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 have a poor one or have been suspended from the BBB.

The Bottom Line
The lack of price transparency makes it hard to evaluate whether you’ll save by joining DirectBuy. But even if you were to save 25 percent on purchases after joining, you’d need to spend more than $20,000 just to recoup your membership fee. DirectBuy might save you money if you’re furnishing a house from scratch or doing a major renovation. But since you can’t shop around beforehand, you’ll be joining blind.—Chris Fichera

This article first appeared in the September 2007 issue of Consumer Reports Money Adviser.

Comments

[Kevin]

I'm very wary of the belief that they are offering substantial discounts on high-end furniture (among other things).

In my experience high-end furniture can often be bought for significant discounts simply by negotiating with the sales staff, and/or waiting for sales.

While your source likely believes she saved $50,000, I sincerely doubt that is an honest figure. She may have saved $50k over retail, but who pays retail, anyway?

[Randy]

I think this analysis of DirectBuy is fair to a point. Yes when I made my visit to DirectBuy I had to decide to join that day but they beat the retailers by a mile. I bought kitchen cabinets that only seven years later were falling apart. These cabinets had a lifetime warranty so I called the dealers I bought from and they sent someone out to look. I was told that this was not a manufacturing defect and therefore was not covered by warranty. Appalled and angry after spending $20k for these cabinets I counted it as a loss and decided to replace. Anyway, looking online I found DirectBuy. Went to the open house and, while there, I noticed that one of the brands they carry was what I already had. I expressed my dismay at having bought these cabinets and the salesman told me he could have their rep call me. I wasn't interested and just wanted to see what they could do for new cabinets. They showed me a book of cabinets other members bought and I could have easily saved 50% or more seven years ago. So I sign up. Next day our salesman calls and says he spoke to the rep and he will be calling me, as the guy claims he cares greatly about this. Yeah yeah. Later that afternoon the rep calls and shows up two days later. Remember I didn't buy my cabinets at DirectBuy. Well guess what, they replace the cabinets at no cost to me!!!! Crazy, huh? Well I tell everyone now. I will avoid retailers now at all costs. DirectBuy won me over. Try getting that service anywhere else.

[Don]

Randy, your post about how well DirectBuy serviced you must be balanced with the few thousands of complaints online.

[Suzanne]

I agree with the article that in order to recoup your membership fee you will need to spend alot. We joined Directbuy because we were doing an addition on our home. For us, it has worked out because we purchased kitchen cabinets. I had an owner of a Kitchen design store tell me that the same brand/cabinets, considered high end in his store, would have been atleast $20k more. With directbuy we were able to go with a custom line of cabinets and not have to compromise on anything. That wasn't the case at a local home improvement store. We spent far less at Directbuy
then we would have at the local home improvement store and got exactly what we wanted.

[Brandon]

I honestly would never have joined DirectBuy my self. Fortunately, my parents were long time DB customers from the UCC days and they got some discount to buy us the membership for a wedding gift.

Besides the initial cost, the $190 yearly "maintenance" fee is really steep. It really puts the pressure on you to use the membership or you're just throwing money away. It's an endless pit. If you're not in the position to use the membership to a level where you'll save $190 a year in purchases you're wasting your time. And the 6% handling fee often cuts into that.

That being said, we've gotten some good deals on furniture and are currently looking at flooring and cabinetry. These are things with enough markup to make it worthwhile. It's real benefit is home furnishings which typically have a healthy markup. But I've also found myself spending just as much as I would have elsewhere but ending up with higher end purchases than I would have originally invested in.

Absolutely stay away from electronics. The electronics market doesn't have a significant markup and the real purchasing power comes at places like BestBuy that can do large volume purchases. They have started to pick up some high end audiophile lines but I haven't had the time to compare the prices to what I can negotiate at a high end audio store.

Additional points. Do your research. They say they have to shoot down you doing comparison shopping, sure. But if you don't go to the store and test drive or see the actual merchandise you're just a fool. Buying something site unseen is just asking for trouble.

Don't be afraid to refuse it if it's at all damaged. Usually this requires inspection in their loading bay.

Be patient / plan ahead. It can sometimes take months to receive your order. If you're an impulsive buyer this isn't the club for you.

[John]

I joined Direct Buy but the initial cost was substantially less and was in the neighborhood of $2,300 with annual costs of $99. I know I have recouped my total investment in the several pieces of furniture and appliances purchased. We comparison shopped for all buys and came out ahead.

[Phil C]

I have been a member of Direct Buy for about 20 years now. It is true that the membership (I was quoted cost $3,595.00 last year in Atlanta) is steep if you are only looking at electronics or appliances which are very competitive in retail stores with low mark ups but for Kitchen Cabinets and or Flooring, I bought and had Brazilian Cherry hardwoods installed for a fraction of retail quoted cost, these types of purchases alone will save many times the membership fee! along with my recent purchases of Cuisinart pots and pans and leather goods I have saved many times over the annual $199 renewal charged here. You must be renovating or furnishing a home in order to save initially.

[Melissa]

Have an open mind & decided for yourself but here is my take......

DirectBuy has been given good & bad press. I am a member and would like to clear up a few misconceptions. First of all DirectBuy is not for everyone. It is not a retail store. DirectBuy is a purchasing agent library where members have access to about 800 manufacturer & supplier catalogs. In addition there are samples of flooring, cabinets, upolstrey, window coverings and some others things. Members get to purchase their items at cost, no retail markup.

If you are a person who is not willing to do a bit of work to save money then it is not for you. My DirectBuy provided me with a class so I could use all the catalogs & the service staff is always willing to answer questions if I come across something difficult. If you suffer form instant gratification & can not wait for your items to come then it is not for you. But if you like incredible selection and can be a bit patient then DirectBuy would be a great fit for those who like to save their money.

I paid off the membership with my savings that would have normally gone to retailers. It took me about 6 months. Now every time I buy something I take the savings that I would have normally paid retailers & put it in my travel account!

Regarding the pricing I still do price research before I purchase (old habits die hard) but 95% of the time DirectBuy wins- When I signed up the salesrep informed me that some items just don't carry a high markup & are sometimes sold below costs in the regular market- DirectBuy does mark the catalogs with a "Marginal savings Tag" so members are aware of these items and can do their price comparisons. I have saved anywhere from 25$ a pair on sperry-top sider shoes to $100.00's on sporting equipment (boxflex weights & bats, gloves) to household items such as Lenox & kithcenaid to 1,000's on furniture & cabinets and this is with all the shipping, handling & tax figured in. Most retail consumers don't understand that shipping & handling is in their retail product prices as well & that is on top of the markup.

I don't think that you need to be doing a large remodel to make it worth it, that's only if you want to recoup your membership overnight- I have made friends with a lot of other members that I see on a regular basis & some have recoup'd their membership overnight, some (like me) in 6-9 months others it took 1-2 years of purchases. But that's still a good investment considering most everyone purchase things their entire lives.

As far as the sales process goes.. it was informative I was given plenty of real life examples to make my choice. I read a lot of blogs about the buy now or never come back so I was prepared & asked the rep up front. She did inform me that once I did go through presentation & was shown the confidential pricing I would need to make my choice afterwards. If I decided no then I would have to wait 7 years before returning- however you feel about that it's just their way of doing business. I was willing to live with it because I understood the payoff that I would be able to buy things at cost for the rest of my life.

I had already done my research so I was prepared & after the presentation they answered all my questions to my satisfaction - I have been extremely happy with my choice. Yes there is the occasional back order or damaged merchandise that shows up but this is not DirectBuy's fault and they have always been willing to resolve the issue.

Customer service is decent at my DirectBuy they take about 48-36 hours to respond but I understand that in order to get questions answered they sometimes are waiting on manufacturers to get back to them.

They have most brands out there and many that retailers do not offer. For those few items that they did not have I found some others just as good from other manufacturers. The one thing I really wanted that they did not carry I bought in retail which was fine because I saved so much money on my other purchases I could afford to splurge.

