Key negotiation techniquesSANLiC Negotiation & Licensing Workshop 2013-05Jason Price, PhDInterim Director, Claremont Colleges LibraryE-resource Consultant, Statewide Calif Electronic Lib Consortium

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

Minisurvey: Our 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 stylesWar Room: ‘Win-Lose’

More common at the consortium levelEspecially among all or nothing consortia

May lead to better prices in some cases

Not likely to lead to collaboration

Scott Boras, New Yorker 29-Oct-07

Compromise: ‘Win-Win’More common at the library level

Built on relationships

Shapiro, Power of Nice, how to negotiate so everyone wins

Getting to Yes, by Roger Fisher and William Ury, Harvard Negotiation Project

Negotiation techniques: Do’s and Dont’s

Ed Brodow / Jed R. Mandel / Sue Barrett

Highly unscientific web search for top 10 negotiating tips

Conventional wisdom that’s surprisingly helpful

Our first workshop exercise…

1. Do your homework / Be prepared (4)

2. (Shut up and) Listen (3)

3. Aim high… Don’t be afraid to ask… (4)

4. Don’t be in a hurry… Be patient (3)a. Don’t make the first move (1) b. Don’t accept the first offer (1)c. Don’t negotiate against yourself! (2)d. Focus on the other side’s pressure

5. There’s no substitute for discussion (1)

6. Meet in the middle a. Make sure both parties needs are satisfied (2)b. Don’t make unilateral concessions (2)

7. Be willing to walk away – have a plan B (3)

8. Don’t take issues or other person’s behavior personally (1)

Prepare

Do your homework

Know what you want!

http://www.theauroracrossing.com/wp-content/uploads/2013/04/listen.jpg

Ask questions…

…you already know the answer to!

Used without permission…

Aim h

igh…Don’t be afraid to ask…

http://goo.gl/axfyccommons.wikimedia.org

Used without permission…

commons.wikimedia.org http://goo.gl/LVdn0

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commons.wikimedia.org http://goo.gl/FZhVa

Additional notes

Practice, Practice, Practice

Find a mentor

Remember than ‘No’ is the right path to ‘yes’!

Humor is a crucial ingredient

Use data!

Look for opportunities to negotiate, they’re everywhere!

Practical Applications

Making the most of a budget crisis

Subscriptions vs Purchase

Access fees

Ebook shared archive packages

Intractable negotiations

Ebook collection subscription vs

purchasePublisher A Publisher B

Tota

l sp

ent

Access fees

*Access Fees: think about the long term costs

access fee increase caps

what are you paying for?

repurchase pointAt least 20 years

Equivalent to break even point for a $40 book20 years at $2/yr

Ebooks - Know the publisher Profit & Loss calculations

2 years after a book is published, the expected sales drop to zero

Backfiles should be incredibly cheap

Other practical applications

Don’t pay until you have what you wantSoftware under developmentAnnual access list updatesLicense negotiations!

 Use peer pressure - what do other companies do?

Case study: Journal backfile pricing (per page) Case study: Readex annual access fees

 Hold off for a better deal

Wrong Model: Proquest’s New York Times indexUnsettled pricing: ebooks and simultaneous use restrictions

When no is the only acceptable answer

3x price increase

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

Questions?

http://visualcv.com/lpq4t1s

SANLiC N&L Workshop part 2: Essentials of License negotiation

I. Applying the checklist & SANLiC model license (60m)

a. Review checklist and highlight model license (10m)

b. Use checklist to evaluate sample license (10m)

c. Groups improve language for key sections (20m)

d. Groups report their results (20m)

II. Aggregator Ebook access & usage permissions (35m)

a. Individual review of EBL terms (10m)b. Paired discussion of observations (10m)c. Sharing, Q&A and discussion

My Perspective & AssumptionsYour library is extremely unlikely

to be sued over license termsLicenses should be used as tools

to achieve our endsIt is appropriate to focus on key

terms & skip most of the “legalese”

Licensing essentials1-2-3

① Which researchers are authorised?

② What can authorised researchers do?

③ What is your library responsible for?

① Which researchers are authorised?Relatively standard

◦Faculty / Students / Staff on-campus◦Walk-in Users◦Faculty / Students / Staff off-campus◦Alumni off-campus

When available, usually requires an additional fee

Q: Has anyone considered negotiating for 1 year free off campus access after graduation?

◦Restricted simultaneous useHow are they authorised?

◦IP Range, proxy server, Shibboleth◦Geolocation: a potentially emerging

standard?

② What can researchers do with the

content?

Standard Less CommonAccess, Browse, viewPrintSaveUse in ReservesAccess after subs’

ends[Send via Secure ILL

(but for ebooks?…)]

Scholarly sharingEmail ILLCourse packsShare/create links to

content

③ What is the library responsible for?

Maintaining its budget?

Predicting the future?

Researcher behavior?

Communicating license terms? ✔✔

License evaluation ChecklistIndication

◦(AE) Allowed explicitly◦(AI) Allowed [interpreted]◦(S) Silent◦(XI) Prohibited [interpreted]◦(XE) Prohibited explicitly

Model License Review (10m)Review terms and highlight those

included in the checklist

Sample license review (10 min)Note that sample license includes

2 licenses◦Terms of Sale & Access agreement

Apply checklist to sample license

Group exercise (20 min)Each person take a few minutes to

review the section in the sample license:◦ What’s present that you object to?

◦ What’s absent that you require?

Work as a group to◦Decide which term(s) to tackle◦ Improve the terms staying as close to the

original as possible – We’ll share with the whole group

EBL License reviewI. Aggregator Ebook access & usage

permissions (35m)

a. Individual review of EBL terms (10m)a. (not on the checklist…)

b. Paired discussion of observations (10m)c. Sharing, Q&A and discussion

Questions?

http://visualcv.com/lpq4t1s