, to acquire the material make this responsibility all the more challenging. Therefore, it behooves acquisitions librarians to spend time preparing for negotiations and measuring the results of their efforts. As Satin states in his article on negotiating, bSome view negotiation as confrontation, and let’s be honest, most of us tend to avoid confrontation whenever possible. Hard as it may be to imagine, negotiation is a natural process, and should be viewed as fun, as an activity both challenging and rewarding. The simple steps and golden rules. . . can help you to achieve this attitude and start you in the right directionQ [1]. Harris, although writing about negotiations in the digital realm, gives 20 tips for negotiating success that can also apply to negotiations in the print realm and with other methods of acquisitions [2]. Cohen reminds us what negotiation is not. b . . . negotiation is not a competitive sport. . .. Rather, we are aiming to do the best we can for ourselves. Using this philosophy, we are less interested in the sporting aim of competing and more interested in looking out for ourselves. Effective negotiation is held in its proper context as a mechanism for pursuing interestsQ [3]. When negotiating, acquisitions librarians would do well to remember that there might be ways that they can make the vendor’s work more efficient and cost-effective by seeing matters from their perspective. An excellent case in point is that of the library’s requirement that the vendor return their purchase order with the material. In thinking about the consequences of this request, the librarian should realize that this requires a manual file at the vendor’s operation and then a manual matching process. So, if the librarian can use the vendor-produced slips as a substitute, it saves the vendor money some of which can then be passed along to the customer. Likewise, it benefits both the vendor and the librarian when the method of purchase is via electronic means rather than paper. Furthermore, electronic funds transfers benefit both parties. In the cases cited here, there are win-win situations for both parties.

2. Background for library materials negotiations Librarians have negotiated with library materials vendors since the 19th century. In the early days, these were often gentlemen’s agreements between a bookman and a Head Librarian, who was usually a bibliophile. Over the course of time, these negotiations have changed in terms of who does the negotiating and how formal the negotiations are. Now, the vendor is likely to be a businessman and the purchasing agent an acquisitions librarian. A formal legal contract may result from the process rather than a good-faith handshake. Also, now these negotiations involve much higher stakes than in the past. Previously libraries purchased mainly books and serials. Over time, purchasing came to include many non-book materials. In recent years, libraries have begun leasing many electronic resources, ranging from e-books, to e-journals, to electronic indexes and databases. In addition to the nature of the material being acquired

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changing and becoming more complex, the library is now seeking additional value-added services from the vendors that require more attention to the business arrangement. These valueadded services encompass ones such as access to the vendor’s database, catalog cards, or records in MARC format, or shelf-ready processing. As a result, librarians and vendors have far more to discuss and negotiate than in the past. Therefore, the acquisitions librarian is in a unique position to play a pivotal role in the business arrangements with vendors, a role that can have significant consequences for the library’s budget, collections, and services. Before beginning a discussion of issues to consider in negotiation, it is important to define negotiation and the negotiation process. Negotiate means bto confer with another so as to arrive at the settlement of some matterQ [4]. Negotiation then is the conferring process. Effective negotiations are beneficial to all concerned and serve as the vehicle for meeting the ultimate goals of both parties.

3. Ways to learn the steps necessary for negotiations In the author’s previous article on negotiation (with an emphasis upon firm orders), there is a chart that describes the steps necessary to prepare for the negotiation process [5]. One piece of advice in this article was that the acquisitions librarian should learn as much as possible about the way vendors, publishers, and other suppliers operate and conduct business. Therefore, this article expands upon resources about each of the industries under the method of acquisitions sections. Satin also outlines some simple steps to prepare for negotiations: (a) do a cost benefit analysis, (b) request trial periods, (c) develop a plan, (d) know your strengths and weaknesses, (e) anticipate all options, and (f) identify your best options [6]. Satin also gives his top 15 rules that can make any negotiation a successful process. The rules advise the following: seek a win-win solution, expect to win, and learn from experience. He also notes that everything is negotiable, even the process. He advises negotiators never to attack the demand, only the rationale behind it. He also advises against settling for too little. Other rules are to be creative, learn to listen, give and take, use silence as a technique, do not be intimidated, do not negotiate out of fear, and do not concede much at first. See his article for a more detailed explanation of these [7].

