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

[R.L]

After reading most of the comments on this web site I come to realize that their is a lot of morons out their which comes to no surprise especially after the last Presidential election. All you people out their that think DB is the best thing since sliced bread have no clue when it comes to so called "HIGH END" it seemed like everyone that thinks DB is all of that and a bag of chips mentioned the word "HIGH END" you compare the product or products you purchased to lowes, home depot, sears, and even walmart, the product being cabinets, countertops, furniture. Go to your local reputable cabinet, furniture or countertop maker and compare your so called "HIGH END" product to the CUSTOM MADE IN THE USA product, you will see a difference. all your doing is buying the same crap that your box stores sells but your buying it direct. so don't tell me it's HIGH END. And last but not least for all of you who wanted "CHANGE" your going to wish you had of saved that 5 to 6k membership fee for a rainy day and that storm is coming

[andrew]

I'm kind of interested in checking out the whole DB deal even after reading all these posts. However I am more interested in finding out how easy it is to just to have someone else who has a DB membership make purchases for me. How much are they allowed to purchase or what the whole buying procedure is. Is it possible to scam the scam?

[Goldy]

Honestly... if we were going to do lots of purchases, like cabinets, furniture, deck, etc... it would be a good thing to do. Problem is we bought a new house and purchased all we needed last year... so we don't intend to buy anymore than 5k on the next 3 years...reason why we didn't signed up. Otherwise we would have. Hey...they need to make money somewhere,thus the fee. There is a silver membership 86/month for 36 months and you can upgrade it later. The fee is high, so ig you are not planning on paying about 6k or more a year, not sure if it is for you.I don't think is a scam, you do save money...I saw with my own eyes, and is not little, up to 50%. The only bad thing is the "decide today or never"... but overall is not bad at all.

[SL]

What a total, disrespecting scam Direct Buy is. After being treated like children listening to an hour long sales pitch then another hour being pressured by the sales person at Springfield, MO Direct Buy last night, we were harassed when we told the salesperson that we needed to run the figures on the feasibility of joining - he actually laughed at us because we would not buy his "load of crap" that night. He laughed at us and told us he did not believe we could be so stupid not to make such a simple decision. We also caught him in two lies when we were with him, plus he did not "know his stuff"; his intent was not to "help us save money" but to make the sales pitch and make money for himself. His attitude was the main reason we will never step foot in a Direct Buy again.

[Tricia]

I just recently joined DB in Gray TN. Even after reading all the negetivity, I believe we made a good choice. The owner/sales lady was not pushy whats so ever. She even let us look at some prices in the catologue on items that we were going to buy in the next month or so. Just in those home furnishings and appliances, we will have already saved what we paid in membership fees. I do believe that "you have to join today or never come back" was a little pushy. I believe that consumers should have the option to make a informed decision. That requires more than 90 minutes. Time will tell if we have made the right decision.

[william shonkwiler]

I wish I had read this review because i joined in June 2008 with the same hard sell now or never and deposited 500$ with financing then in July 2008 I lost my job and tried to cancel and was told no. Here it is October 2009 and i still don't have a job lost my home and everything else now I have Beta Financing calling and harraseing me. You would think with these times Direct Buy and their finance firm Beta Finance would help a person out but no they do not care about people. I told them to keep the 500$ and just drop it because i will never use it but like I said they do not care about people and hardships we are faceing today. Again I wish I had read this before I went because I would not of went to showroom Which in and of itself was a joke. I hope this helps someone to stay away from this scam cause i don't know what I'm going to do when they start garnishing my wife's paycheck she barely makes enough to pay rent, utilities and groceries.

[Laine Barrette]

The whole DB thing is shamelss. In fact, redoing one's home ever so many years because it's 'dated' is shameless~! That means, often, filling the landfills with useable items that those in other countries would never be able to dream of owning. And then spending enough money to feed, clothe, buy houses for several with the money for 'new' things Yes, I am tempted sometimes, too. But I don't~!

