Lexis Nexis Drop Prices

A very interesting development that we must admit we didn’t expect to see at all…The Library Journal reports that..

Lexis Nexis have agreed to drop prices to the SOLINET consortium in the S.E of the US

Andrew Albanese writes for the  Library Journal, 2/4/2009

If a few of the larger law firms got together to create a consortium it might just allow for prices to remain the same or even drop by a % or so.

Heeding ICOLC Call—and Economic Reality—LexisNexis Cuts Price for SOLINET

Just weeks after the International Coalition of Library Consortia (ICOLC) issued a Global Economic Crisis Statement, urging vendors to work with library consortia to reduce prices (but not access) in response to an “unprecedented” economic climate, officials at the southeastern-based consortium SOLINET are informing members that LexisNexis has stepped up and agreed to waive its 2.5 percent annual increase, as well as to offer further “deeper,” though as yet unspecified discounts.

“We advised LexisNexis of the impact that the current financial crisis will have on libraries, shared the ICOLC Global Economic Crisis Statement, and asked them to waive their 2.5 percent annual increase on LexisNexis Academic this year,” reads an email to SOLINET members. “LexisNexis was very appreciative of our proactive approach and honored our request.”

Useful statement
In January, ICOLC, an international, informal group currently comprising approximately 200 library consortia worldwide, released a statement suggesting that the effects of the economic downturn on library budgets will be severe, and “prolonged.” It asked publishers and vendors to work flexibly with library consortia to get through the crisis, which, officials noted, could see library and consortia budgets “decline by double-digits year over year,” reductions that unlike “the sporadic or regional episodes experienced from year to year” could serve as “real and permanent reductions to base budgets.”

ICOLC said it hoped the statements would help “advance the conversations among libraries, consortia and publishers,” and to “generate as much business as budgets will allow.” The announcement from SOLINET suggests that the ICOLC statement is proving useful in starting such conversations with vendors. J. Michael Williams, manager of member outreach and communications at SOLINET, told the LJ Academic Newswire that the waived annual increase by LexisNexis applies to libraries throughout the entire United States, and when aggregated for the entire country represents a savings of some $350,000-$400,000.

“Additionally, we are discussing with LexisNexis other discounts,” Williams noted, as well as reaching out to others. “We are in contact with many vendors, with similar discussions, and those discussions are ongoing,” he added, although no other price deals had yet been finalized.

A good start?
Williams called the price savings from LexisNexis “substantial,” but in an email to SOLINET members nevertheless suggested that the adjustment may still not be quite good enough for all members, given the broader needs of some libraries and the depth and severity of the current crisis. Even with the adjusted deal, “a flat renewal may not be sufficient for all members,” Williams’s message noted.

Tom Sanville, ICOLC member and executive director of OHIOLINK, characterized the LexisNexis move as a positive first step. “It is at least an example that shows vendors understand business as usual will not work,” he told the LJ Academic Newswire. “Is it enough? Probably not for everyone,” he added, noting that it is highly likely there will still be some attrition with LexisNexis. “We currently estimate no more than 25 percent of our institutions will see any type of budget increase and many will see significant decreases, even as FTE levels increase. Even with a flat per FTE price from LexisNexis this means costs will increase for some