Comment: September 13, 2007 With DirectBuy, it will cost you a lot to save Your town or city might have been blanketed recently with newspaper ads and TV commercials for DirectBuy. The nationwide buying club, with headquarters in Merrillville, Indiana, promises members access to 700 brand-name manufacturers of home goods and the opportunity to buy merchandise with no ?hidden store markups and middlemen costs.? Ads invite you to an open house, where you?ll see ?confidential? wholesale prices. ?We can?t show you the brand names and we certainly can?t show you the prices,? read one ad. What it also doesn?t show you is DirectBuy?s steep membership cost. The Real Deal To evaluate the pitch, we went undercover at two DirectBuy franchises in New York. Both gave us the same hard sell and offers of up to 70 percent off retail prices if we were to join. Only after an hour and a half of sales pitches and video testimonials from members did we learn the membership fee: $4,900 to $4,990 (plus tax) for three years and then $190 a year for seven more. Financing is available at 17.75 percent. After the fee disclosure, we discovered that we had to sign up on the spot or never come back. We couldn?t bring DirectBuy?s ?confidential? prices elsewhere to comparison shop, the representatives said, because this would likely anger retailers who might then retaliate against the manufacturers by refusing to sell their merchandise. The fine print in the DirectBuy contract says you cannot return items, cancel orders, or terminate your membership. When we asked if, after plunking down $5,000, we could cancel and get a refund, a salesperson said, ?You?ll have to check state law.? A review of New York state law revealed that the three-day cooling-off period for canceling contracts wouldn?t apply in this case. Tacked onto the cost of merchandise?which you select from catalogs since DirectBuy has limited showrooms?are a 6 percent handling fee, shipping fees, and tax. Goods are typically shipped only to your local center, so you might pay additional fees to actually get your new stuff home. Just how good are the prices? We compared them against those of other retailers. Prices for electronics and appliances were often only slightly better than those at online retailers and in some instances higher. For example, a 46-inch JVC flat-screen TV selling for $2,586 on DirectBuy?s site cost $2,095 elsewhere. We did find deep discounts on flooring and high- end furniture. In fact, one member we interviewed estimated that she saved about $50,000 over several years on furniture and a kitchen remodel using DirectBuy. Yet the club did poorly on some basics. We found a Kohler bath faucet for $300 less on a kitchen-and-bath Web site. Some DirectBuy members complained to us about poor customer service and long waits for merchandise. But since DirectBuy outlets are franchises, service varies by location. Most outlets have a good record with the Better Business Bureau, though some
NITABOSLEY (8/21/2007)
Comment: They lie to you to get you to join then want to ruin your credit if you don't pay. They are paid the $5,000 by a lender and the lender now wants his money. This is a horrible way to get scammed or what ever you want to call this company Direct Buy my...!
sumbeach (8/13/2007)
Comment: This could be called a Scam, but I'm not sure it is the right term. If you plan on buying 'top end' items that the average person would never consider because of the cost, you 'might' make your money back. For the average person, you can save your money by shopping online, or Lowes, or Sears, or other discount houses. During your tour you will be told about a very few, very exceptional, items which you would save money. But, keep in mind that they are the exception and could be limited to those items only [for the middle class person that is sucked in]. Also, during the 'tour' you are not allowed to see any catalogs or prices in the center. You are not allowed to do that until you have given them your $3000 membership fee. That's right $3000 just to join, you better plan on some very good savings. I made the mistake of being talked into the membership by a very 'NICE' very helpful sales person. The sales person, after we were reluctant to sign, said, "we aren't supposed to do this, but I will show you a recent sales on some kitchen cabinets (which we were interested in) and you can see the savings. It was very impressive, but of course to our demise, he only showed us the most impressive part of the sales and not the total. We paid $200 to have their "professional" do a layout of our kitchen cabinets and then waited two months and several unhappy phone calls to get results. The price was way out of our league so we went to Lowes and purchased equal quality cabinets for a little over 1/2 the price, and Lowes did the layout for FREE. Oh, and during the Lowes layout we showed them the layout that we paid $200 for from DirectBuy. The sales person from Lowes looked at us and said, "she [DirectBuy Professional] can't do that, it's against fire codes to have a tall cabinet next to a kitchen range!" We did purchase flooring from DirectBuy, but could have bought it online for the SAME price without shipping cost and no tax. The salesman again convinced me that buying online is risky because the company may not back the product or go out of business, yada, yada, yada. I was stupid enough to believe him. We not only ended up paying tax on the flooring, we paid SHIPPING, and guess what.....A WAREHOUSE FEE, and....had to go pick the damn stuff up ourselves from the warehouse which was 50 miles away from our home. The online company is still in business, doing well, and would have delivered to our home for FREE. You figure out where the deceit is. They don't openly lie, because then they could be held legally liable. They manipulate terminology to the limit to make you believe that it is a good deal, but unless your salary is in the triple digits, it's not, and you can NEVER get your $3000 back under any circumstances. Think long and hard before you sign the dotted line, even though they tell you, "sign now or you can never come back" (and if that's not high pressure sales I don't know what is). I still sit an think about what I could h
ksc65 (4/8/2007)
Comment: I can understand that people may not like the "you can't come back rule" because it threw me off guard as well. but after sitting down with a very nice saleswoman (not pushy at all..but very helpful in my decision making process), I found DirectBuy to benefit my family. I am not building a new home but am always updating things. I was concerned we wouldn't be doing enough "big things" but actually realized that I would still be saving a lot of money over the membership period. We joined 6 months ago and have purchased carpeting and furniture along with some accent pieces and fencing for our yard....to date, I have paid for my membership and have pocketed an additional $1000...all in six months. I have been happy with our decision and look forward to continue saving money. They do need a few more staff members on the floor at a time to help people though.