[Single Girl]

DirectBuy Orlando is a scam. I reluctantly signed up on site and the other bloggers are correct- never sign up when the sales pitch is you must sign up today or you will never have the opportunity again. I made the mistake and did sign up. I exercised my right to cancel within 3 business days (via certified mail) and 30 days later they still have not issued a credit to my credit card. When you call their office they never answer and never return calls. Buyer Beware!!

[LJ]

I joined earlier this year, and each time I have had a major purchase I have tried to use Direct buy,

this includes kitchen cabinets, mattress, replacement 42 in TV...

each time I have conducted a search online at direct buy and at many other online sources. or actually gotten quotes from local vendors.

thus far I have not been able to find a deal where direct buy wins..

I feel so sick that i spent so much money, i thought it would work because I am remodeling my home. so far i've wasted 5K.

i would like to know if there is anhyone else out there who could help me recoup my money.

Lesley

[Don]

Thanks for the info. If all I am saving is on high end cabinets I can get that in North Carolina at the price Direct Buy pays. My advice if you want to save real money get a part time job at a furniture store. You get all items at cost. My brother works at a furniture store and I get prices that far exceed Direct Buy. I find that the North Carolina prices are better also. Even online shopping has beaten the what I have seen people brag that they saved. I can't see how people could fall for a $5k installment fee without searching online for better prices. But then again considering the last election were Sarah Palin was actually considered a candidate I can see why.

[Bill]

I believe DirectBuy is flooding this with positive reviews. Don't think they have time? Well, they have time to spam me with half a dozen emails every week. I wouldn't shop there just based on that.

[T. Near]

my husband and i are in no way rich....i knew going in that there would be a high pressure sales pitch based on what freinds had told me....my husband and i have been remodeling our home by ourselves over the past 5 years...and i took in a list of items that i wanted and the most competitive prices that i had found...after the sales pitch you are given the oportunity to review their prices, i used that time to compare prices for what i needed...i then told the lady that i would not save enough to justify my membership price to my husband whom i did not take with me....i then mentioned that we were looking to puchase and install solar panels on our home .... i was glad to hear that they had a local solar company that they used....this was awsome becaus i had in writing from another company before hand of 46,000 which i did not tell them about....and direct buys company came in at 30,000 for the same exact system....we joined that day....we still managed to save even after paying the membership fee over 5,000 on what we would have on just that one item...and i will still save the money for the rest of the items that i will need
they even tell you in these high pressure sales that unless you have a major remodeling project or you are planning to redocorate more than one room in your home that they would not be for you....they have you spend time looking for the items in their manufacturing books to get the prices to compair what you would save....this gives you the power to see if you would save enough to justify the membership fee....
so basically....take a list of competitive prices that you have and ask questions...compair...just like any other business and that includes clubs
any club has a membership price...sams club, costco, etc.....you have to compair and shop to make sure you are getting a good deal....they do say to compair prices....they say not to tell the competition that you are a member while compairing....to me that is fair....and to this day i still compair prices before purchasing from direct buy....we just installed wood looking tiles in my kitchen and saved over 2,000 using direct buy.....had i not used them i would not have gotten the floor i wanted....i would not have a solar system on my home and i would not have the pavers for my back yard patio...

[Jennifer]

Must be an individual decision
I am a rehabber and tend to use higher-end amenities. This is my opinion of my visit today to Direct Buy in Gurnee, IL.

I signed up via internet. A couple days later I was called to confirm my appointment and asked if I had any questions.
Then, during the next 4 days I was called constantly right up to 15 minutes prior to the appointment. Upon arrival, I commented that they were "stalkers" and others probably didn't appreciate that treatment.
We were led in and given a soda and then ushered to a room to watch the presentation. The person we had did a decent job on his presentation although some of the numbers he used were flawed in his examples. After the presentation we were sent back to our rep for sign-up and questions.
Our rep was more than accomodating answering questions and bringing catalogs for me to check. I had receipts in my pockets and because I regularly buy the products I was looking up, I knew the pricing.
A couple of expamples.
Kohler Purist Pivot shower door $ 450 less than Lowe's.
Sensa granite countertop $ 4 sq/ft. more than Lowe's
12 x 12 marble honed tile $2.25 less a sq. ft. than the Tile Shop.
Water fountain from Ashley furniture $ 360 less than at Ashley's
Levlor blinds/shades- depending on your size all were at least $80 - $150 less than at home improvement stores.

