This study compares the cost effectiveness of using a CD-ROM (compact disk read-only memory) system known as Bibliofile and the currently used OCLC (Online Computer Library Center)-based method to convert a university library's shelflist into a machine-readable database in the MARC (Machine-Readable Cataloging) format. The cost of each method of retrospective conversion was determined from a random sample of bibliographic records. The two systems were then compared in three areas to determine which method would be more cost effective: costs, the total time expended for editing a set of cards, and the total hit rate. The results obtained from the comparisons showed that: (1) the CD-ROM would be less expensive than OCLC in overall cost for a 5-year period; (2) there was no significant difference between the amounts of time used by each system to edit a record; and (3) OCLC had a higher hit rate. To compensate for the lower hit rate of the CD-ROM, a compensation cost was added to the CD-ROM cost; however, even with the cost adjustment, the total cost of CD-ROM was still lower than OCLC by 44%. Further investigation and study are recommended in areas such as the impact of CD-ROM on the library's workflow, its impact on the attitudes of users, the actual implementation of the CD-ROM system, and the problems and implications that would be associated with its implementation. (9 tables and 41 references) (EW)