4. Negotiating points There are many points that must be addressed in the negotiation process. One of the most important, of course, is cost. Even though there is a stated price, usually from the publisher, the actual cost to the library is usually negotiable. For both vendor and librarian, cost is what each pays to provide or receive the service or product. So, the acquisitions librarian must be astute and alert when selecting vendors and setting up the business arrangements to make certain that the cost is as low as possible. This decision can have a great impact upon the library’s purchasing power.

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Obviously, the delivery time is an important consideration for both parties. The faster the material can be supplied the less effort related to reports and claiming. Also, the fulfillment rate is an important consideration. To make the relationship worthwhile, the vendor needs to be able to supply 90-95% of the orders submitted (granted that a certain percentage just simply will not be available and that the library is ordering in a timely fashion and providing good bibliographic and ordering information.) Another important point is that of service to the customer. If the vendor does not provide excellent service, the acquisitions staff will have much extra unnecessary work. Time is money and even a cheap price cannot make up for the time libraries spend acquiring or maintaining products from vendors with poor customer service. Of course, ultimately the patrons will suffer the consequences of delayed or non-receipt of materials. A new point of negotiation is that of the value-added services. Value-added services vary greatly depending upon the product or service the library is acquiring. Whatever service the library chooses, e.g., to outsource services such as cataloging and shelf-ready preparation, there must be very detailed negotiations and monitoring to obtain exactly the services required.

5. Different issues depending upon method of acquisition Although there are overlapping negotiations issues, there are unique issues for acquiring library materials depending upon differences in the different methods of acquisitions. Table 1 outlines some of these differences and should be kept in mind when engaged in the negotiations process. 5.1. Firm orders Interestingly, it is difficult to locate a definition of firm order, which is one of the major methods of acquisition for monographic materials. So, here is a definition from New York University’s web site: bFirm order: A request for a book, video, etc. made by mailing, faxing, or phoning a purchase order to a publisher or vendor. Unlike approval books, money is encumbered for these orders and the materials cannot normally be returned unless defective or damagedQ [8]. Those in the field know, of course, that a firm order is typically a one-time transaction that is not predictable for the vendor or publisher to whom it is sent, i.e., there is no way to know with certainty what titles will sell to what libraries. Firm orders are typically but not always for monographs. They also are typically but not always sent to a monographic vendor. In some cases, they are sent to the publisher. This choice is usually the result of two factors; either the publisher will not work through vendors or there is a group of orders for the same publisher and a discount incentive makes a direct order an attractive option. Firm order vendors, in general,

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Table 1 Methods and factors that affect library materials negotiations Process differences Some one-time purchases; some not Some sources overlap; some are sole source Some purchases are predictable; some are not All affected by budgetary situations at institutions and at sources Volume of business with vendor Nature of business -fair mix

Pricing models for E-resources

Room for negotiation varies

Sometimes choice; sometimes not

Vendor’s method of doing business (example: pay on arrival for firm order but prepay for subscription) Sources for library materials

Implications Determines options of methods to use; influences choice of source to use. Even consolidated arrangements of several methods of acquisition with one vendor can be quite complex due to the multiple accounts necessary to manage the varied approaches to acquisition. The librarian usually has less leverage with the vendor when it is not possible to know in advance what volume and possibly what titles will be ordered. Negotiations are not static and must be re-visited when there are significant changes with either party. Obviously, the larger the account, the more likely the vendor is to listen to special requests from the acquisitions librarian. If a fair mix is sent to the vendor, it enables the company to make a reasonable profit and thus remain a healthy competitor in the marketplace. This is good both for the vendor and the library. These are currently so unstable, volatile and unpredictable that special negotiating skills (with a considerable understanding of accounting and skills with spreadsheets and projections) are necessary for the librarian to achieve the library’s goals of a fair and reasonable price. Sometimes the company ownership will establish rigid policies that do not allow the representatives much room for negotiation with the librarian. In those cases, the librarian must decide whether to accept the terms or walk away. When there is no other choice for the acquisition method or the vendor source, there is much less room for the librarian to affect the outcomes. When there are choices in either method and/or vendor, the librarian should be exercising all leverage at his or his disposal. Whether the vendor gets paid before or after receipt of the material has a significant impact upon the library’s budget.

