Faxon 1996 Price Projections on Target Fritz Schwartz 20 Sep 1995 17:13 UTC
From: Teri Harrison (HARRISON@FAXON.COM) Date: 20-SEP-1995 10:05:05.49 To: Fritz Schwartz Subj: Faxon 1996 Serials Price Projections on Target For Immediate Release Faxon Reports Actual 1996 Journal Price Increases in Line with Earlier Projections Westwood, MA, September 19, 1995 - With many 1996 publisher price lists now in hand, Faxon has analyzed actual journal subscription price increases versus its projections made earlier this year. The actual 1996 subscription price increases correspond to the projections, showing high increases for European journals due to a weak US dollar. The last projections, made in June 1995, are provided below, along with preliminary actual increases based on publisher price lists received to date: June 1995 Actual Projections Preliminary North American Titles 10.5% 10-11% Continental European Titles 23.5% 24% UK Titles 15% 14% Typical Overall Collection Increase 14.8% 14.5% "As we predicted earlier in the year, the weakness of the US dollar against the continental European currencies is largely responsible for high increases for journals from those countries," said Ron Akie, Senior Vice President of Marketing. "We saw the same effect in 1991 and 1993, other years when the dollar weakened." While the US dollar has strengthened very recently, this will only affect European journals where publishers set the price in their own currency and let the exchange rate float with market rates. These are primarily smaller publishers whose journals make up a small portion of most US library collections. Therefore, the dollar's strengthening so late in the year will have little net impact for most clients. The larger European publishers either set their prices in US dollars or fix the exchange rate earlier in the year. The detailed breakdown of price increases by component from Faxon's June 1995 projection is provided below: N. American Continental UK Titles European Titles Page Inflation 2.5% 3.0% 2.0% Paper/Postage 3.0% 3.0% 3.0% General Inflation 2.5% 2.0% 2.0% Cancellations 2.5% 3.0% 3.0% Currency Changes N/A 12.5% 5.0% Total Increase 10.5% 23.5% 15.0% Typical overall increase 14.8% The Faxon Company, Inc., which provides a wide range of subscription management services to libraries and information centers in academic, medical, business and government communities, is a subsidiary of Dawson Holdings PLC, a publicly-traded, worldwide supplier of information services. Contact: Teri Harrison Wilson, Manager, Marketing Communications The Faxon Company, Inc., 15 Southwest Park, Westwood, MA 02090 617-329-3350, ext. 764 / fax: 617-329-8987 Internet: harrison@faxon.com