copyright 2012 richard sweeney patron driven acquisitions: managing the runaway costs...

Copyright 2012 Richard Sweeney

Patron Driven Acquisitions: Managing the Runaway Costs Patron Driven Acquisitions: Managing the Runaway Costs [email protected] [email protected] Richard Sweeneyichard Sweeney 973-596-3208 973-596-3208

VALE User Conference January 4, 2013, VALE User Conference January 4, 2013,

Rutgers University, Piscataway, NJRutgers University, Piscataway, NJ

Patron Driven Acquisitions:Patron Driven Acquisitions:Managing the Runaway Costs Managing the Runaway Costs

Thanks for Ann Hoang, Haymwantee Singh and Lisa Weissbard’s contributions. Thanks for Ann Hoang, Haymwantee Singh and Lisa Weissbard’s contributions.

Please note that this document is copyrighted and licensed under the Please note that this document is copyrighted and licensed under the Creative Commons Attribution 3.0 United States License..

Powerpoint (Revised 12/14/2012) available at:

http://library1.njit.edu/staff-folders/sweeney/

Powerpoint (Revised 12/14/2012) available at:

http://library1.njit.edu/staff-folders/sweeney/

1



EBL PDA E-books are a good value proposition. good value proposition. The main benefits are:

1.Many more titles are immediately available.

2.The cost per use is low.

3.The users may download titles.

4.Up to 325 simultaneous users can use a title.

But…………

2

Why use PDA?



The Problem: 103%-111% Monthly Cost Increases

UNSUSTAINABLEUNSUSTAINABLE

3



4

Dillon, Dennis. “Texas Driven Aquistions: Controlling Costs in a Large-Scale PDA Program” . Patron-driven acquisitions : history and best practices. Ed. David A Swords. Boston: De Gruyter Saur, 2011. Print.

“The first rule of demand-driven acquisitions is: : Control the costs. If you continually add new content to your risk pool, costs will inevitably rise.” p. 165



How do the costs work?

1. There are no costs if a title in your pool is not usedno costs if a title in your pool is not used. You only pay for what is loaned.

5




2. Pay a loan fee loan fee each time an accessible title is used more than five minutes (the browsing period). The loan fee varies by title. NJIT has set the auto-limit at a auto-limit at a maximum $35maximum $35 for any loan.

Average Cost per LoanW/O Purchases

# LoansW/O Purchases

% of Avg. Purchase Price

AY 2012 Actual $10.03 1408 12.0%

AY 2013 YTD $10.33 843 9.4%

6




3. On the sixth loan On the sixth loan for any title, NJIT automatically pays the full purchasepurchase price for a title.

Average Cost per Autopurchase

# Autopurchases % Overall Costs

AY 2012 Actual $88.32 9 5.2%

AY 2013 YTD $110.08 22 22.2%

7



How does the NJIT EBL pool / collection work?

A. NJIT librarians created an EBL profile EBL profile based upon such elements as the publisher, subject, the LC call number, the date of publication, etc.

B. EBL will only make accessible to NJIT users titles which match this profile.

C. The profile determines what type of titles are added to the pool (but not an exact number).

D. Initially creating the profile took a lot of staff time.

8



9

Driving Factors in EBL Costs

1.# Titles in Pool 2.# Loans3.Price of Loans 4.# Autopurchases5.Price of Autopurchases6.Categories of Titles Loaned7.# & Types of Users8.User Behaviors

Information Available:Not Available:



10

“To budget for PDA we first must determine the size of our risk pool for the year.” p. 163

“The key is to control the number and makeup of titles that comprise the risk pool...” p. 165

“At the end of the year we remove any titles that have received no use over the past twelve to twenty four months…” p.163




11










12




Pool SizeAt Start: 100% of NJIT pool size was 10,963 titles; In November 2012, was 22,949.

22,949

10,963

13



Pool Size vs. Mo. Loans & CostsAt Start: 100% of NJIT monthly cost was $1,635 and was$2,564 in November titles.