DirectBuy is not perfect but neither is retail or any other Venture in life but I have found it a fantastic tool to save money! I hope this review is helpful to those on their way to DirectBuy!

[David Schwartz]

Really, it's 100% completely obvious that DirectBuy is a scam. Even the people defending DirectBuy don't dispute the clear and obvious evidence that DirectBuy is a scam.

1) They use the type of high pressure sales tactics that *only* scams use. I know of no legitimate business that locks you in a presentation for hours with a personal salesman.

2) They demand you make a huge financial decision immediately and back that up with threats. They don't just try not to let you have time to make a reasoned decision, they literally will not let you have time.

3) They provide you no opportunity to assess the value of what you are buying prior to committing. They only permit you to change your mind where they are required by law to do so.

4) They disclaim any verbal promises and don't give you a chance to review the written promises.

So it's a scam. Obviously so. There's not even any doubt. These three things are the clear hallmarks of a scam.

Not every scam tells outright lies. Some use more subtle deception that may even be legal. Not every scam outright steals money from every person. Even in a Ponzi scheme, some of the first people to join may make money.

Note that the people *defending* DirectBuy don't even dispute the facts that make it a scam. They just say it's not a scam because some people benefit from their membership. That argument doesn't even make logical sense. If nobody benefited from DirectBuy, they wouldn't be in business.

It's just not likely to be you.

[Millicent Neal]

My husband and I are looking into using Direct Buy to purchase draperies and furniture for our home. We usually purchase high end merchandise, so I did a tour of the Direct Buy showroom. I would say, if you are not in the market for luxury items and can use less expensive things then don't go to direct buy. However we plan to spend several thousands of dollars, and I feel we may come out ahead over a period of time with Direct Buy. My big drawback is that you have to know what you want before hand, since there is no way of making selections in the store. Then you are paying a very high membership fee to begin. Next you must deal with the manufacturer about problems. Since, I worked retail for years and know the price markup, even on so call discount and sale merchandise, Direct Buy to me offer something worthwhile to use, for people who are looking to purchase a lot of stuff. I don't think it is a good deal of household who just need a few things, that cost less than $1,000.

[Diana]

My husband and I recently went to a DirectBuy open house in California. He knew it was a sales scam the moment we walked in, but we stayed for the presentation anyway. After an hour and a half, they finally get to the 'membership fees' and it was $6000 for two years, and $300/yr for the next eight years.

That's when we walked out.

After reading other posts about handling fees, no returns, etc, I believe the whole DirectBuy idea is a bad idea.

[Jim]

Just want to say thank you for the article. About time that direct Buy is exposed for being a scam. I made the mistake of joining and have to say that this company is worse to do business with than any other company. I hope that consumer reports goes back there or maybe 20 20.

[Deana]

I joined Direct Buy when it was UCC about 11 years ago with my first husband. It cost $2200 with $100 a year for 10 years. We bought a bedroom set and saved $1000 over Seamans pricing (and I always thought they were pretty cheap) and then a dining room set $1000 less than we saw it retail. After that, all savings were free. A few years later I remarried and built a house and we bought another bedroom set, 26 light fixtures, and lots of Kohler (4 bathrooms and a kitchen) and a huge jacuzzi tub all through Direct Buy. We saved over $5000 on Kohler over Home Depot prices. The light fixtures everyone comments on as they are really unique and you never see them in the regular lighting stores. The nice thing about DB is that they can access the small manufacturers who can't handle having their inventory in 1000 stores so you can have some interesting items that others haven't seen. You can go onto the website for the manufacturers to see where they may have stores locally that have the product you are interested in, so I'd go there and make sure the quality if good. The flip side is that you can't return it if you don't like it, but you can if its broken. I ended up ordering one part I didn't need, so I sold it on ebay for a few dollars more than I paid for it. Like previous comments, its not worth it if you only need one or two pieces of furniture, but if you are going to be redoing a few rooms or building a house and can afford to wait the 12 weeks (some items take a lot less time - the lighting fixtures all took about 3 weeks), then its great. We also got a crib, our wedding invitations, a watch, some cabinets and a jacuzzi tub for my father-in-law. I probably ordered more but that's all I can remember for now.(With the savings on the tub, we had enough to pay for buying the renewal). Also, we were able to print prices of tvs and exercise equipment and then go into stores and have them beat the prices and deliver it and put it together for us, so DB came in handy that way too. Overall, we have saved over $15K and that is a very conservative number.

[Andrea]

We just joined on Sunday, and are wondering if it will actually benefit us. I have not done research as yet, but wonder if you can cancel in Michigan, based on state law.

Thanks!

[Jim]

Direct Buy may not be a complete scam but it is very scam-ish. Remember, existing members get discounts and fee reductions if they sign up new members...so take what they say with a "grain of salt". The internet has freed us all. With proper research we all can get really good deals on most if not all items.

[wayne]

My wife and I set an appointment for DB On 12-6-07 for 11:00 a.m. - when we arrived they did not have our name on the "schedule" but let us in anyway. Red Flag!

The sales staff was cold but direct to the point, which I appreciate. My first and only question was about the membership fees - $5900 start-up! Scary monster!

The good news, we did not sit through the 90 minute sale pitch and got out with a free cup of coffee! Make sure you ask about the fees up-front!

If you are looking for discounts I suggest the Internet. Lots and lots of companies offering considerable discounts. Should be interesting to see how long DB lasts in this day an age of the information Super Highway.

My heart goes out to the franchisees stuck with a white elephant.

[nora]

I just joined direct buy yesterday 12/8/07 and now I want out of my contract. Anyone out there know how to three day rule work in
WA state? Help I don't want my spouse to find out about this.

[Eric]

After reading all this I am still unsure if it is possible to make it pay off when building a new house. I am not a member yet but would be making lots of purchases such as fixtures,cabinets,flooring,and windows. It sounds like buying experience varies at different showrooms. Does anyone know hown Oklahoma City rates?

[Larry]

All the folks who keep on saying it's a scam just don't get it. DIRECTBUY IS NOT FOR EVERYONE.
If you're planning on spending around $20,000 on stuff like furniture, kitchen cabinets and flooring then you'll save the membership cost pretty quick.
Absolutely, do your homework. Go to the Directbuy open house with some quotes of stuff from other places so you can check while you are there.
And I believe that even though they will not tell you ahead of time, they WILL refund the membership within a limited time. Just ask to speak with the owner.

[Fed Up WIth Scam]

Ever wonder why the savings aren’t all that great or that there are no guarantee of savings in the membership agreement - that’s the agreement between the member and the individual franchised location?

You have to do some research, I may be wrong and it seems that one answer might be contained in their publicly available UFOC - Uniform Francise Offering Circular - for Directbuy. It contains disclosures on how they operate and that they do in fact received discounts and rebates without passing them on to the franchised location and the stores. These discounts and rebates include volume incentive discounts, quantity discounts, and pre-payment discounts, among others. Also, contained in the UFOC is a copy of their Standard Franchise Agreement. Conataind within that are contractual clauses that allow the franchisor to keep all discounts and rebates without passing them on to anyone. They can say that they pass them on though when and if caught, they are contractually allowed to do so. Crafty euh?

Here are Two service companies collect and sell copies of franchise offering circulars:

FRANDATA Corporation, 1725 Eye Street, NW, Suite 600, Washington, D.C. 20006, (202) 336-7632, www.frandata.com (generally US$2 per page)

FranchiseHelp, Inc., 101 Executive Boulevard, Elmsford, NY 10523, (914) 347-6735, www.franchisehelp.com (US$190 for complete UFOC and exhibits)

Look it over carefully.

Hope this helps everyone who wants to do some research.

[Mario]

Not a scam, just not a wise investment. Direct Buy infomercials air early in the a.m. when you're zombied out, leading you to believe you should join ASAP. Those who are members are just leaving us their comments which pretty much say if you are filthy rich and have money to burn, then, go ahead and join. If you are not stinkin' rich, this club is not for you. Well let them have their club. The rest of us will shop around, use the internet, and be better off for doing so. I can't believe I was actually watching the Direct Buy infomercial.

