Newsletter on Serial Pricing Issues 095 (September 24, 1993) URL = http://hegel.lib.ncsu.edu/stacks/serials/nspi/nspi-ns095 ISSN: 1046-3410 NEWSLETTER ON SERIALS PRICING ISSUES NO 95 -- September 24, 1993 Editor: Marcia Tuttle CONTENTS 95.1 FROM THE EDITOR, Marcia Tuttle 95.2 COMMENTS ON ELSEVIER'S DECISION TO SET SUBSCRIPTION PRICES ONLY IN US CURRENCY, Siegfried Ruschin 95.3 MCB UNIVERSITY PRESS JOURNAL PRICES, Deana Astle 95.1 FROM THE EDITOR Marcia Tuttle, tuttle@gibbs.oit.unc.edu. It's been a long time between issues. Thank you for your claims! As some of you discovered, gibbs has had some serious down time. But the new computer seems to be working just fine now, and we are no longer on "tipper, 'virtu- al gibbs.'" However, we were totally without electronic mail for 6 days in early September. At least mail on September 8 was lost. If you had mail to me or to listserv@gibbs.oit.unc.edu returned or unacknowledged, please try again. 95.2 COMMENTS ON ELSEVIER'S DECISION TO SET SUBSCRIPTION PRICES ONLY IN US CURRENCY (received August 28, 1993) Siegfried Ruschin, retired from Linda Hall Library, SRUSCHIN@VAX1.UMKC.EDU Mr. Kels's letter in NEWSLETTER No. 91 (item 91.1) is interesting, if some- what puzzling. At this point, one should perhaps first recognize and give Elsevier credit for having traditionally been more restrained than some other publishers in setting differential prices based on the geographical location of the subscriber. One may, nevertheless, be forgiven for looking at the new promise of great- er price stability with skepticism. It is not clear at all why setting the prices in dollars would bear this effect. There is nothing new or surprising in a foreign publisher's setting prices in US dollars, nor is this likely to make any difference as to the ultimate outcome. It will not necessarily benefit American libraries. The calcula- tion of cost and profit inescapably entails the conversion of one currency into another. The process is not fundamentally changed, but only MADE MORE OPAQUE TO EXTERNAL ANALYSIS, by setting prices in a currency other than that of the country where the product originates and most expenses are incurred. Librarians have for years complained and vigorously protested the steady and, from our point of view, largely unjustifiable, increases in serials prices. But I cannot imagine that many of us have complained to publishers about the fluctuations due to the vagaries of foreign exchange rates. We are quite capable of understanding that foreign currency exchange rates are largely unpredictable and that subscription prices like anything else in the foreign trade are affected by these fluctuations. For any experi- enced librarian to expect even a major publisher to have a noticeable in- fluence on these fluctuations would presuppose a fanciful belief that the publisher had the power of a national central bank and a chance to succeed where even the latter often fails. What we have insisted on (without much visible effect, one must sadly ad- mit) is that we be allowed to benefit to the same degree from the strength of our currency as we are hurt in times of its weakness. This question is only tangentially and vaguely addressed in Elsevier's letter. Would a pub- lisher really be willing to "smooth" the curve at a time of the dollar's weakness to the same degree as at the time of its strength and thereby risk an actually or potentially severe loss of revenue? One may well ask, why is the change to quoting prices only in dollars pro- posed now, when the dollar is relatively strong? Few libraries may have purchased material directly from Elsevier. But it does not follow at all, and it is presumptuous to assume that the new con- ditions would not imply a change for many libraries. We have long asked for a very simple condition, namely that North American libraries be allowed to buy their material from whatever source and pay in the currency that WE choose. We are aware of the risks involved. It is up to us to decide whether to assume them. We may find this preferable to paying what in fact is an inflated insurance premium against possible cur- rency losses. Rather than being "protected," we may prefer to depend on our own judgment in this situation as in many others, even at the risk that our guesses, judgment, and timing may sometimes turn out to be inferior to the publishers'. Judgment should be withheld until the actual prices become available and we can see whether price increases are acceptable or warrant new dismay and require further drastic cancellations. In the meantime, we must wonder why prices in dollars should increase at all this year. It would be difficult to argue that inflation explains the increases. Moreover, in July 1992, the Guilder was worth about $ 0.60, and the Pound Sterling $1.92. A year later the value of those European currencies had declined to $ 0.52 and $ 1.50, respectively. [Cf. Federal Reserve Statistical Release. Foreign Exchange Rates, August 2, 1993.] In other words, the dollar had increased 13.3% in value relative to the Dutch and 30% relative to the British currency. 