In many cases, the same vendor will offer multiple services, thus serving as a firm order, approval and standing order vendor for example. Some subscription vendors will also handle standing orders. The end result of having these different types of vendors is that the acquisitions librarian is faced with dealing with companies that have quite different business models and practices. It is essential that the acquisitions librarian be aware of these differences and how they affect the business relationship to conduct effective negotiations.

operate on the principle of stocking the anticipated most popular titles and waiting for orders for other material to arrive before actually ordering them from the publisher. The orders from academic libraries maybe more difficult to predict than those from other types of libraries. In the case of the University of North Carolina, the vendor may find

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himself ordering one copy only of one title for one customer. (At UNC Chapel Hill, we are collecting Southern Americana and frequently order esoteric materials with very low print runs from very small presses.) In the firm order business, the tradition has been that the vendor pays the publisher, who usually offers a discount (higher depending upon the volume) and then the library pays the vendor a discounted price based upon their arrangement with the vendor. This payment model puts the vendors in a tight squeeze because the discounts from publishers have decreased in recent years as a result of the tight economy and because libraries are sometimes not that quick at paying invoices (and are subject to the vicissitudes of budget constraints based upon their primary funding source, e.g., the state). Acquisitions librarians may negotiate one of two discount arrangements with their firm order vendors. The first is a flat discount based usually upon the volume of sales and the nature of the mix (i.e., degree of profitability depending upon the type of materials being ordered with some categories receiving higher discounts from the publishers than others). The flat discount (i.e., one that is mutually agreed upon for the whole account and not title-by-title) has the advantage of predictability for both parties. It also has the potential to be higher than a title-by-title discount and the potential to be too great for the vendor’s required margin. Therefore, the two parties must mutually re-negotiate the discount periodically. The second arrangement is one whereby each title purchased is discounted on a sliding scale based upon a formula applied to the discount granted by the publisher to the vendor. One advantage to this approach is that it is a more accurate picture of the true costs of the material and it means that each library would be paying equitably instead of a library who does not negotiate as well picking up part of the tab for the library granted a higher discount in the flat approach. The disadvantage is that the discount is less predictable for both parties. Each acquisitions librarian should do the math to see which approach would be more advantageous. To do this exercise will, of course, require that the vendor provide information to the customer, as there is no easy or accurate way to tell what the book cost the vendor without their sharing of information. (Remember that the discount is based on volume; different libraries may receive different discounts depending upon when they placed their order and whether it was batched with a group of other orders from that publisher.) In either case, the vendor would prefer to have orders from science, technical, or medical (STM) publishers because these publishers produce the most expensive books and offer the larger discounts. There are times when vendors must apply a service fee to the price of the book being acquired. This is necessary when the publisher provides a short or no discount, or for which they had to expend great effort to fulfill the order (e.g., contacting the author who selfpublished a book), or there are unusual shipping charges. These service fees are a reasonable option for vendors. Acquisitions librarians, of course, need to be aware of them and make certain that whatever agreement has been reached about handling them is followed. A further complication is that publishers have always acted as vendors on their own behalf. The publisher may have a sales staff to handle the orders from customers.

