1. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 VALE User Conference January 4, 2013, Rutgers University, Piscataway, NJ Patron Driven Acquisitions: Managing the Runaway Costs Thanks for Ann Hoang, Haymwantee Singh and Lisa Weissbard’s contributions. Please note that this document is copyrighted and licensed under the Creative Commons Attribution 3.0 United States License. Creative Commons Attribution 3.0 United States LicenseCreative 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

2. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 good value proposition. EBL PDA E-books are a 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?

3. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 The Problem: 103%-111% Monthly Cost Increases UNSUSTAINABLE 3

4. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 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

5. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 no costs if a title in your pool is not used How do the costs work? 1. There are no costs if a title in your pool is not used. You only pay for what is loaned. 5

6. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 loan fee auto-limit at a maximum $35 How do the costs work? 2. Pay a 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 maximum $35 for any loan. Average Cost per Loan W/O Purchases # Loans W/O Purchases % of Avg. Purchase Price AY 2012 Actual $10.03 1408 12.0% AY 2013 YTD $10.33 843 9.4% 6

7. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 On the sixth loan purchase How do the costs work? 3. On the sixth loan for any title, NJIT automatically pays the full purchase 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

8. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 EBL profile How does the NJIT EBL pool / collection work? A. NJIT librarians created an 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. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 9 Driving Factors in EBL Costs 1.# Titles in Pool 2.# Loans 3.Price of Loans 4.# Autopurchases 5.Price of Autopurchases 6.Categories of Titles Loaned 7.# & Types of Users 8.User Behaviors Information Available: Not Available:

10. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 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 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.

11. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 11 “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. 164 “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 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.

12. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 “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. 164 “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 12 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.

13. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Pool Size At Start: 100% of NJIT pool size was 10,963 titles; In November 2012, was 22,949. 22,949 10,963 13

14. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Pool Size vs. Mo. Loans & Costs At Start: 100% of NJIT monthly cost was $1,635 and was $2,564 in November titles. $2,564 $1,635 14 10,963 22,949

15. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Pool Size vs. Mo. Loans & Costs $1,635 $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

16. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 All months; All DataNo Summer Delayed 1 Mo. No Summer Pool Size Mo. Costs0.370.700.89 Mo. Loans0.180.770.93 StrengthWeakStrong Very Strong Correlations: Pool Size vs. Mo. Loans & Pool Size vs. Mo. Costs 16

17. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Limit the total pool size correlation, Drop unused titles oldest publication dates Strategy: to Manage Runaway Costs Limit the total pool size. There is a correlation, albeit delayed, between the pool size and the costs of loans / rentals generated in a given period of time. How: Drop unused titles from the pool that have the oldest publication dates. If an older title is not used after a given period, drop it and add a newer title. 17

18. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 more ebooks the lower the rate “Again the more ebooks your library offers, whether previously purchased ebooks, subscription packages, the 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 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.

19. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Pool Size At Start: 100% of NJIT pool size was 10,963 titles; In November 2012, was 22,949. 22,949 10,963 19

20. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 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

21. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 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.

22. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 On December 1, 2012 we reduced the size of the EBL Pool from 22,949 to 9,986 titles. RETAINED: 1,350already loaned A. 1,350 titles that were already loaned at least once regardless of publication date. 8,636 afterJuly 15, 2011 B. 8,636 titles with no loans and with publication dates after July 15, 2011. REMOVED: ~12,963 unused, titles with publication dates before July 15, 2011. 22

23. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 The Problem: 103%-111% Monthly Cost Increases UNSUSTAINABLE 23

24. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 The Projected Solution vs. The Problem The Problem The Projected FY 2013 Solution 24

25. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Note December Actual Result The Problem

26. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 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 $ 749.8760 $ 6,152.05 5 th Loan 32 $ 348.0157 $ 673.80 4 th Loan 57 $ 541.8185 $ 1,028.43 3 rd Loan 106 $ 1,081.62146 $ 1,773.16 2 nd Loan 251 $ 2,467.28356 $ 4,326.50 1 st Loan 962$ 9,360.721259 $ 15,320.07 Total Pool Cost: 10,000* $ 14,549.31 10,000** $ 29,274.00 26

27. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Projected Cost of Loans and Purchases *27,366 Jul., 22,949 Aug., ~10,000 Dec. to Jun. July Through June 2013 NJIT Projected AY 13 Cost Projected All AY 14 NJIT Projected AY 14 Cost Autopurchases 60 $ 6,152.0578 $ 8,397.54 5 th Loan 57 $ 673.8052 $ 779.00 4 th Loan 85 $ 1,028.43102 $ 1,189.00 3 rd Loan 146 $ 1,773.16203 $ 2,050.00 2 nd Loan 356 $ 4,326.50471 $ 5,002.00 1 st Loan 1259 $ 15,320.071763 $ 17,712.00 Total Pool Cost: 10,000* $ 29,274.00 10,000 $ 35,129.55 27

28. Copyright 2012 Richard Sweeney Patron Driven Acquisitions: Managing the Runaway Costs sweeney@njit.edu Richard Sweeney 973-596-3208 Thanks for your kind attention!! Special thanks to NJIT Library staff members especially: Ann Hoang, Haymwantee Singh, and Lisa Weissbard. 28