In the fall of 2014 there was a lot of list traffic asking why libraries would want to use subscription agents when it is cheaper to deal directly with the publisher. Shortly thereafter the Swets bankruptcy was announced and flashbacks to the Faxon/divine debacle came to the forefront. While exploring the advantages of using an agent for both libraries and publishers, panelists will respond to questions developed based on a survey of NASIG members and SERIALST subscribers. We will also provide a check-list of questions and tips that librarians can use to assess an agent’s financial health as well as gauge the quality of service.
Handouts: http://www.slideshare.net/NASIG/why-using-a-subscription-agent-makes-good-sense
Moderator
Susan Davis
Acquisitions Librarian for Continuing Resource, University at Buffalo (SUNY)
Acquisitions Librarian for Continuing Resources and long-time NASIG member.
Speakers
Deberah England
Electronic Resources Librarian, Wright State University
Deberah is the Electronic Resources Librarian at Wright State University and frequent NASIG presenter. She founded the Great Lakes E-Resources Summit, which has become a very successful regional conference.
Tina Feick
Director of Sales and Marketing, North America, HARRASSOWITZ Booksellers and Subscription Agents
Tina is a long-time NASIG member and former NASIG President who has presented at many NASIG conferences. She had worked at the Free Library in Philadelphia and Princeton University Library before joining the Boley Subscrpition Agency. After working for Blackwell Periodicals, Swets-Blackwell and then Swets, she is presently
Kimberly Steinle
Library Relations and Sales Manager, Duke University Press
Kimberly Steinle is the Library Relations and Sales Manager for Duke University Press. Kim has worked at the Press for over 10 years and is responsible for institutional subscription revenue through the sale of electronic collections and through communication with the library community. Acting as an advocate for librarian interests in the development and implementation of pricing models is a priority for Kim, and she has successfully created several pricing models for Duke’s electronic packages, including the e-Duke Journals Scholarly Collection. As an active participant at major library conferences, Kim serves on several committees with a special interest in publisher/librarian collaboration, such as the Shared e-Resource Understanding (SERU) Standing Committee.
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Why Using a Subscription Agent Makes Good Sense
1. Why Using a Subscription
Agent Makes Good Sense
Susan Davis, University at Buffalo
Deberah England, Wright State University
Tina Feick, HARRASSOWITZ
Kim Steinle, Duke University Press
2. The need for this program
• List discussions about benefits of ordering direct (August 2014)
• Followed soon after by the Swets bankruptcy filing (September 23,
2014)
• Some panic ensues…harkening back to the Faxon/divine demise in late
2002 impacting 2003 subscriptions
• NASIG has a history of offering “triangle talks” at conference and as
continuing education sessions
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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3. Key benefits….for libraries
• Savings - improved workflows and efficiencies
• One place to order, invoice, claim, troubleshoot
• Payment in one currency
• Single invoice – order and payment consolidation
• EDI invoicing and claiming
• Infomediary
• One conduit to publisher for both sales and service
• One point of contact for title lists, publisher lists, pricing
• One source for tailored alerts
• Serials control systems and add-on tools and services
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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4. Key benefits….for publishers
• Order and payment consolidation
• Reduced staff costs
• Communication channel to customer
• Library choice –
Agents are helping libraries in ways we can’t
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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5. Issues for Agents in Today’s World
• Increased complexity in tracking product data
• More partners and competitors
• Library budgets - cancellations
• Low margin business – publisher discounts continue to decrease
• Money and currency management – pay publishers before getting paid
by libraries
• Operational efficiencies and improving library workflows
• Leading in creating/implementing standards (EDI – electronic data
interchange)
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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6. Survey says....Overview
• 456 respondents of which 88% were from libraries
• Decisions about which agent to use reside with the
library in the majority of cases
• Libraries are still using agents (92%)
• Most libraries have over 75% of the subscription budget with agents
• Most publishers still offer commissions to agents
• The majority of consortia respondents do not work with agents
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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7. Survey says....Surprise!
• Nearly 87% of libraries have not changed their
processes because of the Swets bankruptcy
• Attitudes about subscription agents have not changed
• Over 75% of libraries do not conduct performance reviews of their
agents
• Less business is coming from agents
• Publishers would like to see more support from agents
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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8. Survey says....some takeaways
• More transparency
• Marketplace outlook – limited options; what are our choices?
• Savvy serialists
• Gaps in knowledge about the “business of serials”
• Desire for agents to do more
A more in-depth article is planned to appear later this year
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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10. Swets....impact for agents
Loss of a Competitor
• Aware of situation – hoping for the best
• Added staff – major concern – quality of service
• Contact publishers – plan order workflow
• Work with current and new customers
• RFQ’s and RFP’s from libraries around the world
• Inform customers – bankruptcy claims and transfer process
• Provided company financial reports
• Bank guarantees available for prepayments
• Place orders promptly – separate out Swets orders
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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11. Swets....impact for libraries
• 30 million Euros in prepayments loss
• Some saw it coming
• Split business
• Go out for RFP, get quotes
• Impacted both 2014 and 2015
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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12. Swets....impact for publishers
• Customer outreach
• Remember the consolidation warehouse?
• Extension of access
• Gracing 2015 (and some 2014) orders
• Claim to recoup lost revenue
• Later renewal payments
• What does the future hold for 2016 renewals?
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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13. Analysis of the Bankruptcy
Audited Reports:
• Declining revenue and declining profit
• High turnover of staff – at all levels
• Significant change of ownership – Gilde Buy Out Partners – 2007
• Sets up parent company – “black box”
• Late release of 2013 audited report
• Heavy repayment of purchase monies with high interest
• For low margin business large loans not viable
• Private equity firm destroyed Swets
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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14. Being savvy
• Set alerts for vendors
• Get financial audited reports (annual)
• Understand the business
• Understand your internal costs
• Educate purchasing/accounting
• Know your service charge
• Prepayments – discuss options
• Network like crazy!
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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15. Recommendations and Resources
• Swets Bankruptcy – Background Information
• How to be Savvy – Points of Consideration and
Recommendations for Working with a Subscription Agent
• Subscription Agents: Selected bibliography. Compiled by Susan Davis
Above available at:
http://www.slideshare.net/NASIG/why-using-a-subscription-agent-makes-good-sense
• Directory of ASA Members
Available at: http://subscription-agents.org/members-directory
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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17. Thank you for coming!
Susan
unlsdb@buffalo.edu
Deberah
deberah.england@wright.edu
Tina
tfeick@harrassowitz.de
Kim
kimberly.steinle@duke.edu
Davis, England, Feick, and Steinle, NASIG 2015, 5/29/15
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