TurnKey Publishing by Matthew Chan: Independent Book Publishing, Audio Publishing, CEO Publishing, Accelerated Publishing, Self-Publishing

QP Distribution could not be bothered to respond to me directly. I even told them prior I would escalate the matter. Patty Wimmer, the intelligent office manager that she is, totally disregarded my warning thinking it was a bluff. Well, it was not. And finally, David Schaefer, president of owner of QP Distribution responds to my written complaint to the BBB. His tone is a bit different and more cordial.  Gee, I cannot imagine why.

Here is his written response to my complaint verbatim, typos, grammatical errors, and all. I was so tempted to correct them but people need to know how David Schaefer truly wrote his reply on July 5, 2011.

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Contact Email: qpdistribution@skyerock.net

Response to BBB Case:18138

 Attention Bruce Ward, BBB Complaint Department,

QP Distribution moved to Kansas in 2001, that business decision was based upon the geographic location of South Kansas in relation to the United States. It is approx 1500 miles to Los Angeles and 1500 miles to New York,from our shipping location. Kansas offers two key solutions to our distribution customers, we can provide the same cost to ship the the east coast or west coast as well as the same time frame.

For our customer this provides a level price structure and balanced time of delivery. Our  warehouses and distribution facility are located South of Wichita.

In direct response to Matthew Chan Ascend Beyond Publishing I confirm that he was a customer of QP Distribution since 2003. Ascend Beyond Publishing had multiple titles stored in QP Distribution warehouse. QP Distribution charged Ascend Beyond $25.00 per month for storing 3 pallets of books the $25.00 included maling (sic) monthly statements and inventory reports as well as responding to any and all inquries (sic) from Matthew Chan via e-mail. We recieved (sic) a request from Matthew Chan for a quote to have his inventory destroyed ending Acend (sic) Beyond’s need for QP Distribution’s storage services. The warehouse manager caluated  (sic) the weight of the books (as per contract we charge by the pound for disposal). We provided two rates for disposal 5 cents per pound to take the books to the land fill and 12 cents per pound to remove the glued spine and recycle the paper. We have a flat fee per title of $7.75 to remove the books from the warehouse, that have been requested to be destroyed. The service of recycling or disposing of books is normally done to remove titles that have been updated or expanded upon. Matthew Chan President of Ascend Beyond Publishing did request shipping a small quantity of books to his place of business in Columbus, Georgia. We quoted a price shipping via UPS Ground residental (sic) delivery. Matthew Chan then decided that he would use Ascend Beyond’s Federal Express Account. When QP Distribution ships using a thrid (sic) party account the shipper (QP Distribution) is still responsible for payment if the thrid (sic) party shipper (Ascend Beyond Publishing)does not pay the shipping bill. That was a cause for concern because Ascend Beyond Publishing was steadly (sic) on the collections list as 90 day late and required collection calls.

This economy has been hard on many business, publishing has been hard hit. I do feel for Matthew Chan at Ascend Beyond Publishing I wish he would have been able to sell his books rather than to need to have them destroyed. The fact still remains that Matthew Chan abandon his books at QP Distribution although he was kind enough to provide QP Distribution with written permission to discard his books saving QP Distribution the cost of legal leins (sic). I appreciate the ability to respond to the complaint There are two sides to any dispute.

Sincerely,

David Schaefer

Predident (sic)

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I disagreed with his characterization of me, my account, and recounting of the story. You can read my rebuttal from July 15, 2011.

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First, I want to thank BBB of Kansas for coordinating the current communication between myself and David Schaefer, President of QP Distribution. Quite frankly, I am surprised that there was any response at all given my rejected Certified Mails and the fact that Patty Wimmer’s ineffectiveness or unwillingness to get David Schaefer’s attention early in this matter. Nevertheless, I am gratified that he cares enough about the BBB’s involvement to make a reply.

 However, now that David has at least made one reply, I will, in turn, make my counter-reply. The BBB asks me ”Do you accept the response from the business?”  I can emphatically and absolutely say ”NO” based on the fact David’s reply is riddled with inaccuracies which I have no problems putting in writing or publicly challenging.

David’s replies are distorted either based on Patty Wimmer’s misinformation or a mischaracterization of what was actually communicated to him. Nevertheless, I cannot allow his communication to stand without corrections and rebuttals.

My issues with his reply is itemized and outlined below.

1. David comments that QP Distribution charges $25/month for 3 pallets of book. I would like to clarify that has NOT always been the situation. It used to much more. It only became that way because I actively pursued measures to reduce my storage fees in 2010. In fact, it was that whole incident that caused the first major friction between myself and QP Distribution. I already discussed this incident and how it compelled me to look deeper into their fee structure and how they truly operated.

