Video Report: DirectBuy
Are buying clubs like DirectBuy a good deal? Our new video (right) details the experiences one of our reporters had at sales presentations for the nationwide buying club.
Although some readers commenting on our earlier story on DirectBuy have noted that the club’s prices are competitive, the video includes an interview with one DirectBuy member who found consistently lower prices elsewhere.
If you’d like to share your own experiences at buying clubs with other readers or discuss the pros and cons of these clubs, visit our forum for home shopping.—Gian Trotta
Essential Information: You can save money on cabinets, appliances, and other big-ticket items without committing to a buying club. And, remember, another way to save on appliances is to take advantage of the rebates and tax credits and tax holidays from local utilities and state governments.
Posted by: Caroline | May 22, 2008 5:49:54 PM
This man obviously did not go with high-end merchandise. I think they tell people up front that the savings ARE in the high-end ranges. However, as a designer, I seldom see people these days opting for white appliances, non-wood nor laminate flooring, etc, as this man did. I would like to see more videos on this, could you not have someone who WAS satisfied and went with high-end products, the pictures could then be contrasted with this person's purchases outside of Direct Buy. I wish I could purchase most of my clients needs from Direct Buy, (and pocket the difference?) Really I do suggest that they purchase their own memberships. I do understand that the store itself may make a difference, so that was a good warning in your first article.
Posted by: Roddy | May 23, 2008 3:37:14 PM
We joined DirectBuy. It pays to be prepared for your visit and certainly in our case we were allowed to do some spot checks of prices on our initial visit. Big savings on high end items are possible. I had researched some shower fittings (Grohe etc) and a Kohler infinity bathtub and came with the best prices I had found on these and DirectBuy beat them handily. When our tiling contractor found out we'd got our tiles from DirectBuy he warned us that if we were short he couldn't get extra tiles as cheaply as we'd got the original batch! You need to be on the verge of spending a lot but if you are you can certainly make the membership pay.
Posted by: Wayne Donofrio | May 25, 2008 9:07:55 AM
In the June 2008 issue of Consumer Reports magazine the article concerning dehumdifiers needs revising.
The Kenmore Model # 54701 sold by Sears should be judged "not acceptable",in my opinion.
I purchased one of these dehumidifiers in 2004 and now I am replacing it.
Like many other consumers I had problems with the unit when it was less than two years old. The fan motor had to be replaced, and now the coils ice over, making this unit basically useless.
Check the "reviews" section on this model at the Sears website.
You will find many other consumers with similar stories of problems with this particular model.
I am surprised that CR has given this model such a good rating.
I hope that the Danby unit that I have just purchased will last a lot longer than this Sears unit.
Posted by: J. J. Jodele | May 28, 2008 2:27:58 PM
I've joined thinking the same as everyone else…but be ware!
1. They have made their profit up front, so there is no stimulus to provide any service. 2. When you do place an order, it takes them days to place the order from a company because they wait for a “full load” order.
3. You have to pay shipping and sales tax!
4. You can get a very similar deal on line and not have to pay the sales tax…and get it instantly!
5. The hidden problems are that if/when you buy something from DirectBuy, you sign a contract that you will not return any of the items! At a store or online you can always return it.
6. If you are a subscriber of Consumer Reports, you are looking for a great value or quality…you are not right for DirectBuy because, most of the time, they do not have a contract with that particular company you have researched and will get very frustrated with them when you can’t even order the product.
7. Everything is cataloged on paper!!!! It is very painful to find anything!
The few dollars you might save from DirectBuy will easily be burned up with not able to return products, long wait times (6 to 8 weeks) and having to pay shipping and sales tax.
This is not worth it for anybody.
Posted by: Tom Smith | Jun 30, 2008 9:32:59 PM
This is one of the poorest articles I have ever seen and I am shocked that Consumer Reports would put their name on it! The man's kitchen was not very nice, it had low end appliances, floors and counters....I don't know what to make of the cabinets, not even IKEA quality. There is no mention of product numbers to do an apples to apples product comparison. Something strange is going on at consumer reports. They need to review their junior reporters work prior to releasing to the general public. I have lost respect for teh Consumer Reports Brand.
Sincerely,
Tom Smith
Posted by: DanRestelli | Jul 12, 2008 8:12:55 PM
We just joined Direct Buy. After reading numerous complaints regarding Direct Buy, we researched it very carefully. In Arizona you have three days to cancel the contract, so we did our homework.
