Direct Buy: A Consumer Report

March 19th, 2007 · 106 Comments

Direct Buy and the Magic of Lead Generation

I don’t know how many times I’d seen it. That chipper blond, the irritatingly giddy couples explaining how much money they’ve saved, the irrefutable logic of being able to purchase things directly from manufacturers, avoiding all those costly markups.

If you’ve seen the infomercial, you know what I’m talking about. If you haven’t, here are just a few of the claims Direct Buy makes:

Retailers are making a killing—even on sale or closeout items. Direct Buy cites statistics from the U.S. Census Bureau to support the following average retail sales markups: home furnishings-43.3%, appliances and electronics-26.2%, sporting goods-37.7%, clothing-41.6%, general merchandise-25.2% and internet & mail order-37.7%.
Through Direct Buy, you can buy items at the same prices the retail stores pay—and sometimes even cheaper.
Direct Buy gives you access to the complete lines of over 700 different manufacturers—in a sense, unlimited options. For example, while a store may carry a sofa in a choice of 3 different fabrics, the manufacturer may actually offer 50 different fabrics. You, of course now get to choose from 50, all from one location. No shopping from store to store.
You will belong to an organization that operates more like a private club than a store, with access to confidential manufacturer prices.
Everything you buy comes with a complete manufacturer’s warranty.
With a Direct Buy membership, you can now buy like the stores do. All you ever pay is cost and shipping.

If you’d like to see more of Direct Buy’s claims (ahem) directly, just visit them here. If you’re here for serious research, I strongly encourage you to check it out. Be sure to click on the testimonial tab in the lower right hand corner of the screen labeled, “What Members Are Saying.” .

Now just to be fair, let’s balance it out a bit with couple more testimonials. I found the following on this site.

3/10/2007 - Casey of Michigan, USA writes:

We were skeptical of this outfit and went prepared to say no. We are building a home and were “promised” by the owner savings of 20-30%, approximately $45,000-70,000. We have tried to take advantage of these “savings”. However, we have done better on purchases at box stores & local distributors.

We purchased four stainless steel Kitchenaid appliances and saved $311 through a big box. We found our front door for $600 less than Direct Buy’s “insider” price. Other examples: Our plumbing, lighting, hardwood, and tile have all been cheaper through the installers. Our lumber, doors, siding, roofing, and window price was $52,408 through Direct Buy, but another lumber company in town is offering the same thing (apples to apples) for $49,817. We are refusing to chase our losses and have unfortunately not been able to save a penny by purchasing through Direct Buy.

If we can’t save at least $4500 to recoup our initiation fee then you won’t be able to.

And this one can be found here.

2/25/2007 - Rocky writes:

I do not recommend this company to anyone. It is a scam. My husband and I joined in 2003 (I think it was $3600 to join and haven’t bought a stick of furniture from Direct Buy yet. If you really want a laugh try getting prices of an item off their web-site, it is so confusing just to navigate their site that I just gave up. Going to the actual site isn’t any better. The reps aren’t really helpful almost to the point you feel as if you’re bothering them. I have found many pieces of furniture and other items a lot cheaper “outside”. I will probably just take this as a lesson learned, and not try to purchase anything from them, after also hearing the horror stories about the extra shipping & handling charges and other excess fees, plus the long waiting time just to get your items. If anyone wants to start a lawsuit, I’m in, because we’d like to get our hard earned money back. I will keep coming back to this web-site to get contact info from anyone of you out there who is brave enough and angry enough to carry this out.

Direct Buy: Our invitation to the showroom

So anyway, like I said, God knows how many times I’d seen that infomercial. And of course, as a homeowner with a history of gutting rooms until nothing’s left but dust, studs and wires, it always looked like a pretty good deal to me.

But I just could never find the time to make that phone call. Always something more important to do—like chew meat snacks and watch infomercials. So, as chance would have it, last October Direct Buy made the first move and called us.

Not only did they extend a warm invitation, but they also promised us one of three fabulous door prizes—a new car, a cruise or a $30 gift certificate at a popular chain restaurant—just for showing up.

How could we lose? Worst-case scenario: we satisfy our curiosity and get a free meal. Can’t beat that.

The Rubber Meets the Road (and I slip into a coma)

If you visit the sites I linked to, you’ll get a pretty good idea about what to expect during your visit. The presentation was slick. A nice little movie much like the infomercial you see on T.V., a little talk by the owner showing us some newspaper ads, some sale prices, and then comparing those to Direct Buy’s prices.

The deal we got was $4,300 for the first three years and then something like $95 a year after that.

But we had to decide right then and there. It was a go or no-go situation. If we decided that it just wouldn’t work for us right now, or that we needed to sleep on it, we couldn’t come back for at least 4 years. And of course, who knows how expensive the initiation fee will be by then.

Anyway, after the pitch, we were invited to look around the showroom, which in our case really wasn’t much more than some furniture and a bunch of shelves packed with catalogues.

The thing to understand here is that we really wanted this to work. I’m an investment kind of guy. If I can make sense of it and think I can make my money back in a reasonable amount of time, usually I’m in. My experience with geo thermal heat pumps and CFLs are just two examples of how I’ll put my money where my mouth is.

So all I had to see was how I could recoup my investment in the next three to four years. The problem was that we weren’t planning any major building projects or renovations.

But maybe an even more compelling reason to decline was that we simply couldn’t find anything. We didn’t come prepared. So we made a hasty list of things we thought we might buy.

Gas grills? Um, couldn’t find ‘em.
How about toilets? Umm . . .hang on, let me see.
Maybe clothing? How about athletic apparel or shoes—ehh, not so much.
Bed sheets? Nope.

Direct Buy: The Deal Breaker

They don’t carry basic building materials like Sheetrock or lumber. We’ve already replaced all the windows and doors on our house. So we thought maybe siding. We’ve actually already started doing this ourselves (slowly), as time and money permits, using a brand of fiber cement siding we get at Menards. But we still have a large majority of the house left. We figured if Direct Buy carried the siding, we might be able to recoup much of the $4,300 membership fee.

Like I said, I really wanted it to work.

Bottom line: it didn’t.

After a completely mind-numbing search (first with a sales rep, then another sales rep, then the owner) of the catalogues, we finally came to the conclusion that they couldn’t get it. However, one of the advantages of being a Direct Buy member is that you also get discounts from “partner” retailers and installers and whatnot. So the owner pulls out his cell phone but, alas, it was now nearing six o’clock on a Saturday evening. Nobody who knew anything could be found.

By now I was completely comatose.

We’d spent nearly 3 hours in that place, and I’d had it. It just wasn’t working. And seriously, the hardest part about the whole process was the endless searching. The manufacturer’s catalogues are confusing as hell. Item numbers, limited descriptions, maybe a pencil sketch or a picture here or there but that’s about it.

We had heard during the pitch that everything was also online and shopping was a breeze from home—but we never got close to a computer when we were there. Indeed, I think we only saw one on the floor–and it didn’t look friendly, but that might have just been my blood sugar.

I imagined countless hours over the next 4 years vanishing in the pages of dusty catalogues, as we searched relentlessly for ways to recoup our start up fee. No thanks.

We can’t set foot within 100 feet of the building for the next 4 years? Bummer. Please tell me we won the restaurant gift card. I’m starving.

Direct Buy and Persuasive Sales: A Case Study

Persuasive Sales 101

Ok. First the crash course. If you’ve been to enough sales presentations, you’ve probably noticed a pattern. This pattern is not an accident. It’s replicated because it just plain works.

Different industries, presentation methods, and individuals all tweak the pattern to suit their particular product/media/style, but the persuasive pattern is still the same. Understand, of course, that there’s a whole lot more to this. Libraries have been written about sales persuasion. But here are the basics:

1) The Big Promise
2) The Proof
3) Stories (often in testimonial form)
4) The Guarantee (you’ve got nothing to lose, yet lots to gain)
5) The close (with a tag of urgency)

If you think about it, you’ll find all the basics in Direct Buy’s approach, but what I want to examine in particular is number 5.

You see urgency in sales and marketing all the time. “Act Now. For a Limited Time.” Sales always have an ending date. Every window and siding salesman who ever came to give us a “Free Estimate” always told us that we had to buy that night in order to get that particular deal. Same with time-share presentations.

Direct Buy’s Sales Machine

But Direct Buy puts this whole urgency thing on steroids. If you ask me, the decide-tonight-or-you-can-never-come-back is pure genius.

Why? Direct Buy knows that 95% of people who walk out won’t come back anyway. People have a strong aversion to missing out. Psychologists have proven that fear of loss is a much greater motivator than potential joy from gain.

Direct Buy knows this.

Simply put—if you can resist their tactic, they know you weren’t going to buy anyway. And in probably 99% of the cases, they’re right.

But here’s what I was wondering: Are they really telling the truth?

I mean c’mon. First of all, do you think they really keep track of every person that walks in and out of their doors without signing on the dotted line?

And even if they did, what if (say, six months later), some couple’s situation changes and now they really do want to take advantage of all Direct Buy has to offer. Are they really going to turn away another $4,300 in cold hard cash?

Testing Direct Buy’s Urgent Call To Action

I decided to find out.

Remember, our visit was in October. But last Friday I decided to experiment by clicking on that little “Direct Buy Visitor’s Pass” ticket thingy in the upper right hand corner of their website.

This is what happened next:

First I get a choice of days and times,

Then I get some preliminary instructions about who must and must not attend with me before I’m asked, “Will Saturday, 3/24/2007 at 3:30 PM definitely be good for both you and Lisa?”