Not once did my rep give me attitude or act "pushy". But, as I said I knew the pricing and there was no debating.
I was quoted $5400 for 3 years or $1800/yr for 3 years. I would need to save $2000/year for it to be worth it for me.

In the end I decided to pass. As a rehabber I don't have the luxury of waiting 6-8 weeks for an item. The tradesmen are scheduled behind each other and if something doesn't arrive the job can be set back for weeks.
Some of the discounts are very deep especially on furniture. My needs are more of the material type and not so much furnishings so I won't recoup the expenditure as quickly as I'd like. Also, there are no DB's in WI so I must travel to IL to shop and retrieve my purchases. After adding in the travel and time to get my items the cost difference for me just isn't enough. (I get some great discouts already)
The other factor is not being able to return a purchase. They did say they have a warehouse where members can go and buy things other members didn't want and then when someone buys it, they will refund your money.
Sometimes when decorating and you bring home a piece and it just doesn't work and it needs to go back. I don't want to wait indefinitely for a refund especially if it's a more costly item.

Like many have said before me it all comes down to what you need your membership for. If furnishing an entire home or project you can't lose. If it's a room or two, you probably won't get your return on investment.

The other thing I would do is finance my membership and pay a monthly fee. If by chance they would go under especially in this economy I wouldn't lose my entire membership fee.

The one insulting thing to me was that my spouse or fiance must be present to attend the open house. It will be a cold day in hell before my significant other will give me permission to spend my own money. My spouse is not part of my business nor does he participate in any way. Why would I drag him to something that he has zero interst in. Times have changed.

[old fella]

My wife and I are over 80 years old. We went into Directbuy a few weeks ago and meet a handsome young man who showed us around he introduced us to his wife who is expecting child and proceeded explained a bit about the company and the benefits available. He asked questions about us and our family. Talked with us about the options and told us Directbuy could mean a great deal to us on our last project.

We took the info home and called the number to make an appointment. The phone call was detailed and the appointment was made. When we got the appointment the tide changed. The man I spoke with was not available as we wanted to work with him if possible. We met another man who was very nervous. His name was Burt. He introduced us to another man named Daniel. He was polite and offered us a tour of the location. Then Burt showed a presentation on the savings of Directbuy. This took over an hour and I was very bored with the whole thing. I get the middle man and mark up. We then met with Daniel again. He was nice and tried to explain the cost of membership 6490.00 and the return of the investment. While understood it was just not for us at this time. Then Burt came over and asked a few insincere questions and spoke very rudely to myself and wife. Telling me that I have more than 6490.00 in jewelry mark up on my wife. Telling me that I was making a big mistake. I told him we would need to talk it over and then decide. He pulled out a few dollars and slammed them on the table asking if I would trade him 10 for what looked like 60 but he said 100. Not very good with numbers at all and what a rude manner about this short guy. However, we took no such bate and said good day. But the comment heard by my old ears would shock any business. He said good luck old fella and I hope no one takes advantage of you in your last project on earth. How rude and distasteful of a human. Even a short one.

[S. Powell]

As president and CEO of DirectBuy I ask all of you to please join DirectBuy. We have thousands of franchise owners who live in very expensive homes and drive very expensive foreign luxury cars. With memberships down we are becoming poor like our sorry members. I am trying everything I can to find new ways to false advertise and add gimics to get you folks to spend $6500 with us in 90 minutes but still our membership is declining. We raised our membership $1000 so that on the evening of your open house I can take $1000 if you join that night. Because too many of you wimps said you couldn't make your decision today. Now I've changed the " showroom" to "club" in our ads because too many of you complained that a showroom should actually have some merchandise to look at not just dust dirty ripped old catalog like our dump in stonehen, mass. And now I advertise a free 1 month trial membership.... But I don't tell to that you can purchase no more than $1000 of merchandise and that it has to be from only our low end manufacturers. So please help us stay fat and rich and spend $6500 today and you too can have something to bitch about on these blogs. Thank you and enjoy your open house.