We are in the process of building a high end home. One area we checked were the appliances. I was worried that the Direct buy cost would be no less than our contractor proce. When all was said and one, savings on the appliances will be about $3500. We also checked flooring and found at least a 15-20% savings over the contractor price. Cabinets are about !5% less.
Of course, the weekness is, as others have said, they do not offer any after sale support. They are very clear that you are acting as the dealer.
Hopefully everything well go well.
Posted by: Lisa LaMunyon | Aug 5, 2008 8:52:27 PM
My experience in Fairfield, CA was low pressure and very pleasant. The presentation and people helping me were courteous and patient letting me look up and ckompare anything I wanted including looking on internet discounters to compare BEFORE I signed up. My savings on almost everything I have purchased has been significant although on an item here or there the savings will be not that big. In fact, I even found one Sony game system cheaper on clearance at the store. One thing that I alwyas do to is use get my rebates and tax credits on all the items I buy where they apply. I highly recommend DirectBuy to anyone that is remodleing and wants the nicer quality stuff or has to buy a lot of furniture or flooring. I did really well in these areas and I shopped long and hard before buying.
Posted by: Derek Pierce | Sep 2, 2008 1:33:39 PM
I worked as a Director for Directbuy for Five years. If you are building a home and can wait weeks and even months for products, Directbuy could save you money. If not, do not join. It's not worth all the trouble involved, in my opinion.
Posted by: Nancy | Sep 6, 2008 12:49:45 AM
DirectBuy Sued! A federal lawsuit has been filed in U.S. District Court in Hartford against the national high-end DirectBuy franchise operation, accusing it of falsely telling prospective clients that they are getting furniture, appliances and other household products at manufacturer prices. In a lawsuit filed by attorney Seth R. Klein of Hartford, DirectBuy is accused of hiding the fact that DirectBuy receives rebates from manufacturers which are not directly passed on to their members, who pay as much as $7,000 to join for two or three years. The lawsuit, which seeks to be certified as a class action representing thousands of present and former members of the more than 100 franchises, was filed earlier this month. It follows a column on DirectBuy that disclosed the rebates, which are kept secret from its members and from those it entices to join through high pressure sales techniques. DirectBuy officials had no comment on the suit but had said earlier that it uses the millions of dollars it received in rebates to the benefit of its members. We will see what a jury has to say about that.
Posted by: Robert Whitlach | Oct 10, 2008 9:09:22 PM
My wife and I have found some good buys being members of this club. Our last transaction has ruined us for life though. The local showroom delayed entering our order so that our annual membership expired. They then told us we had to renew our membership for us to order the furniture we wanted. I am a reasonable person and would have accepted the fact if the membership had actually expired, but come on.... we were several days ahead of our expiration date... I can't trust Direct Buy anymore.
Posted by: Christopher | Oct 15, 2008 3:32:39 AM
I have been a DirectBuy member now for a little over a year. I was hoping that video would be useful, but it appears to be one sided. The guy in it obviously shopd for bargins, and has awful taste. Everything in his home looked cheap, from the formica counter tops to the crappy open hinge cabs he had. White appliances?
Some people are just fools. I have saved twice the cost of my membership buying NORMAL things like a TV here, a sofa, even a new stainless fridge. I am not RICH by any means, but I don't decorate my house like the guy in the video either.
Posted by: Jeff | Oct 17, 2008 11:27:45 PM
Just came home from a sales presentation. Their prices are not cheap. The comparison prices they are using are not real. I caught them on items I just purchased in the last year. One is a chair they claim is worth over $2,000 but you can get it for an extraordinary price of $792.00 - sorry but I paid $800.00 for it at a high-end furniture store - they would have saved me $8.00 (well I guess I didn't pay any 'handling' fees at the furnture store so perhaps it may have actually cost more). They want $129 for a Keurig coffee maker that I paid $99 for but they claim others charge $199 - I don't think so.
Posted by: Neelie | Nov 25, 2008 9:09:05 PM
Has anyone that turned down the 'on the spot' pressure to join actually gone back at a later date and tried to join? We are going to the showroom this weekend but dont want to join just yet. Will they really turn us down if we go back next year and want to join?
Posted by: DIANNE | Dec 1, 2008 9:41:05 AM
I GOT AN E-MAIL FROM DIRECT BUY AND DECIDED TO MAKE AN APPOINTMENT ON-LINE TO VISIT THEIR LOCAL SHOWROOM. SINCE THEN, THEY HAVE CALLED ME TWICE A DAY, LEAVING A MESSAGE ONLY ONCE.
