Why Using a Subscription Agent Makes Good Sense

Why Using a Subscription Agent Makes Good Sense

Susan Davis, University at BuffaloDeberah England, Wright State University

Tina Feick, HARRASSOWITZKim Steinle, Duke University Press

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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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


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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


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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)


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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


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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


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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


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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 ordersDavis, England, Feick, and Steinle, NASIG 2015, 5/29/15

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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


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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?


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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


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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!


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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


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http://subscription-agents.org/members-directory



Discussion


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Thank you for coming!

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Why Using a Subscription Agent Makes Good Sense

Education

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