[Dan]

I agree with Consumer Reports:

"The lack of price transparency makes it hard to evaluate whether you’ll save by joining DirectBuy."

Some quotes I found from DirectBuy's Membership Agreement:

IMPORTANT MERCHANDISE TERMS:
- The Club disclaims all warranties regarding the merchandise
- Any need for subsequent repairs or service, after receipt of merchandise, is members’ own responsibility.
- MERCHANDISE MAY NOT BE RETURNED.
- The entire merchandise price plus handling fee, estimated freight and sales tax is required as a down payment at the time of placing an order with the Club.
- Suppliers reserve the right to change their prices without notice.
- From time to time some suppliers and services are dropped and others are added
- Only the supplier has the right to cancel an order.

http://edumacation.com/DirectBuyMembershipAgreement

No Warranty, No Price Guarantee, No Returns, No Guarantee of any Savings, 100% purchase price due upon ordering, "Suppliers" (I thought DirectBuy
was dealing direct with manufacturers?) can change prices or cancel at any time, and no guarantee of "Supplier" availablity.

Not a scam?

Tons more information I found at

http://edumacation.com/DirectBuy

I would like to see cr do a follow up on this outfit.

[woodworker businessman]

For those that say they are/were looking to buy high end cabinets. Were you looking for them at the big box storesprior to directbuy? If so, then you were not looking for high end. The big box store can't stock high end cabinets. Only a reputable cabinet maker can give you custom high end cabinets. But when you do so there are NO shortcomings. You tell them what you want and you have to approve the look before you pay.

Work done by professionals is done on a percentage of completion basis, no professional would ever ask for 100% of all fee in advance.

They will not fall apart as to a professional, reputation is everything and one bad comment from a former client is one too many.

I can almost guarantee that direct buy can not offer true high end quality custom products as any saving as true high end products can't be discounted. The professional cabinet makers who do this work are under high demand by people willing to pay for the work. I'm speaking from 20 years experience. I turn away more work than I can do in each year.

Keep looking for bargains, but don't confuse them for high end.

[Doug]

SCAM its a scam, I joined sorry I did, kitchen cabinets through them $10,800 & sum change not counting delivery & other charges, through home center around $12-13,000 for kraftmaid or thomasville take the 10,8000 & add membership fee & I just paid way more for kitchen cabinets. save your money, take a vacation & shop retail!! ohh I like the slogans they use " dont stay in retail jail, join directbuy & save" yeah right!!

Doug

[amy]

joined several months ago at the shreveport store. everyone very nice and very helpful. building a ouse in 2008 and buying furniture and appliances. Feel like I will save money and recoup the initial investment. so far I can save $2.00 A square foot on hard wood floor alone. Will update you on how its going

[Glen]

Does anyone have any information on disclosure of shipping charges with Direct Buy. You are charged these at time of purchase and told if they come in less they will reimburse you. Problem is when we pick up items, you are not provided the actual shipping charges. We asked for this detail on one of our 'pick ups' and the warehouse person did did not have the details. Of note we did receive a small reimbursement once, but no details for which product we purchased so cannot even reconcille back to sales receipts?

[Joan]

Does anyone know the charges to join in KC , MO store?

[Mr. What]

I find it interesting that the overwhelming majority of scam complaints are coming from non-members.

Reviewing these postings, it seems that members recognize the scam-like tactics, but evaluated the costs, and came out ahead.

I am looking at renovating my current house, and building
a new one. It does seem that the savings might be worth the
trouble for those big-ticket, high markup items.

As other posters mentioned, margains on some more high-volume items like small appliances and electronics are rather thin, and DB may not help enough to be worth the loss of return privalages, warantees, etc.

TANSTAAFL (There aint no such thing as a free lunch)
You loose convenience and service with these guys.
You save $$.
It only seems to make sense, to me, if you are buying
large amounts of higher $$ (higher markup) items.
I am. Hopefully all will be well.

I agree that their sales pitch gives me the willies.
I'm not convinced that it is a scam, though.

Note that they only make $$ when people join, but do not use
the service. I'm sure many people buy the pitch and get caught.
If you plan on spending some $30-$50,000 in high-end stuff in
the near future, seems like it could be a fair deal.

[J~]

Mr. What do a little more research online and you will find that a $5,100 fee for three years, payment of shipping, taxes and a "handling fee" of 6%-8% all adds up to retail prices. I was in DB's showroom yesterday with my wife. When we arrived home yesterday after the presentation I checked one of their "deals" on the internet regarding a Kitchen Aid appliance package I saw there. After pulling up the exact same appliances online, which were on sale with free shipping, the online price was $60 more however the online price was delivered to your door, DBs was not. One of their "premiere" lines of cabinets, Brookwood, they said was substantially more at other big box retailers however we could get it through them for over 50% through them. Well, Brookwood, the brand they showed us, is only offered through DB. In addition most of the other cabinet brands they offered I had never heard of.

Also their math was a little off. They said a family with an average income of $60,000 paid a 1/3 in taxes, 1/3 in bills and 1/3 ($20,000) in discrectionary income. They said if 1/3, or $6,000, of the discretionary income was spent on retail they could save you 30% of that, or $1,800 per year. Sounds good but let's go back to the membership fee of $5,100 for three years. $5,100 spread out equally over 3 years is $1,700 per year. Based on their scenario of $60,000 annually a member gives all their "savings" back to DB the first three years, and that doesn't take into account the time and cost of you having to drive to their store to order and pick up every item. So from there let's be generous and say after three years the "savings" offset the intital membership fee. You are now in the position of still having to shop there so you can now BEGIN to realize a savings on your investment. If you consider $5,100 at and 8% return for three years would realize a return of approximately $1,324 dollars. You would then have to shop another year to actually break even. So it would not be until your fifth year you would BEGIN to realize a savings. I have looked all over the internet and found deals. If you spend as much time intelligently shopping and looking for deals on the internet and around your area that you would sitting in their show room trying to figure it out, order it and waiting for it to be shipped you will find you can get the same deals without paying someone a $5,100 "membership" fee. DB presents only presents the facts that conveniently support their presentation and they omit ALOT facts and information that are very detrimental to their pitch. They are deceptive, period. No matter how you cut it DB is a scam that preys upon people. Almost as bad as those people preyed upon in the subprime mortage market.

I would offer to people to be well prepared with retail quotes and examples when you go into DB to compare, and ask them how much the shipping, tax and handling fee are so you can really compare. Good luck and be careful.

[Nut-Tomas]

COSTCO for the win. Possibly not as good of a selection, but INFINITELY better customer service / return policy.

[seth]

For those of you who defend direct buy, saying that it is not for everyone unless you are really looking for high end materials, and that you can get them cheaper at db obviously have no idea how to shop around or haggle. I just recently saved well over 1000 dollars on flooring simply by shopping around , delivered right to my door, (technically they took the skids off the truck and put them in my garage) free shipping and from one of the leading manufactures with the highest rating, that direct buy does not even carry. A statement was written somewhere on this page about a guys cabinets falling apart in 7 years, and they had the same cabinets at DB. Huge warning sign, cabinets that are of high quality, made with real SOLID wood and put together properly with dovetail joints by a skilled woodworker don't fall apart in 7 years. the don't fall apart in 20 . so what does that tell you about the quality of db products.

[BILL Deekin]

We had a freind that was a member purchase a bedroom suit from DB and the only thing that was high end was the price , The quality was seconds at best . Just goes to say You get what you pay for!!!

[Pmascari]

Everyone crying "scam" has either never joined or is just pissed that the price of admission is too high. Yes, it's a big chunk of change up front, and if all you're looking for is a good deal on a few appliances then it's not for you. Look, it's like this...

The best, probably only good way, to start DB is if you've got a major project to tackle...something costing $10k or up. A remodeling, home addition, whatever. You save big going through DB even with the up front cost. The $175/year maintenance fee after that is nothing. If you think it is, DB is beyond you, too. Just keep going to Wal-mart. After your big project is over, you've made up your money with the savings and anything else you buy through them is gravy.