Followed closely by a reminder that there are absolutely no children allowed (in case you didn’t catch that the first time), and finally my confirmed Visitors Pass. Yea! I can go!

I even got a pdf version that I prints out neatly and I’m encouraged to bring along to the appointment.

So there you have it. Banned from the building for 4 years? Hah! Just try to keep me out.

Direct Buy and the The Bottom Line for the Consumer

I don’t think Direct Buy is owned and operated by the devil. I don’t think it’s an evil company. And at least from the perspective of an outsider looking in, I would hesitate before I called it a scam.

I honestly think Direct Buy is trying to do what it says–save the consumer money. It’s a good business model, and I truly think it’s legit. But Direct Buy has some serious issues to resolve to get to the next level. The first being the daunting challenge of streamlining and simplifying the flow of information to the customer.

Searching through 8-foot high shelves filled with 5 pound catalogues? Fuggetaboutit. Direct Buy is set up more like an old fashioned library crammed with technical specs than a fun, creative, imaginative showroom.

So who is it right for?

Probably people looking forward to some major furniture purchases,
people who have the time and patience to do their own research,
and people who aren’t afraid to wait 6 weeks without word on their order.

Oh, and it probably helps to have some experience (or at least no fear of) dealing directly with manufacturers–which is a whole different beast when it comes to customer service.

A few final tips to prepare for your Direct Buy showroom visit

So, if you’re going in for a visit, here are a few final tips:

Keep an open mind.
Remember the initiation fee will be anywhere between $4,000 and $6,000.
Be prepared. Bring a list of items you’re thinking of buying in near future. Don’t forget to include specific manufacturer item numbers, specs, and retail prices.
Don’t be pressured. Take your time. See if you can find the things you want quickly and efficiently without a sales person helping you. Who knows how helpful they’ll actually be after they get your money.
When they remind you it’s now or never, just smile and not your head. Now you know better–but it’s still probably best to let that be our little secret. You’d hate to upset them. They might actually remember you six months or a year from now.

UPDATE: If you found this article interesting, you may also enjoy learning how Direct Buy’s corporate headquarters felt after they read it and all the comments posted here.

106 responses so far ↓

1 kenzielee // Mar 19, 2007 at 1:00 am

Oh geez. Just reading all about that made me dizzy. I can’t imagine actually joining. It sounds dishonest to me, anyway.

Kenzie,
You have a real knack for reading my posts just after I post them. I have a bad habit of posting something and then editing it further. I was actually editing this post last night when I saw your comment. Strange to get feedback so soon. And a bit embarassing when you know it’s not your best work. I should be more patient.

Anyway, what the heck are you doing up so late?
2 tobeme // Mar 19, 2007 at 2:43 pm

Chris,
What an education! Yes, Direct Buy like many others sounds too good to be true and is.
I enjoyed your summary of the experience and their sales process. I agree their close is ingenious and I am sure that it works on many. A call to action that you have to wait 4 years if you pass up, I love it!
Great sales ploy, of course they don’t sound like they are planning on have customers sign on again after the first year even though I am sure there are some that do, thinking I sure this year we will need something that will make up for that initial outlay of money.
Great article!

Thanks again Mark,
Yes it certainly was an education. I’m glad I went. I’d always been curious about exactly what the deal was.
Chris
3 Kenzie // Mar 19, 2007 at 9:38 pm

Chris-

I don’t sleep. Really.

Kenzie
4 drmike // Mar 20, 2007 at 3:04 pm

Did you at least get coffee and doughnuts out of your time?

Oh, you can bet I loaded up on the coffee (and cream and sugar). But the doughnuts were gone by the time I figured out where they should have been.

My response to that? (think Homer Simpson) “DOUGH!”

Thanks for the visit drmike
5 NoMarkup Scam // Mar 24, 2007 at 11:09 am
6 Just Wondering // Mar 29, 2007 at 3:11 pm

For $4,300 or more up front, paid in advance, wouldn’t someone expect some guarantees of savings? Why you might pay the $4,300 and not find any discounts. Then what?
7 thanks, // Mar 31, 2007 at 3:25 am

i just wanted to say thanks to everyone posting about these scam artists. i was gonna visit their show room this weekend. so thanks to everyone for saving me from frustation.
8 Big Lar // Apr 5, 2007 at 5:51 pm

Hi,
It cracks me up when people talk so down about this company. First off, how can a company be in business for over 35 years and be a scam. I do wish people would get their facts straight. Just because you might not agree with they way they do business, or who they are does not make them a scam.
DirectBuy is actually a fantastic company and continues to THRIVE!!! They open at least 2 new franchises or more a month and will soon be the number 1 way to shop in America experts say!
If you are building a new home, they are the way to go! You will save much money over supposed big box retailers. If you don’t most likely you have done enough research on the actual item you are buying, especially if you are looking for top notch, quality items!
I admit, DirectBuy is not for everyone, but we have been members for 2 years and have saved a lot of our hard earned money! Check out this site - www.directbuycares.com!

Big Lar,

Thanks for visiting, and thank you very much for your comment. As I said above, there are people for whom this does work. So many people are quick to scorn things they don’t understand. My intention with this post was to share the truth about our experience with the sales process. It’s nice to here a positive report from a member.

Thanks again,

Chris
9 Carob // Apr 5, 2007 at 6:52 pm

Thanks for the great insight. I got my invitation this week on the phone but had to decline their date. I said I’d call them back. Then I began to check into things. What an eye opener. I was expecting something on the lines of a Sams Club. NAY NAY. The membership cost alone floored me. I would have to buy a lot of furniture to save 5 thousand dollars! Thanks for the heads-up on these guys. I’ll stick their invitation in the same trash I put the AOL CDs in.

You’re welcome Carob,
Glad your research saved you some time. And thanks for the comment.
Chris
10 Big Lar // Apr 5, 2007 at 7:10 pm

Hey Chris,

This may give some insight as well.

Thank you!!

DirectBuy America’s # 1 way to shop for your home. WOW, how many times have you heard it.
A company founded as United Consumers Club way back in the early 1970’s continues to grow and change and thrive!! Experts say this company will be the future of shopping in America and Directbuy is laughing all the way to the bank as it opens more and more franchises all across the U.S.
Granted this company is not for everyone, continues to change and improve and do it better and better and better.
If you are building, it is a fantastic way to SAVE hundreds even thousands of your hard earned money, but you have to do it their way! Not so easy and some would say, but WORTH it!
DirectBuy is not a SCAM and is very real! There are some very real issues to keep in mind however.

1. If you do go to an open house tour of DirectBuy, beware of the sales pressure. Kind of like buying a new car.
2. Be aware if you do not join you will NOT be asked back and you have to make a decision the same day! Not exactly easy!
3. READ THE CONTRACT, PEOPLE! DO NOT SIGN UNLESS YOU KNOW FOR SURE IT IS FOR YOU! DirectBuy’s contracts are iron clad and no matter how much you want to file a lawsuit to get out of it, GOOD LUCK! You will spend a lot of time and money defending yourself!
4. DirectBuy is a wholesaler. They work very differently than a retailer. They do not have inventory on hand so everything you buy, you order and wait for!

If you like saving money this just might be the way for you!
Example – if you were in the market for a new car, wouldn’t you rather buy it wholesale over retail. If you buy retail, from a car dealer you may pay $30,000 for a new car. If you bought the same car wholesale at an auto auction you could very easily knock off all the overhead it takes to bring that same car to the dealer, get it prepped and ready for sale. You could easily save $10,000. You wouldn’t have to worry about a lame salesman, warranty extensions, service, etc. What do you do?
GET IT! This, in a way, is the same foundation DirectBuy rides on!

Thanks again Big Lar,
Chris
11 Fed Up With Scam // Apr 7, 2007 at 7:45 pm

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.
12 John Eman // Apr 8, 2007 at 6:54 pm

To be more non bias you might try talking to a person who has used the service for something. You come across as a hard to please jerk in your article here. I work at a DirectBuy and I can tell you that most people are there for about 2 hours. Some centers get people in and out in about 60 - 90 minutes. It’s funny that with over 1 million products to choose from from over 800 manufacturers and outside suppliers, you had trouble finding something. I guess with nearly 1 million members maybe one or two of them have had trouble finding something, then again they had more then 3 hours to look for it….they’re members…. they get tons of help. I would love to meet you and show you what you are missing. I’d even give you a membership for free to let you see the benifits. I’d only ask that when you see how it works and that you will save in many areas, you pay your membership like anyone else. What do you say? E-mail me…. (edited by cw). Let’s see if you really want the truth, or if you survive off knowing what suits your interests.

Thanks for that comment John,

I will be emailing you soon. Until then, you can read my reply in this post. I found your comment so interesting I just had to share it with others who may not have seen this thread.

Thanks again for your comment and visit. I’ll be in touch soon.