[LD]

I became a member about 6 months ago. I purchased a number of furnishings. Those that arrived were, indeed, of high quality and actually far surpassed my expectations. However, that refers only to those items that arrived and that represented what I actually purchased. 6 other articles arrived at the DirectBuy warehouse, and were inspected by the DirectBuy personnel; they assured me the items were not damaged and were completely in accord with my order. Accordingly, I made arrangements to have the items shipped to my home, an hour away, at a cost of $180. At that point, I was still happy because, even with that charge, I was still getting a decent deal. However, as the boxes were unpacked, it was readily evident that everything was upholstered with the wrong material. I refused the shipment and had the items returned - of course, at a loss of $180 plus the absence of the items for which I had already waited six weeks. Before the delivery men left, I contacted Direct Buy, and was assured that the error would be corrected - at absolutely NO cost to myself. Two months later, the "right" upholstered items supposedly arrived. This time, at the expense of nearly $90, my husband and I rented a Uhaul to pick the items up ourselves (again, about a two-hour round trip on major highways). When we arrived, we were astonished to find that the replacement furniture was the same as what was sent in the first place - complete with the wrong upholstery. At that time, a DirectBuy representative promised that it would be fixed and that, cognizant of the expense we have endured for this, would pay for that day's Uhaul AND would arrange and pay for the shippers when the actual correct items would come in (e.g., they would also pay for the third shipping attempt). Here we are, over 5 months after placing the order, and we still do not have the furniture (that we already paid for and cannot get a refund for!). We recently were notified that the furniture (with what they say is the correct upholstery) has arrived. However, now they do not want to arrange for shipping (and pay for it); we are told that would mean we might have to wait for this furniture for months yet since the manufacturer would have to "approve" covering the shipping. DirectBuy made this error, TWICE, and now, for the third delivery, they will not help us out. We have been told to rent another UHaul (ANOTHER $90), use another 2 hours of our time to drive there and back, and that they would "try" to get the money back for us for that delivery. We have not been reimbursed for the second delivery, and why should we pay even more money for for the third delivery attempt? They promised they would reimburse us for the second delivery charges (I was fine with the assuming the first charges since that is part of the deal, so to speak). But, how many times do we have to cover delivery for the same items? Now, we are not enjoying a discount - loss of money, loss of time, and loss of patience. I am sure some people have had delightful experiences with DirectBuy (the items are of good quality, but I am sure these satisfied customers have been lucky because things have gone smoothly). If the manufacturer makes an error, there is no recourse for the consumer except to get robbed. We are not happy, and regret having become members.

[kathleen sears]

I WAS GOING TO GO TO A PRESENTATION TOMORROW, AFTER READING THIS AND OTHER STATEMENTS ON ANOTHER SITE, THERE IS NO WAY I WOULD GET MYSELF INVOLVED IN SUCH HIGH PRESSURE SCAMMING. 5000 DOLLARS TO JOIN, I CAN TAKE THAT SAME 5000 AND SPEND IT ON MY STUFF AND HAVE IT DELIVERED TO MY HOME. I AM JUST THANKFUL THAT I READ THIS AND THE OTHER SITE, MY SON WAS GOING TO JOIN TOMORROW TOO. THANK GOD WE SAW THIS

[kathleen sears]

excuse me jb I am a college graduate, how dare you say the clients of direct buy are better educated. I think many of the clients of direct buy wish they would have used their education to decipher the scamstory they were high pressured with at their sales pitch.

[sheilaef]

Wow. Thanks to all you folks who posted here and for Google, which brought me to this site after a simple "Direct Buy" search.

No returns? No warranties? $6,000 membership fees?
I believe I'll stick with Costco.

"A fool and his money. . ."

[common sense]

hello all,

the only comments i have are simple...