 2. David states that I requested a quote to have the book inventory destroyed. That was only a side consequence because I refused to be continually entrapped by QP Distribution’s ongoing hidden and marked up fees. I could tell what the future would hold based on Patty Wimmer’s inadequate, unbending, and uncooperative responses.

 3. David states that I was informed there were two rates of book disposal. This is an absolute fiction. If his information is from Patty Wimmer, then she is concocting the story because I still have copies of my email exchanges with her, not to mention the Certified Letters I sent which she had ample opportunity to respond to.  I asked Patty point blank about the whole 12 cents per pound quote and never once did she mention any other rate options. I was finally forced to dig out and read the original QP Distribution price sheet and agreement. And not only did she continue to quote the 12 cents per pound despite the fact the 5 cent per pound option was listed, the quote did not add up which I questioned her on and received no direct response on it. I only found about the $7.75 per title fee after I did my own digging. How is it that I as a customer have to do my own digging and she could not ask clarification from ”Brian” (I think) the warehouse manager.

4. Another inaccurate statement by David is that I asked for a shipping quote via UPS Ground. I stopped using QP Distribution’s UPS Ground service 3 years ago because I discovered the huge markup (and profit center they do not disclose) and have always requested using my own FedEx account. This can easily be proven by looking at prior invoices and statements from the last 3 years. My problem with QP Distribution is that they punish their customers by using another shipping service instead of their marked-up UPS Ground service when it requires very little difference in actual work. And regarding the so-called responsibility of their paying for my shipping charges if I don’t pay the is entirely bogus where I am concerned. My FedEx account is directly tied to my American Express account so payment FedEx bills me very quickly. I, in turn, pay American Express in a timely manner. And even if I didn’t pay American Express, FedEX would not be penalized and hence not ever impact QP Distribution.

5. I am especially angered by David’s comment that Ascend Beyond was ”steadily on the collections list as 90-days late and required collection calls.” EXCUSE ME. What collections list and what collections calls? It is true I was occasionally late because it was a small amount and I was careless. However, over the years I consistently corresponded with Patty both on the phone and through email. I am entirely reachable. I challenge her to provide any proof that she ever made one collections call to me or sent me one email on the matter, EVER.  In fact, during our phone discussion of the unannounced $6.50 late fee, I asked Patty directly on the phone why she didn’t try to call or email me once if the situation was so bad. She told me because I had always paid my account in full which is entirely true. I should add that David may think he is painting his company in a positive light by saying this. However, my personality is such I will fight to my dying breath to challenge a false statement to my business reputation. I have no problems admitting I was late up to 90-days at one point. However, let’s keep this in perspective. At $25/month, it wasn’t this huge debt I was incurring. I absolutely and unequivocally contend that if Patty had even bothered to email me or pick up that phone to call me (which she has a bad history of returning phone calls in a timely manner I might add. I refer back to the first major incident in 2010 again.), I would have taken care of the bill. As I was attempting to close the account out, I even paid another month of storage for the 30-day notice.

6. I also object to David’s implication that my desire to terminate from QP Distribution had anything to do with the economy and lack of book sales. It is true book sales have been slow but that does not diminish the fact that I actually value my book inventory greatly.  It actually pains me to have to discard them now. In fact, I ordered more to stock my personal office. But Patty Wimmer seemed determined to charge every fee she could to the point even demanding advance payment for services not yet rendered. It was at this point I thought long and hard about what was most important to me. Out of principle, despite my current need for more book inventory, I chose to not give QP Distribution one more opportunity to send me another invoice for any reason. They unknowingly pumped me over the years but now that I know, I refuse to be part of it. And even when I was trying to exit the relationship gracefully nearly to the point of begging, Patty Wimmer pushed me over the edge with her so-called policy statements.

7. I object to David’s statement that I ”abandoned” my book inventory. I did not ”abandon” my book inventory. If I truly abandoned them, I would have not made efforts to get some book inventory and close out the account gracefully. I would not have made my account current minus the bogus charges and any storage fees past what I gave notice to. Further, I would not have escalated this to the BBB to directly acknowledge this matter. I was sent bogus invoices by Patty Wimmer which necessitated me to escalate my complaint and this matter to the BBB (and further if necessary.) Abandonment is someone slinking off silently in the middle of the night informing no one of what you are doing or why you are doing it. This is NOT ”abandonment”. This is making a stand of not being extorted or being dependent on a business that is determined to pump you not matter which way you turn or what you do. It is also making a stand against the ”my way or the highway” approach. It is also making a stand against arbitrary and unilateral price or policy changes with no regard to proper due process.