Chris
13 clay // Apr 9, 2007 at 5:04 pm

I’m a member of the ‘Club’ and we did at least make back our $4,500 membership fee. However, we were building a house, and we needed kitchen cabinets…we saved a bundle, more than our fee by far. That said, I have also seen all of the other bothersome items you mention–six weeks waiting, shipping and handling, hard to find items, etc. We found some sofas locally for about the same price as DirectBuy’s, without the added hassle. Without building a house, or major renovations, I would not have joined…too easy to find off-brands, and local sales for most things…

Clay,
That’s great info. Thanks for sharing.
CW
14 Directbuy TV Commercial // Apr 10, 2007 at 1:37 am

Is this directbuy’s next TV commercial?

http://www.youtube.com/watch?v=kjurnsoib8k
15 Direct Buy Employees: Most Loyal in the Trade? // Apr 13, 2007 at 3:31 pm

[…] comment was interesting: It came recently in response to a post I wrote about our experience at a Direct Buy presentation . It comes from John, an alert reader who also happens to work for Direct […]
16 Bargain Minded // Apr 17, 2007 at 4:38 am
17 Paul // Apr 30, 2007 at 3:34 pm

DirectBuy is a complete scam…..don’t walk away from them…RUN AND SAVE YOURSELF! They should be out of business…there’s just no need for this kind of crap in today’s world.
18 Robert // May 6, 2007 at 6:22 pm

This morning I turned on my TV and found the blonde in the “DirectBuy” commercial making her pitch. Chills went up my spine and the hair on the back of my neck stood up.

Now I HATE to admit this to anyone, but I’ve been taken not once, but TWICE by scams such as this one. Does anyone remember DORALCO or NUMART from the 1980’s? They were in the same exact business — grand promises of monetary savings, unlimited buying power, all that crap. Facts? Limited choices, long delays in delivery, merchandise not as advertised (with no easy way to return), exorbitant shipping/handling fees, rude sales people (they get sick of seeing you too after a while). and finally… THE DISAPPEARING ACT! They can go out of business at any time and YOU LOSE!

That is exactly what happened to me. Remember, not once, but TWICE! The last one disappeared with my all-paid $4,000 wall unit that was never delivered.

No, your local Attorney General cannot do anything. No, your State Attorney General cannot do anything. No, your personal lawyer cannot do anything.

I offer my exeriences to you PRO BONO.

DO NOT GO THERE.
19 T-Jaq // May 24, 2007 at 12:56 am

Hi, Chris…just a word to Big Lar and any other naive person that (in my experience) blindly defends butcher businesses like Direct Buy…far from being “the future of shopping,” this type of business has been around forever. It’s called a “contractor,” and all it does is put together materials and subcontractors from its area while taking a hefty management fee. You can find multiple pages of contractors in any phone book in any city, and they’ll all tell you the same thing…they don’t actually do anything. they just try to arrange for it; whatever happens to the goods or services after that is your problem. Direct Buy, Doralco, Sams, these are all just the same as a shop front for taking the local contractor national. Sure, a broken watch is right at least twice a day, so there’ve been loads of people who’ve gotten what they wanted and saved something on it, but for the most part, it’s always going to be cheaper to do it yourself. If you want anything in the world and you want the best price, you’re already in the neightborhood; just do a search of the web, because this is the future of buying. And one more experienced word to Big Lar and the others who (it seems from their blogs) never owned a home or dealt with major work or purchases…I’ve done exactly that, from a new roof to new windows and doors to foundation (including load bearing beams) replacement to completely gutting both kitchen and bath, etc., etc., etc., so I actually know from experience what I’m talking about. All I did (after running the gambit of contractors and their promises) was go online to find who makes what I wanted, compare their products, find the best one I could afford, go to their website and find a local distributor, and call them for an estimate of the work (and each time it took me only a couple of days). I replaced all 10 of the windows and 3 doors in my house in less than a month and spent only $4400 total, which was $3-5K less than every estimate I got from five different companies in my area. Oh, by the way, I found my new fridge online at an appliance site and saved $1300 on the top model, even with delievery charges, and I got my new front loader washer for $600 less than anywhere else I’d seen it the past year. My new flat panel 27″ tv is incredible and was delievered to my door for $440! Anyone who’s actually made a major purchase such as a kitchen knows that the future of shopping is online at the actual manufacturer’s or distributor’s site, and believe me, Chris, there’s not a catalog among them.
Best regards…I’m off to buy a new laptop at Tiger Direct (for almost a grand less than anywhere else I’ve found it, and it’s got the Core2 from Intel and a 2gig DDSRAM2!).

T-Jaq,
Thank you for that awesome comment! Being a home owner and DIY’er I can totally relate and very much appreciate your insight. Smart, detailed, and honestly enlightening. Great comparison to a contractor. Thanks for adding a dose of intelligence to this blog.
Chris
20 Casey Hicks // Jun 10, 2007 at 3:03 am
21 moonranch // Jun 20, 2007 at 4:21 pm

Chris,
My wife and joined about a year and a half ago, anticipating doing a remodel on the house. Well we have just started the bathroom and have done most our product research online. As a member we are able to see the DirectBuy prices online and compare them to ther online retailers. I have found that the DirectBuy prices are usually cheaper than the other retailers, but we usaully needed to go to the store to place the order. When we went to the store to place the order, the staff was helpfull: finding the needed catalogs, filling out the order form, taking the order. What we wern’t quite prepared for was along with the item cost there is an 8% service fee, frieght(expected and resonable) and a sales tax(most online retailers do not charge out-of-state tax). The sales tax was 6.8%, appropriate for our state, but it was applied to the frieght and service fee along with the item price. Bottom line is we saved, but not very much; I am undecided on weather the buy-in cost is worth it. (I can send you a spreadsheet comparing actual DirectBuy cost to online retailer cost if you e-mail me)
22 Franchisee // Jun 22, 2007 at 2:53 pm

Chris,
You didn’t complete the process; and thus, your results are inconclusive. Yet you post them as though you have all the data. With regard to the “second” visitor pass you generated online (and thus “proved” you could get in for a second tour), you stopped the process one step too soon to have complete, accurate results. While you have the ability to generate as many visitor passes online as you wish, DirectBuy DOES track every single person that comes through its doors. Consequently, though you had the pass, you wouldn’t been able to use it, and you wouldn’t have made it through the door. You were already in the system. In fact, I looked you up today. You’re there. See you later.
23 How this blog made $400 in its first month with AdSense . . . // Jun 29, 2007 at 10:25 pm

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24 Direct Buy, Directbuy - » Why You Should Always Have Garden Furniture - Direct Buy, Directbuy // Jul 1, 2007 at 12:57 pm

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25 stephen king // Jul 4, 2007 at 6:48 pm

Dear Sirs,

I actually work for the direct buy in the Wyoming, Michigan area. (hence the faux pen name to keep from being fired )Let me tell you this we are a complete scam. Im a Telemarketer, (something our company hates to say and prefers the term marketing rep) We are charged with the soul corrupting task of getting 40 ppl a week (per person… there are 6 “marketing reps” calling anyone that comes into our database from 3pm-9pm mon-fri) to come into our center by way of cold calling them and telling them they are semi-finalists in our 50k dollar home makeover. In fact one person wins this prize once every 6 months in the whole michigan area. We tell you that you’ll be sent a key and if it fits the lock in the showroom you’ll win the make over or the cash if you prefer. And to sweeten the pot we will give you 2 of the 5 bonus gifts (you will always get the $20 gift certificate and vacation package although I never found out where that is to, im assuming a local motel 6) just for trying your key. Afterwords we will ask if you are married (If so you and spouse must come in together theres really no way around it and if your single you must have 5k worth of home projects to be sent a pass) and then you’ll be asked if your between the ages of 25-60 (if you are older or younger you will not be sent a pass because they feel you dont make enough for the membership fee which i’ll get to later) then the final question do you make over or under 40k (only 40k or over will let you through) then my job ends but its hardly over for you. By the way you MUST simply MUST when we call you tell us to put you on the no call list if you dont want to be bothered. If you yell, slam the phone, ignore the phone, pretend to be someone else and say they are not interested, (which alot of ppl do) say they (you) arent home, etc etc then we will call again for the next 10-12 days until our computer filters you out and even then in 3 months later we will call you again and the cycle continues and direct buy gets the last laugh. From there you will be called by a booker who will confirm a date for you to come in (they will lure you with fake testimonials and tell you about the direct buy advantage) and will continue to call until they can do so. After you come in you will be treated to a video (yawn) and will be thrown sales pitches and will be given a tour of the sales room as well. After it is all over you will have to make a choice to either join or decline a membership. The cost for ours is 4,500 for 4 years and im not sure about any recurring fees for we are not told much ourselves. All our showrooms are privately owned so member fees and the like will vary from each center. You can also opt to pay 400 a month for a certain amount of time as well. If you do decline you will be banned from all centers for the next 7 years (a psychological sales approach) and we do keep those records because we all share the same operating system that keeps track of all our calls along with names numbers and addresses. Thats the fat of it and please allow me to beg please dont scream and curse at us who call you. Matter of fact 80% of us hate the place. I loath it and how they operate their center but the owners and the ppl who profit (our owners just bought a hummer) do not take the brunt of your anger we the peons do. So why do we stay…because dear reader this is Michigan unemployment is our only other option and at only $9 per hr for 30hrs its better than nothing. Most of us are just out of college or working 2 jobs and none of us can even dream to afford to even member at our “respective” centers. If you are frustrated and want to see where the money goes ask for the owners. As for savings just Google the manufactures websites and buy directly from them believe me it’ll save you alot of time and misery. Now I must go scan the web for job sites and I wish you all the best of luck.
26 D-LaC // Jul 10, 2007 at 6:45 pm

I joined Direct Buy in 2006 after a house fire. I
purchased everything from large appliances, all lighting, floors (hardwood and tiles), all major house furniture, electronics. I found the savings in my favor.

I purchased a grandfather clock that retailed at $10,000 for $ 1,400 . the savings along over $8,000. This purchase saved the membership fee.

