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Information creates relative bargaining power in vendor negotiations

Information creates relative bargaining power in vendor negotiations PurposeThis paper aims to examine how libraries can create relative bargaining power and presents a methodology for analyzing collections and preparing for negotiations.Design/methodology/approachA brief literature review of the current state of collection budgets and electronic resource prices is presented prior to proposing a methodology based on business analysis frameworks and techniques.FindingsElectronic resource subscription prices are increasing at a rate significantly higher than inflation, while collection budgets grow slowly, remain stagnant or decrease. Academic libraries have the ability to counteract this trend by creating relative bargaining power through organizational efforts that take advantage of size and concentration (e.g. consortia), vertical integration through practices such as library publishing and open access and through individual efforts using information. This paper proposes metrics and methodologies that librarians can use to analyze their collections, set negotiation priorities and prepare for individual resource negotiations to create relative bargaining power.Practical implicationsThe proposed methodology enables librarians and buyers of information resources to harness the information available about their electronic resource collections to better position themselves when entering negotiations with vendors.Originality/valueThis paper presents metrics, some not commonly used (i.e. average annual price increase/decrease), that aid in understanding price sensitivity. Pareto analysis has been traditionally used to analyze usage, but this paper suggests using it in relation to costs and budgets for setting negotiation priorities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Bottom Line: Managing Library Finances Emerald Publishing

Information creates relative bargaining power in vendor negotiations

The Bottom Line: Managing Library Finances , Volume 31 (2): 13 – Jun 11, 2018

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0888-045X
DOI
10.1108/BL-12-2017-0033
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to examine how libraries can create relative bargaining power and presents a methodology for analyzing collections and preparing for negotiations.Design/methodology/approachA brief literature review of the current state of collection budgets and electronic resource prices is presented prior to proposing a methodology based on business analysis frameworks and techniques.FindingsElectronic resource subscription prices are increasing at a rate significantly higher than inflation, while collection budgets grow slowly, remain stagnant or decrease. Academic libraries have the ability to counteract this trend by creating relative bargaining power through organizational efforts that take advantage of size and concentration (e.g. consortia), vertical integration through practices such as library publishing and open access and through individual efforts using information. This paper proposes metrics and methodologies that librarians can use to analyze their collections, set negotiation priorities and prepare for individual resource negotiations to create relative bargaining power.Practical implicationsThe proposed methodology enables librarians and buyers of information resources to harness the information available about their electronic resource collections to better position themselves when entering negotiations with vendors.Originality/valueThis paper presents metrics, some not commonly used (i.e. average annual price increase/decrease), that aid in understanding price sensitivity. Pareto analysis has been traditionally used to analyze usage, but this paper suggests using it in relation to costs and budgets for setting negotiation priorities.

Journal

The Bottom Line: Managing Library FinancesEmerald Publishing

Published: Jun 11, 2018

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