1. if you know you have to sign up the day you go in, is it still considered high pressure sales?
2. if directbuy has been open for 38 years and has hundreds of thousands of members, then they obviously do what they say they do.
3. if direct buy didnt do what they say they do, why would companys like ashley furniture and sony do business with them?

just some quick thoughts for those who have a hard time comprehending the business model of directbuy. :)

[wilson]

i was an employee there and i got to tell you, they are just straight up liars. The first lie is that they dont make commission. That is a straight up lie, they are on a salary base but they get commission if they sell you the membership. I remember getting trained by the owner, and since i was in sales before i knew it was going to be a sales pitch as soon as he started training me. From the moment you step into directbuy they are giving you a sales pitch. I have never been to a Time share but thats how some people that werent dumb describe directbuy as. The whole sales tactic about you have to make decision today is so old school. The Ads they use they get them from sears, best buy, appliance center, jc penny, etc... I would think thats illegal. Now this might gross you out in the time I worked there all the owner did was complain about how they are running so fast out of coffee and lemonade which is what they give you at the beginning of the pitch, but the thing is they never ever washed with soap the coffee container or the lemonade jar. That has to be the most discuss-ting thing in a business no hygiene at all hope that nobody gets sick from them because that would be a huge law suit.

[WAKE UP PEOPLE]

DirectBuy is a SCAM!!!

Do people debate about whether McDonald's is a scam? Do people debate about whether Costco is a scam? Yet there are thousands and thousands of complaints about DirectBuy. Maybe its a coordinated conspiracy theory invented by aliens?

DirectBuy is a SCAM!!!

Gosh, if you truly believe DirectBuy is not a scam, you are either a DirectBuy employee or a moron. I feel bad for you in either case.

DirectBuy is a SCAM!!!

Send me $6,000 with a $200 monthly payment and I will gladly give you magic beans too. And if that's not convincing enough, I'll gladly pay some people to tell you what a good deal it is and post notes on the internet about how I am a great guy. Just give me your $6,000 and I'll make all your dreams come true.

DirectBuy is a SCAM!!!

DirectBuy would have no need for a downpayment if it was not a scam. They could simply waive the deposit and sell the products at a steeper discount for higher volume and make more money. That's the rantings of legitimate business concept.

DirectBuy is a SCAM!!!

[patrick]

THANK YOU everyone who was honest about their experiences at DB. A friend of mine at church used to work in a DB outlet in OH. They had her sign a draconian contract to not disclose any sales practices or membership recruitment techniques. All she has ever told me was that working there and seeing the heartbreak of people who were miserable after learning they were scammed was heart wrenching for her.

She found this site and told me that there was nothing in her experience that was any different from what is on here. When a couple or individual was identified as someone they thought could be manipulated into dropping $6K, they would focus like a laser on them. Anyone appearing skeptical was still given the sales pitch, but at a quicker pace.

She had no experience with any of the merchandise, ordering protocols, or knowledge of the area, yet she was given the title of Specialist. She told me of the many times people would not be happy with a purchase (OF AN ITEM THEY HAD NEVER SEEN EXCEPT IN PICTURES!) and yet be stuck with it. She began to develop a stomach ulcer from the stress.

The sales staff are taught to act 'haughty' and as though they are part of something really special. Her supervisor would discourage employees from "buying in" to disgruntled non-members online stories. She said that was probably the biggest red flag that she should have quit.

About 2 weeks after quitting, she moved to MO, and has never been happier to be away from that company. Now she is a project manager at Sprint, happier to be selling a product that people actually want based on quality of service and equipment, not a one time super high pressure sales pitch.

SO, her advice: run away from DB to the nearest internet search engine. You will save yourself $6K right off the bat, deal with companies that must vie for your business rather than have you roped into buying from them, and get to ACTUALLY SEE the items you are interested in purchasing.

[donna]

We joined a couple moths ago and so fare we have found o discounts. Every item we have tried to save money on we could find some where els at the same price or less or better qulaity. Infact when we joinec we had aske them to qote fencing they cameout with a fantastic price. After we joined we found out it was a lie. Consumer be ware DIRECT BUY is a scam.

