This document discusses negotiation techniques used by the Statewide California Electronic Library Consortium (SCELC). SCELC negotiates licenses for electronic resources on behalf of over 145 member libraries. It primarily negotiates pricing and terms with vendors. The document outlines SCELC's consortial approach, which involves building relationships with vendors through honest and fair negotiations. It provides tips for libraries negotiating with vendors, such as preparing well, listening to understand the other perspective, aiming high but being willing to compromise, and using data and peer examples to support their position. The document also discusses specific opportunities for libraries to negotiate, such as subscription versus one-time purchases, access fees, and resolving intractable license negotiations.

1. Negotiation techniques
ER&L
Austin, TX
March 17 2014

2. 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

3. 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

4. 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

5. The Consortial Approach (2)
In the SCELC strategic plan some of our
core values are
Partnering – working with vendors as
partners in achieving a fair value and a fair
return
Inclusiveness – Soliciting the active
involvement of our members by sharing
expertise and best practices
Collaboration – Involving members and
other organizations in our dialogue and
work

6. Negotiation
1. is a basic means for getting what you want from others
2. occurs when there are differences between the needs of
the buyer and seller
3. 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

7. Inventory Your Negotiation Experience
Frequency of vendor negotiation
At least once a year
At least once a quarter
At least once a month
Negotiation type
Mostly licensing
Mostly pricing
About equal
Self assessment of negotiation skill
Above average
Average
Below average

8. 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

9. 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 view
e. 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
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and their
UNCONVENTIONAL
sides

10. Prepare
Determine your objectives
Set a timetable
Assemble a team if you are working with
others
Develop a strategy
Who takes the lead on the negotiation?
What roles might other team members
play?

11. 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 work
Talk to the right people in the hierarchy
Be bold: Don’t be afraid to propose new ideas

12. http://www.theauroracrossing.com/wp-content/uploads/2013/04/listen.jpg
Ask questions…

13. Used without permission…
Don’t be afraid to ask…

14. http://goo.gl/axfyccommons.wikimedia.org
Be Patient

15. commons.wikimedia.org http://goo.gl/LVdn0
Meet in the Middle

16. http://t3.gstatic.com/images?q=tbn:ANd9GcQ
HUAjV1VXB-
dZiSThyEWtmkzUIR_sJZG9IZKI1s0P8APHgoA
nk_Mr0MA
commons.wikimedia.org http://goo.gl/FZhVa
Be Willing to Walk Away

17. Don’t Take it Personally

18. Additional notes
Humor is a crucial ingredient
Use data!
Find a mentor
Look for opportunities to negotiate,
they’re everywhere!
Practice, Practice, Practice

19. 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

21. Primary source collections:
subscription vs purchase
Publisher A Publisher B
Totalspent
Use your knowledge of other deals to negotiate a better deal

22. Access fees
*Access Fees: think about the long term costs
access fee increase caps
what are you paying for?
Demand transparency
What is the repurchase point
At what point will access fees add up to
another purchase?
Suggest alternative pricing models

23. E-Book archives
Know publisher Profit & Loss calculations
2 years after a book is published, the
expected sales drop to zero
Backfiles should be deeply discounted!

24. Intractable negotiations:
Think outside the list
Converting Elsevier’s Unique title list to a Shared title
list
Price JS. 2006. Making the most of a "big deal” Charleston
conference proceedings, 2005

25. Some more general
practical approaches
Don’t pay until you have what you want
Software under development
Be willing to beta test only at a reduced or “free” rate
Annual title access list updates
License negotiations completed
Use peer pressure - what do other companies do?
Hold off for a better deal
Wrong Model: Unreasonable minimums to obtain
discounts
Unsettled pricing: ebooks and simultaneous use
restrictions

26. Sometimes NO is the only
acceptable answer
3x 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

27. Negotiation Principles
Get 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

28. Questions?
Contact information:
Rick Burke
Executive Director, SCELC
rburke@scelc.org
Donna LaFollette
Director of Financial Operations, SCELC
dlafollette@scelc.org
Jason Price
Program Manager, SCELC
jason@scelc.org