8. And despite my anger and disgust on how this business relationship has ended, by David’s own admission, I still gave QP Distribution a way out through the written consent to dispose of the books as he saw fit. That is not ”abandonment”.

  9. David says there are two sides of the story. Well, aside from a few statements, I have no hesitation to say to him or anyone else he has been severely misinformed by Patty or he is trying to create a new story. My inclination leans towards Patty not entirely being truthful with David.

I would like to point out I have exhausted many hours researching the matter, consulting others on this situation, and writing letters and rebuttals. At this point, the only way I will let this go and consider it resolved is if I get a written response from David that my account with QP Distribution is closed and everything has been settled in full. If they choose not to do this, than I will continue to remain vigilant against them and reporting the matter.

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On July 20, 2011, David Schaefer writes a rebuttal to my comment. He has backed off a bit as you can read. However, this matter is still not resolved to my satisfaction as my upcoming response will explain.

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Thanks, to the BBB of Kansas for providing for this forum to resolve business issues. We have recycled Ascend Beyond inventory released to QP Distribution for disposal earlier this year. We would be happy to close Matthew Chan’s account at QP Distribution. Per our written contract with Ascend Beyond, Matthew Chan, dated 8/13/2003 he agreed to the disposal charge of 5 cents per pound. The total pounds disposed of is 3547 pounds or a disposal fee of $177.35. Although I did recycle the books I only did this  because I felt is was the right thing to do and I take financial responsibility for this action (recycling cost 12 cents per pound because the glued spines need to be removed from the books as well as the laminated covers). But clearly our written contract with Ascend Beyond does provide for just simply throwing them away in the trash.

I feel that Matthew Chan wants to take responsibility for his inventory he has clearly stated that he has not abandoned that inventory and wants his account closed. In an effort to move forward I suggest this solution. Matthew Chan split the cost of the disposal equal to $88.68. The payment of $88.68 be made as a donation to the Better Business Bureau of Kansas, Incorporated. Once that donation has been received QP Distribution will close the account with Ascend Beyond and consider the matter closed.

Sincerely,

David Schaefer

QP Distribution 

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 My rebuttal from August 10, 2011. On the surface, David’s offer sounds like a great deal except that it is ingenous. He knows that other people may read this complaint and wants me to make a BBB donation on HIS behalf. Also, notice he entirely sidesteps and ignores the resulting consequences of my much larger financial losses due to the disposal of the books.

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In response to David Schaefer’s response on July 29, 2011, I appreciate that he would like to move this incident to a close but I insist on satisfaction. I find what he writes ingenuous and still misses the major points of what started this incident to begin with. Instead of simply just closing this out, he wants to put in a financial condition to squeeze something out of me just like Patty Wimmer did. I will no longer agree to be squeezed.

To reiterate, I never wanted to close the account since I still had well over 2,500 books still in inventory that I paid for years ago and still had financial value to me. I would have been content to continue paying the $25/month storage fees. But through QP Distribution’s ongoing pricing manipulation, undisclosed fees, implied extortion, and Patty Wimmer’s poor business skills, it brought to me to an explosive point where I was forced to take drastic action.

It appears both David Schaefer and Patty Wimmer don’t understand the incredible loss I had to take in book inventory to terminate this relationship. It was not an easy decision but I refused to work with an untrustworthy company. While my books were slow sellers during this recession, they were selling and I was in the process of restocking my office inventory when Patty Wimmer decided to try to ”throw the book” at me during the last month which led me to simply cancel everything. I refused to be extorted for more money.

They were so adamant about continuing the $25/month storage fee and tacking on all their various undisclosed and not-agreed-upon fees, they miss the big picture. What I was forced to give up was inventory worth several thousands of dollars in sales and profits and here David tries to look gracious by simply going back to what was originally quoted in 2003 and then say ”split the difference”. I think not. QP Distribution may argue that it was MY choice but in practical terms, I had very few choices because they are in Kansas and I am in Georgia. The cost and expense to travel to Kansas and personally deal and oversee the inventory would have been too much not including getting a truck, the labor, and transporting it back to Georgia.

Patty Wimmer made it perfectly clearly even if I had someone came out in person and hand-picked up the entire inventory en masse with a truck, she was going to charge full fare handling charges as if their staff had handled each and every case one-at-a-time. This was her way to extort more money out of me. The rationale she stated was that their staff would still have to bring it to the door or loading dock. I think that rationale is ironic given they were more than happy to RECEIVE and handle FOR FREE all the books and transportation costs I paid multiple times to deliver them to their warehouse years back.

