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Members of the ASA (The Association of Subscription Agents and Intermediaries) are being advised by the ASA to cut their services to publishers who provide unacceptably low terms. This move has been sparked off by the decision of Thomson Finance to reduce their terms to a level below which a proper service to the publisher cannot be maintained.
Agents provide a hugely valuable service both to their library customers and to their suppliers, the fifty thousand or more publishers world wide. The overwhelming majority of publishers fully support the role of subscription agents who provide many valuable services to publishers. These services include such activities as:
High renewal rates. Agents, by working much more closely with libraries than is possible for publishers, regularly attain a higher rate of renewal than exists in publishers non-agency business. The renewals are delivered on time and with correct payment making agents a very valuable business partner.
Pre-payment. Agents pre-pay their subscriptions. What is more they frequently pay for subscriptions well in advance of their library clients paying the agents. This not only saves a great many subscriptions breaking down, but also helps prevent costly reprints and overruns. It also helps publishers cash flow and revenues from interest earned.
Currency handling. Agents pay publishers in the currency required irrespective of the currency in which the customer pays the agent. For a great many customers raising a multitude of cheques in foreign currencies would be prohibitively expensive and lead to many cancellations. This service saves publishers the very considerable costs of currency handling that would otherwise arise.
Automation. Many agents supply their orders to publishers in an automated format thus avoiding the necessity of re-keying the renewals which reduces errors and saves administrative costs. Since subscriptions are renewed in general in the autumn each year this automation greatly reduces the 'peaks' in the subscription cycle. Further automation is being planned in claims handling and other areas.
Promotion and sales. Agents promote publishers journals titles around the world by listing them in their catalogues, newsletters and web based services. They make it easy for the customer to buy journals and this benefits publishers by providing a well used, flexible channel to the library market. Many agents will target specific journals directly to libraries and customers through direct mail and other activities.
Electronic journals. Agents go to great lengths to try and obtain from libraries all the necessary information to enable publishers to enter subscriptions to their electronic journals. This is a very time consuming activity but because agents keep this information on their extensive subscription systems and update it regularly it means it is instantly available thus directly reducing publishers costs in collecting such information.
Price. Agents sell to libraries at list price wherever possible. Where the terms provided by publishers do not permit this desirable practice then the price is sometimes above list price.
The ASA is therefore advising its members to examine ways in which they can cut their services to those publishers who give agents unacceptably low terms, without harming the interests of their library clients. Those publishers (such as Thomson Financial) who have reduced their terms to agents well below the value of these services and below the level at which agents can continue to supply such titles at list price to library customers, may as a consequence find that agents are forced to increase the price of their journals above list price. Libraries should note that this amounts to an increase in their service charges.
page last modified 18/06/02, © ASA