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Purpose

This paper seeks to show that when managing strategically a library administrator might want to use cost‐benefit analysis to prudently spend money and, consequently, would need to understand this methodology.

Design/methodology/approach

The paper discusses the various types of cost‐benefit analysis and discusses some of their strengths and weaknesses.

Findings

It is helpful for library managers to have a proper knowledge of cost‐benefit analysis.

Practical implications

One methodology is provided that librarians should consider when contemplating what purchases to make.

Original/value

This paper will help librarians better manage their libraries by making them aware of cost‐benefit analysis.

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