IPG's Financial Condition and Payment Policies

Publisher Payment Policies

During the 40 years of its existence, IPG has never failed to pay its distributed publishers in full and on time. This has been possible because, while IPG is an aggressive marketer of books, it applies very conservative principles to its financial management. Large cash reserves are maintained in the form of short-term financial instruments, and a line of credit is always available if needed. Unlike most distributors, IPG does not pass through to its publishers any part of the income lost because of uncollected or disputed invoices.

Accounts Receivable

IPG has good working relationships with the accounting staffs of its customers, but in the case of the larger customers, keeping the accounts accurate is a real challenge. Returns are always difficult with larger customers because they take credits for returns well before these returns arrive in the IPG distribution center. This means IPG has to maintain an elaborate chargeback system to reconcile the inevitable discrepancies. Disputes arising from returns, co-op advertising charges, and other kinds of claims must be negotiated and settled.

Because of its size, IPG has good leverage to collect what is owed by its customers. Still, some customers need to be reminded to pay on time, and a small percentage must be turned over to collection. Overall, IPG’s write-offs are very low.

The statements that accompany payments sent to publishers are detailed, and any charges are supported by attached documents. Questions that publishers have about these statements and documents are resolved quickly.

Payment in full for amounts due each publisher for the appropriate sales month is sent at this time as well. Publishers who need up-to-the-minute sales data to plan reprints or promotional activities can obtain this information at any time by calling the IPG office.

 

Financial Condition & Payment Policies
Distribution Agreement
Warehousing & Returns