To get the best bang for your buck.
The following are indicated on manufactures catalogs with $ $$ $$$.
$ means minor savings
$$$ means significant savings.

The smaller appliances however since this was an insurance claim. I did purchase these at retail.
The only reason is the lead time is 4 - 6 weeks.

I have read some of the articles. Stating that the web was difficult to navigate. It was frustrating to get pricing, with out having to submit a request for quote which was sent to your email account.

Direct Buy has now made some significant changes to their website. It now includes ** VIEW PRICING **.

Bottom Line: If you are just planning on purchasing a few items during the course of your membership then Direct Buy may not be for you.
27 Lee Smith // Jul 14, 2007 at 9:57 pm

Can you please write a comment about a DirectBuy Franchise Owner in Maple Shade, NJ who saw fit to send my husband off to the summit trip and put him in the SAME room as another female coworker?

How bout when she arbitrarily took his salary 3 times (once just 6 days before Christmas) because he didnt meet his quota for the month of December.. oh and a second time at the end of January when the Philadelphia Home Show came around and she wanted him to man the booth on his day off. The meeting was held and he declined the offer, went to lunch and came back to find a note “bonus pay only”, meaning, salary, yet once again, yanked away. $1270 salary for two weeks from a man supporting a family of four.

Please tell me what you’d do.

L Smith
28 Diana // Jul 16, 2007 at 2:37 am

Chris, if you agree that DirectBuy’s alternative way of buying actually does benefit some people, why do you write that the company’s advertising and sales tactics are wrong or sound like a scam. DirectBuy takes a lot of pride in saving members money. There are freight and handling (very small percentage) fees associated with the sale to cover manifacturers problems and damages, but there is NO MARK UP. Do you think retailers do not build in freight from manufacturer to the store into their final marked-up cost to the consumer. They do and they overcharge for freight!

DirectBuy makes its profit once-on the membership. Members can buy as much stuff as they want without any markup. And they can take their time buying-membership is long-term! Is it ok for the retailer to mark up one item 50-100% (sofas or area rugs for example) , post one day sale and pressure consumers to buy that sofa TODAY or the sale price is over. Is it ok for Macy’s to sell an item for $69.00, but then you can find the same exact item on a sale rack for $14.99? How much did they mark it up in the first place? 400-500%. Or does Macy’ s loose all that money by giving shopeers such great deal?
How come appliance retailer can mark up one fridge $400-500.00, put it on sale for ONE DAY ONLY at $100.00 off and no one complaints? Does not it not sound like a pressure sale from each and every retailer over and over again.

There is nothing wrong with mark up. I, however, will not pay mark up each and every time. And my last purchase was my daughters bedroom set, which costs with DirectBuy $1900.00 (including fees!). At the retail store 20 minutes away, the same EXACT set was $3200.00 plus $90.00 delivery.
And if you notice, majoiry of “compaliners” are not even members. Give it a break, and be fair!
29 Diana // Jul 16, 2007 at 11:34 am

TO THE BARGAIN MINDED POST:
DirectBuy Inc is a franchisor, and each store is owned by the franchisee. The sales indicated above do not mean $200.00 spent per member in merchandise. It is corporate’s profits only for servicing and charging the franchisees to provide their services. This number does not relate (not directly as you presented) to the number of members.
Last year, DirectBuy placed almost half of a BILLION dollars worth of merchandise for its members from over 700 manufacturer, not 112 mil as you stated. The fact is, members ar DirectBuy buy merchandise and a lot of it. and they love the savings, otherwise they would not be coming back-would they? So please do correct math before badgering this decent, hard-working copmany!
30 Kelly // Jul 24, 2007 at 7:09 am

Hi Chris,

I LOVE your blog on DirectBuy! Thoughtful analysis, stylish writing, and decent grammar; I’m practically overwhelmed, no joking!

Now for my story: Prior to stumbling upon your fabulous blog, I just finished exercising my California three day right to cancel the contract my husband and I executed with the San Diego franchise. I am embarrassed to admit that while highly skeptical of all of the obvious red flags, we were still seduced by nothing more than our own laziness.

This laziness was borne of many months of searching for the “best deals” on our new custom home project, and simply tiring of the process. Looking back, I suspect we purchased a DirectBuy membership almost entirely premised on the vain hope that we could secure Home Depot prices AND Nordstrom’s service.

Fortunately, a cursory review of internet posts snapped us out of our stupor and we have taken quick and decisive action to exercise our legal rights. I presume that the San Diego franchise is sane enough not to mess with us and will refund our $6000 in the statutorily mandated ten days.

Did I mention that I am an attorney….

Bottom line for us — 1) offers that are too good to be true generally are; 2) a missed opportunity is of far less consequence than an invited disaster; 3) Nordstrom’s does not offer Home Depot pricing; 4) Home Depot does not offer Nordstrom’s service; 5) Home Depot does not sell designer purses; 6) the DirectBuy contract guarantees neither Home Depot pricing nor Nordstrom’s pricing; 7) the DirectBuy contract does guarantee that the franchise owner will, after the three day cancellation period has passed, keep our $6000; the DirectBuy franchise we shopped likely made oral statements that over-represented reality; 9) oral statements that over-represent reality might also be called “sales pitches”; 10) “sales pitches” are most effective on the less shrewd and those, like us, who wanted to be sold. Maybe we are all one and the same.

Also, regardless of whether DirectBuy is a scam/borderline scam/maligned goodguy/etc, I feel really bad for the less shrewd and their losses. I’m not a class action attorney, but ponder whether a class could be certified and some relief obtained.

Then again, in many class actions the attorneys make millions and very little relief is had by the class members. Perhaps a scam in itself.

I digress.

OK, back to the theme and off to bed. Thanks for making me think about all of this, keep on blogging!

/Kelly

Kelly,
Thanks for your insightful analysis. I don’t think I’d like to run up against you in court. I’m sure you’ll have no problem getting your money back.
Chris
31 TLHoke // Jul 26, 2007 at 2:47 am

We went to a DB presentation last nite. My wife was 100% sold, but I’m a major skeptic and told the sales guy that if it was a good deal tonight, it would be a good deal tomorrow. He said it was only available that nite. I said good-bye and my wife is so pissed at me for not signing on.
Anyway, I suspect that DB is probably not a scam, but like one of the comments above said, not for everyone. HOWEVER, DB needs lots of members to keep going and it’s no matter to them if you really profit from it or not, except to get a few shining testimonials.
POINT 1) A discount is only a bargain if you were planning to buy it anyway.
POINT 2) If you planned to buy it for $400, but found a $2,000 one that was 60% off, you “only” paid $800 - but you still paid $400 more than you planned. How did you save?
POINT 3) The average $50,000 income example that DB used would likely only have $1-5,000 of disposable, discretionary income. So, once you paid the fee, where is the money for buying stuff to save money on?
POINT 4) MOST LIKELY, you will have to get some financing to buy the bigger ticket items that you can save big bucks on. That means you are getting into consumer debt, maybe at high interest! Bad idea….
POINT 5) Having a DB membership probably pressures you to buy more, or higher-end stuff than you would have bought otherwise. That’s not saving.

Our rep was a ‘house flipper’ which means he buys lots of furnishing, windows, flooring, etc, that a house renovation needs. GREAT DEAL for him, probably.

It wasn’t a great deal for us.

Don’t know if I’m spelling this right, but the Romans had a saying: “Caveat emptor” : Let the buyer beware!!
32 Tim // Jul 26, 2007 at 12:02 pm

July 24, 2007) My wife and I attended an open house at DirectBuy last evening and left feeling that it was such a waste of our time. The open house began with a slick video presentation, and ended with multiple smile-laden phony sales reps pouncing on us (almost as bad as used car salesman). The membership fee is $5100 to cover the first three years, and $200/year for years 4-10. After year 10, the yearly fee is inflation based. Also, DirectBuy apparently charges an 8% fee for most every order for “handling” as well as charging for shipping, and sales tax. And, you have to go to the DirectBuy outlet to pick your orders up!! What really got me is the pressure and the insistence that you have to make the membership decision on the spot. The sales reps were obviously programmed automotons, and each wore a phony smile. I thought we were at an AmWay convention and at any moment we were going to hear a “whoa DirectBuy”!!! And once my wife and I began to indicate we would not make the impulse decision, two sales reps began the assault. We finally got a straight answer if you order something, there is NO return policy. You are stuck, but, as the sales lady said, “..with all the money you are saving, you shouldn’t have to worry..”, almost as if product satisfaction is irrelevant. I’m sticking to the internet. At least you can compare vast numbers of suppliers. And as a parting shot, the sales lady said in a trite way that she was so sorry to send us back into the retail world. We told her we would survive!!!
33 Jerry Chandler // Jul 27, 2007 at 1:52 am

I bought a direct buy membership several years earlier. I am a business professional, a tight wad, and a skeptic. I have not been disappointed.

If you spend the bucks you will save; however, you should be willing to spend on average 10 times the fee to get your money back.

I was fortunate. I saved my fee on one purchase. I know because I researched the costs of my planned expenditures beforehand.

Bottom line — If you are looking for the highest quality products you will save. If you want rock Wal-Mart prices or clearance deals go elsewhere. This is for the value shopper not the discount shopper.
34 ProfV // Aug 22, 2007 at 3:40 am

Dear Chris,
I’ve spent the last half of an hour reading over all of these posts, very thoroughly, and cannot help but comment on the overwhelming negativity geared towards a company that is in business to help people. DirectBuy offers a service, and as a member for a year and a half, I can vouch for the fact that it is a service that has been very beneficial to me as a single woman with expensive taste and an eye on my budget. It is in my opinion a service that is beneficial for anyone who is a home-owner and consumer, and I know plenty of other members who really enjoy the service as well.