So David now ”graciously” disposes the inventory (because I gave him written authorization during this process) and he finally decides to go back to what I had explained to Patty Wimmer multiple times (but she was too ignorant, unempowered, lazy, or incompetent to understand). As a reminder, she also gave no indication she escalated my complaints to David at all.

I find it offensive that that David is trying to tie my complaint to my having to make a contribution to the BBB. And while I am happy for the BBB’s involvement in this, David needs to realize that I have begun to publicly air my grievances with QP Distribution for all who care to read. And I know what agency I will be contacting next if David chooses to leave the matter open and the BBB complaint remains unresolved. I stand by the reasons I have stated in this and in my prior letters.

Further, the BBB is a non-profit organization that exists for these types of matters. Having spoken to Bruce Ward during my initial complaint stage, he stated that this is a free service they provide. If David wants to make a contribution to the BBB, he can make the contribution himself. I won’t be doing it. It is his reputation, Patty Wimmer’s reputation, and QP Distribution’s reputation at stake. Yes, my reputation is also at stake except the difference is I have been proactive and very transparent in my case. I have thoroughly prepared my case documents for anyone to see and read.

I have been angered beyond reason by this entire incident and the amount of time I have already put into this. My losses by having to give up my book inventory far outweigh any so-called losses he may have incurred to dispose of the books.

I warned Patty Wimmer what would happen if she could not be reasonable and abide by our initial agreement. I even informed her I would escalate the matter to the BBB and beyond. She was very non-chalant about it and said for me to do what I needed to do. She even had the nerve to continue sending me invoices which inflamed the situation further. I surmised she thought it was an empty warning on my part and that I was bluffing. She clearly has very little insight and experience in handling these types of matters. Sticking your head in the sand doesn’t make the problem or complaints go away. And sending MORE invoices and adding BOGUS charges doesn’t motivate people to cooperate. I told her I was not bluffing and I hold to my convictions. As I said, she didn’t care and now everyone can read about her excellent management skills.

Based on David’s latest comment, I unequivocally refuse the terms he proposed as he still doesn’t get the magnitude of my losses as a result of his company’s actions. I have lost enough already in so many ways already discussed. I am not paying one cent more to anyone as it relates to this matter. And I will continue to aggressively fight this to my dying breath. By fighting, I don’t mean passively responding to letters. I will make it my personal mission to continue educating independent publishers and authors through blogging, videos, social media, and other platforms to educate the scams and extortion perpetuated by the book warehousing industry and specifically my 8-year relationship with QP Distribution.

If David Schaefer refuses to close my account and insists on adding charges, that is his prerogative. Then my entire set of written complaints will continue to stand unresolved as a black mark against QP Distribution on the BBB’s record. Yes, I am fully aware it is ”only one complaint” but the very next time another unhappy publisher and author decides to research QP Distribution, you can believe I will be happy to give the BBB explicit written permission to give out my contact information as ”unsettled” and ”unresolved” complaint. And I am very confident they will be able to easily find me and the complaints I have lodged against QP Distribution along with the supporting documents.

To the BBB, as far as I am concerned during this moment in time, my complaint remains unresolved and unsettled due to conditions David Schaefer placed on closing my account. The reasons for my position have been exhaustively discussed above and prior letters.

Matthew Chan

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On August 12, 2011, The BBB sends a letter to both David Schaefer and me asking to resolve the situation and to NOT tie the resolution to a donation to the BBB. At this point, Bruce Ward loses patience with this case and primarily interested in closing this case quickly. I object to some of his sweeping comments.

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Bruce Ward
Better Business Bureau of Kansas
345 N. Riverview St., Suite 720
Wichita, KS 67203

Dear Bruce:

I am in receipt of your letter dated August 12, 2011.

I understand your position and statement that you are trying to expedite a resolution. I am grateful to your efforts to assist in this matter. However, as I had told you during the initial complaint, I had no false notions that this would be easily resolved to my satisfaction. Certainly, some progress has been made but I am very clear in my position.

For the record, you might consider my communications an “endless rehashing of the history”. However, that is not entirely true. I added additional explanations and distinctions because of David Schaefer’s responses and rebuttals.

Let me be clear that my responses are intended to be open, transparent and intended to be made available to others to read and understand, not necessarily placed into a private file for only the BBB to read. The style of my rebuttals may not be directly relevant to the resolution of the claim from the BBB’s perspective but it tells a much fuller story for others to read. Ultimately, I know the BBB’s role and
powers are limited in such matters.