95.3 MCB UNIVERSITY PRESS JOURNAL PRICES Deana Astle, Clemson University, dlast@clemson.clemson.edu. MCB University Press is a privately-owned publisher located in Bradford, England with a 1993 list of 85 journals mostly in the social sciences and business. Many of these titles are indexed in major periodical indexes and several have ISI impact factors. In relation to their size, however, quite a few of these journals appear to be relatively expensive. Curiosity com- pelled me to investigate. I created a database from MCB dollar price lists for 1990 through 1993 and looked at subscription cost, number of issues, average cost per issue, percentage increase from year to year and over the whole four years, and several other variables. Information on ISI impact factors was taken from the EBSCO Serials Directory CD Rom. To make a fair comparison, I looked in depth at the 57 titles published in 1990 which MCB was still publishing in 1993. In 1990 these 57 titles produced 395 issues for a total subscription price of $25,742; in 1993 these same 57 titles produced 467 issues for $65,807 -- a 156% increase in subscription cost for only 18% more issues! To test whether increased pagination was a factor, I perused several titles held by the Clemson University Libraries and studied additional data provided by the University of North Carolina. Pagination, in general, seemed to be relatively constant per issue from 1990 to 1993; this, therefore, cannot account for the huge increases. The average cost per issue of these 57 titles during the period 1990 to 1993 rose from $65.17 to $140.92, or 116%, for which neither domestic in- flation nor the change in the dollar can be held significantly responsible, were this to be the claim. The dollar, for instance, retained much of its strength against the pound during this time. Many of the entries in the 1993 EBSCO Serials Directory CD Rom included a dollar price for North America and a pound price for the rest of the world. For those titles with this information, the average exchange rate for 1993 was $1.70 which is only 10% different from the rate charged in 1990 using September 1989 data on the value of the dollar ($1.55). Of these 57 titles, 26, or 45.6%, increased in price more than 200% between 1990 and 1993, going from a subscription cost of $5,568.70 for 122 issues to $18,898.70 for 154 issues. The average cost per issue of these titles rose from $45.65 to $122.72, a 169% increase in cost per issue and a 239% increase in total list cost of these 26 titles in four years! Titles in this category include: - _Kybernetes_, a cybernetics journal with an ISI impact factor of .31, which rose from $379.95 for 6 issues in 1990 to $1,149.95 for 8 issues in 1993 (202.7%); - _Library Review_ which rose from $299.95 for 6 issues in 1990 to $1,099.95 for 7 issues in 1993 (266.7%); - _New Library World_ which rose from $299.95 for 12 issues in 1990 to $989.95 for the same number of issues in 1993 (230%); - _European Business Review_ going from $299.95 for 4 issues in 1990 to $999.95 for 5 issues in 1993 (233.4%); - _International Journal of Career Management_ from $149.95 for 3 issues to $659.95 for 5 issues (340%). _Kybernetes_ is the only title in this category which has an impact factor and is the only one listed by the EBSCO Serials Directory as being peer reviewed. Even looking at titles which increased less than 200% in four years, the figures are rather disconcerting. Two titles which had ISI impact factors, _Personnel Review_ (.255) and _Journal of Economic Studies_ (.070), had a 137.2% and 116.7% increase in price respectively during this time with no increase in issues. Looking at the list from a strictly cost per issue perspective, only 13 of these 57 titles cost less than $100 per issue in 1993, with 44 or 77% being above that. In 1990, only 14, or 25%, cost more than $100 per issue. Among the most expensive in 1993 for cost per issue were: - _Employee Relations_ at $378.33 per issue; - _Journal of Economic Studies_ at $324.99; - _Library Management_ at $314.28; and - _Personnel Review_ at $264.28. Since we have no subscription to these titles at Clemson, I was unable to examine the publications to see if they had significant quantities of col- or, half tones, equations, graphics, etc. which can legitimately drive up costs, though noting the subject matter and looking at those MCB titles which we do have, these elements are probably not a significant part of the titles. Circulation may be a factor in producing these high costs, though with only scattered data on circulation from the EBSCO Serials Directory, this cannot be ascertained with any certainty. _International Marketing Review_, show- ing a circulation of 416 cost $286.66 per issue, while _Industrial Lubrica- tion and Tribology_ with a subscription list of 4,250, cost $88.35 per is- sue. It is also worth noting that almost all MCB titles accept advertising. What is MCB providing for the money? I looked at one title for which Clem- son had issues from 1990 to 1993 and received data on several others from the University of North Carolina. ----- The _Journal of Managerial Psychology_ produced 5 issues with 24 total articles for 170 pages in 1990 with a subscription price of $199.95 or $39.99 per issue costing a little more than $1 per page or $8.33 per arti- cle. In 1991 5 issues were produced averaging 35 pages each -- 15 articles plus one special issue of 10 parts for a total of 25 -- 175 total pages with a subscription price of $329.95, $65.99 per issue, $13.20 per article, $1.89 per page. In 1992, 6 issues, 15 articles