I have never seen, though, so many people attack a company because they don’t like the terms of the service that they offer. It seems as though it is a witchhunt of some sort, and that people, such as the attorney in San Francisco, seek retaliation against a service. Baffling and unheard of, in my opinion, and it makes me deeply concerned that we live in times where people are so hateful and quick to bad-mouth anything. I must say that you, on the other hand, did seem to make an effort to be fair in your evaluation, and I’m sorry that you had a difficult experience, but as I expressed, I have been delighted with very good deals on the major items I’ve purchased for my home.

I feel as though the employee from Michigan, who feels as though DirectBuy is a scam, is a very sad young man. If he is among the employees who are recent college graduates, he should strongly consider the value of his college education. Is tuition at any university worth its weight at all if its graduates are unable to seek and obtain employment in which they take pride? That is really a pity.

In times where people choose to focus on gloom and doom and revenge and potential law suits, I find it all a bit exhausting and ridiculous. If people don’t want to take an honest look at something and make an informed decision for themselves, then they simultaneously commit themselves to a lifetime of not really thinking for themselves. Boy, there’s a lot of sheep in this world!

ProfV,
Thank you for taking the time to read (thouroughly even) and comment here. It is refreshing to hear the voice of one so satisfied with their experience with Direct Buy. It’s also satisfying to hear the voice of someone who obviously has the courage and intelligence to think for herself.

It has also been my experience that folks are quick to attack (as scams or otherwise) things that don’t always fit neatly into the mainstream. Sheep is a good word for it.

As far as I, and this post, is conserened:

I honestly one day hope to be in a position to take advantage of Direct Buy. Which is to say, I one day hope to build and furnish my own (eco)home from scratch. I’m fairly certain DB’s deals would work out swimmingly in that case. Until then, and with no major purchases in the near future, DB and I must continue to go our separate ways.

What continues to fascinate me about this post is that it continues to be one of my most popular, averaging over 50 visits a day from various search engines. There are obviously many people searching for answers or validation. But what interests me almost more than anything else is why someone that is well past the research or member sign up page, would stumble upon my web site. Obviously, you have no problem with DB, and you are past researching to make a decision. What prompted your visit?

Chris
35 ProfV // Aug 22, 2007 at 6:22 am

Dear Chris,

In answser to your question, a person at work told me that they had read nothing but negative things about DirectBuy on the internet, and my curiosity got the best of me. While I assured him that my experiences with the company as a member had been good, I was interested to see what people (other than the members that I know) were saying about the company, thus stumbling upon your site. I guess it doesn’t hurt as far as number of hits go that you are listed on the first page of Google!
36 A. Cactu // Aug 31, 2007 at 11:11 pm

I am thinking of bringing a class action lawsuit against this outfit. Reason: Deceptive trade practices, False marketing and above all no mention of hidden charges, like the 6% handling fee they charge on all items and the 3% credit card surcharge. What is this 6% ? The 6% is what Directbuy makes off of all the stuff you order from them. Yes its you paying them in addition to the membership fee. Then, they do not accept credit cards. Yes, if you decide to pay by credit card, they charge you an additional 3% fee. If you factor in the 6% handling fee and the 3% credit card surcharge, there is NO discount. In fact you can get stuff cheaper elsewhere. I have proof. Let me ask you. how many people order major appliances etc using cash ?? Most credit cards provide product insurance so its wise to pay by credit card.

Anyone interested in discussing a class action can contact me at asteccactus@yahoo.com and I will have my attorneys contact you.
37 AFFECTED PERSON // Sep 6, 2007 at 5:23 am

THE SOUTH JERSEY OWNER OF DB IS A GREEDY PERSON WHO HAS IMPLEMENTED PAYCUTS AND IS MAKING EMPLOYEES WORK HOLIDAYS WITHOUT PAY - ALSO IS KEEPING ALL THE CREDITS THAT ARE SUPPOSED TO BE GIVEN BACK TO THE MEMBERS WHO SHOP THERE - IN THE FORM OF A CASH BACK…BUT GREEDY IS AS GREEDY DOES. EVERYBODY NOW HATES THIS PERSON BECAUSE SHE IS A PIG AND A THIEF. SHE MANIPULATES AND STEALS FROM HER EMPLOYEES AND HAS MADE SOME POLITICALLY AND MORALLY INCORRECT CHOICES NEARLY WRECKING A MARRIAGE. IF SHE EVER READS THIS MAY SHE TURN RED WITH EMBARRASSMENT. I HOPE SHE ROTS IN HELL OR GETS THE CRAP KICKED OUT OF HER. YOU REAP WHAT YOU SOW AND THIS PERSON IS DUE FOR A HUGE SLAP IN THE FACE . SHE SHOULD BE SHOT AND PUT INTO A MENTAL FACILITY.
38 Brian // Sep 13, 2007 at 5:43 am

Hi, Chris,

I like your article/blog.

I have been working on a home remodel for the past year, and for that reason I went to one of the DB sales pitches last night. I was not looking forward to the experience, because I expected it to be frustrating and high pressure (which it was), but as a professor of marketing, my interest was piqued.

The sales presentation was redundant and, therefore, boring. It was also, quite condescending. I felt frustrated by not being able to browse the library. While my sales person did go get some catalogs for me to look up prices for specific items I could remember having purchased or priced previously, I couldn’t come up with anywhere near $5,000 in savings for what I have left on my remodel. Maybe if I were doing cabinets or windows, I could make up the membership fee, but I’ve already finished my cabinets, and my salesperson couldn’t give me any information on what I might really expect to pay or save on window replacement.

I’ve looked over various rating websites today to see what others think about DB, and there are a lot of complaints about both the sales pitch and the service to members. I have another issue that I haven’t seen raised (and that is possibly unique to me). I usually like to see things in person before I buy them. To do this as a DB customer, I would have to go to retail stores to view and learn about the product, and then (presumably) go to DB to buy it at a lower price. I don’t really think that is fair to the retailer. Part of the reason retailers mark up products is because it costs money to hold inventory in a showroom so that I can physically see and feel the product. That’s part of what I pay for when I buy a product from a retailer.

I mentioned this issue to my sales person, and she said that there’s nothing wrong with this, since people go in stores and look over products all the time without buying. She told me, though, that a DB customer shouldn’t take up the time of a salesperson in a retail store, though (which, I think, may be one of DB’s “rules”). Even without talking with a salesperson, however, I feel that the DB customer who shops products in stores to decide whether to buy at DB is taking unfair advantage of honest, straightforward businesses. And most store retailers that I’ve worked with are basically fair, reputable companies. After all, there’s nothing wrong with marking up a product or not disclosing what you paid for something you’ve put up for sale. If the markup is too high and the value is not there for the customer, the customer doesn’t have to buy.

Aside from the above and the high pressure sales tactics, DB seems to have a legitimate business idea, and the people I interacted with there were nice enough. If I had been at the start of my remodel, I might have sweated the decision more, but I hope that I would have still declined, in light of the hassles that so many people have had. Besides, I’m of the opinion that we Americans buy way too much stuff (crap?), and a system that makes me feel obligated to buy more (or more expensive) than what I really need in order to make back a large upfront investment is something I need like a hole in the head.

Brian

Thanks for your perspective and input Brian. I’m glad you stopped by and took the time to comment–especially as a Marketing Prof.

Chris
39 Paul // Sep 15, 2007 at 12:29 pm

Just went to the DirectBuy in Tinley Park last night. The branch called me at least 8 times during the day, so that I would show up at the appointed time, and I did.

The presentation was extremely long; I got bored. But the concepts sounded great! I almost got completely sold by this. Darn, I am so trusting. My partner dragged me out of there before I could sign on any dotted line.

In the car, I was a little upset, but now that I read all of this and recognize truths here, I am glad. Thank god one of us was skeptical!

Paul
40 With DirectBuy, it will cost you a lot to save // Sep 15, 2007 at 8:38 pm

September 13, 2007
With DirectBuy, it will cost you a lot to save

Your town or city might have been blanketed recently with newspaper ads and TV commercials for DirectBuy. The nationwide buying club, with headquarters in Merrillville, Indiana, promises members access to 700 brand-name manufacturers of home goods and the opportunity to buy merchandise with no “hidden store markups and middlemen costs.” Ads invite you to an open house, where you’ll see “confidential” wholesale prices. “We can’t show you the brand names and we certainly can’t show you the prices,” read one ad. What it also doesn’t show you is DirectBuy’s steep membership cost.

The Real Deal

To evaluate the pitch, we went undercover at two DirectBuy franchises in New York. Both gave us the same hard sell and offers of up to 70 percent off retail prices if we were to join. Only after an hour and a half of sales pitches and video testimonials from members did we learn the membership fee: $4,900 to $4,990 (plus tax) for three years and then $190 a year for seven more. Financing is available at 17.75 percent.

After the fee disclosure, we discovered that we had to sign up on the spot or never come back. We couldn’t bring DirectBuy’s “confidential” prices elsewhere to comparison shop, the representatives said, because this would likely anger retailers who might then retaliate against the manufacturers by refusing to sell their merchandise.

The fine print in the DirectBuy contract says you cannot return items, cancel orders, or terminate your membership. When we asked if, after plunking down $5,000, we could cancel and get a refund, a salesperson said, “You’ll have to check state law.” A review of New York state law revealed that the three-day cooling-off period for canceling contracts wouldn’t apply in this case.