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Sometimes, the publisher will offer a substantial pre-publication discount on a very expensive reference set. Also, there has been a very pronounced trend toward publishers being the source for electronic resources. More about this trend is discussed later in this article in relation to serials purchasing. Dealing with the publisher directly varies depending upon whether the library is acquiring print or electronic and whether the purchase is one time or ongoing. See the chart in the author’s earlier article to find a summary table of negotiating points for firm orders [9]. 5.2. Approval plans An approval plan is an bagreement between library and vendor (usually a wholesaler) that calls for vendor to supply one copy of each book either published or distributed by the vendor; subject to certain restrictions imposed by the library, such as subject, format, or price. Books are usually returnable for credit if not wantedQ [10]. An approval plan requires ongoing not just one-time negotiations. The reasons for this are that there are many possible areas of change. They range from money available, new curricula at the institution, expanded coverage from the vendor, etc. Approval plan vendors often began as firm order vendors and added the approval plan as another option as the plans have grown in popularity. The approval plan vendor offers a service whereby the library establishes a profile with the vendor that describes the material the library wishes to acquire automatically. The profile typically describes what is to be included or excluded in the following categories: the publishers, the subjects, the audience level, the formats, and the price. The approval plan vendor is then able to use economies of scale by purchasing hundreds of copies of the same book at the same time thus obtaining a better discount. Part of this discount is typically passed along to the library because the vendor is assured of a certain level and type of business. Also, often libraries will deposit funds in advance with the vendor for the approval plans because these are predictable receipts and expenditures. The use of deposit accounts can be cost-effective for both the vendor and the library, because the vendor will be able to invest the money and then offer the library either a higher discount or interest on the deposit. An approval plan vendor must set up an internal operation that closely mirrors that of a library. Approval plan vendors frequently hire librarians to perform tasks such as profiling and cataloging the books. The bbibliographersQ match the book’s content against the library’s profile and determine whether to send a book, a slip or nothing. Once this matching process has taken place, the vendor then places bulk order for the libraries that will be receiving this book on approval. Although the vendors have highly automated this process, there is still a need for the human interpretation of the books that fall into a gray area so the bibliographer makes judgment calls regarding the library’s needs. The refinement of the profile is one of the ways that the Library helps the approval vendor understand the exact needs and keeps the number of returns down (Table 2).

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Table 2 Negotiation points for approval plans Point

Sub-points

Special considerations

Notes

Profile

Level of details

Needs of the institution

Delivery Time

High profile titles good candidates for this method

Discounts

Faster because not waiting for purchase request to be generated and searched and purchase order to be placed Flat

Must be reviewed and refined regularly; therefore, ongoing negotiations Must be alert that special categories, such as works by local authors, are given top priority Have vendor provide a report of the account’s profitability to see how they are faring with the orders being filled

Service Charges

No discount to vendor

Postage

Averages 4% of cost

Invoicing

Organization, Number of Copies, Accuracy E-invoices

Electronic Services

Access to Online Database Bibliographic Information

Searching Capabilities, Online selection, Online ordering Layout (close to MARC as possible), Format (Paper and/or online)

Predictable level and type of business with vendor

Economies of scale (use of vendor versus direct)

Important for efficiency

Keep an eye on how much it is and what delivery method is being used by the vendor. Obviously can affect speed of payment

Saves time for Accounting and expedites payment to vendor Ease of navigation and interpretation

Evaluative Information

Affiliation of Author, Content of Material, Intended Audience Level

Information to help selectors make selection decision

Reports

Nature, Format, Frequency

Claiming

Patterns, Format, Frequency

Ease of access and/or local creation Need to be certain that high profile items are not missed

Adherence to standards very helpful for both vendor and library Also consider Table of Contents, Book Jackets, Chapters, and Book Reviews Vital for budget projections Remember that the vendor must extract information from the publisher to provide reports as well as the material

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Table 2 (continued) Point

Sub-points

Special considerations

Notes

Cataloging Services

Catalog Cards, Online Records, Shelf-Ready

Be very clear in needs with vendor

Customer Service

Structure, Training, Attitudes, Knowledge, Responsiveness

Important to do a cost/ benefit analysis when making this decision Vital for effective operation of plans