Even though it's discouraged, you can still buy for family and friends and save them a bundle, too. That is if you have any friends...all you poor non-members crying "scam" seem like a paranoid crowd. "Oh, it's all a scam...the whole world is out to get me."

[Not Buying It]

My husband and I attended a Direct Buy open house in Springfield, MO yesterday. After their sales pitch, they told us the price way $4900 plus $99 per year after the first two years. They had financing available, but you had to put down $590. Seeing as how we have a single family income, we didn't have that money to just pay up front. We were told we either have to pay the money or we could not join. They didn't tell us about the handling fee. We wanted to join, but were not able to because we did not have the cash to pay up front.

After having to walk away, I am glad we did. We do have a lot of remodeling to do, and we could have regained the membership fees. However, you have to go into the showroom to make the purchase AND you have to go into the showroom to pickup most purchases. I live an hour and a half away. So each time I want to make a purchase, I must drive a total of 6 hours with 2 small children. They tell you they have a virtual showroom, but they don't tell you that you cannot purchase the item online.

Do your research before going to an open house. For some people, it may be worth it. I did not do my research, I am just glad I did not join.

[nosale]

I went to the presentation yesterday in Las Vegas. Talk about the hard sell. I am surprised to see others quoted $4900 for three years, $99 renewal, and 6% handling fee. Here, it was $4,900 for two years, $198 renewal, and 8% handling fee. The presentation was all show, cornball jokes, razzle-dazzle, testimonials, etc. There was never a moment's silence to contemplate or calculate. I agree with the other posters that unless you are building or furnishing a new home or doing a major remodel, the membership will never pay for itself.
I was offended at the $60,000/yr. example because you would have to buy EVERYTHING at directbuy for it to work, and they do not sell groceries, gas, power and the multitude of other daily purchases that make up everyday life.
When we finally met individually with our sales counsellor after the group meeting, he was evasive. Almost everything we asked about was not in their program, ie Subzero, Casablanca ceiling fans, etc. When I asked about pricing on a Fisher-Paykel dishwasher, he said "I can't show you everything." I replied "You haven't shown me anything." He reluctantly got the binder, and instead of the 70% off deals illustrated during the group pitch, it was a savings of a few hundred dollars. Impressive, but I would have to buy about 17 of them before I recouped my up-front investment.
One thing that perked up my ears during the group pitch was a mention of Rolex watches. So far as I know, they are about impossible to obtain at less than full retail. I asked the sales counsellor, and he said that he couldn't quote one for me because they came from a Jeweler in Tuscon, not a binder in the showroom.
We left empty-handed, although at least two of the four couples in our group signed up.

[Connie]

Glen, in regards to your question about shipping I have been checking this out myself. This estimated shipping thing seems to be growing! I have been with DB for two years and I've never had an estimated SR yet! Now they all seem to be estimated.I just ordered amy first item that had an estimated shipping rate. I asked why the rate was so high, she said she could charge me alot less and I'd probably have a debit and owe them. I asked when I would find out the actual shipping charges and they said that I could retrieve that info from my file 3 weeks after I recieved my order. *They were not too comfortable when I asked this across the desk at a very busy time. Three weeks are now up and I just asked to see the file... I was amazed to hear that the "total estimated shipping amount" was sitting as a credit. They also told me I had many other credits from over the past two years still sitting in my file! Strange! Why don't they tell us this? They told me "if I want the credits, my file had to be sent to the bookkeeper to be processed". I said that was fine and then I was told, "you have debits too"! It almost sounded like they were dissuading me from going to the bookkepper??? I also asked "twice" to have copies of all the shipping statements (by email) and there was no response to this request...yet. This has all been very recent so I hope it has a happy ending...
As for my membership and my purchases, I have yet to be disappointed. I am careful about what I purchase through DB and I know my prices well. I have always saved great amounts of money! My membership fee's were nowhere near as high as what some are posting.

[Mary]

Hi, Does anyone know the Myrtle Beach, SC store's fees and/or the quality of their service?? We have a large remodel and were thinking of joining. Thank you

[Z A Adefuin]

My wife and I visited A DirectBuy open house Jan. 2008 since we bought a condo in Ft Myers,Fl. that needs to be furnished, Just as everyone said, we had to listen to more than one hour of presentation extolling the virtue of being a member. Prior to this presentation I asked how much it is to join and I was told, that it will discussed at the end of the presentation. Directbuy is probably not a scam but it was a very high pressure sales. One has to make his mind to be a member on the spot and if elects not to, he is not welcome to come back. We were also told to become members thru this franchise in the greater New York area since the membershio fee in Ft Myers is much more. I wanted to see a catalogue and compare with a furniture store, but since I did not pay my membership fee and that I can not come back, I was not allowed to see there catalogue. If Directbuy has nothing to hide, why not allow me to comparison shop and then perhaps, I may come back and pay the admission fee,knowing and feeling that I will get the value for my money,

[what's the big deal?]

Is it me or does anyone notice that those who commented on how great direct buy is never mention the product brand?? People talk about how wonderful their cabinets were and how much they saved but compared to what??? Is it Kraftmaid or a cheaper brand?? Its killing me!!!

I signed up for a free pass but I think i'm going to pass on the pass!!!

[Michelle]

Anytime DB is not confident enough about their product to allow consumers time to make an informed decision the red flags should begin to go up.

[Joe]

It looks like the Attorney General in Ohio has tried to address the lack of transparency in the Direct Buy's sales presentation as the Ohio Directbuy franchisees and their franchisor have reached an agreement with the AG:

Look at:

Ohio AG Press Release

http://www.ag.state.oh.us/press/08/02/pr080213.asp

Assurance of Voluntary Compliance

http://www.ag.state.oh.us/press/08/02/pr080213_a.pdf

The agreement also calls for DirectBuy to pay the state $20,000

IMO, more tsates need to take this type of action in order to protect their consumers from these kinds of sales preditors.

What can Consumers Reports do to encourage the other AG's to take similar action?

[Mr. X]

I joined DB about 7 months ago and thus far have been very happy with zero complaints. I questioned if I would get my monies worth after reading all the hate threads across the internet that swore that DB was a scam.

I will be honest the sales pitch pissed me off and was a little rash BUT like someone else said many complainers are NOT members and this IS an investment, ONE purchase will not get you your monies worth. I will say however that DB is DEFINATLY for people that are:

1.) Remodeling a house or have bought a new home and need a lot of furniture.

2.) Spend a lot of money useless crap cause they don’t know what to do with their money.

3.) Plan on buying a lot of VERY nice things over time meaning 3 years or so.

I will make this brief I already made my membership back on the blinds alone.

A local commercial hardware store quoted me $7.5K for all the blinds in my house and I was able to save 3/4 of that cost going with DB and that included installation, these were also Hunter Douglas blinds which are very expensive. Also you need to shop selectively some things have a lot higher markup in retail especially home furnishings and that is where you will save loads of money.

I also have to say the handling fee is not that bad and they will actually adjust if for very high priced items so that is isn’t a ridiculous amount and it will them come out to something that you would get from a regular retail store for shipping and handling. Also about the shipping that is reasonable too they go by weight and for 600 lbs they charged me $50, who cares besides it came from the east coast to the west coast, I paid more for a transmission to be shipped and it weighed roughly the same. Not all things even get their handling fee so things HAVE to be shipped directly to you and if it is damaged you can refuse to sign and they will take care of it for you.

Lastly if any prices change after you signed they will call you and allow you to keep the order or cancel it, shoot I got a check unexpectedly because the shipping actually cost less than what I signed for.

So all and all it is not that bad and I don’t see why these people that ARE NOT members are even allowed to post or complain, they are just wasting peoples time that are actually wanting an honest opinion. I am sure that some have had a bad experience because they most likely purchased the membership for the wrong reason. Yes the fee is steep but if you have bought a new home or are doing a major remodel it is defiantly worth it.