[WarrenJ]

Beware of this scam!!! Beware of the lies!!! After the sales pitch and during the discussion with the associate, we asked about vinyl fencing and an approximate cost for 150 liner feet. We got an amount that was less than what we were quoted by a local contrator but they did not show any details. Make sure you see details. They also claimed to have a good supply of vendors. Last weekend we went to the showroom and priced the fence. There was only one vendor and we found it to be 2x the price mentioned and more than the local contractor. The contractor's fence was a higher quality that most including Home Depot. After we joined, we did same pricing research on items we wanted to purchase in the near future. We priced other items such as major appliances. We found either the same price or $50-$100 cost difference. I just priced a Pella Patio Door that was priced in at the same price at Lowes for a lesser quality. Lowes was with a Low E rating and the Quote was without. My savings is minimal and I feel my-per item savings will never get even close to a break even in my lifetime. I want my money back!!!!!!! I feel swindled!!!! How do I contact the Corp Office to discuss a refund.
The presentation showed good discounts on odd, not usual purchases such as a Pool Table. Very high end items. Like most, times are tough and most want middle of the road and looking for the best bang for the buck. That is why we look at clubs like this. DirectBuy is there just to get there membership fee and make there 8% handling fee. Honesty is the best policy and a great marketing tool. DirectBuy did not go to that school. Simon Legree school of Marketing!!!!
--
The amount I paid for the club is extremely overpriced. I figure my breakeven payback on the small discount I get will take about 15-20 years to recoup if you do not consider the time value of money.

[reverend j. c.]

after reading all the posts about directbuy...those quoting "directbuy is not for everyone" are most likely employees.

[linda davis]

The DirectBuy store in Myrtle Beach is great. The number one goal there is excellent customer service. The staff is knowledgeable and always willing to help. The new member orientations are thorough and very informative.

Anyone that is planning a remodel or building a house should definitely consider DirectBuy.

Most people remodeling a kitchen and get a quote from a "big box" store don't realize that they are selling you the "box" meaning the cabinet. That price may seem reasonable. Where they make their money is in the details, the self closing drawers, the crown molding, the fancier doors, anything you would consider an "upgrade" to the the main "box". At Directbuy you can get a better grade cabinet with all the bells and whistles for less than the "big box" store offers. So, if you get a quote for $35000 at the big box store, then join Directbuy for $5000, but get a better kitchen with more bells and whistles for $25000, you are still ahead $5000 (your membership fee).

Anyway, the Myrtle Beach store has an excellent staff and I wouldn't hesitate to recommend joining at that location.

[Karen]

I found DirectBuy on the Web and after getting in touch, visited their showroom today in Manhattan. I didn't know much about it and was a little mystified by all the scheduling and reminder phone calls, etc that I got. Being made to wait a half hour for the annoying, patronizing presentation (video and personal) and then being subjected to an increasingly hard sell when I was not immediately ready to join made for a very unpleasant experience: I couldn't wait to escape! I was left with a dirty aftertaste from the sales pitch and how I was treated: not with respect, but as a john.
They emphasize the long-term savings, but then push you to buy a short-term membership with monthly payment plan at 17.75% interest. And if you aren't going to buy all your long term purchases in the next 3 months, you will have to upgrade to a long term plan, but now without the "discount".
Had they treated me with respect and trusted me with the basic knowledge about how their purchasing model works, I would have saved them and me hours of annoyance and I would have seriously considered joining in a few years when I *am* ready to renovate my kitchen and thus actually save money with them. I really resented being forced to endure a hard-sell and then be told that it was today, now or never! You can "never" come back! Their stated reason in the video presentation was that if they let you come back later, you might go to the stores and tattle on them. As if it were some big secret! What a load of nonsense! Bottom line for me was that if they were going to treat me as a fool, I really couldn't trust them, and as any creature knows, that is when you run away.
Wish I had looked up the reviews before I went blindly into this event today.

