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The Value of Information

The Value of Information
The value of information depends on its content, how to find it, and how to utilize it to support user’s activities. It means that the value of information can only be determined until the information has been received. First step for analyzing such cost are to identify and classify them properly. 

This classification should be based on the total costs of entire service activities such as direct costs, indirect costs, and some instances of additional costs. The important elements for determining costs that are burdened to users are salaries, raw materials or collection costs, and unexpected costs. The strategy for determining cost of information service in library depends on the aim for offering the services, price of service/product, and the fitness between the needs and the information provided as well as the demand for the services being offered. 

Although the cost and price of information services could be determined by five approaches –(those are optimal pricing, pricing according to value, pricing for full cost recovery, marginal cost pricing, and free distribution of services information)–provider must consider the content of information. It means that the calculation of information service's cost should be based not only by fixed and variable costs, but also by the information contents and depreciation of each collection. (Tri M)

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