LAST NIGHT I ANSWERED AND WAS GRILLED BY THEIR SALES PERSON ABOUT QUESTIONS I ALREADY ANSWERED ON-LINE, INCLUDING IF I HAD ANY CHILDREN UNDER 12 AND IF I HAD ARRANGED FOR A SITTER. I RESPONDED "IT WAS NONE OF THEIR BUSINESS" AND I WAS TOLD IT WAS THEIR BUSINESS AND I WAS RUDE AND THE SALESPERSON WAS "UNINVITING" ME TO THE SHOWROOM. GOOD !!! AFTER DOING SOME RESEARCH AND READING THESE REVIEWS, I'M GLAD I DIDN'T WASTE MY TIME AND MONEY !!!
Posted by: FT | Dec 1, 2008 2:57:39 PM
I just found this article. My wife and I have been members for 2 yrs. You cannot save any money buying cheap furniture, appliances, doors, windows, etc at DirectBuy. However, if you are looking at high-end quality items, you will save money... lots. We completed a master bedroom/bath last year and went with high-end grohe fixtures, high-end cherry cabinets, tile etc. I estimate we saved at least the price of membership on that project alone... and believe me, I priced everything we purchased elsewhere. Since then, I have purchased baby furniture, replaced windows, interior doors and recently purchased 2 fireplace gas inserts. Doors and windows were ~60% of the cost elsewhere. I saved ~$1000 on the 2 inserts alone with free shipping to my home! Oh, forget electronics. DirectBuy has terrible electronics prices. Staff is generally helpful, but it is up to you to do the research.
Posted by: John | Dec 3, 2008 11:38:09 PM
My wife and I just went through the high pressure sales treatment, I cannot believe they treat people like this and expect them to think well of their company. We came in went through the reception process and met a sales rep who immediately wanted to know what upcoming household purchases we would planned for the next ten years, the he hopped up and ushered us into a small audience room with several other couples and the presenter. We sat through the two videos and the sales presentation, when we were done our sales rep was waiting at the door to press the membership sale. He started trying to show us how much money we would save but we never had a chance to look at any pricing of their products, when we started to balk he became rude and asked us why we had come there, then demanded our name tags back and asked us to leave. I'm in retail sales and even if they don't purchase you never treat a customer like that, if you do they'll never have a good thing to say about you or your company....... I don't and I won't....
Posted by: Linda Tannos | Dec 8, 2008 9:03:40 AM
My husband and I were at a direct buy presentation yesterday and were told that if we did not join on the spot that we would not be allowed to attend another presentation or have the opportunity to join for 7 years. We had the option of joining on the spot for the tune of $5,400.00 or wait 7 years, we chose NEVER.
Posted by: Just a Though | Dec 10, 2008 12:57:52 PM
It seems as though the price would break about even after the upfront investment, and the later savings. Might as well keep your loot and look for the best deal yourself.
Posted by: Kristi | Dec 11, 2008 2:47:15 AM
I was intrigues by the commercials as I have a lot of repair work after Hurricane Ike. There is no way I would do business with a company like this after reading these words. I'm so glad I checked before I bothered with them.
Posted by: Norm | Dec 12, 2008 1:05:43 AM
My wife and I sat through the first half of the presentation, typical gasbag sales job, which I despise, to the point where they have disclosed the so-called "manufacturers prices" of the retail, THEN told us we had to either join right then and there or never be allowed to join. Should have seen it coming. We weren't prepared to join that day, had no reason to at that time, no intention to, but just wanted the information for possible future use that they had invited us to hear. I correctly pointed out that at NO time prior to that, not in the printed invitation we had been sent, not in the phone call to set the appointment, nor anywhere else, had we been informed of this. At first the guy did not believe me, but sure enough, nowhere in our invitation did this condition appear. He got all flustered and said this had never happened before and what a shame, and wouldn't you know it, that "they" had discussed amongst themselves at the store just the other day the idea of disclosing this verbally to every person before the presentation, giving the consume the opportunity to forego it until another time. Gee, what a novel idea. I'm a bank vice president. The rule we live by is to disclose before the fact, not afterward. With those kind of deceptive practices before you're a member, I can only imagine what it would be like after. Oh, never mind, I don't have to imagine. All I have to do is read the thousand of complaints about this company.
Posted by: Thomas | Dec 13, 2008 1:08:57 AM
WHAT A COMPLETE HOAX THIS TRULY IS!! I joined the DirectBuy in NW Arkansas, and was totally floored. After trying to place my first order, I realized that it was a total joke, there was maybe a savings of 20 bucks on a $1200 item. I paid $5000 for my membership, and was saving 20 bucks a couple of times a year. I truly am not a happy camper, I don't recommend DirectBuy to anyone, PERIOD!