[Ms. Y]

-In US, a court found the membership contract "grossly unconscionable" and that "Club membership is nothing more than a cleverly disguised method of selling nothing but hopes and dreams."
http://www.mlmlaw.com/library/cases/mlm/state/nyniemiec.htm

-In Canada, a provincial court found the membership agreement untenable and unenforcable because it violated the Consumer Protection Act, the Sales of Goods Act, and The Trade Practice Act. Read this at at paragraphs 13-20 of the ruling.
http://www.provincialcourt.bc.ca/judgments/pc/2002/01/p02%5F0197.htm

-In Ohio, Directbuy was sanctioned, fined, and the AG effected a change in Directbuy's apparent predatory sales tactics.
http://www.ag.state.oh.us/press/08/02/pr080213_a.pdf

-From DirectBuy's Membership Agreement, read carefully:
"
IMPORTANT MERCHANDISE TERMS:
- The Club disclaims all warranties regarding the merchandise
- Any need for subsequent repairs or service, after receipt of merchandise, is members’ own responsibility.
- MERCHANDISE MAY NOT BE RETURNED.
- The entire merchandise price plus handling fee, estimated freight and sales tax is required as a down payment at the time of placing an order with the Club.
- Suppliers reserve the right to change their prices without notice.
- From time to time some suppliers and services are dropped and others are added
- Only the supplier has the right to cancel an order.
"
http://edumacation.com/DirectBuyMembershipAgreement

- Court decisions
- Attorney General Actions
- No warranties
- No returns
- No guarantee of savings

All this for $5000.00 up-front membership fee?

Glad this seems to be a great deal for Mr. X. It may or may not be a great deal for others.

[ExEmployee]

First off, everyone I have read here and anywhere else on the internet is absolutely ignorant. Not because you think DirectBuy is a scam, which it is to some extent, but because you do not know exactly why it is. DirectBuy can save you money, if and ONLY if you purchase a massive amounts of product. The whole concept of DirectBuy is to purchase without retail markup. That's a great myth, but guess what -- there is a 6% handling fee on anything you purchase. That's a markup my friends, no matter what title you give it. Why would the final price be 6% of the cost of the item... to handle it? Let's put this into perspective. It would cost $6 to handle a $100 order or flooring tile as where it would cost $60 to handle a $1000 diamond ring. Think about that for a second! $100 worth of flooring tile (very heavy) is quite a bit harder to handle than a small ring, yet it the markup of the 'handling fee' of the ring is quite a bit more! DirectBuy works if you know how to work it, but the idea that it has NO retail markup is absolutely a lie. Take it from me, someone who has worked at DirectBuy in the Dallas Texas market for many years. Simple math, let's say membership costs $4,900 and the average savings is 35%. That would mean you must spend $14,000 to break even with retail to make the membership dues even worth it. Tack on the 6% handling fee's, you must now pay $14,840 to break even. If you plan on paying anything less than that for things for in and around your home, membership costs are a waste of time and money on the customers/members behalf. So, DirectBuy works for those remodeling a home, where it would cost 30 grand, but for the average Joe it's completely NOT worth it (regardless of what the damn salesman says). People, do your math before hand, educate your self.

[Question ForEx-Employee]

What happens when the average savings isn’t even 35% (less the 6% or 8% up-front handling fee). It seems that there are a number of complaints documenting that a number of instances where Directbuy’s prices are not any cheaper (or just marginally cheaper) than another source?

[Answer To Question For Ex-Employee]

Ex-Employee mentionned that it was an AVERAGE savings of 35%, which means that some items may have a savings of 70% and others of 0%.
Making it an AVERAGE of 35%.

[Average]

Guess its not such a great idea after all especially if the things you want happen to average 10% or less. I may be wrong and is this where cr had a problem with lack of price transparency?

[Carrie]

It's amazing how some of you throw around words such as "scam" and "lies." If the company was such a scam, it wouldn't be in business, and there wouldn't be any happy members let alone members referring people to the club. In today's world we can generalize that many people want instant gratification, and when they don't always get it, they always find some nitty gritty detail to complain about. That goes for other businesses as well. As consumers, we all undergo buying patterns. Whether or not you are doing a complete remodel or building, you are always buying. DirectBuy has helped me out for gift giving, personal shopping, nickle and dime savings (several hundred) before I did any major renovations, and I'm sure you'd all agree that those things sure add up. The entire concept of DirectBuy is to cut out the middleman, and the return on investment doesn't HAVE to even come in the first year-- that's why it's structured over a period of time. First of all, as a DirectBuy member, I made my decision to join based on the thorough information that was well-presented to me and the other guests. My sales rep was fantastic--she answered all of my questions, fully explained why there is a handling fee, and alerted me to the fact that you may get "marginal savings" on electronics and appliances because they are more technologically sensitive--that's just the nature of the industry. This information is always clearly marked on the catalog binders. However, in my 2 years being a member, I have saved significantly on grills, cookware, lighting, furniture, cabinets, countertop, window treatments, crystal, luggage, windows, saunas, and a whole host of other items. If the company wasn't saving you money--shipping and handling included--who would continue renewing their memberships? In retail, there are shipping and handling fees, however, keep in mind that they are hidden in all of the high markup. At DirectBuy, you know exactly what you're paying as you see each fee separate before you order AND according to most people i've spoken to, this information IS INCLUDED in the video portion of the presentation. Besides shipping and handling is all relative to what you order-- you won't see handling on small items, UPS items, or even appliances, or electronics. It's only on larger items that require more inspection, and the purpose of it is to cover any additional cost to the member for a damaged item-- any damaged product is repaired or replaced for you at no additional processing cost. Another point is that you don't have to buy all high end merchandise to save significantly. I've saved just as well on middle end products. Even some of the lower end products had decent savings. There are a wide range of manufacturers from middle to higher end. Although occasionally I make purchases retail, I am pleased to say that I use the one-stop environment to make most of my purchases. The service is phenomenal-- no pressure, just informative people who truly answer your questions, and know you by your first name. I'm tired of seeing comments with no support to back them up. If you're writing complaints and are not a member, then you must just be upset that you didn't make the choice to join. Battling the issue of making a decision the night of the open house just left you to be another sucker succumbing to retail.

[Any Savings?]

So what guarantee of savings, if any, does Directbuy offer for their hefty upfront and non-refundable (except in Ohio) membership fee?

[Dundertaker]

There is no "scam". Member for over 10 years, you are forgoing the markups of retailers by taking responsiblity for your own purchase. The products are guaranteed by the manufacturer, not DB. They are inspected prior to pick up, you can refuse the order and ship it back (I've done it!). You do have to pick up your own stuff from the DB office (unless it is direct shipped, but only small things are).

In December, I purchased 1,100 sq. ft. of 5" Hickory wood floor for $ 7.15 a sq. ft. (inc. tax, fees, and shipping) compaired to $ 13+ Tax a foot for first quality (same brand from a retailer) or $ 11 for "seconds" from a wholesale flooring company. I did have to borrow a trailor and move 26 + 100 lbs. boxes of floor 2 times, but to save over $8,000 dollars it was a small price to pay.

You can't make your membership back quickly on a single "tv" or appliance. i.e. a GE Ice 2.0 Fridge is $1890 through club, and we purchased locally for $2050. Was not worth $160 to have to pick up, install and haul off the old one (which the local store did) on our own. But Large purchases, like floors, cabinets, etc.....it's easy.

I have saved over $50K in the 10 years I've been a member. I agree they have a "goofy" sales pitch, which has not changed since we joined, but remember each location is an individual franchise, so each location is only as good as it's owners.

As always, do you home work and "buyer beware". Even CR admits they could not assess the savings because they were not given the opportunity to look through everythig. Part of the membership agreement is that you are not going to disclose the pricing, etc....to outsiders. This does not mean you can't shop, it is a requirement of the people who agree to sell to DB so their other retailers are protected.

BOTTOM LINE: You are giving up the "service" of a traditional retailer, which they are not, for the extra mark up a "retailer" charges. That's the savings. It does not mean DB will not help you, but it does mean you are going to have to: Do your own homework, measurements, pick up, install, etc......they order it and you're on your own! If you screw up your order, or you do not check their order/math, it's not going to be their problem and they are upfront about that.