Tacked onto the cost of merchandise—which you select from catalogs since DirectBuy has limited showrooms—are a 6 percent handling fee, shipping fees, and tax. Goods are typically shipped only to your local center, so you might pay additional fees to actually get your new stuff home.

Just how good are the prices? We compared them against those of other retailers. Prices for electronics and appliances were often only slightly better than those at online retailers and in some instances higher. For example, a 46-inch JVC flat-screen TV selling for $2,586 on DirectBuy’s site cost $2,095 elsewhere. We did find deep discounts on flooring and high- end furniture. In fact, one member we interviewed estimated that she saved about $50,000 over several years on furniture and a kitchen remodel using DirectBuy. Yet the club did poorly on some basics. We found a Kohler bath faucet for $300 less on a kitchen-and-bath Web site.

Some DirectBuy members complained to us about poor customer service and long waits for merchandise. But since DirectBuy outlets are franchises, service varies by location. Most outlets have a good record with the Better Business Bureau, though some 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.

http://blogs.consumerreports.org/home/2007/09/with-directbu-1.html
41 DIYers help DirectBuy weather economic storm // Sep 25, 2007 at 8:21 pm

Bargain-hunters boost firm’s membership rolls

Rachel Petzinger and Dean Sammy knew they had their work cut out for them when they bought their four-bedroom fixer-upper in St. John, Ind. The place needed extensive renovations in the master bedroom, bathroom and kitchen.

Whether they could stay within their budget of $35,000 wasn’t as clear.

Then, while running on a treadmill one morning, Ms. Petzinger saw a commercial for DirectBuy, a Merrillville, Ind.-based wholesaler that offers its members steep discounts on furniture, appliances and flooring. After some comparative shopping, the couple paid to join DirectBuy, a decision they say saved them $50,000 in their five-month-long renovation.
“We knew it was a cost-effective way to go,” Ms. Petzinger says.

Bargain-seeking renovators like Ms. Petzinger and Mr. Sammy are privately held DirectBuy’s best hope for riding out the housing slump. So far, the company says it’s not feeling the pinch of steep declines in home sales and construction in the Midwest, where 22 of its 143 franchises are located.

Since 2002, President Scott Powell says, Direct Buy has tripled its membership, increased sales more than 600% and almost doubled the number of stores. “We are setting records every month,” he says.

The true test may be ahead, as the housing decline accelerates amid the foreclosure and credit crises. Sales of single-family homes and condominiums in the nine-county Chicago area dropped 13% in July from a year earlier to 9,725 units, according to the Illinois Assn. of Realtors. Local homebuilding dropped 37% in the second quarter from a year earlier, the worst showing since 1994, according to Schaumburg-based real estate consultancy Tracy Cross & Associates Inc.

THE COMPETITION
But DirectBuy may be able to avoid the storm by focusing on high-end homeowners doing their own remodeling — and by keeping prices below those of direct competitors Home Depot Inc. and Lowe’s Cos., as well as home-furnishing retailers like Crate & Barrel.

“When you are in a slow market like this where people feel stretched, price becomes even more important,” says Jay McIntosh, director of consumer products for Ernst & Young LLC in Chicago. “And retailers who sell to the do-it-yourselfers doing rather expensive remodeling or upgrading are not hurt as much.” Mr. Powell says DirectBuy’s membership renewal rate was up about 78% by the end of its fiscal year in July.

The company, which employs about 4,000 nationwide, has taken advantage of the moment by stepping up its advertising. It also plans to open 29 newly remodeled stores in the next 12 months. Last year, the company partnered with home decorator Christopher Lowell, who designed 12 model rooms for DirectBuy members.

“We have been around a lot of economic cycles, and we have never seen our business influenced too much by the economy one way or the other,” Mr. Powell says. “People’s desires to shop don’t go away. What they want to do is buy at the best possible price.”

This appeared in the September 17th edition of Crain’s Chicago Business.
42 Kathleen // Sep 27, 2007 at 7:57 pm

Thanks for the warning! I was a little put off and thusly wary of the “no children” and the fact that both partners must attend - sounds like a timeshare hardsell I heard about recently.Then 4,000 to 6,000 dollars for membership! I am glad I visited your page - I’ll use the 2 hours for something more productive! One would need a bigtime project to recoup that amount of money!
43 Susan // Sep 28, 2007 at 6:53 am

Anyone with half a brain knows that you have to spend money to save money when you belong to Direct Buy. So why don’t some of you accept the fact that there are some people out there who knew they were spending plenty of money and decided to join Direct Buy. I belong and like it. Sure, it is not perfect and you have to do some extra legwork. But it is worth it to me. I just purchased a counter height table and hutch and two bedroom sets for half what I would have paid otherwise. I checked prices elsewhere including internet. And I am now about to remodel the kitchen and bath. It works
for me.
44 Kurt in Sacramento // Oct 14, 2007 at 11:43 pm

My wife and I just finished an “open house” at DB today (10/14/07). We are doing a kitchen remodel and are trying to pick cabinets. Brought a fully complete order from Lowes that contained prices and models for comparison. We listened to the sales pitch and asked a few key questions: 1) Is DB privately or publicly owned (private franchise) 2) How does DB make a profit (membership dues), 3) How many members does it take for a franchise to break even (wouldn’t say), 4) can we get out of the contract (California has a 3 day contract break rule).

So we forged forward. The db staff let us compare kitchen cabinets to Lowes. The DB staff were helpfull and looked up our cabinets in their books. For example, we looked at a specific cabinet: Lowes was $890 - their prices was $465. Shipping was esitmated at $50. There was no mention of the 8% handling fee. Our total Lowes kitchen cabinets were $18,900 and DB’s estimate was about $13000 so it seems like close to break even when I include the $5960 membership. My wife and I agreed that we would not join unless we were sure that we could we could recoup the membership fee on the cabinets alone. (we assume that other discounts will put us in the “black” on the remaining items need in our remodel.)

After spending the evening reading the internet postings, we are going to cancel the contract. I think that the uncertainties about 1) true shipping costs, 2) the 8% handeling fee, 3) the delivery times, and 4) the return policy and process puts too much uncertainty in our hearts to move forward.

I guess were going back to Lowes. . . Why to kitchen cabinets have to cost so much anyway - it’s just a box to hold spices?

Awesome comparison Kurt. I think you summed up many people’s feelings and reasons for hesitation with your comment. Thanks for that.
Chris
45 Jim // Oct 15, 2007 at 9:31 am

Last Sunday my wife and I went out to Suffolk County NY for a DirectBuy orientation. All in all it was three hours of high-pressure sales hell.

I just about had a stroke when they _finally_ mentioned the price for three years of membership: $4,900.

And when “Cathi,” with the extremely bad teeth, mentioned that the offer was “take it now or never get to join again” the little scam-alarm in my head went off.

I told Cathi, that her offer sounded just like an offer one would expect from a dishonest used-car salesman. I told her that, considering the amount of money involved, I wanted time to fully look at my options and check around before I committed.

She didn’t blink an eye. She asked if I’d feel better if I could use their computer and check the Better Business Bureau site.

She went to the boss/owner, he set it up and we looked online at the BBB. DirectBuy looked okay. And as she had suggested, I also ran a Google search for DirectBuy from their machine.

Now, here’s the really strange thing: there were only two links on the Google result page. One link was from some guy suggesting that DB was a scam and another link was to a very long screed from the DB store owner, saying the scam-calling guy was someone who’d never visited the store and was ignorant of the actual DB experience.

I was almost convinced. But I still couldn’t get past the high ticket price for joining. Cathi said it was for ten years of membership; until I corrected her that it was really for three years. She offered us a monthly payment plan of $200 per month. She made no mention of finance charges.

I just redid a Google search from my home computer and found more that 30 pages of research results. Many of those pages are very negative about DB. I stopped looking after viewing ten links.

I also redid the BBB search from home. Again, I got totally different search results. While the BBB information looks sort-of okay, there were enough differences to reaffirm my suspicion: they were running some sort of filter on their machine that excluded negative comments.

Boy, after looking at the real Google results, I am so glad we didn’t sign up!

Anyone who suggests that their great deal is “take it now or lose out forever” is trying to run a scam. A good deal is a good deal today, or tomorrow, or next week. If your sales person says otherwise, run – don’t walk – to the door.

I found a way to save more than $5,000 on stuff for our new house! And it only cost us 3 hours of our time - at a DirectBuy sales presentation.
46 Sue Williary // Oct 22, 2007 at 9:55 pm

Here’s what’s interesting about your “research,” about the policy of not returning to the club within 4 years, (by the way, I thought it is 7 years in most states). Anyone can go online and print another visitors pass, so I don’t know why you’re so proud of yourself for doing that. Your information goes into a corporate database, so will John at the door know you were there a year ago? Probably not, but if you decide to become a member and submit your paperwork, Direct Buy’s corporate office will kick that right back to you. Sorry to burst your bubble…you seem so…proud of your false findings…
47 Ken // Oct 30, 2007 at 1:35 pm

I printed the free pass, selected an open house time, then proceeded to further my research. What a shock!
I have never seen so many sites complaining about one company.
However legal they may be, it looks like a classic case of “buyer beware.”
I called the local DB store and explained that we were only doing a minor remodel and that their plan wouldn’t work for us.
I also asked to be removed from the open house list which they did. All handled in a friendly and courteous manner.
48 Carrol // Nov 6, 2007 at 8:28 am

This is all a classic case of fear of the unknown and a fear of things that are different…

My husband and I joined DirectBuy on Long Island roughly seven years ago. Since that time we’ve moved from an apartment, into a starter home and we’re now about to close on a home we’re having built. We’ve easily saved the membership amount and five times over. When you look at it from a long-term investment point of view, it’s extremely difficult not to recoup your savings.

