Magazine Publishers Partner with Media Receivable Management to Reduce Operating Costs by Outsourcing Advertising Collections
MIAMI, FL -- July 17, 2002 -- Media Receivable Management, the collection agency that specializes exclusively in print advertising collections, has secured several accounts receivable outsourcing contracts with magazine publishers. Herald Custom Publishing, a division of Knight Ridder, has outsourced several of its titles, including its Colorado travel magazine, Destinations West, and the in-room book custom published for Hyatt Hotels & Resorts, after the agency's overwhelmingly successful collections on its publications for the Greater Miami Convention & Visitors Bureau. Worth International Communications Corporation has outsourced its annual meeting planner produced for the Mexico Tourism Board, and Ralston Publications, publishers of Destination magazine for several Caribbean islands, with distribution at select American Airlines gates, has outsourced its St. Maarten and St. Thomas editions.
"Clients who take advantage of our outsourcing service find it a cost-effective strategic business tool. Accounts receivable management isn't their core business, so they capitalize on our expertise and ability at a fraction of the cost involved in performing the function in-house. They are able to free their internal resources for their most important business focus, which is generating more advertising revenue," said John Serafine, Media Receivable Management president. "Additionally, publishers who are planning launches in new markets and those who produce seasonal titles or custom publishing projects have been ideal candidates for our outsourcing service, as they do not have to hire additional staff when their collections workload dramatically increases."
"Furthermore, publishers who have experienced an increase in their delinquency rates, a critical component of their cash flow, due to current economic conditions see outsourcing as an excellent solution, explains Dean Churack, the agency's executive vice president. "For many publishers, their collections volume is often too high for their current staffing restrictions, resulting in only the advertisers with larger balances being contacted. They end up having to refer many accounts to a collection agency on a contingency basis at a rate much higher than outsourcing. With outsourcing, since our agency acts as a 'virtual' credit department with consummate collections abilities, accounts are collected much more quickly, so cash flow is improved and accounts never get to a contingency collection situation."
"Working with Media Receivable Management is a win-win situation, for both our company and our advertisers. Our receivables are collected much faster, improving our cash flow, while our customers are kept satisfied," states Garry Duell, publisher and CEO of Herald Custom Publishing, a division of Knight Ridder. "The people at Media Receivable Management understand the nuances of the publishing industry and know how to walk the very fine line between collecting outstanding balances and maintaining excellent relationships with our advertisers."
Launched just one year ago, Media Receivable Management already manages over $2.2 million in outsourced advertising revenue. That figure is expected to double by the third quarter of 2003, as the tight economy continues to drive publishers toward hiring freezes, staff reductions and other cost-cutting measures.
Media Receivable Management was founded and is owned and operated by veteran publishing industry credit professionals. In addition to outsourcing, the agency offers contingency collections and consulting for magazines, journals and newspapers. Media Receivable Management's corporate office is located at 1111 Brickell Avenue, 11th Floor, Miami, FL 33131, with a regional office located at 245 Park Avenue, 24th Floor, New York, NY 10167. Their Web site is www.mediareceivablemanagement.com.