You can't have your cake and eat it too! Simple as that! I 've always been satisfied with how I was treated at 3 different offices in 2 states and my membership has saved us over $50K

Dundertaker

[Brent]

Folks, the gentlemen who commented earlier in this thread about the "internet freeing us all." was spot on. I doubt there will be a Direct Buy or anything like it in the near future. Our global economy is changing so rapidly and the internet is rapidly breaking down traditional sales channels where a manufacturer sells to a distributor who sells to a wholesaler who sells to a retailer who sells to the general public. Fact is, the internet has given us the ability to get closer to the manufacturer than at any other time in history. You simply don't need to spend $4,000 for a Direct Buy membership to get good pricing. If you spend some time researching online and know how to properly search, you can find all the same deals offered by Direct Buy right from the comfort of your own home.
How is this possible? Simple, e-commerce has slashed overhead cost. Now, for the fist time in history, companies can sell products online without having half the overhead required just ten years ago to run a brick & mortar store. With lower overhead costs, more competition online, and a much larger market, businesses don't have to mark products up nearly as high as in the past to be profitable. Therefore, you now have prices online that are closer to wholesale and more everyday that are approaching manufacturer-direct.
I speak from experience as an eBay Powerseller and owner of a wholesale plumbing supply company. I have manufacturers begging me to sell there products online. This was not the case just five years ago when manufacturers were very protective of their sales territories. Now, they are beginning to realize that the internet is the wave of the future and that they had better get on board or be left behind. Only problem is, you typically will not see any manufacturers selling their wares direct off their own websites because they still don't want to undercut their distributors. However, I can tell you for a fact that they are seeking other individuals to market their products online. I spoke with two major plumbing manufacturers last week that wanted me to put their products online. The beauty is, I run a low overhead operation and am able to sell these manufacturer's products online with very little markup. So you are able to buy from me (and thousands of others like me) who can sell products to you at very close to manufacturer direct.
This trend will continue as more manufacturers seek internet saavy entrepreneurs to market their products online. So, my guess is there will be no more need for outfits like Direct Buy in a few more years. My suggestion to you is save your $4,000 membership fee and put it towards the bargains you find online. Here are a few pointers to help you search online:

1. Avoid buying from sites that are listed as "sponsored" listings on Google. They typically have hefty advertising budgets and must charge more for their products to account for this.

2. Avoid price comparison sites for finding bargains as they too host sponsored merchants

3. Dig deep into Google's search results to find small obscure companies (with low overhead) that offer the best pricing.

[Any Guarantee of Savings?]

Directbuy seems to have a huge, at least to me, up-front fee. What I would like to know is what guarantee of savings, if any, does Directbuy offer for their hefty up-front and non-refundable membership fee?

[Mindy]

I think it is very funny what people have to say about something they know nothing about. Most people who have a "complaint" are because they were not able to join and are just mad about it. Then the only thing they can do to get back at DirectBuy is to talk about what a big scam it is. It is not only for the rich. I am a college student and joined because I know it will benefit me and save me money.

The same-day decision policy is stated in the information they send out. If you're going to ask to receive information, then READ IT!!! If you don't read the information, then it's your own fault you went in and weren't able to join.

As far as finding lower pricing, well anyone can find items that are cheaper but it's not the same thing. I know i can find kraftmade cabinents at stores for $15,000 and get a better quality cainet at DirectBuy for $10,000. Ok $5,000 less than a lower quaity cabinet. Or a tv from Sam's Club that is the same price...NEWS FLASH it's NOT the same thing.

People just want an excuse to complain about something because, like I said previously, they didn't have the money to join the day they visited.

I have yet to make any BIG purchases through DirectBuy with my membership, but I do not regret one bit joining. I think it has been the best decision I have ever made.

DirectBuy is not for someone who wants to put cheap stuff in there home such as $20 lights or a $500 big screen. People need to be realistic. If you are furnishing your home, building a home (and not for $30,000 and yes there are people out there who think it can be done) or you're remodeling your home, or even if you are younger and understand you have a lot of buying to do in your lifetime then you should check it out. If you go in and decide, well this prob isnt for me well at least you checked it out and then you can know for yourself what it is all about....and not rely on pissed off people to tell you what they think it is all about.

[Jeffrey]

I am a member and I came across this page one day thinking, "I have been a member for along time and I like it, but what do other people think." Then I read for awhile what is on the page and what I see is alot of propaganda and b.s. and I wonder, have I been snowed? It seems like I am a member of a different club. How could all these people be so angry with a service that has saved me so much money? Are they ill informed? If all these people are so angry why didn't they talk to the owners of the company or write the corporate office and get results. If I was ever upset I wouldn't post a website, I would go to the people that sold me and get answers to my concerns. I have saved alot of money and actively promote DirectBuy cause why would you, put your family in a position to pay retail when you can go direct to the manufacturer? I made a decision the day I joined and am glad I did and I am glad they don't just let anyone join. I I keep saving money and you keep paying retail!!!

[anon]

I disagree with most of the complaints on here. I got a Direct Buy membership after learning about DB from a high school friend who works there. I was lucky enough to be better informed. I found out all about the one time sales pitch before hand from my friend. I strongly disagree with their membership sales tactics but I do see the point. I believe if they used less pressure and offered a 24 hour decision period, they might get more sales. But they are bound by contracts to the manufacturers. My friend has related plenty of horror stories of how a visitor drives over to Future Shop and demands a new plasma at cost (through price matching offers) right after the intro visit. The person went through the sales pitch, looked up the price of the TV. The person then threatens FS that he will join DB unless they give it to him at the cost price. Heck, he has gotten angry calls from Future Shop about impatient members who do the same thing, cause they don't want to wait 6 weeks for an order to come in. The Ottawa location lost a garden supplies provider when a member took a confidential Direct Buy quote and drove over and demanded the same price so she could save delivery time. Her membership was revoked and that business dropped DB as a sales channel. She violated the rules and other members lose out (we cannot access that supplier). Yet she is probably going to be complaining on a forum like this soon.

Its hard to understand the concept that DB is not a retailer. Each location is an individual franchise. Service varies depending on which location you are using. So does the membership fee. The membership fees are how each franchisee makes money. They do not make money on what you buy. The showroom is simply a library with MANUFACTURERS catalogues. The catalogues are binders filled with product information and price information (ie MSRP, MAP, unit price, cost price, etc.). Your membership fees pay for access to this info. When I joined, I had my friend price out different items I intended to buy which allowed me gauge my potential return, before I visited the store. Lastly, I found out that since all DB locations are franchises, each one has a different membership fee. The newest locations tended to have the lowest fees but the highest annual renewal fees (for years 3 -10). Luckily one of these new locations was in my area. So I purchased the membership for around $3500 CAD in Aug 2006. I plan on renewing at a location with a cheaper annual rate. Find a new location, and you will definitely not have to pay $6000. You can bargain the fee, because its the income of the franchise owner. It comes down to how much of a break the franchisee wants to give you.

Pretty much everyone who has a membership has purchased something for a close family member or friend, although its against the rules. The reason it's not recommended, is because the order and therefore, the warranty, is in the member's name. If it breaksdown, guess who has to deal with the manufacturer. And it erodes the buying power of the members at large, if too many members do this. If you have a close friend with a membership, it is one way to get some inside information before getting the full up sales pitch. However, don't expect any members to risk their membership by publishing information on the internet that is clearly marked confidential. I actually think its a bad idea to convince and persuade any friends to join. If they can't come to that decision on their own, DB is simply not for them. Some of my friends are now considering membership after visiting my condo. The happy members are by far the best sales pitch. They should quit doing those cheesy commercials and rely solely on word of mouth.

As for other costs…the 6-8% handling fee is not applicable on most items. I have paid shipping or handling for only about half the items I have purchased. Electronics for example, rarely have S&H. And even then I have still found it cheaper in comparison to retail. And then there’s sales tax. I can’t see the argument of those who complain about sales tax. I would love to find a retailer that does not charge you sales tax.