My membership with DirectBuy hasn’t been a perfect relationship - but what relationship is. I can tell you that the four centers that I’ve shopped at (Suffolk, Nassau, Queens and Manhattan) all have had a genuine interest in my satisfaction. Have there been delays, shipping damage, items discontinued, etc. - sure. Was I upset - you bet. Do these things occur when you’re ordering from any other retailer - of course. Just do a search online for the Better Business Bureau ratings for any large national retailer. You’ll find countless complaints. Yet the majority of people still continue to shop there. Who actually checks with the Department of Consumer Affairs before buying a couch from XYC, or cabinets from ABC or appliances from 123? I think people research the product but they don’t take into consideration the THOUSANDS of complaints logged for every traditional retailer when they hand over their credit card.

I think the biggest problem people have with DirectBuy is that it’s different from the norm. Once you understand what it is and how it operates the amount of money you can save over the course of a membership is really amazing.

Do I use DirectBuy to buy everything - of course not. Some products just don’t have that much of a profit margin through normal retail channels (online, discount, etc) - namely appliances and electronics. If I find something cheaper outside of DirectBuy that I’m shopping for and I’m comfortable with the source - I buy it - as I would recommend to any other consumer. But for things that have higher profit margins, such as furniture, lighting, mattresses, cabinets, countertops, plumbing, flooring, area rugs, window treatments, table settings, jewelry, gifts, etc - well, I’ve saved a bundle.

My husband had the hardest time coming to grips with the minimal markup on consumer electronics (especially after I pretty much made him join). I mean, what else would you want to do after you join but buy a nice tv… and then to see that you’re not saving that much… You just have to remember that you didn’t join for a tv - you join for an alternate source for buying things for the next decade.

That’s key… decade. We all want instant gratification. I think the man a few comments up who wants to cancel his membership because he only saved his membership on the cabinets is ridiculous. Is he not going to buy anything else for his home??? No countertops, or flooring, or appliances, or backsplash, or lighting, or pots, pans, knives, no plates and glasses, or flatware - and that’s just the kitchen. Wow, that’s extremely short-sighted. These are all things that I’m buying now and saving hand over fist.

As I said at the beginning, DirectBuy IS different:

- I’ve had access to more products than I ever seen in any store. So much so that I’ve felt inundated with options.

- The staff lets me select what I want. They’re not pushy nor do they care if I spend $10.00 on a widget or if I get the $10,000.00 widget. So the service level is “different”. They’re not waiting on me hand and foot like some salespeople do at higher end stores nor are they rude like the staff at many discount retailers nor are they leading me or up-selling me to a particular product because of their own internal incentives (commissions or bonuses). They’re, on the whole, normal people and I guess that can be off-putting for some people. I actually find it refreshing.

- To continue with the normal people train of thought, I’ve had countless questions before buying a product that the DirectBuy staff simply weren’t able to answer. They would help me, either by looking in the catalog, or on the manufacturer’s website or by calling the manufacturer’s customer service hotline – but my inquiry was returned with a quizzical look. They did have a genuine interest to provide me with an answer and honestly tried to get the answers to the best of their ability. Nowadays, most manufacturer websites have all the information I can ever ask for.

- I treat DirectBuy as a purchasing center. Do your homework in advance. Buy what you want and you’ll be happy. It’s not a store in the traditional sense.

- Everything is special ordered. I’ve had things come in a week and I had products that we’re custom-made that took 12 weeks. As long as you plan ahead and read through the catalogs you’ll get a sense of how long to expect it to take.

Just my viewpoints and personal experiences.
49 Patrick // Nov 8, 2007 at 8:28 pm

I have been a member of Directbuy for the past three years. I can’t believe some of the outrageous comments that I’ve seen on this site. It’s almost like you are talking about another company. I have saved my membership with everything i’ve purchase so far. And I plan to renew and buy alot more in the future.
50 Anthony Smith // Nov 13, 2007 at 9:49 am

I almost listened to a coworker who went to a directbuy open house and had nothing but negatives. Fortunatly, I’m a man who thinks for myself and not easilly swayed by the opinions of others. I had an estimate for kitchen cabinets which I thought was outrareously high $28,690
I could not believe the membership fees. But I thought to myself, if it is so bad as my coworker said, how come they are still doing all this business. So I followed their instructions, went armed with my estimate and the info from my coworker.

I found the concept to be unique, and made sense to me. Despite the apprenhension of my wife, I joined and saved $17,000 on my cabinets alone. After 3 years of being a member, I’ve saved over $31,000. Did I have some fustrations with service like any other business, sure. My friend is now begging me to purchase items for him. The answer is always no.
51 Dan Benton // Nov 18, 2007 at 12:57 pm

This DirectBuy decision is actually a relatively easy solve. Simply ask the sales rep and telemarketer (and yourself): If you are going to save so much $ when you purchase a membership on DB items, than shouldn’t a sales rep’s time be better utilized on purchasing items through DB and reselling them on eBay, Craigslist, or some other reseller forum thereby maximizing his/her wealth? If the savings are so good, than one could conclude that a reasonable and intelligent person would not waste their time peddling sales pitches, but rather on reselling items they bought for so much less than at retail. Maybe even focus on a handful of “hot” items to resell for profit. However, I do not think this is the case. If anyone is doing that out there, please correct me… I can conclude with a high level of confidence that this is not the case because, and simply put, the margins are just not there. To recover an upfront fee such as DB’s would require ALOT of buying and saving above retail. In my opinion, this concept is flawed for the average consumer and is obviously slanted for the DB owner’s gain. Remember thee ‘ole simple advice Dad gave us when considering concepts such as DB: “If it is too good to be true, it probably is”.
52 casey // Nov 21, 2007 at 10:01 pm

I would just like to say, I did a google search because one of my friends is building a house and he told me it was the smartest thing he has done in the whole process was joining DB. I am surprised to see how many people cannot do simple math. “I saved 800 dollars on a dishwasher” “I saved 1000 dollars on my kitchen appliances and 4000 on my cabinets” To even break even you need to save a dollar more than you paid to join the club right? So if in three years you have not saved at least 5001 dollars then you should be buying at full retail prices becase you would ultimately have more money in your pocket even after paying the “higher” prices.
53 Howard // Nov 23, 2007 at 8:00 pm

At the orientation meeting at the Direct Buy in Bergen County, NJ, I informed the Direct Buy representatives that I didn’t see anything in their showroom that I liked for the kitchen remodel I was planning. I told them I wanted modern European-style cabinets in Cherry with a cranberry stain. One of their “contractors” approached me with a catalog and told me he could get what I was looking for in the stain I wanted at a very competitive price. On the basis of his representations, I joined. I paid the membership fee in full: with tax it came out to $4,800. I also “bought” two items - a professional Canon high definition wide angle zoom lens and a compact HDV camcorder. These items together cost more than $3,100. I was told that they’d be arriving around the 5th or 10th of November. Neither article was ever delivered.

Concurrently, the contractor came to my house after a few reschedulings and delays on his part. He took measurements and I didn’t hear from him for two weeks. When I finally tracked him down he told me that he had inadvertently given my blueprints to another client. A week later he came by with blueprints. The dimensions were wrong. I told him what the corrections were. I told him which blueprint design I preferred. He then disappeared and I haven’t heard from him since - it’s been a few weeks since he abandoned the project without notice.

This Direct Buy took $8,000 of my money and I have absolutely nothing to show for it. They failed to perform in every respect on every agreement and contract they made with me.

I told them that unless there was a material resolution - where I get the merchandise and performance is demonstrated that I would sue them. Their response was to plead ignorance about the contractor and offer me a full refund for the merchandise (but not my membership fee, mind you). They actually believe that this makes me whole! I am soooo going to sue these bastards.
54 gregory and mary ann younk // Nov 24, 2007 at 9:38 am

We were duped too. The night we were invited to hear their sales pitch we were told that their was a Direct Buy location in Cadillac Michigan near the city (Manistee, Michigan) that we were retiring to. Now that we are in the process of building our retirement home there we find out that the city of Cadillac does not have a Direct Buy nor was there ever one at that location. The closest one to us will be a 3 1/2 hour drive.
When the location we purchased our membership was questioned about why they would tell us such a thing we were told in so many words that we were liars and never told any such thing. Besides we were told it was OUR responsibility to find out if there was a location there or not. Try to do that in the short time period you are alotted that night. And if you don’t chose to sign up that night they tell you that you will never be invited back again.
Too bad for us. We were told to transport all the products for building our new home to that location ourselves which is a 4 1/2 hour drive one way. We would need a moving van in order to do this, making any saving negligable.
Beware of trusting these people. Obviously they will do anything for a sale and once they have your money fat chance of getting it back.
If any one wants to go after them legally let us know!
55 Justice // Dec 4, 2007 at 8:21 pm