Having said that, I will directly address and answer your question.

I will not pay any more monies to QP Distribution for the many reasons I have previously described.

I guess the BBB will have to record this case and complaint as UNRESOLVED.

I understand you do not want the correspondence to go on endlessly. Neither do I.
Thank you for your attempts to assist in this matter.

Respectfully,

Mathew Chan

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On August 26, 2011, David Schaefer issues a short response. Instead of just letting things go, he wants to squeeze out another $88.68 from me. This is very much in the spirit of the reasons I ultimately had to take drastic measures to terminate the business relationship.

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Bruce,

First, I would like to apologize for suggesting the settlement be tied as a donation to the BBB. I was only thinking that it would be easier for Mr. Chan to write a check to the BBB rather than to QP Distribution.

I have received your letter dated 8/12/2011. QP Distribution is willing to close the account with a payment of $88.68 1/2 the cost of the disposal fee. This offer is good until September 15 2011. After September 15th 2011 we would revert back to the written contract and turn the matter over to collections.

I appreciate the good that the BBB does for the business community and thank you for your efforts.

Sincerely,

David Schaefer
QP Distribution

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Below is my final response to the BBB as to why I cannot in good conscience accept David Schaefer’s so-called “good faith” offer. I admit it was very tempting to simply pay the $88.68 to resolve all this. It was almost too simple. I actually had to contemplate the offer for a few days. Clearly, paying $88.68 is something I could have easily done. Except that when I go back to how this all started, once again, they are up to their old tricks of unilaterally deciding what they will permit. David only conceded to begin with because I aired so much of their less-than-honorable business practices.

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September 8, 2011

Bruce Ward
Better Business Bureau of Kansas
345 N. Riverview St., Suite 720
Wichita, KS 67203

Dear Bruce:

I am in receipt of David Schaefer’s response to your letter from August 12, 2011. I apologize for the delay in response as I had to dig out a recent QP Distribution Inventory Report to get information to complete this letter.

I will not repeat what has been said before in painful detail. However, going back to the very beginning of the complaint, I asked for my account to simply be closed unconditionally. Despite my long letters outlining what transpired and explaining my position, it still appears to be insufficient to close the account unconditionally.
Since he has attached a condition to closing the account subject to collecting the contracted disposal fee, I will agree to pay 100% of the contracted disposal fee if he reimburses my book costs of 2,706 copies at $4.00 each totaling $10,824.00. I will also forego claiming the average $3.00 profit per book x 2,706 copies totaling $8,118.00.

I earlier stated that I never wanted to close the account and dispose of the books. I was forced to do so since they clearly had unilateral power over my book inventory and there was no practical way out except to terminate the relationship remotely.
In his response, David states his intentions to escalate the matter and send my account to collections after September 15. That is quite unfortunate. Although I was content to simply close the matter without any counter-claim, he may ultimately compel me to file a counter-claim in addition to escalating my complaint. If he escalates the matter legally, I will be forced to counter-claim the amount of $18,942.00 detailed above in the letter.

My position remains unchanged. I respectfully decline David’s offer on the condition that my losses far outweigh his by a HUGE magnitude. The fact that I simply asked for a simple closing of my account without any conditions was very generous on my part.

I guess the BBB will have to record this case and complaint as still UNRESOLVED.
Thank you for your attempts to assist in this matter.

Respectfully,

Matthew Chan
Publisher

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On September 12, 2011, the Bruce Ward administratively closes the Complaint. It’s his opinion that QP Distribution made a “good faith effort” to resolve the situation. What about the 2,700 books I had to sacrifice along the way to finally close this account? This “little detail” has been entirely ignored. I was actually being generous by giving written permission to QP Distribution to dispose or even resell the books vs. them trying to go through the court system to gain legal possession to dispose of them.

Anyone with any sort of common sense can see that I took a tremendous financial loss simply by asking for a straight and easy closing of the account. But David Schaefer still wanted to complicate the matter by  squeezing another $88.68 out of me under the farce of a “good faith” offer.

The BBB communication phase has concluded. I have a few more comments I want to make but I want to let some time pass before I make a “big picture” analysis of the overall situation.

If this entire situation you are witnessing scares you or makes you take pause before working with any book warehousing or book fulfillment company, it should. It is very easy to get into and nearly impossible to get out of without getting financially raked over the coals. They hold most of the power by virtue of them holding your inventory. They quite literally hold your inventory hostage. And they can draw the process out infinitum all the while charging your account.

