Letters

Readers react to articles from the May and June 2000 issues of Inc., including "I'm John Burgess. I'm Here to Help You," by Joseph Rosenbloom; "G Is for Guts," by Dr. Steven Berglas; and our Inner City 100 listing.

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We received dozens of responses from readers to our story about International Profit Associates in the June issue -- many of which related personal experiences with IPA that matched those we chronicled. Readers appreciated our forthright approach but wished we'd published the story sooner -- before they'd forked over thousands of dollars to the company.

Inside story
In " I'm John Burgess. I'm Here to Help You," senior editor Joseph Rosenbloom investigated the past and current business practices of John Burgess, head of International Profit Associates, a small-business consultancy in Buffalo Grove, Ill. The article was spurred by scalding complaints Inc. had received about the company, which in 1997 had ranked ninth on our Inc. 500 list. Among the letters were several from readers reminding us that IPA is not alone among management consultants that use a hard-sell approach but often provide little real help.

It's not easy for me to admit, but I, too, was duped by the smooth sales tactics of the International Profit Associates machine. Between IPA and its partner International Tax Associates, it cost me almost $7,000 to realize that I was being taken for a ride of cookie-cutter fixes for common small-business ailments.

One visit in particular opened my eyes: two days of meetings with IPA's representative that cost me about $3,800. In my opinion, the whole task for IPA's "analyst" was to go over my books to verify my ability to pay for the firm's services. I do not believe that IPA -- as stated in your article -- turns down a single client that has sufficient funds in its account. In my case, IPA acted as the ultimate "car salesman," trying at all times to keep me from having a single moment to think. Before you know what's going on, it has the next level of salesperson scheduled to fly in from across the country on your dime. I am by no means an easy sell, but IPA is smooth and plays off the typical small-business owner's need for help.

Phil Morales
President
Six Counties Fire Protection
San Jose, Calif.

My husband and I own a small tool-and-die company. IPA came in in early January and just sucked the money out of our company. We have a huge training manual as a result of its visit, but sales have not increased -- in fact, they have decreased. The company charged us more than $20,000, and we still owe it approximately $2,700. Not once has anyone from IPA called to find out how things are going since the visit.

Debbie Kent
Vice-President
Ridge Tool & Die
Sparta, Mich.

As a former customer of IPA, I read your article with great interest. I suspect that there are a lot of former IPA clients, like me, that are too embarrassed to file any sort of complaint with the Better Business Bureau or anywhere else. To have gotten suckered for almost $20,000 is a shameful mistake.

I, too, have the blue notebook with a large number of boilerplate pages -- evidence that I refer to once a year to remind myself that I can be duped just like anyone else. I sincerely hope that your article saves other decent people who are struggling to answer questions about how best to grow their business from paying for services they find useless.

Dennis Faltis
President
Faltis Marketing Communications
Waukesha, Wis.

I attended training with IPA in October 1999, and it is my opinion that IPA is essentially a sales organization that may incidentally do some consulting. I found its training and its consulting procedures to be largely ineffectual. I believe that the "sales directors," who talk with the "field consultants" daily, are simply gathering information about the availability of client cash flow to pay IPA's fees. While listening to sales directors engaged in several telephone discussions with consultants, I did not hear any talk of services, just of the clients' "ability to pay fees."

Tom L. Eustace
Management Consultant
Midland, Tex.

John Burgess responds:
Since the founding of the company, in September 1991, International Profit Associates Inc. has provided consulting services to more than 70,000 clients. The percentage of "complaints" that you are purporting is minuscule compared with the numerous accolades we have received. It appears, however, that Inc. -- by printing light-altered, sinister pictures and reporting on past tales, which have nothing whatsoever to do with the direction of IPA -- is not interested in promoting the quality and professional abilities of more than 1,600 IPA employees. The company has not only provided a high level of professional management-consulting services to its clients; it has also provided employment opportunities and an income for its employees. If Inc. were interested, it could devote a complete publication to reporting on IPA's accolades and quality consulting services.

Editors' note: In addition to his general response, Burgess sent us copies of letters of satisfaction from several of our letter writers and also addressed each of the complaints printed here. We have excerpted his responses:

Re: Six Counties Fire Protection Inc.
Mr. Morales signed a working agreement for 165 hours. IPA was absolutely unable to provide the managerial education and direction Mr. Morales required in only 7% of the time required. The IPA project manager left Six Counties Fire Protection on Friday, March 31, 2000. The International Tax Associates consultant did not arrive until Tuesday, April 4, 2000. Mr. Morales certainly had the opportunity to cancel the visit, if he so wished.

Re: Ridge Tool & Die
Deborah Kent states: "We have learned a great deal ... and are putting these things into practice as they have been taught to us." It is the client's absolute responsibility to continue directing the managerial process that has been taught by the business consultant. If, however, the client abrogates that responsibility, the project and process begin to deteriorate. ... If the client does not request additional aid or help from IPA, which is a no-charge service and a support element of the consulting engagement, the client must assume the responsibility when the project does not meet the prolonged expectations.

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