plus two special issues of 4 and 5 sections for a total of 24 articles for $539.95, 207 total pages, average of 41 pages and $89.99 per issue, $22.50 per article, $2.61 per page. In 1993 we have so far received 3 out of a projected 6 issues which average 36 pages per issue for a total of 13 articles. Extrapolating this to the end of the year, we expect 26 articles and 216 pages for $749.95, a cost of $124.99 per issue, $28.84 per article and $3.47 per page! ----- _Kybernetes_ produced 6 issues in 1990 with 37 articles for 439 pages with a subscription price of $379.95 or $63.33 per issue costing $.87 per page and $10.27 per article. In 1991 there were 7 issues with 43 articles for 523 pages with a subscrip- tion price of $649.95 or $92.85 per issue costing $1.24 per page and $15.12 per article. In 1992 there were 7 issues with 42 articles for 528 pages with a subscrip- tion price of $879.95 or $125.71 per issue costing $1.67 per page and $20.95 per article. In 1993, extrapolating from 2 of 8 projected issues received, 52 articles and 576 pages are expected for a subscription cost of $1,149.95 or $143.74 per issue costing $1.99 per page and $22.11 per article. ----- _Library Management_ produced 6 issues with 24 total articles in 1990 for 294 pages with a subscription price of $749.95 or $124.99 per issue costing $2.55 per page and $31.25 per article. In 1991 there were 6 issues with 23 articles for 287 pages with a subscrip- tion price of $1,237.95 or $206.33 per issue costing $4.31 per page and $53.82 per article. In 1992 there were six issues with 23 articles for 292 pages with a sub- scription price of $1,649.95 or $274.99 per issue costing $5.65 per page and $71.74 per article! In 1993, extrapolating from 3 of 7 issues received, 40 articles and 333 pages are expected for a subscription cost of $2,199.95 or $314.28 per issue costing $6.60 per page, and $55.00 per article. ----- It is indeed ironic that a title advocating good management in libraries should have these outrageous prices which represent the antithesis of what the journal is purportedly promoting. What is a reasonable price for a journal? In part, what the market is wil- ling to pay. We must, however, as good stewards over our resources, look carefully at what we are buying and make hard decisions as to the cost vs. benefit to our constituents of our purchases. We must, on a case by case basis, determine that what we are buying to fulfill the "just in case" demands is justified. Is it justifiable, for example, to subscribe to a journal whose articles cost almost $29 each, or even worse $72 each, when only one or maybe none will be used in a given year? Or is it a better use of funds to buy only those articles which are actually requested. Though the need for a given title may vary from institution to institution, these questions need to be asked, and models constructed for determining when it is more cost-benefi- cial to subscribe to a title and when it is in the best interests of the institution to provide only articles on demand. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Statements of fact and opinion appearing in the _Newsletter on Serials Pricing Issues_ are made on the responsibility of the authors alone, and do not imply the endorsement of the editor, the editorial board, or the Uni- versity of North Carolina at Chapel Hill. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Readers of the NEWSLETTER ON SERIALS PRICING ISSUES are encouraged to share the information in the newsletter by electronic or paper methods. We would appreciate credit if you quote from the newsletter. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ The NEWSLETTER ON SERIALS PRICING ISSUES (ISSN: 1046-3410) is published by the editor through the Office of Information Technology at the University of North Carolina at Chapel Hill, as news is available. Editor: Marcia Tuttle, Internet: tuttle@gibbs.oit.unc.edu; Paper mail: Serials Department, CB #3938 Davis Library, University of North Carolina at Chapel Hill, Chapel Hill NC 27599-3938; Telephone: 919 962-1067; FAX: 919 962-0484. Editorial Board: Deana Astle (Clemson University), Jerry Curtis (Springer Verlag New York), Janet Fisher (MIT Press), Charles Hamaker (Louisiana State Universi- ty), Daniel Jones (University of Texas Health Science Center), James Mouw (University of Chicago), and Heather Steele (Blackwell's Periodicals Divi- sion). The Newsletter is available on the Internet, Blackwell's CONNECT, and Readmore's ROSS. EBSCO customers may receive the Newsletter in paper format. To subscribe to the newsletter send a message to LISTSERV@GIBBS.OIT.UNC.EDU saying SUBSCRIBE PRICES [YOUR NAME]. Be sure to send that message to the listserver and not to Prices. You must include your name. To unsubscribe (no name required in message), you must send the message from the e-mail address by which you are subscribed. If you have problems, please contact the editor. Back issues of the Newsletter are available electronically. To get a list of available issues send a message to LISTSERV@GIBBS.OIT.UNC.EDU saying INDEX PRICES. To retrieve a specific issue, the message should read: GET PRICES PRICES.xx (where "xx" is the number of the issue). +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ *****ENDOFFILE*****ENDOFFILE*****ENDOFFILE*****ENDOFFILE*****ENDOFFILE*****