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Below is the text of the letter I sent to the BBB of Kansas against QP Distribution, (Patty Wimmer, Office Manager, and David Schaefer, Owner).

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June 10, 2011

Mac Carter, President/CEO
Better Business Bureau of Kansas
345 N. Riverview St., Suite 720
Wichita, KS 67203

Mr. Carter:

I am writing to you and your office to file a written complaint against QP Distribution, a book warehousing business I have been dealing with since 2003. I thought it was a good working relationship until last year when problems began to appear. I am only writing this as a last resort. I have done what I reasonably can with limited success. They have chosen a “my way or the highway” approach.

My copies of the Certified Letters I sent them tells most of the story and the relevant facts but I will once again recount my complaints against them down below.

I have enclosed copies of my recent Certified Letters to QP Distribution which they have conveniently ignored. Fortunately, I did send secondary copies via First-class U.S. Mail. I have also enclosed copies of the only 2 prices sheets and updates I ever got from them. I have also attached samples of invoices and statements I received showing how they operate.

I noticed that QP Distribution over the years began to unilaterally change their pricing policies with little or no written notice. I have received only two written notices in 2004 and 2007. However, the only agreement I signed was from 2003 and the last complete price sheet I last received was from 2004. In 2009, I began to scrutinize my invoices and statements more closely.

In Spring 2010, I contacted Patty Wimmer with my concerns over their increased storage fees and how they determine storage pricing. I also questioned her about their so-called UPS shipping fees which seemed out of line from my own pricing experience with UPS. They are supposedly a higher-volume shipper serving many book publishers and authors throughout the U.S. whereas I am a small and occasional shipper. And yet their shipping charges seemed substantially higher than mine.  I later learned that their UPS shipping fees is a “profit center” in addition to their storage fees and ever-increasing handling fees for “touching and moving” the books.

In an effort to reduce storage fees, I worked out an agreement with Patty to “dispose” of my excess inventory by a combination of shipping some excess inventory to me and the rest to simply “dump” into the dumpster.  I was charged for the privilege of reducing my inventory with an inflated disposal fee. I believe it was $7.75 per title plus 12 cents per pound.  I only agreed to it because I neglected to go back to my original price sheet which specifies that it is actually $7.75 per title and 5 cents per pound.

Additionally, this ordeal was complicated by the fact that because of her delays in following up, my account was penalized with the higher storage fee. I asked her why I should be penalized when it took her over 2 weeks to follow up. Even then, I had to remind her. By then, the new billing period hit and I was charged the higher fee. She said the owner, David Schaefer did not allow adjustments of accounts even though this was her error. I was upset with this explanation and threatened to report them to the BBB.

In any case, she eventually did make it right by allegedly doing without David Schaefer’s knowledge by reducing the following month’s fee. I considered the issue to be resolved at that time. I was not interested in getting into this further to contest any more charges as I felt going forward there would be few problems. Looking back, I was naïve and should have asked for a detailed pricing breakdown which they did NOT provide in the individual invoice or monthly statements.

Earlier this year, QP Distribution decided to charge me a “late fee” of $6.50. In past months because the monthly amount was relatively small ($25.00/month), I simply paid it every other month. Admittedly, I was careless and I didn’t pay them until it was 90 days behind. The crux of the issue that I brought up is that there is no written provision anywhere of any late fees in the agreement I signed or on any invoice or statement.

Further, Patty Wimmer made no efforts to either call or email me if collections was such a large issue despite the fact that I was in semi-regular contact with her and almost always paid my account in full when I did pay. I felt a simple phone call or an email is very reasonable. And to charge a late fee without any written or verbal notice is unconventional and inappropriate. Despite my efforts to apologize and stay current going forward, Patty claimed that the owner David Schaefer was in charge of such decisions.

Ultimately, she claimed that the late fee would stand. Initially, she blamed it on the owner, David Schaefer but ultimately she said she felt I should be charged the $6.50 late fee.  I then decided that I was no longer going to be held at mercy to their arbitrary policy and fee changes. It was the straw that broke the camel’s back. I gave 30-days written notice as they had requested. I paid my account in full.

I gave advance instructions to send a portion of my remaining book inventory to me with over 2 weeks notice. I specifically asked her if there were any remaining issues. She said no.  When it came time to ship the books, I was then informed I now had to make the final payment in advance before books could be shipped out to me despite the fact I had given her my Federal Express account where they wouldn’t even have to pay for shipping. Additionally, despite several emails asking for detail accounting of the so-called $451.00 disposal fee and other handling/shipping fees. She only partially explained them.