Ongoing for both major and minor issues

5.3. Blanket orders According to Magrill and Hickey, bBlanket orders are similar to standing orders in that they may be arranged with individual publishers of printed materials and producers of nonprint materials, or with distributors or jobbers, and may involve something as specific as a publisher’s series or as general as instructions to supply everything of a certain type or on a certain subject. A blanket order plan generally does not allow the buyer return privileges, but again there are exceptions, depending upon the vendorQ [11]. The sources for blanket orders are often the same as those for approvals or firm orders. In some cases, agencies such as the Library of Congress offer blanket orders as a service to other libraries. The organization of blanket order vendors are quite similar to those for approval plans because the basis for the agreement with the Library is a profile. The lack of returns privileges usually stems from either the publishers’ no returns policy and/or the inherent difficulty in obtaining the material and the low cost of the material that would not be cost-effective as a return. See the Library of Congress’s Overseas Offices’ website for a description of the various blanket order services they offer (Table 3) [12]. 5.4. Print subscriptions According to Chen, a bsubscription is the acquisition method used for acquiring periodicals that require prepayment. . . . The payment covers issues to be published over a certain period of time, referred to as the subscription period. . . . Sending payment confirms the renewal, and timely renewal is very important to avoid lapses in subscriptionQ [13]. The operations of the subscription agent are quite different than those of the vendors that supply monographic or aggregated databases. bSerials subscription agencies are commercial service organizations that process serial orders and renewals for libraries, corporate and institutional procurement offices, and individualsQ [14]. In this industry, the payment paradigm is quite different. Unlike monographic publishers and vendors, the journal publishers get paid before the libraries receive their material. The subscription agent must therefore advance the funds to the publisher prior to payment. The library then pays the agent. Subscription vendors’ pricing is quite different than that of monograph or aggregated database vendors. A customer’s subscription account is assessed a service charge. This charge is based on two factors: the amount of commission or discount received from publishers of titles on the subscription list and

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Table 3 Negotiation points for blanket order plans Point

Sub-points

Special Considerations

Notes

Profile

Level of details

Needs of your institution

Delivery Time

Faster because not waiting for purchase request to be generated and searched and purchase order to be placed Not always available No discount to vendor

Depends upon source and difficulty with obtaining materials, especially from Third World countries

Should perhaps be conservative because of the no returns policy May not really be quick but should still arrive sooner than through the firm order process

Discounts Service Charges Postage

Invoicing Electronic Services

Access to Online Database Bibliographic Information

Organization, Number of Copies, Accuracy E-invoices

Searching Capabilities, Online selection, Online ordering Layout (close to MARC as possible), Format (Paper and/or online)

Economies of scale (use of vendor versus direct) Vendor may not be able to provide without this charge, depending upon where the material is coming from and if it has to be re-distributed Important for efficiency Saves time for Accounting and speeds payment to vendor Ease of navigation and interpretation

May not be available

Especially important for materials in vernacular languages

Request a bibliographic record (either paper or electronic) with material if possible Especially important in times of budget crunches

Affiliation of Author, Content of Material, Intended Audience Level Nature, Format, Frequency

Information to help selectors make selection decision Helps with monetary monitoring and projections

Claiming

Patterns, Format, Frequency

Ask vendor about preferred method and timing for claiming; work out an arrangement that suits both parties

Cataloging Services

Catalog Cards, Online Records, Shelf-Ready

May be essential if material is in vernacular languages

Evaluative Information

Reports

Affects speed of payment

Very important with increasing accountability expected from public institutions Worth investing time in best cycle to avoid wasting library and vendor’s time so effort can be spent on obtaining the material

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Table 3 (continued) Point

Sub-points

Special Considerations

Notes

Customer Service

Structure, Training, Attitudes, Knowledge, Responsiveness, if foreign, knowledge of English language