My wife and I became members of Direct Buy more than five years ago. We are white-collar, college graduate, professionals. To date, we have spent more than $50,000.00 through Direct Buy. We have recouped our initial investment multiple times. Is Direct Buy for everyone? No, it’s not. It’s not for you if you’re lazy, not an independent thinking person, or tend to live in the moment (i.e. one who needs instantaneous gratification). If this is you, don’t become a member. But if you’re willing to conduct your own research, gather FACTS, wait for delivery of your products, you WILL save a lot of money. Now, if saving money is not important to you…then it’s a mute discussion. With over a million members in both the United States and Canada, I’m sure there are some members who are not satisfied with DirectBuy; but according to the media, Wal-Mart is managed by the Anti-Christ. Consider the source folks. SCAMS don’t remain in business for 38 years, yet alone flourish. This organization is not a SCAM. Several non-members have chosen to opine and I’m shocked by the comments made by them on this blog. Many of the statements are represented as FACTS by individuals who are not members. Many of those offering their opinions stated they did not join because they were “shocked” by the membership price. Did you think it would be free? During my time as a member, I’ve noticed most people who criticize the organization are not members of the organization. And, most of them did not join because they could not afford the membership. Therefore, they need to find a reason to demonize the organization. DirectBuy is not perfect, but it’s a hell of a lot better than buying retail. Some of you really need to adjust your paradigms; because you’re missing out on a good thing. I would not be a member if it was not a financially sound decision. All I can tell you is the return on investment (ROI) beats the hell out of the stock market. Mock the program if you want, but most of the negative replies are based in ignorance, and not FACT. I’m proud to be a member. I share my positive experience with family and friends, and several have joined.
56 Not Impressed // Dec 6, 2007 at 10:56 pm

Paid over $2,500.00 and renewed 3 times without benefit
My wife and I joined this club in 2002. We paid over $2,500.00 with the promise that we would be buying at wholesale for major purchases i.e. carpet, tile, kitchen cabinets/renovations, furniture and appliances. We purchased carpeting for our home and we did save about $700-$800 over comparable product. Everytime we tried to use the service for purchases after the initial carpet purchase, we found that the values were significantly less than advertised. We moved into a different home in 2004 and went to puchase appliances and found that the savings on major applicances was non-exsistant and that we could match or better our pricing with a little due diligence.
We have renewed out membership for several years in anticipation of purchasing new tile and granite for our kitchen. About 6 weeks ago, I got the names of three members who offer Direct Buy picing for new granite in our kitchen and bath. I contacted all three, received two call backs. I sent my plans to two of the participants and only received one estimate back, nearly 3 weeks later. In the interim, I was referred to another granite fabricator who was both prompt and responsive. I ended up buying from the non-member because I was receiving little to no response from the members. I called the center to register a complaint but was pretty much brushed off. I called the corporate headquarters in Indiana and they took the complaint and were supposed to pass it on to the local owner. That was on Thursday, July 26th. Today is July 31st and I have had no response.

Thanks very much for your support.
Lawrence M. Smith

Mr. Smith,

Um . . . today is actually December 6th, 2007. Not sure what worm hole you crawled through, but you might want to keep this in mind for future rants: Missing the date by that much causes you to lose credibility–no matter what you say.

But thanks for the visit and input anyway Lawrence.

Chris
57 Darby // Dec 10, 2007 at 4:54 pm

Ahhh Direct Buy!
Where to begin. My husband and I have been members for years and we did purchase our wedding rings through Direct Buy at a considerable savings. Now we’re doing home renovation and the nightmare has been non stop. Direct Buy doesn’t list many of their manufacturers on their website. We didn’t feel that it would be a good consumer practice to jump into a purchase of 20 windows without doing research. I had called Home Depot and priced windows at Lowes and then decided to call Direct Buy and have them give me a list of their window companies. I was delighted to see that Pella was a company that they carried. Here’s the rub. You need to contact the Pella rep so you make sure that you get the correct size windows. Now Direct Buy is not actually handling your purchase Pella is. One would think that you would get better service getting to deal with the manufacturer instead of receiving second hand info. It took me 2 weeks to get the Pella representative to speak with me after leaving multiple messages with my Direct Buy referral. I finally pick out my windows and receive my quote. I send the quote to the contractor to find that the Pella Representative missed a window. I have my contractor contact the Pella Representative to fix the error to ensure that the projects pieces are all ordered correctly. Finally the order is correct and Pella sends the quote to Direct Buy to have the representatives at Direct Buy tell me that they didn’t understand how the math was done on the quote. I contact Pella again and have the Pella representative call Direct Buy to explain how the windows get ordered. I was told that the order was placed to find out a week later that Direct Buy lost the quote and never placed the order. I took a trip to Direct Buy with the quote to hand it to them and watch them make copies this was Nov 14th. I can only give them leeway on one error. My contractor did measure 2 of the windows incorrectly which caused me to change the order so the order was not actually placed until the 15th of November. By the way the missing window also needed to be added to the revision so it was never added when the correction had previously been requested. I was told that a rush was being put on my order due to the delays and errors and a need date was placed as December 7th. December 6th I receive a call from Pella telling me that they will be delivering my windows January 3rd. I of course began to lose my mind. The Pella representative that called me told me that my order wasn’t actually placed until November 29th. I found this to be very interesting since I new that my $18,000 check was cashed November 23rd. I called Direct Buy to ask what was going on and I was told that a Direct Buy representative would take care of it. I was suppose to receive a call the next day to explain to me what the problem was. Today I decided to start harassing everyone again in the hopes that someone would actually give me attention. I was told by Pella that my order took longer because of the missing window on the quote and Direct Buy isn’t open on Mondays.

I wish anyone who joins Direct Buy good luck. Our first experience was fine but this window ordeal has been a complete nightmare. I feel like I’ve been robbed. I can only hope that when these windows are finally installed that they are beautiful. I’m not sure it will be worth renewing my membership.
58 larry osborne // Dec 11, 2007 at 9:33 pm

Direct buy,
Why would I subject myself to a “Timeshare mentality” sales pitch?
59 warner whybark // Dec 13, 2007 at 10:03 am

I almost joined. I have no idea if they are a good or bad company. I only know I refused to even go to the sales pitch because they need an answer that very moment. How crazy is that. Their is no good reason for that (other than get you to make a decision you are not ready for). Why not let me look at the pricing, let me think about it and talk to friends? I am not a big fan of ” well Mr Whybark here is a hot deal but it only last for 60 seconds”. If it is that hot of a deal then why am I not allowed to think about it. Again I stress that I do not know if the deals are good or even great. I simply refuse to deal with a company that uses a take it now or the offer is gone sales tactic.
60 Direct Buy Makes Contact // Dec 18, 2007 at 6:16 pm

[…] a year ago I wrote a post about my experience at a Direct Buy showroom. Over time that post made its way to Google’s front page for the keywords “Direct […]
61 Darrell // Dec 21, 2007 at 6:28 pm

I priced a bunch of items at Ashley Furniture. Then I checked the prices on DB and found that DB prices were on average 10.00 more per item. Throw in shipping and handling and you are paying way more than retail. DB’s promise that you will never have to pay retail again is true. Sometimes you will pay more than retail, and I have found very few items to buy with a savings worth the hassle of ordering through DB, waiting for 6-8 weeks and then dealing with rude backroom employees at DB. DB is a joke for 90% of the fools such as myself who paid 4000 to join. After 4 years I can honestly say I saved $200 on a sofa. But the hassle wasn’t worth it. If a lawyer would take up a class action lawsuit I would join in a moment.
62 Brent // Dec 21, 2007 at 9:05 pm

Thanks for all the info, DB is trying to lure me in, I have an upcoming appt. I think I will cancell that and tell them to have a nice day!
63 Question // Dec 22, 2007 at 9:23 am

Found this article from the National Post.

I think this article shows very strong feelings for and against Directbuy.

Chris, my question is what are the contributing factors that generate such emotional passion for or against Directbuy?

National Post’s Financial Post & FP Investing (Canada)

November 20, 2004 Saturday
National Edition

Couple take buying club fight to streets: Directbuy picketing

BYLINE: David Menzies, Financial Post

SECTION: FINANCIAL POST INVESTING: MONEZ; Pg. IN2

For James and Mona Daniels of Ottawa, the marketing pitch for DirectBuy of Ottawa West looked so appealing on paper. DirectBuy promises would-be members it can “eliminate the middleman.” By doing so, the Merrillville, Ind.-based buying club claims consumers can purchase everything from furniture to jewelry “at savings up to 50% and more off store prices.”

In June, the Daniels attended a DirectBuy open house and were persuaded to join. The biggest selling point: the Daniels, who were hoping to buy 240 feet of commercial grade fencing for their funeral home, were told the savings achieved via DirectBuy would more than pay for the club’s $3,177.90 two-year membership. The owners of the franchise, Robert and Carla Smith, were all too happy to sign up another couple to their $6-million a year business.

But in hindsight, the Daniels wish they had never set foot in the DirectBuy showroom — a sentiment shared wholeheartedly by the franchise’s owners.

At issue: The Daniels claim they were victims of “bait and switch” tactics by DirectBuy in that the company wasn’t able to deliver a certain kind of fence. As well, they accuse Mr. Smith of uttering verbal threats and even physically assaulting them. (At time of writing, the Ottawa Police Service confirmed charges are pending.)

For their part, the Smiths claim the Daniels have done “irreparable damage” to their business due to the couple’s public protests that saw them picket in front of the Smiths’ DirectBuy outlet.

So, what went wrong?

Ms. Daniels says DirectBuy simply couldn’t deliver on verbal guarantees made during the open house session. Namely, she had been told by a DirectBuy representative to obtain two quotes from Ottawa-area fen

Chris Wondra . com

School teacher, dad, homeowner turns superhero but has to learn his powers along the way