Posted by: Mrs. Meyer | Dec 17, 2008 3:19:05 PM
We went to the DirectBuy presentation last week in Houston, Texas. Although I did not like the "get it now or forever be without it" statement and I agree with Norm above that it should be disclosed when you first contact them to set the appointment, we still joined. The up front memebership price is steep but gives you THREE YEARS membership and the annual renewal fees beginning on the fourth year are very, very reasonable. We are remodeling our home and own acreage property where we will be building a new home. We also plan on accumulating some rental and flip properties that will require remodeling and other work.
With this membership we will be able to put higher end kitchen cabinets and appliances in our remodel project as well as better insulation and fixtures with the same budget we had planned. Additionally, we our new build will be "green" and DirectBuy offers many products for that -- including solar panels! What is not to like about that? Since we are in a good neighborhood, albeit not a million dollar area, we will be able to amp up our current house that we plan to rent out when we begin our new build. With all the intriguing and awesome decorating shows that are on TV these days, people now have an expectation of what they want to see when they are looking at a property to buy or rent. We will be able to rent our home at the high end of the market for our area with no problems. We will have a better quality tenant and better potential for long term tenants. Not only will we be able to put in a KitchenMaid cabinet system for the price of what we could get at Ikea but will also coup the additional money from a higher rent base.
We were permitted to look at the catalogs, the products and samples displayed in the showroom, and their "mailer brochure" comparisons. We knew approximate prices before we went in because we watch the Discovery decorating/remodeling shows, have researched for our own products and we get an obscene amount of mailer ads daily.
You want to check their prices? Find out what granite costs and compare it to what they offer. People want granite countertops, period, end of story. Do your homework before you go -- find some things you want to get or install. Find the cheapest price (and be fair -- more than one item!) you can and then, armed with that, go to your presentation and get the cost comparison on those products. You are the consumer -- it's up to you to do the work because no one else knows what your plans are or what your budget is. For instance, they also have contractors for installations which allow you to act as the general contractor on your projects resulting in additional savings of 20% or more. Again, do YOUR OWN INVESTIGATION and think about ALL angles (short and long term) before making a decision.
I am satisfied that we got the membership. If I deal with a rude sales rep at DirectBuy, I will complain about that person - not the company as a whole. If my products are delayed, oh well, that doesn't happen at DirectBuy only -- it happens everywhere. We were put off by BestBuy on an appliance we purchased for over 8 weeks before we canceled and got it elsewhere and got it in three days. Whatever issues may or may not arise during the course of our membership, I am sure I will deal effectively and reasonably with each INDIVIDUAL matter. I am certainly not screwing myself out of MY MONEY based on one person or issue in the process. DirectBuy is a long term investment and I am confident they have better deals which will save us and make us the money we want in our future.
Posted by: C.G. | Jan 8, 2009 3:34:42 PM
We stopped into a Directbuy showroom to see how they worked. We became skeptical when they wouldn't answer our question about how much membership cost and said we would have lots of questions and to come back for an orientation. We did show up for their well rehearsed song and dance. The high upfront cost of $5400, demand that you join right then or don't come back for 7 years, and ordering system of paper catalogs was very off-putting. I do have to remodel my house, but I didn't like their tactics. Any other reputable business would give you a window of time to think about joining, even 2-3 days would have given us a chance to think about it, and we may have joined. But if you are someone who likes to mull decisions over and weigh your options then don't bother with Directbuy.
Posted by: Tbuild | Jan 8, 2009 3:35:55 PM
Thanks, everyone for the comments. Any business that exerts more energy on marketing than customer service is bound to be a disappointment.
It's a shame, because with the right business model DirectBuy could probably provide a valuable service and still make money, without the high pressure and ultimatums. I have a feeling that their satisfied buyers are the ones who don't know how to research deals on their own and would otherwise pay full retail.
Take a look at Costco; great prices and great service created a very successful company - and they managed to remain forthright and polite throughout the process.
Posted by: gingki | Jan 28, 2009 1:07:50 AM
I just returned from a sales pitch tonight in Rocklin, CA -- politely declined and was outta there when they mentioned the [now] $6400 for a 2 year membership. ouch. If you're into some serious remodeling over that amt of time it might be worth it, but not for me. No high pressure sales, though, at that location. I just said no thanks and the salesman said OK and shook my hand before I left.