$2,564$2,564

$1,635$1,635

14

10,963

22,949



Pool Size vs. Mo. Loans & Costs

$1,635$1,635

$2,564$2,564

.93 .93 very strong correlation between pool size and monthly loans when May, Jun, Jul & Aug discarded & delayed 1 month.

22,949

10,963

15



All months;All Data No Summer

Delayed 1 Mo.No Summer

Pool Size Pool Size Pool Size

Mo. Costs 0.37 0.70 0.890.89

Mo. Loans 0.18 0.77 0.930.93

Strength Weak Strong Very StrongVery Strong

Correlations:Pool Size vs. Mo. Loans &

Pool Size vs. Mo. Costs

16



Strategy: to Manage Runaway Costs

Limit the total pool sizeLimit the total pool size. There is a correlation, correlation, albeit delayed, between the pool size and the costs of loans / rentals generated in a given period of time.

How: Drop unused titles Drop unused titles from the pool that have the oldest publication datesoldest publication dates. If an older title is not used after a given period, drop it and add a newer title.

17



“Again the more ebooks more ebooks your library offers, whether previously purchased ebooks, subscription packages, the lower the ratethe lower the rate of demand-driven acquisitions because your users have a larger universe of ebooks from which to choose. Of course, the opposite is true: fewer ebooks means the risk-pool title is likely to be used more.” p.164

18




Pool SizeAt Start: 100% of NJIT pool size was 10,963 titles; In November 2012, was 22,949.

22,949

10,963

19



Pool Size

Solution: reduce pool size to ~10,000 and keep it there as long as budget grows slowly. 10,000

22,949

20

10,963



Pool Size

Solution: reduce pool size to ~10,000 and keep it there at least for remainder or AY 2013.

10,000

22,949

21

10,000 titles equal $1,033,000 in value.



On December 1, 2012 we reduced the size of the EBL Pool from 22,949 to 9,986 titles.

RETAINED: A. 1,3501,350 titles that were already loaned already loaned at least once

regardless of publication date. B. 8,6368,636 titles with no loans and with publication dates afterafter July 15, 2011July 15, 2011. REMOVED: ~12,963 unused, titles with publication dates before July 15, 2011.

22



The Problem: 103%-111% Monthly Cost Increases

UNSUSTAINABLEUNSUSTAINABLE

23



The Projected Solution vs. The Problem

The Problem

The ProjectedThe ProjectedFY 2013 FY 2013 SolutionSolution

24



Note Note December December Actual ResultActual Result

The Problem



Projected Cost of Loans and Purchases

*varied from 10,000 to 25,000. **25,000 Jun-Nov

August 2011 Through June 2012

NJIT Actual AY 12 Cost

July Through June 2013

NJIT Projected AY 13 Cost

Autopurchases 9 $ 749.87 60 $ 6,152.05 5th Loan 32 $ 348.01 57 $ 673.80 4th Loan 57 $ 541.81 85 $ 1,028.43 3rd Loan 106 $ 1,081.62 146 $ 1,773.16 2nd Loan 251 $ 2,467.28 356 $ 4,326.50 1st Loan

962 $ 9,360.72 1259 $ 15,320.07

Total Pool Cost:Total Pool Cost: 10,000* $ 14,549.31 10,000** $ 29,274.00

26



Projected Cost of Loans and Purchases

*27,366 Jul., 22,949 Aug., ~10,000 Dec. to Jun.

July Through June 2013


Projected All AY 14


Autopurchases 60 $ 6,152.05 78 $ 8,397.54 5th Loan 57 $ 673.80 52 $ 779.00 4th Loan 85 $ 1,028.43 102 $ 1,189.00 3rd Loan 146 $ 1,773.16 203 $ 2,050.00 2nd Loan 356 $ 4,326.50 471 $ 5,002.00 1st Loan

1259 $ 15,320.07 1763 $ 17,712.00

Total Pool Cost:Total Pool Cost: 10,000* $ 29,274.00 10,000 $ 35,129.55

27



Thanks for your kind attention!!

Special thanks to NJIT Library staff members especially: Ann Hoang, Haymwantee Singh, and Lisa Weissbard.

28

copyright 2012 richard sweeney patron driven acquisitions: managing the runaway costs...

Documents