There’s also the comments regarding them not offering financing. I think this is a good thing. If you need financing you do not belong at DB. If you are a disciplined shopper who saves up for major purchases and does not impulse buy then you are definitely a DB fit. Given today’s instant gratification society (I am only 27 myself) and the piles of credit card and other debt, I dont think DB should offer financing any time soon.

I have benefited immensely from this membership. I bought a new condo and I did purchase all my furniture and appliances from Direct Buy. By my estimation, within 2 years I have recovered my fee. They had all the brands and the models, the type of furniture (a particular Nicoletti couch - only sold in Montreal...and I confirmed that with Nicolleti in Italy) and rare items I could not find (an LG combo washer/dryer that was withdrawn from retail in Canada). In fact, I am always overwhelmed by the amount of choice (for example colours and materials on furniture) that I have at DB. Also, I appreciate having one location where I know I can get the lowest price on just about everything, without having to shop around and spend hours and hours on the net or driving to stores all around the city. As a young professional, I do not have the time or inclination to spend hours out in the cold for a boxing day sale, nor do I want to drive to the US just to pick up a mild bargain. I do shop around sometimes to make sure its a deal, but I have yet to find DB lose out to any traditional retailer. After all, the retailer is using the same manufacturer catalogues as DB, so I can't see how its possible. It makes me laugh when I see a Best Buy flyer with the exact MAP advertised as a sales price. Shows me, that the system works!

The location I joined at, advised potential customers not to join unless they had major purchases and were likely to recover their investment. The reality of DB is that it takes some compromise and elbow grease on your part to enjoy those savings. This means you have to do the research before you buy. You have to pick up and install purchases yourself. And you have to have items you need to buy, (ie major appliances or home improvement items) or non-traditional items (like the aforementioned combo washer/dryer) that you would like to have. And you have to have major purchases to make. Unless, you are likely to purchase at least 15 000 dollars worth of merchandise in the next two years, you are unlikely to recover a satisfying portion of your membership. I think they should stress this point more. Realistically, if your personal income is less that $60k or you have a family income less than $70k, you’re probably better off at Walmart or Ikea. Though it is against their principle (they started out as a club of families who were buying furniture together), I personally think, DB should do an income screen before joining, to avoid signing on those who would feel ripped off after, because they only buy low end retail anyway.

In my experience (and having inside knowledge from an employee), those who complain have entirely unrealistic expectations and a poor understanding of how DB and retailers operate. The fact that many contractors themselves (though they are not supposed to) use DB says plenty about how cost effective they are. But there are bound to be compromises. You don’t get the brand you want sometimes (very rare in my opinion) , they don’t sell low end merchandise, you can't return anything (they are not a store with a warehouse, they are a buying club), and you have to cart it away yourself or pay for delivery. If you want to join you have to weigh these issues out. If you are choosy on brands (ie Sony is not offered but Samsung is), DON’T JOIN. If you need to visit a showroom to buy an item, DON’T JOIN (isn’t that what the internet is for?). If you need to talk to sales people (I find them annoying, useless and uninformative), and you are not an independent shopper, DON’T JOIN. If you want everything to be delivered the next day after you pay for it, DONT JOIN. If you don’t like to set up and install things yourself, DON'T JOIN. And if you have no major purchases to make, really….DON’T JOIN. If you are satisfied shopping at Walmart and Ikea, DONT JOIN. Direct Buy does not carry brands that can compete on price with gypsum or particle board furniture.

Lastly, your expectations have to be realistic. Electronics tend to have markups of only 15-25%. The Direct Buy price compares well on the cost price for many electronics at retailers like Best Buy (I have a cousin who works there and I have compared prices - their COST prices). Occasionally, however, retailers like Best Buy do sell below cost so it will be cheaper to shop there than DB. This is however, the exception, not the rule. And if this happens, go with it. I am not one to turn down a bargain. With items like furniture, or home improvement and building materials there is no comparison. Italian made furniture sells for 30-40% of the retail price, and usually 50-60% of the MAP (the sale price retailers usually offer to customers) . Granite counters go for half the price of outside contractors with more choice of materials and finishes. Tires for my car are close to half off. On a set of winter tires for my car, that was over $600 in savings. A single purchase like that every year, could recover your membership value over time.

In short, you have to have time and effort to put in, to truly materialize savings. And you have to have money to spend. DB is not meant for bargain basement shoppers. It is meant for those who are value conscious (not price conscious - there is a difference), who make informed decisions and take the long view of purchases they make (granite counters add value to your house, a new plasma tv does not). If you are not this type of person, do yourself, the staff and other members a favour, and stay out of the showroom. The rest of us have some shopping to do.

ps. I posted the above comment as annonymous in various locations. I think the crap being posted about DB is entirely unfair and uninformed. The only reason I posted as annonymous is to protect info about my friend who works there who went to great lengths to help me decide if joining was right for me. He did all the research and disclosed some prices. I used that information to shop around and then decided DB was right for me.

[Kate]

Hmmmm...I am curious as to how many of the "defenders" of Direct Buy are actual consumers and not somehow associated with the company...just saying....

[Joanne]

I was interested in going to an open house as we are going to be building a new home soon. I requested info and when I read that my husband and I HAD to come together, I chose not to go because I knew my husband would not want to sit through a 90 minute hard sales pitch. I didn't use my visitor pass. They started calling me and then sent another pass. When I didn't call to confirm, they again started calling. I finally talked to the guy and told him that I wasn't going to come because I couldn't get my husband to come with me. He was so anxious for me to come that he put me on hold to talk to the manager. He came back on and said he got it approved for me to come without my husband. I told him that I had a friend who would also like to come but only without her husband too. He made her call for her own appt., same as mine, and the next day we both drove to our appt. in Las Vegas, NV. About 15 minutes after we checked in, a man came over and proceeded to tell us that we cannot hear the presentation because we didn't bring our husbands. I explained to him that we had approval from Elliott the man who set up this appointment. He said that isn't their policy and we couldn't go in. He never apoligized which made me mad now so I raised my voice and asked to speak to Elliott since I drove 1/2 hour to get there and my friend did the same. Another man approached us and asked how I was so I told him I was angry. He said he was the owner and would we like to talk to him about it and I of course said yes. He politely led me through the showroom where some people were to the office door and when the door shut, he glared at me and said he would talk to me but I had to stop screaming and yelling. I told him I wasn't screaming and yelling but I was angry that I was made to waste my time and gas. He was extremely rude but did allow us to sit in his office and tell him what Elliott had done. He said everything he could to make us out to be a liar without using the words you're a liar. My friend finally said let's just leave and he said "yes do that, you wouldn't make good members anyway".

I wouldn't have joined after hearing the outrageous fees anyway but now that I have read the threads here, I am even more happy that we walked out. If the owner of this franchise was that rude before we plopped down our money, just think how little he would have cared after we were already sucked in.

For those members who talk about non-members just complaining, I get the feeling that you are very embarrassed that you got sucked into such an obvious bad deal that you now feel you have to justify your lack of sense. Shop around and you can find all kinds of great deals without having to buy in the dark from such a questionable company.

[nick little]

i have had a wondeful experience wiht direct buy i saved over 2000$ on a living room and dining set and there will be lots more savings in the future i cant wait to keep taking advantave of my member ship best invest ment i ever made

[Nicole]

"I really commend all of you complainers for having a mind of your own. For those of you who actually took the time out to go in and learn about DirectBuy, I commend you. If you went in to learn with an open mind and ended up having a bad experience, then you are completely justified in all of your complaints. However, those of you who are just basing your opinions off of what you have seen and heard, then shame on you! I would have hoped that most of you would be wise enough to have a mind of your own. The media and reporters have their own way of spinning EVERYTHING. Oh and how many times does someone pass on news about bad experiences vs. the good experiences. Well just turn on the news and there's your answer. You can express your opinions all you want, but unless you've gone in to learn for yourself then your words have absolutely NO justification.