Vital for effective operation of plan

Ongoing attention to both major and minor issues required

the date upon which the invoice is paid. Like monographic vendors, the subscription agent receives a commission from some publishers. This commission is generally small, but allows the agent to offer the customer a lower service charge. Like deposit accounts with approval vendors, subscription agents may offer benefits for early prepayments. Many librarians are going direct to acquire access to electronic resources. This model probably developed due to the complexity of the licensing agreements, the need to set up access, and the confusion regarding pricing models for this new type of material. As a result, the subscription vendors have not been able to play a very large role in this new process so far although they are seeking to find ways to provide services, such as handling renewal notices for electronic resources and assistance with the licensing and access issues (Table 4). 5.5. Standing orders Basch and McQueen devote several pages to describing the difference between periodical serials and non-periodical serials. Non-periodical serials would include monographs in series, sets, etc. They note, bMany of the acquisitions peculiarities of periodical serials are shared by non-periodical serials which also have idiosyncrasies of their ownQ [15]. They also note that the communication between librarians and agents are further complicated by differences in terminology. Nonetheless, there are some common characteristics of standing orders that include lack of a prepayment requirement, regular or irregular publication, and hybrid publications. Fortunately, there is an excellent article by Breaux in which she explains continuations or standing orders from a monographic vendor’s perspective to clarify the options. As Breaux states, the source for other acquisitions methods are fairly straightforward. However, bIn contrast, continuations, or standing orders, can be purchased in one of three ways: libraries can order directly from the publisher, they can order from a subscription agent, or they can order from a book vendorQ [16]. Then, she goes on to explain the types of series that can and cannot be handled by monograph vendors as well as why she thinks librarians should use a monographs vendor for this type of material. So, in this particular case, the librarian needs to think carefully about source as well as other negotiating details (Table 5). 5.6. Electronic resources As electronic resources are an increasingly large area for negotiation, they require a separate article to do justice to the many concerns to be addressed. Therefore, this article

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Table 4 Negotiation points for print subscriptions Point

Sub-points

Special considerations

Notes

Services Provided

Ordering and renewal of titles Consolidation of orders Payment to publishers Claiming of missing issues Resolution of receipt or invoicing problems Sample copies Back Issues Based upon mix of orders

Ability of vendor to handle the specific titles

Ability and willingness of vendor to provide special assistance for transfers

Earlier prepayment discount

Structure, Training, Attitudes, Knowledge, Responsiveness, if foreign, knowledge of English language E-ordering

Important for efficiency

Should monitor closely and ask for clear explanation regarding how these are determined Ongoing daily contact with customer service representative; vital to effective problem solving

Service Charges

Customer Service

Electronic Services

E-claiming

E-invoices

Access to Online Database Reports

Claiming Transfer Projects

Searching Capabilities, Online selection, Online ordering Nature, Format, Frequency

Patterns, Format, Frequency Conversion assistance

Saves money, Faster response and action Saves money, Faster response and action Saves time for accounting and speeds payment to vendor Need to be able to see local data as well as universal Title changes Mergers of titles Cessation of titles Suspension of titles Price changes Availability of electronic resource in conjunction with print Change of format Average cost of titles List of titles by publisher, country, cost, etc. Need to negotiate methods and timing Need for staff!!

Involves negotiations to do the technical set-up and testing Must still check invoices manually but definitely worth it! Very effective tool for problem solving Libraries simply do not have the staff to keep up with the dynamic changes in the publishing and vending worlds

Email can be a good tool Ask for help!

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Table 4 (continued) Point

Sub-points

Handling of access to e-resources

Interfaces

Special considerations

Notes Check what services vendor provides; ask for demos and training sessions as part of service

