techniques for successful negotiation
Post on 21-Oct-2014
254 views
DESCRIPTION
Rick Burke, Donna LaFollette, Jason PriceTRANSCRIPT
Negotiation techniques
ER&LAustin, TXMarch 17 2014
What’s SCELC?The Statewide California Electronic Library Consortium
We have 111 private academic and nonprofit research member libraries throughout the state, plus one in Nevada and six here in Texas
We also have partnerships with hospital libraries in the Southwest and Hawaii; TexShare; Cal State Universities, and ATLA, for a total of >145 libraries licensing as SCELC Affiliates
What’s SCELC?Our primary activity has been negotiating offers for electronic resources and related services for our member libraries
We are an opt-in consortium, which makes negotiation more tricky – we license over 3000 different products so we negotiate all the time…
Plus we serve a very diverse set of libraries made up of many sub-groups, which is why we sometimes have to negotiate with our libraries
The Consortial Approach
SCELC has a small staff yet offers a large number of products
Success has come from dealing with our vendors honestly, fairly, and with an openness to understanding their position
Having events such as our SCELC Vendor Day helps build strong relationships with our vendors
SCELC Librarians vs. Vendors Bowling Tournament
Inter-consortial collaborations and ICOLC meetings help
The Consortial Approach (2)In the SCELC strategic plan
some of our core values arePartnering – working with vendors as partners in achieving a fair value and a fair returnInclusiveness – Soliciting the active involvement of our members by sharing expertise and best practicesCollaboration – Involving members and other organizations in our dialogue and work
Negotiation1. is a basic means for getting what you want from
others2. occurs when there are differences between the
needs of the buyer and seller3. is a “back and forth”, “give and take” process
which often involves a “compromise” - a settlement in which each side gives something up in order to gain something else
• Pricing negotiation seeks to reach equilibrium between what the vendor charges and what our libraries are willing to pay
• License negotiation seeks to reach equilibrium between the ideal terms for the library and the ideal terms for the vendor
Inventory Your Negotiation Experience
Frequency of vendor negotiationAt least once a yearAt least once a quarterAt least once a month
Negotiation typeMostly licensingMostly pricingAbout equal
Self assessment of negotiation skillAbove averageAverageBelow average
Two common/contrasting styles
War Room: ‘Win-Lose’More common at the consortium level
Especially among all or nothing consortia
May lead to better prices in some cases
More likely will burn bridges or cause bigger problems in the next round
Not likely to lead to collaboration
Scott Boras, New Yorker 29-Oct-07
Relationship-Based: ‘Win-Win’More common at the library level
Built on relationships and compromise
Power of Nice : How to Negotiate So Everyone Wins – Especially You!, by Ronald Shapiro
Getting to Yes, by Roger Fisher and William Ury, Harvard Negotiation Project
1. Do your homework / Be prepared
2. (Shut up and) Listen
3. Aim high… Don’t be afraid to ask…
4. Don’t be in a hurry… Be patient a. Don’t make the first move b. Don’t accept the first offer c. Don’t negotiate against yourself! d. Focus on the other side’s point of viewe. Seek transparency
5. Meet in the middle a. Don’t make unilateral concessions b. Defining the middle through discussion is the best part!c. Make sure both parties needs are satisfied
6. Be willing to walk away – have a plan B
7. Don’t take issues or other person’s behavior personally
COMMON
SENSE APPROACHES
and their UNCONVENTIONAL
sides
Prepare
Determine your objectives
Set a timetable
Assemble a team if you are working with others
Develop a strategyWho takes the lead on the negotiation?What roles might other team members play?
The Unsustainable Models Debate
Is it enough to start a negotiation by complaining to a vendor that the current models of subscription are not sustainable in the current library budget environment?
A complaint is also a negotiation so long as you have an alternative in mind
Think creatively of what models might workTalk to the right people in the hierarchyBe bold: Don’t be afraid to propose new ideas
http://www.theauroracrossing.com/wp-content/uploads/2013/04/listen.jpg
Ask questions…
Used without permission…
Aim h
igh…Don’t be afraid to ask…
http://goo.gl/axfyccommons.wikimedia.org
Be Patient
commons.wikimedia.org http://goo.gl/LVdn0
Meet in the Middle
http://t3.gstatic.com/images?q=tbn:ANd9GcQHUAjV1VXB-dZiSThyEWtmkzUIR_sJZG9IZKI1s0P8APHgoAnk_Mr0MA
commons.wikimedia.org http://goo.gl/FZhVa
Be Willing to Walk Away
Don’t Take it Personally
Additional notes
Humor is a crucial ingredient
Use data!
Find a mentor
Look for opportunities to negotiate, they’re everywhere!
Practice, Practice, Practice
Prime negotiation opportunities
1. Making the most of a budget crisis
2. Ongoing Subscription vs. One time Purchase
3. Access fees
4. Ebook archives
5. Intractable license negotiations
Primary source collections: subscription
vs purchasePublisher A Publisher B
Tota
l sp
ent
Use your knowledge of other deals to negotiate a better deal
Access fees
*Access Fees: think about the long term costs
access fee increase capswhat are you paying for?
Demand transparencyWhat is the repurchase point
At what point will access fees add up to another purchase?Suggest alternative pricing models
E-Book archives
Know publisher Profit & Loss calculations
2 years after a book is published, the expected sales drop to zeroBackfiles should be deeply discounted!
Intractable negotiations: Think
outside the listConverting Elsevier’s Unique title list to a Shared title list
Price JS. 2006. Making the most of a "big deal” Charleston conference proceedings, 2005
Some more general practical approaches
Don’t pay until you have what you wantSoftware under development
Be willing to beta test only at a reduced or “free” rateAnnual title access list updatesLicense negotiations completed
Use peer pressure - what do other companies do?
Hold off for a better deal
Wrong Model: Unreasonable minimums to obtain discountsUnsettled pricing: ebooks and simultaneous use restrictions
Sometimes NO is the only acceptable answer3x price increase
No ILL or other sharing allowed
No remote access (hardly ever occurs anymore)
Unmanagable Restricted list of authorized users
…and other issues that depend on the context
Insert your own examples here
Negotiation PrinciplesGet to know your negotiating partner; establish rapport with them
Listen carefully to what they have to say and take notes
Focus on shared interests, and try to avoid hard position bargaining that obscures real goals
Express your interests clearly and specifically while exploring & acknowledging their interests as well
Questions? Contact information:
Rick BurkeExecutive Director, SCELC
Donna LaFolletteDirector of Financial Operations, SCELC
Jason PriceProgram Manager, SCELC