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Medical Reference ServicesQuarterlyPublication details, including instructions forauthors and subscription information:http://www.tandfonline.com/loi/wmrs20

The Business of Negotiating forHospital LibrariansJan T. Orick MLIS, AHIP aa Biomedical Library , St. Jude Children's ResearchHospital , 332 North Lauderdale, Memphis, TN,38105, USAPublished online: 23 Sep 2008.

To cite this article: Jan T. Orick MLIS, AHIP (2004) The Business of Negotiating forHospital Librarians, Medical Reference Services Quarterly, 23:3, 61-69, DOI: 10.1300/J115v23n03_07

To link to this article: http://dx.doi.org/10.1300/J115v23n03_07

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HOSPITAL INFORMATION SERVICES

Cheryl R. Dee, Linda Garr Markwell, Jan T. Orick,and Jane Bridges, Column Editors

The Business of Negotiatingfor Hospital Librarians

Jan T. Orick

ABSTRACT. Although many hospital librarians may find it difficult,negotiating with vendors has become a basic skill of library acquisi-tions. This article reports the results of a non-scientific questionnaireadministered to hospital librarians and vendors attending a chaptermeeting of the Medical Library Association in 2003. The answers re-vealed that vendors regard libraries as businesses, and while admittingthat the role is often uncomfortable for them, librarians acknowledgedthat negotiating skills have become an important aspect of their jobs.Questions to help guide librarians through the negotiation process areprovided in the Appendix. [Article copies available for a fee from TheHaworth Document Delivery Service: 1-800-HAWORTH. E-mail address:<docdelivery@haworthpress.com> Website: <http://www.HaworthPress.com>© 2004 by The Haworth Press, Inc. All rights reserved.]

Jan T. Orick, MLIS, AHIP (jan.orick@stjude.org) is Director of the Biomedical Li-brary, St. Jude Children’s Research Hospital, 332 North Lauderdale, Memphis, TN 38105.

This work was supported in part by Cancer Center Support (CORE) Grant P30CA-21765 from the National Cancer Institute and by the American Lebanese SyrianAssociated Charities (ALSAC).

Medical Reference Services Quarterly, Vol. 23(3), Fall 2004http://www.haworthpress.com/web/MRSQ

2004 by The Haworth Press, Inc. All rights reserved.Digital Object Identifier: 10.1300/J115v23n03_07 61

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KEYWORDS. Negotiating, communication, business, vendors, hospi-tal libraries

INTRODUCTION

Negotiating with vendors is a basic skill of library acquisitions, al-though many hospital librarians find it difficult. This article reports theresults of a non-scientific questionnaire administered to hospital librari-ans and vendors attending a chapter meeting of the Medical Library As-sociation in 2003. The answers revealed that vendors regard libraries asbusinesses, and while admitting that the role is often uncomfortable forthem, librarians acknowledged that negotiating skills have become animportant part of their jobs. Questions to help guide librarians throughthe negotiation process are provided in the Appendix.

A review of the library literature about negotiating located only a fewarticles, most of which described negotiating in relation to selecting anautomated library system, attempting to get a better salary, or workingfrom a request for proposals. Only an article that described the processof selecting a document delivery vendor provided specific informationabout the interaction involved in negotiation between vendors and li-brarians. The paper reminded librarians that they are the customers in abusiness transaction.1 This deficit in the literature led the author to won-der where today’s librarians learned their negotiating skills, how theyfeel about the process of negotiating in the current workplace, and whatvendors think about negotiating with librarians.

Before the emergence of electronic resources, working with a vendorto make library purchases was a relatively straightforward procedure.The librarian selected a journal, book, or document-delivery provider,and the vendor advised the librarian of the price, subscription fee, orcontract terms. In short, the product or service was simply sold to the li-brary. However, the library today is no longer merely a repository forinformation resources. Libraries have evolved into businesses, with ex-panding costs and shrinking budgets. To thrive in this new environment,librarians need to change the way they interact with vendors. In thebusiness world, negotiating is more than selecting and agreeing to pur-chase a product or service. It is a bargaining process that concludeswhen the negotiating parties are satisfied that the result will meet theirneeds or requirements.