gives only the briefest of suggestions. There are many considerations when leasing access to databases or subscriptions to e-journals or e-journal packages. Subscriptions to e-journals tend to be more long-term with most license agreements guaranteeing perpetual access even if it is just CDs with the content. This is not always true for online access that is free with a print subscription but is almost always true for content where the online version is purchased outright. Moore, in her article on negotiating license agreements, provides a useful checklist of twenty questions to answer to evaluate license agreements [18]. Walker also provides advice on how to stretch your budget including planning, analysis of user needs, analysis of benefits, networking, comparison of products, comparison shopping, trials, negotiate, promote resources and evaluate use [19]. Brown and Cox address the management of electronic resources as well, noting that there are two areas that stand out as different from that for other resources, namely the licensing and the record keeping. As they state, bBecause e-resources are very expensive and in high demand, record keeping takes on added importance. Primary records include copies of contracts-from the first draft to the signed copy. Once institution or agency officials have taken the time to sign an approved agreement, always safeguard these signed contracts. . . Secondary records are largely informational but no less valuableQ [20]. As Webb points out in his article on managing licensed networked electronic resources, much of the literature regarding how to manage these is found on the Internet. His article is an attempt to present a thorough overview of the management of these in a university library [21]. The advent of electronic resources has resulted in an acceleration of the formation of consortia, i.e., libraries banding together to leverage their purchasing power. As Allen and Hirshorn note in their article, bHanging Together to Avoid Hanging Separately,Q there are three primary reasons for this development: to leverage resources, to reduce the cost of member library operations, and to affect the future regarding how information will be created, marketed, and purchased by libraries [22]. Sloan also notes bWhile this doesn’t always apply, consortia probably resemble vendors more than they resemble libraries. Consortia have libraries as clients/customers. Consortia often support online systems for their clients/ customers. Consortia aggregate electronic resources for use by their clients, customersQ [23]. While consortia help reduce costs for their members, they greatly add to the negotiating complexity because they bring more parties (with not always exactly the same agenda) to the table. Another difference with leased resources is that there are more ongoing agreements than with the print resources. Schulman points out that bA good agreement spells out everyone’s

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Table 5 Negotiation points for standing orders Point

Sub-points

Special considerations

Guaranteed Delivery of all volumes in set or series Delivery Time

Monitoring on behalf of Library

Use this method when concerned about receiving all volumes

Service Charges

Faster because order already placed in advance Generally less than for firm orders or approvals because of the extra work to ensure all volumes obtained No discount to vendor

Postage

Averages 4% of cost

Invoicing

Organization, Number of Copies, Accuracy E-invoices

Discounts

Electronic Services

Access to Online Database

Bibliographic Information Reports Claiming

Cataloging Services Customer Service

Searching Capabilities, Online selection, Online ordering, Editing (e.g., order numbers) Layout (close to MARC as possible), Format (Paper and/or online) Nature, Format, Frequency Patterns, Format, Frequency

Catalog Cards, Online Records, Shelf-Ready Structure, Training, Attitudes, Knowledge, Responsiveness, if foreign, knowledge of English language

Notes

Can negotiate

Economies of scale (use of vendor versus direct) Ask if cost can be waived Important for efficiency Saves time for Accounting and speeds payment to vendor Essential for placing new orders, problem solving, and claiming

Requires negotiation for technical aspects of setup and testing Ask for demonstrations and training sessions as part of service Standards helpful to both library and vendor

Need to communicate about respective needs to achieve best balance of timing Technical Specs

Invaluable in assessing how the vendor is doing Careful attention to this can save both library and vendor time and money

Quality of customer service is vital to success of understaffed acquisitions departments

roles, responsibilities, and obligations; deliverables and timetables; and the scope of the project. Usually the agreement includes payment milestones and remedies, too.Q This article, while slanted towards library systems contract compliance problems, contains good advice for leased resources as well [22].

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6. Conclusion While there are special considerations regarding the various methods of acquisitions, the basic negotiations principles remain the same. Be prepared. Identify your needs. Do your homework regarding the sources to meet your needs. Stand firm in your requirements and expectations. Understand the other party’s point of view by learning as much as you can about their positions and the rationales behind them. Above all, however, be aware that you, as the acquisitions librarian, have a vital and important (albeit often unseen and perhaps under-appreciated) role in the successful negotiation of the best terms and conditions for your library’s materials purchases.

Acknowledgments The author would like to express her gratitude to the following individuals who critiqued and greatly improved the quality of this article: Ann-Marie Breaux, Rebecca Day, John Rutledge, and Ree Sherer.

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