cariinca (1/28/2007)
Comment: People should not sign up unless they are making major home renovations and/or making major furniture, kitchen, window treatment, and light fixture purchases. For us it made sense as we are renovating a home and it does save on big ticket items. For us the service has been great but getting used to the procedures and digging through and doing your own research takes a while, but worth it.
bestkept (1/28/2007)
Comment: Want to find out the history of DirectBuy? Read the book written by it's founder!!
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nonee1 (1/22/2007)
Comment: Do a little research first:
http://edumacation.com/DirectBuy
faiyaz (1/19/2007)
Comment: 7 yrs ago when we were joining we had the same feeling and attitude that this is a scam and you can?t join once you leave the store. But now in all these yrs we have probably saved around 5 to 6 K, which has covered our initial membership fee and the annual fee that we pay. You will definitely save money on big items not doubt about that. In fact on small items even if you don?t save money you will get a brand name or a higher quality for the same price that you will find in the retail store. One drawn back returning is not as easy as taking back to wall-mart or sears or any big franchise store. We have returned items like mattress and beds, but shipping back and forth is a nuisance, but the store accommodates you and you get your money back. Most of the items we have purchased works great and never have to return them. If you are joining this club, make sure that you are joining it for buy big items, that is the only way you will payback your membership.
Jolene101 (1/19/2007)
Comment: Wow! Am I glad I researched and found this site. It will save me a long drive and the aggravation of the hard sales pitch. I thought it would be a few hundred bucks to join! I never imagined it would be $5,000. They?d have to peel me off the floor. I?ve been doing a couple of re-models a year in FL and Maine. I have an awesome salesperson in the appliance dept. at one of the Sears stores in FL. I let her know in advance what I am going to need for my current project, and she lets me know when those items will be on sale at their best price. (They also price match.) She takes care of the entire order for me over the phone. No hassle, and it is delivered to my jobsite exactly when I need it, even if it?s 1500 miles from her store.
incredible (1/19/2007)
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amazing1 (1/19/2007)
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argentina (1/19/2007)
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JohnB (1/19/2007)
Comment: I signed up for DirectBuy in Austin and have had no negative experiences with them. The sales tactics were not ?high pressure.? Yes, they told my wife and I that we had to sign up then or we would not have an opportunity to sign up againn. I actually had respect for that approach because they could easily follow-up with alot of ?high pressure? sales calls at my home or office to coerce me into signing up, and that would have been an absolute turn-off. I like the fact they are confident in their service enough that they are willing to let $5k walk out the door without any hard selling effort applied. That?s got to be tough for any motivated salesperson to see happen, but they are letting the product/service speak for themselves. And it?s good to see that all the different DirectBuy locations have kept that policy consistent across all the postings I have read. I would actually be concerned if some franchisees were bending the rules a bit. That?s not what franchisees are supposed to do. They are running a tight ship, and I like that. Instead, they explained that if everyone had the chance to leave the DirectBuy facility and do comparison shopping based on the prices they saw during their orientation, that would really create a problem for the manufacturers when these prospective DirectBuy customers show up at their retailers talking about how much cheaper it is to go with DirectBuy. This rule makes sense to me. After you become a member, they expect you to abide by the same rules, or else I think they can terminiate your membership. I think that?s a good rule to have. The DirectBuy system will only work if all members abide by this code of conduct. I think anyone who goes to the orientation should go in there with the intent to do some comparison shopping on a few key, large items. We did that, and we were comfortable the prices were lower than what we could find at a competing flooring retailer. We also liked the selection from within the warehouse. I personally don?t like the idea of schlepping all across town looking for the best deals and keeping an eye for sales for items I might be looking for. There is something to be said about ?one-stop shopping.? My time is worth something, and it?s good to know I have one place to go where I know I can get a deal at, or lower, than prevailing market rates. I?ve also got to think that a large company that has multiple locations all around the country will be on their P?s and Q?s in not engaging in deceptive practices. How many companies that have a national presence are considered unethical? Not that many, or else they won?t be in business long. That?s alot of money of money to put at risk for the corporate parent. And if you think about it, these guys have to be ethical just like Costco, Sam?s Club, Best Buy, etc., or else the threat of some disenchanted customer showing up at the door and going ?postal? on them could become a reality.