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HOSPITAL LIBRARIANS’ VIEWS ON NEGOTIATION

To gain further insight into the subject of negotiation, thirty hospitallibrarians were asked to complete a questionnaire at a chapter meetingof the Medical Library Association in 2003 (see Figure 1). Thirteen re-sponses were returned. When asked whether they negotiated for re-sources, the answers were split. Some stated that they did their ownnegotiating. Others wrote that they did not negotiate or that someoneelse had the final say. Librarians inexperienced about negotiatingavoided talking to vendors at all, especially on a business level. Moreexperienced negotiators enjoyed the challenge of negotiating. In a busi-ness environment, negotiating should be viewed as a process that resultsin a price within the library’s budget and a profit for the vendor.

The questionnaire asked hospital librarians to list ways they preparedto negotiate with a vendor. The responses revealed that they reviewedproduct literature and compared vendors by viewing their products atmeetings and visiting the companies’ Web sites. Librarians reportedthey discussed the product and the pricing with their peers. Librariansalso noted they checked with peers regarding technical support ques-tions such as the level of customer service, downtime, usage statistics,and speed of server response. Requesting long trials of the products toallow time for feedback from patrons was also recommended.

On the whole, the responses to the questionnaire revealed that hospi-tal librarians who negotiate prefer to first establish a relationship withthe vendor. When the relationship is built on trust, it is more likely to re-sult in successful negotiation because the vendor understands the li-brary’s needs and the librarian understands that the vendor works for afor-profit business. Librarians responded that vendors who are “pushy”or too aggressive make them uncomfortable. Lacking a relationship be-tween the two parties, some librarians may interpret not fulfilling all thelibrary’s requests as a personal offense even though the vendor may notintend this outcome as a value judgment. The inability to meet the li-brary’s requests does not mean that the vendor does not like the librarianor the library. Sometimes the vendor’s product cannot meet all the re-quested functions because of technical limitations, company policy, orother legitimate reasons. Often the vendor is unclear about a currentpricing structure especially for electronic resources, an area in whichownership and pricing models change frequently. The company maychange policies, or new ownership may make changes that affect theability of the vendor to supply all of the functions that the librarianseeks.

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The vendor can find it difficult to negotiate with the librarian whomakes the licensing process an emotional issue rather than a businesstransaction. If the librarian cannot grasp the business issues, refuses tonegotiate, or relies on others to perform the negotiating, unnecessarydelays in the process are created. The librarian’s discomfort level can belowered when the relationship between the librarian and the vendor isbuilt on mutual respect and trust.

Hospital librarians were asked to describe any limitations to success-ful negotiation. In addition to a lack of time, they noted they often lackbudgetary control, final decision-making power, and/or authority tosign contracts or licenses. In some cases, librarians are not perceived assavvy negotiators by their institutions or by vendors. Librarians statedthat this perception puts them at a disadvantage, and some of those whofeel this way reportedly do not attempt to build relationships with ven-dors. If the librarian does not have the authority to sign a licensingagreement or contract, he or she can still bring together both the infor-mation and the people who have that authority. By providing writtenevaluations of products, scheduling demonstrations and trials, and ask-ing patrons for feedback, in this role the librarian provides a valuableservice and is part of the negotiation process.

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FIGURE 1. Questions for Hospital Librarians

I am gathering information about librarians and negotiating. I would like your input on nego-tiating with vendors. Your answers will be anonymous and summarized in the article.

1. Do you negotiate your own agreements with vendors? Who has final decision-makingpower? You, your user, a committee, your boss, administration/financial services?

2. Do you ever feel intimidated by negotiating with a vendor? If yes, why?

3. Do you interview multiple vendors? What homework do you do about the companies?

4. Have you ever not purchased a product or negotiated with a company because you didnot like the vendor/sales rep?

5. Have you ever decided to purchase from a vendor just because you like the sales rep orthey took you to lunch/dinner?

6. As a hospital librarian, what limitations do you have?

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VENDORS’ VIEWS ON NEGOTIATION

At the same chapter meeting of the Medical Library Association, fif-teen vendors were asked to complete a questionnaire about negotiationthat differed somewhat from the one given to librarians (see Figure 2).Eight vendors completed the form. When asked how they investigate alibrary before negotiation begins, the vendors replied that they look atthe communities the library serves and identify the library’s patrons.They also evaluate the size of the hospital, the number of beds, and thereputation of the hospital. Other information the vendor reviews in-cludes the library’s Web site, the institution’s or library’s mission state-ment, budget information, and a list of the library’s current holdings orcompetitive products.