[BD]

A few points:

1) Some are posting that DB cannot be a scam because people are saving money and are happy with it. This premise is ridiculous. Throughout history, people have happily handed over their possessions to dubious causes, businesses, and individuals. Doubtless some people profit from pyramid scams too. If you are happy with your membership, good for you. And if it saved you money, I am very happy for you. But that is not evidence alone to prove it is not a scam.

2) I have no doubt there are certain situations where a DB membership would be a sound consumer decision.

3) People here are bemoaning the individuals who are complaining and do not have memberships.

But therein lies the reason the people are complaining!

DB gives consumers no (or very little) opportunity to evaluate their decision to spend ~$5000 ahead of time. And they use all the tactics of a hard sell. So even if I assume that #2 is true--that people in certain situations will doubtless save money--how is it ever a rational decision to plunk the money down if I have no a priori evidence that I will save money.

It's no different than selling you an expensive condo sight unseen. Sure the brochure looks nice and there are great testimonials, but by the way, after you put the money down, you find out about a little detail such as work has stopped halfway because of a dispute with the contractors.

I am sure many of you who have DB memberships are happy. In fact, it is in DB's best interest to make you happy about what you did with your money. Look at all the free publicity they get from happy members. But the bottom line is that it is not a sound choice for consumers if all the facts are not presented ahead of time.

[Deise]

We went to a DB presentation and walked out of there and then laughed all the way home. Since this is a franchaise each place can be different in their approach to people. Where we went was all HARD HARD sell. Our ( as in we own it)company manufactures so we know the truth vs what they were telling people when it comes to cost, markup, profit etc. They were quoting prices that were outrageouly high for retail in the area unless you are someone that like paying that much to brag about it.

We gutted and redid our kitchen in our vacation home 3 states away. All the life time warranty hard wood cabinets we had put in cost me $8200 with tax and delivery from the manufacaturer in Canada. The man that did the installation of all the cabinets and the counters and fixtures cost me another $2800 for his time. That's 11K for a large kitchen to be redone, in top grade materials and workmanship. DB tried to convince us that the countertops alone for our kitchen in our year round residence would be twice that amount at their great discount (plus 4900 membership).

No I don't think so. Furniture.. I like simple well made furniture not ultra expensive designer name brand. Last time I had company no one turned my furniture over to see if I had expensive high end designer furniture.

Maybe 10 years ago this was ok, but in 2008 we are in a failing economy and if you are going to spend money its worth your while to take time and reasearch who has what for the best prices without paying someone 4900 to do it for you and still not be sure you get the best price or delivery or service. Not to mention that there are no returns, no refunds using DB from the thousands of complaints about them on these issues alone. You can't pay the 4900 upfront.. 18% financing on that.. by the time you pay it off, you've paid it twice so you want to pay them $10K to find you a discount on stuff you won't research yourself???

I'm sure there are people this is great for, they don't mind spending the $$ etc etc.. but for most people its outrageous as well as overly expensive.

[Ron]

So, let me get this straight.... You will spend roughly $6000.00 - to save $6000.00? And you prefer not to purchase items from a local/reputable store or on-line? If you finance the initial fee, it is really costing you over $8000.00! In all, looking at the reality, you have to spend about $30,000.oo to BREAK EVEN....Then you may realize some return on your investment. And if you need service or design, good luck! You better be willing to sacrifice a lot for the savings you may eventually see. By the way, If you spend $6000.00 for the membership and save $4000.00 on your kitchen cabinetry, you still over-spent by $2000.00!

[David M.]

My wife and I are planning to do some remodeling in the kitchen and baths. We were invited to do the horrible sales pitch and then they dropped the ball. We were sitting there thinking that the membership would be around $750.00 or so. Then the $6,000 figure was thrown out there and we were shocked. Thats our budget for some of the things we need to do. But what was the biggest kicker was they said that this was a ONE TIME OFFER and you would not get another chance to join. Who in the world do they think they are.????????? Maybe in the future I was to do a big project that they could possibly save us the fee $$$$ and still save us money. Well being hollier than thou attitude, I wouldn't join now if they gave it to me. I will tell all the folks I know about the crazy memberships and suggest not joining.

[Zippy]

I enjoyed reading the comments from all of the people that are going out of their way to support DB. Either they're employees, owners, or they've had too much of the DB Kool-Aid.

I would be very interested in going to learn more about the program, but if they don't give you any real information - why are you forced to "buy now or never come back"? To me, that rule makes it seem like a shady operation.

I can't think of many businesses in this world that give you a $5000 quote for a service and then demand payment or ban you from their secret society. It sounds like they try to make their little club seem so exclusive that you just HAVE to join. They seem to prey on the weak that have an overwhelming need to feel that they're part of something special. Maybe this is where all the Amway sales teams work now.

Maybe they do provide a great deal, but the whole sales tactic reminds of a timeshare sales pitch - so I won't be going anywhere near it.

[Lawrence]

We join DB today and after reading all the comments good and bad we decided to go online and check ourselves and compare prices. My wife and I are looking at a dining room collection on a website "http://www.eco-furniture.com" and the exact same set is $2100 cheaper through DB...and that's at 30% off per the website we are looking at.

Like it's been said, don't spend the hefty up front cost to save on a table or a chair... but if you decorating a few rooms or more like we are, it's worth the money.

[GTB]

Six year ago we were looking at buying a house that needed a lot of renovations, so we joined DB. We ended up buying a different house. We didn't use our membership until last year when we renovated a bathroom (saved $5,000). When I was in the showroom picking out items for the reno, I was surprised at the selection they had. Things that I had purchased in retail. Our biggest mistake was not using the club sooner. Now I always check DB.

Besides the renovation, we have bought: pump and filter for the pool, pool supplies, jewellery, leather wallets and purse, electronics, lighting, shelving, toys, all at great savings.

I value my membership.

[Chris]

I recently joined and also feel it is a scam. I just threw away $5,100 with no way to get it back. Stay away from this deal at all cost. The hard sell tactic is a dead give away it is a scam - at least scam enough for me. Just walk out. I'm going to see if I can't still take some legal action.

[TMo]

My wife and I joined DB a couple of days ago in MN for $4900 w/$99 yrly after the first 2 years. We also initially got sticker shock when we first heard the amount of the membership fee. We were lucky enough to have a rep that left us alone to discuss the offer privately. We currently have a basement finishing project that we were using to benchmark our potential cost/savings. We need everything from lighting, to carpet, to cabinets - so we do need to spend a fair amount on the project. Bottom line...we would not have signed up had we not had a sizable project to recoup the cost. That being said, our intent was to only break even on the membership fee. We do not plan on realizing and real savings except for purchases beyond this project. We are choosing to use the DB membership under a long term savings model - not overnight. Time will tell whether we made a wise choice.

[CML]

Wow... what is with all the whining people? I've been a member for DB for a while now, the bottom line is (and I don't mean to gloat here) but it's for people who are make a decent amount of money to save money. Sure you have to spend to get in, but I've saved thousands upon thousands on furniture, flooring, electronics, etc. If your household income is less than $100-150K depending on where in the country you are, I'd recommend you don't do it, as your expendable income isn't going to allow you to spend the amount of money they you're likely to want to recoup. If however you happen to make a significant amount of money and your disposable income is fairly high and you are used to making high dollar purchase for high quality items then I'd say sign up with DB. Before I get a bunch of naysayers, I'm not affiliated at all with DB, just someone who sees this makes sense to the appropriate people.

[Aaron]

I suspect that Kate is correct - that a lot of the DirectBuy defenders posting in this thread are associated with DirectBuy. A lot of the comments are formulaic.

There is an easy way for DirectBuy to establish its legitimacy to Consumer Reports - throw open the doors, let them in, and open the books.

If they won't do that, nobody here has any business complaining about criticism. The *only* reason to hide the fact is... they have something to hide.

[Snob]

I find it interesting that those who staunchly defend DB do so with reasonably cohesive thinking and application of grammar rules. My general experience with forum spaces would indicate something is less than copasetic.

[Karl]

DirectBuy just opened a store in my town. A few people I know were very excited. I did some internet searching and ended up here. Thanks for