She said they would impose a “third-party” shipping fee since I chose to bypass their hugely marked up UPS Shipping fees. It was clear to me they were no longer trustworthy. Despite my best efforts to politely get ahead of potential problems, they kept introducing new obstacles by bringing up a new “policy” or a revised fee. They have deviated from our initial agreements and using the book inventory they hold as leverage.

I clearly realized they were using my own book inventory against me. I also realized they were using the long-distance from their warehouse against me. They knew I was unhappy and wanted to terminate the business relationship.  And they were determined to use every means they could to extract extra payments from me to the point of ridiculousness.  After 8 years of being on 30-day terms, on the final month, everything is flipped. They refuse to accurately assess their fees as it relates to the agreements I initially signed and they outright say they are going to hold the book inventory despite the fact my account was current.

I finally decided I would not be held hostage by my final book inventory request and simply cancelled that. I wrote them that they could dispose of the books any way they wanted. If they wanted to sell it off and receive monies, that was fine.  But because I refuse to pay their arbitrary and inflated disposal fee, they now say my account is NOT closed and they have continued to bill my account.

To summarize:

• I have been a good customer for 8 years and I signed only one agreement and received two written updates. I did not agree to anything else and certainly not any new fees or policies they seem to dream up from time to time.

• I was proactive in trying to peacefully close down the account. But I have been met with the “my way or the highway” attitude. It was only after I became much more assertive and insistent that they even bothered acknowledging my complaints.

• I sent two costly Certified Mails to document my efforts to communicate my issues with them and that I made a concerted, reasonable effort resolve this matter.  They chose to ignore both Certified Mails. I have received no written correspondence except from two short emails with a passing reference to two issues.

• Patty Wimmer claims to have no say in pricing or company policy.  She apparently isn’t even responsible for her lack of ability to email or phone someone with problems. And apparently she isn’t responsible for her own slow turnaround for follow-up issues time either. And yet, there are supposedly only 3 employees.  Her, Brian, and David Schaefer. I now find interacting with Patty Wimmer to be pointless as she is irresponsible, unempowered, and untrustworthy.  She dismisses the 2003 agreement we signed, and continually points to owner, David Schaefer, as being the responsible party. And yet, she has never offered to have David speak with me.

• Although I threatened to escalate this to the BBB and publicize their actions on the Internet, I have not done so until now. They appear insistent in extorting me with my own book inventory. I have received two more invoices/statements claiming I owe the money when I was clear the relationship was terminated and the issues resolved on my end. Essentially, I have surmised they are going to continue to bill me until the fees are substantial enough to initiate legal action. At $25/month, it will be in 2012 where it becomes a meaningful amount to collect. However, I am not going to let them do this without reporting their actions and documenting my case against them.

• As evidenced by this letter, I am not ignoring this situation.  In fact, I now have to escalate this matter to the BBB since they want to send me illegitimate invoices. I have tried to work with them, I have brought up the signed agreement, I have sent them written notice of the issues I have a problem with, and still they put their head in the sand.

• I have never seen any publishing-related business operate like they do. They run it in such a backwards manner making up rules as they go. For a business that has been around for so long, they don’t even have a basic functional website. They only have a placeholder website. http://www.qpdistribution.com.  Unlike them, my websites are functional and I will be openly sharing my dispute with QP Distribution as a real-life case study of what kind of extortionistic tricks unethical book warehousing businesses use.

I understand the BBB has limited abilities to resolve this for me. But I am openly writing and reporting this now that QP Distribution and Patty Wimmer have forced my hand. It is quite unfortunate that after 8 years of doing business, it has to come to this. I informed Patty Wimmer that I was going to escalate the matter by reporting them to the BBB. She did not seem to care. Either she views the BBB as inconsequential or she did not believe I would escalate and publicize this matter.

In conclusion, what I would like the BBB to assist me with is to have them close my account as was instructed months ago. Any charges since termination need to be reversed or voided as they are invalid. Regarding the remaining inventory, they can either resell the inventory for cash for the disposal fee they claim I will owe or they can take it to the dumpster. This is a reasonable request since I was at a zero balance during which I told them their storage services was no longer welcome.

If QP Distribution chooses not to cooperate even with the BBB’s help, please record my letter and all the supporting documents as a formal written complaint against them. The BBB may also release said complaint documentation to any or all interested parties. The BBB may also release my contact information to anyone seeking a “reference” on QP Distribution. They can also expect that my complaint packet will be submitted to the Federal Trade Commission and the Kansas Attorney General’s office as a warning to others about QP Distribution’s extortionistic business practices.