Vendors responded positively when asked what librarians did well inthe negotiation process. Librarians demonstrate an extensive familiarityand knowledge of the product in question as well as an awareness ofother companies that provide similar products. In addition, librariansare prepared with necessary data, ask appropriate questions, and maketheir concerns clear by expressing budget limitations up front. Theyshare their expectations of the product and are often willing to considermultiple options to get the most for their money. Vendors also appreci-ate librarians’ candid discussion about budgetary constraints. If the costof the product and the amount of money allotted are too far apart, a dealis not feasible, no matter how skilled negotiators are. A vendor who hasdeveloped a relationship with the librarian over time often has a betterunderstanding of the library’s financial limitations. The vendor and li-brary may work to split payments over several years, or the vendor cansometimes offer an alternative lower-cost product that may fit the needsof the library. If a positive working relationship exists, the vendor maybe a champion for the library and try to renegotiate a price that the li-brary can afford. Realistic time lines for purchase are also important. Ifthe library cannot or does not plan to purchase the product until the nextfiscal year, the librarian should tell the vendor. There is no real advan-tage in negotiating a contract that might need to be renegotiated at a laterdate, because the price, the product, the vendor, or the library’s needmay change.

When asked about librarians’ discussion of pricing, the vendors re-plied that they do not worry because even if non-disclosure agreementsare signed, they know that discussion of pricing still occurs. This wasverified by the librarians’ responses to their questionnaire. The quotedprice derived for each institution is based on many variables, such as theinstitution’s size, bed count, and the number of full-time employees. In

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the case of journal aggregators, the price and service charge is based onthe journal publisher’s list price or a special pricing agreement betweenthe publisher and the aggregator. Therefore, it is highly unlikely that theamount one library pays for a product or service will be exactly thesame as that paid by another library for the identical product or service.Most vendors see themselves as professionals who provide a fair deal toall of their customers; therefore, different pricing for the same item orservice should not necessarily be considered unfair or preferential treat-ment. One vendor replied that no deals are ever purposely designed tocompete with another library.

Vendors were asked to list areas where librarians could improve theirnegotiating skills. They responded that librarians could improve theirability to deal with surprises that often occur in business negotiations.Most librarians do not want surprises that interfere with service to theirusers. The unpredictability of business should not automatically beequated with sinister ulterior motives, but some librarians continue torepeat only “a simple axiom that publishers are bad and they will alwayscharge too much and that they are out to take advantage of libraries.”2

To prevent surprises, the vendors recommended that librarians negoti-ate multiyear deals so that they can create realistic budgets for future

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FIGURE 2. Questions for Vendors

I am gathering information about librarians and negotiating. I would like your input on nego-tiating with librarians, hospital librarians in particular. Your answers will be anonymous andsummarized in the article.

1. Do you do homework about the libraries you work with prior to negotiating? About the li-brarians? If yes, please describe.

2. Are you a librarian? Do you feel that helps in negotiating with librarians? Please explain.

3. How comfortable are librarians when they negotiate with you?

4. Have you ever been intimidated by a librarian?

5. Do you worry about librarians discussing pricing/deals with other librarians? Explain.

6. List three things that the librarian does well when negotiating with you.

7. List three areas the librarian could improve on when negotiating?

8. What advice would you give librarians about negotiating with vendors?

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costs. Vendors may also be able to offer year-end discounts or incen-tives for renewing contracts early. Vendors stated that while asking forextra services or specials is acceptable, librarians must expect to givesomething in return, such as increasing the volume of sales to the ven-dor or signing multi-year contracts.

Another area in which vendors recommended librarians could im-prove includes remembering that vendors are employed by for-profitbusinesses and that they have to make profits for their deals to work. Tokeep their jobs, vendors are expected to sell their products and to meetsales quotas set by their companies. If vendors “give away” the productor service, the companies that they work for will not be profitable andmay cease to exist.

