Buying Databases Like Used Cars
June 22nd, 2010 Brian Herzog
Last week at a meeting of area reference librarians, the topic of research databases came up - which ones we like, which we wish patrons would use more, etc.
One librarian remarked that her favorite database is one of the most expensive, but doesn't get used much so she's considering cutting it. She happened to mention the price they're paying, which got everyone's attention.
That particular database vendor bases their pricing on population. For her town of 32,000, they're paying over $7,000 for that database. My town is exactly the same size, but we pay only $4,400 - and another town, of 25,000, pays over $5,000. What?
Then we started relating other database pricing anecdotes:
- A sales rep told one librarian a database cost $4,000. When the librarian said she couldn't even come close to that, the sales rep asked, "well, what can you afford?" - she said $1,500, and the rep made the deal for that price
- One vendor said they don't like losing customers, so when I called to cancel a database, they gave it to me for free provided I kept access to the others I had from them
- Another vendor gives volume discounts, so when I called to cancel two of the three databases we got from them, he said buying just the one database (without the volume discount) would be more expensive than getting all three
I hate this. Don't get me wrong - I like the database sales reps I work with - I just don't understand the business model behind databases. And the difference between charging a library $4,000 for something instead of $1,500 seems like price gouging.
It's great that reps are able to work with small-budget libraries, but it would be so much easier to have fixed, posted prices, rather than everyone paying different rates (isn't that one of the things that got the health care industry in trouble?).
All the librarians at the meeting agreed to compare notes and prices, so we can try to save money the next time we renew our contracts. I hate to haggle and negotiate for prices, but now I feel like it would be fiscally irresponsible of me not to - and never accept the first quote. Since what we pay is public record anyway, maybe libraries should post their database contracts in a central place, so we can all get better deals.
(And just as a funny aside: while I was looking for a photo to accompany this post, this clever one cracked me up. Ah, sales - it's why I left the business world for librarianship.)
