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The Good, The Bad, and The Ugly….

Peter ReardonDirector of Global Consortia Sales

The Gale Group

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THE DESIRE OF CONSORTIA……..

Ultimately, It is not a cheaper database that

people want. It’s an expensive database that

costs less.

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COSTING OUT BETWEEN MEMBERS

1. Evenly split between all members

2. By numbers of students

3. By deferred usage. [Pay for year one evenly, then, base the future years on the retrospective statistics].

4. Allocated by estimated size; 1,3,5,7,9 shares based loosely on institutional size.

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LOCAL, REGIONAL, or NATIONAL ?

Size isn't everything. The elephant is an endangered species whilst the ant continues

to thrive.(Bigger isn’t necessarily best!)

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THE 16 QUESTIONS TO ASK: EVERY TIME! 1. Do we get in-house training seminars for every member of the consortium? 2. Is remote patron access available and

is it password or IP controlled? 3. Is the front end of the searching

software customisable? 4. Can each library configure the search

screen to suit the level of each institutes users? This is very important where different levels of customer are involved.

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THE 16 QUESTIONS TO ASK: EVERY TIME! 5. Are usage statistics available for

everyone upon demand, or only at fixed periods?

6. What will these statistics actually tell me? 7. How about the invoicing? Is it one central

invoice or will all members be invoiced separately?

8. What time period is the arrangement for? Three- year deals are most common.

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THE 16 QUESTIONS TO ASK: EVERY TIME!

9. Is the price guaranteed at a fixed level?

10. What other software enhancements are included?

11. Are there any limitations to printing, downloading or emailing?

12. Are there any other costs or charges whatsoever?

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THE 16 QUESTIONS TO ASK: EVERY TIME! 13. Is the content static or dynamic? Any

embargoes? Future-proofing? 14. Is there a standard e-mail address

where all members can send questions? What about one for suggestions?

15. What other benefits are there? 16. What happens when the time frame

finishes, What then?

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LOCAL DISTRIBUTOR or DIRECT?

Plus points for going direct 1. Probably the best price. 2. In depth product information. 3. Ultimately more room to manoeuvre

in negotiations. 4. Faster time-scale to close the

business

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LOCAL DISTRIBUTOR or DIRECT?

Plus points for using local distributor 1. Local support office in your region. 2. Local language negotiations -

reduced chances of misunderstandings.

3. Invoicing in local currency. 4. Existing and ongoing relationship?

Possibly already dealing with them.

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10 IDEAS TOWARDS SAVING MONEY

1. Look to bundle different media by subject.

2. Get others to join you.3. Don’t expect instant

agreement.4. Do not let geography

stand in your way.5. Do not wait for a

formal consortium to appear.

6. Suggest a multi provider deal.

7. We -Gale- would respond!

8. Question the Status Quo.

9. Libraries are powerful customers.

10. Use library funds as you would use your own.

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THE GOOD………….

Libraries should be working towards achieving better value for money.

Publishers will gain market share if they have the right content/product/price.

Opportunities can be found : build in books and other media into the deal.

Multi year options allow for greater budgetary control.

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THE BAD…………..

Do not confuse a consortium with a buying club. Look for the simple approach.

Do not join in just because others are joining in. Focus on what your library needs.

Do not invest your money in a peripheral product just because…..

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THE UGLY………... If you do not ask ALL the right questions, the situation

could become ugly. If you invest in a product you don't really want/need

because its low priced, or because others may be buying into it, the situation may eventually turn ugly.

You must communicate your thoughts - both positive and negative - to all other members of the consortium. Without doing so clearly, you risk decisions being taken that are not in alignment with you and your libraries needs. And that can turn very ugly, especially if it’s a multi year deal you are ultimately being tied into.

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BEYOND UGLY….!

There is a price point where discounting has to stop.

Information providers require certain levels of income in order to continue services.

Remember a win/win is better than win/lose.

Fewer players does not lead to a healthy marketplace.

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FINALLY…….

Libraries have the right to strike the best deal they can, but equally the supplier has the right to walk away from a contract that may be damaging in long term.

The very best outcome ? Where the short, mid, and long term

visions of all parties are addressed and met in full. Therefore, all parties can win.