Thank you for your attention in this matter.

Respectfully,

Matthew Chan, Publisher

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You can also read my First Certified Letter and Second Certified Letterto QP Distribution.

You can read the series of follow-up communications between myself, David Schaefer of QP Distribution, and the BBB is chronicled in the blog post: QP Distribution Responds to my Complaint to the BBB of Kansas Plains

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I really did my best to keep this situation low key and hoped it might either go away or work itself out. Unfortunately, that was simply wishful thinking. QP Distribution, owned by David Schaefer, and staffed by Patty Wimmer is a small book warehousing / storage company I used to store most of my offset printed books from 2003. It was mostly a good relationship until two years ago when I started noticing some irregularities in what Patty was telling me regarding their handling and shipping fee changes. They started nit-picking and making subtle policy changes that I perceived as trying to squeeze more money out of their existing customers. This was happening just as print-on-demand was rising. I surmised that Lightning Source and CreateSpace was putting a squeeze on anyone in the off-set printing business which includes book warehousing and book storage businesses.

In Spring 2010 was my first real conflict with QP Distribution specifically with Patty Wimmer when I was penalized with a higher storage fee when 2 weeks earlier I asked about how I could lower it. She only followed up after my reminder. By then, I got charged another month’s fee. She pushed it off on the owner, David Schaefer, and how she cannot change the storage fee after it has been charged despite the fact it was HER mistake. I couldn’t believe what I was hearing. It worked out after I paid for the privilege of lowering my inventory. * sarcasm* I threatened to report them to the BBB and report them publicly for their poor customer service.

In Spring 2011, QP Distribution decides they want to teach me a lesson by imposing a $6.50 late fee on my account despite my 8 years of great payment history. Apparently, my account was so “problematic” (despite the fact that I generally pay in full every 60 days or so) that they could charge me an unannounced late fee but NOT even once email me or call me to see what happened with my account. Also, keep in mind, there is no mention of late fees anywhere in the agreement, invoices, or statements. It was something Patty and David dreamed up apparently. But Patty first says David wants to do to this to my account but she later confesses and tells me she agreed with it also.

I finally decided I had enough of their foolishness. I am tired of Patty sounding like the powerless housewife when she is supposed to be the Office Manager.  And portraying David as this unbending dictator. (He might be but I have not dealt with him enough to make an opinion. I only know what Patty tells me. One thing seems certain, she seems fearful of David. I wonder how he will react when he realizes all the discussion that is happening without him around.) Anyhow, I also discovered there is a hidden profit center to their service. They charge a handling fee per book and per case but they don’t tell anyone about the hugely marked up UPS shipping fee. I only found out because I asked very pointedly if what they charge us is what they pay.  The answer was and is still “no”. Their UPS shipping fees are just as high if I walked in to a UPS store paying full retail price. Not good for any publisher that wants to stay in business for long.

QP Distribution doesn’t like it if you give them your account number for shipping. If you do, they will make sure you pay anyway with a “third-party shipping fee”. They also have a “recycling fee” which is actually a disposal fee to dump any inventory you might not want. I call it a dumpster fee and they are trying to charge $7.95 plus 12 cents per pound. The problem I have with this is 2-fold. It works out to be this outrageous fee for throwing your inventory into the dump AND my agreement actually says $7.50 plus 5 cents per pound, not the 12 cents they are trying to push. And you know what they will do if you don’t pay their disposal fee? They will continue to charge you storage fees.

And if you decide to show up at their doorstep to pick up your inventory? You will get charged a handling fee. If you tell them to just dump it and don’t pay their inflated dumpster fee, they won’t and they will simply reinstate the storage fee. Doesn’t that just sound like a business relationship you want to get into?

The trick for these types of businesses is it costs ZERO to get your book inventory inside their doors. But they will use every trick fee they can impose to get them out. Whether it is 1 book, 1 case, or a pallet, you will absolutely pay.

In any case, I finally had to file a complaint with the Better Business Bureau of Kansas. I am not going to have them hold me hostage with their tricks. Stay away from book warehousing and storage services. Go print on demand to avoid book warehousing and storage altogether. Or if you must have storage, go rent from your local storage facility. But definitely stay away from QP Distribution and its ilk.

And to show how outdated they are, go look at their pathetic placeholder website. It is the same pathetic placeholder website they have had for years. Can you imagine being a reputable business an NOT having a website? Well, go look at QPDistribution.com.

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I have escalated this matter by filing a written complaint with the BBB against QP Distribution.

You can also read my first Certified Letter and second Certified Letter to QP Distribution.