ADDITIONAL SUGGESTIONSFOR IMPROVING NEGOTIATING SKILLS

Although the negotiation process may seem too time-consuming orconfusing to handle along with all the other tasks associated with run-ning the library, it is unavoidable and should be viewed as a significantaspect of library acquisitions. Libraries today are businesses;2 therefore,negotiating is just as vital a skill as cataloging or database searching.Before negotiation begins, librarians must know their users’ current in-formation needs, future needs, and budgetary constraints. Librariansshould conduct statistically sound surveys of their users and analyze thecollected data to identify current and future resource needs. Data is criti-cal to the negotiating process. If funding is a problem, the librarianshould locate powerful advocates within the institution to support the li-brary in its attempt to fulfill its financial needs.

The vendor is often willing to help the librarian in many steps of theprocess. For example, the vendor can help the librarian reach a decisionabout a purchase by demonstrating the product for a group of librarysupporters or by sending information to be distributed to patrons. Avendor may also be able to set up extended free trials so patrons canevaluate the product.

CONCLUSION

The results of these non-scientific questionnaires provide librariansand vendors with insight into each other’s thoughts about the negotia-

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tion process. The vendors revealed a respect for librarians and for theskills they bring to the negotiation process. Because negotiating isbased on give and take, librarians need to look at the negotiation processnot only as an opportunity to purchase, but also as an opportunity tolearn more about the company’s products, services, and policies. Ven-dors need to communicate more openly with librarians and to help li-brarians feel more comfortable by carefully explaining contracts andlegal terms. Trust can be created if librarians understand the businessjargon and recognize that the same company standards and policies areapplied to everyone equally. Librarians also need to understand thattheir libraries are business operations and that they need to continue toimprove their negotiating skills. Like any skill, negotiation is improvedwith practice, and today’s library provides many opportunities to putwhat is learned to good use.

Comments and suggestions should be sent to the Column Editors:Cheryl R. Dee (cdee@chuma1.cas.usf.edu), Linda Garr Markwell(liblgm@emory.edu), Jan T. Orick (Jan.Orick@stjude.org), and JaneBridges (BridgJa1@memorialhealth.com).

REFERENCES

1. Brackstone, D.W. “You Are the Customer: A Guide to Successful Negotiationwith Document Delivery Vendors.” Journal of Interlibrary Loan, Document Delivery& Information Supply 11(2001): 61-73.

2. Plutchak, T.S. “Whose Business Is It?” Journal of the Medical Library Associa-tion 91(July 2003): 277.

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APPENDIX

Sample Questions for Vendor Negotiation

Here are sample questions to be considered before a librarian enters the ne-gotiation process:

• What resources do the library’s patrons want or need?• What does the library already own or have access to? Review the “big

deal” or a subject collection package carefully. Does the library alreadyhave access to the same or similar products from another resource? Willthe collection purchase require the library to purchase titles outside thescope of its collection? Will the library’s patrons use or need themenough to justify the cost?

• What does the library bring to the table besides money? Is the vendor try-ing to expand its products into hospital libraries? Does your library havespecial prestige that the vendor may want to use as a reference? Is the li-brary a part of a large hospital system that could mean additional salesfor the vendor in the future?

• What do vendors need to know about your library and patrons? Preparestatistics on the number of patrons served, if there is money in the currentbudget, and review usage statistics for similar products or services.

• Look at the competition. Are there similar products available? If thereare, compare the products’ features.

• Put any agreement in writing. Today, a quote by e-mail can be consid-ered a binding contract.

• Don’t be afraid to break off the negotiation for any legitimate reason.Ask for more time to consider, or tell the vendor you must discuss thechange or issue with your boss, the library committee, etc.

• Don’t be afraid to ask the vendor to work hard. Don’t settle for a deal thatis not right for your patrons. If the deal is more than the library can af-ford, ask for additional products or services or for reduced cost for alarge-volume purchase.

• Don’t allow one element, option, or feature to jeopardize the whole deal.Try to focus on the overall goal to avoid a breakdown of the process.Sometimes getting the lowest price is not the best deal for your library.

• Don’t be afraid to return to the negotiation process to try again. If theprevious negotiation with the company was unsuccessful because of theproduct’s cost or lack of features, be open to a new look in the future ifthe product changes or the pricing structure changes.

• Is the money really there to make a purchase? Be straightforward withthe vendor. If you have to include the cost of the product in the library’sbudget, ask the vendor for cost estimates that can be included in the nextbudget cycle.

• Do you have authority to purchase a product? If not, find out who doesand discuss the product with that person.

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