P.S. Btw, you aren't banned forever as it said in the presentation. The sales woman let slip that I would have to wait 7 years. Sounds a little biblical, but it is hardly forever. And maybe they might want my business in less than that if I came back with checkbook in hand before then? Something to think about.

[WiseGal]

I am a FORMER DirectBuy Member. I advise anyone who receives an 'invitation' to visit a showroom to find something else more positive and fulfilling to do with your time. It will not just be a waste of your time, but also your money if you get caught up in the HYPE and purchase a membership. Want a GREAT deal? This is not it! I compare the DirectBuy sales pitch to a Timeshare sales pitch at a 2 star resort. You will have a place to stay, but you will wonder why you wasted your money to purchase it. Shop the internet and store sites to find great deals at low prices. DON'T DO DIRECTBUY! FORMER MEMBER since 2006

[Jim]

Thank you CR for the review and all of the helpful comments regarding DB--great info and you saved me 2-3 hours of my life that I likely never would have gotten back.

[robert]

Being in the industry ( home furniture and decor ) for many, many years, I can tell you one thing. You CAN get a same deal with very little negotiations skill or simply by shopping online.
These outrageous claims of 50-70% are calculated based off MSRP.
Who in the world pays retail on most of the household goods.

This is how this whole thing works.
DB pays the same price as most semi volume resellers.
In fact since they are non stocking dealer, many times their costs are higher.
In fact many manufacturers will not do business with DB because they dont not meet their customer service requirements, some feel selling to DB cheapens the brand.
They tag 25% on most things such as furniture, flooring, etc.
Add 6% handling fee ( keep in mind this is is after wholesale + 25% ), shipping, local sales tax and you are at wholesale + 40% or more.
Now... go to any reasonable store and offer them 30%-40% over wholesale, majority of the retailers will take it and move on.
If not, majority of online retailers will gladly take it, most do not have to charge you sales tax and will deliver to your home rather than a warehouse. If shopping online make sure its a store with a US warehouse, not just an office with a catalog in hand.
Direct Buy is considered a joke within the industry for a very good reason.
Im not saying everybody who uses them is making a mistake. To some its worth paying $5000 and get the haggling headache out of the way. But please be realistic, you have to sign up on the spot because it takes exactly 15 minutes at a competitor to realize they are not much of a deal after all.
This whole story of "angering retailers" is a joke. All local retailers know exactly how much DB charges and could care less.
If this were true.... do you really think they could keep those prices a secret from the competition????
All it takes is a trip with a free pass pretending you are a customer...........

[Jude]

I "clicked on the link" in an internet (yahoo) ad out of curiosity. Answered a few questions, and changed my mind-left the site. Got bombarded with phone calls. Advised them I was not interested and not to call again. Got another call inviting me to participate in a contest to win a BIG flat screen TV, among other things. Sounded interesting, but then they asked my income range. When I said "under $45,000," the solicitor said the contest was only for people who made over $45,000 and hung up on me. Really?

[Keith]

Scam-a-lamma-ding dong!

[S. Powell]

Okay. I'm back. All I want to do is to help all of you from being duped. As a DirectBuy employee for several years, I realized the company I run is a cult. It's tony Robbins on steroids. Everyone I have met in clubs all over the country drink the same KoolAid. No one can afford their own membership but we lie and tell you whatever it takes to get the $200 sale. What company pays that poorly... I get only 200 to lie to you morons and get u to spend $6500.00.
So do your research. 2 years ago all franchises were independantly owned. DB now owns 10 of them because they are failing. The owners are taking the money you put upfront to order merchandise and paying their bills with it. Folks seriously. This is scary. Don't answer the phone don't go to the open house. . I keep posting here to save you and never a word of thanks . I heard DB had a great oct and nov. Too many suckers are still not gettiing the message. Spread the word. Tell everyone. They will go away if they can't sell memberships. Put them out of business. In just a few months with no sales they are doomed! So pass along the good word... That DirectBuy is the devil in disguise!!!!

[educated person with money]

Who do you think has more of a reason to be defensive? Someone who has paid thousands of dollars to be a member or someone who decided that this type of business model is not for them?