Sometimes, having a blog seems like a lot of work. Sometimes it’s wicked fun. And every once in awhile something jumps up and bites you in the ass (er, I mean, surprises the heck out of you).
This was the case this fall when out of the blue, I got an email at my school address from Sara Shragal, Sr. Communications Coordinator for DirectBuy, Inc.
Almost 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 Buy” as well as “Directbuy.” So now, depending on Direct Buy’s advertising schedule I consistently get between 150 and 200 visits a day to that post.
But that’s not to cool part. The cool part is that so far, 59 people have also shared their own Directbuy stories–both positive and negative–in the comments section. So I think, if you want a fairly even handed comprehensive report on the Direct Buy experience–from presentation, to sign up, to customer service–you can get a pretty good idea right at that post. One stop shopping.
And now–Direct Buy itself would like to weigh in.
Instead of telling you the whole story, I think I’ll just share with you the correspondence that Ms. Shragal initiated early this fall, which culminated in the interview at the bottom of this post.
Enjoy:
Act 1: An Email From Direct Buy Corporate
Hi Chris,
I work at DirectBuy’s corporate headquarters in Merrillville, Indiana and wanted to introduce myself. Based on the discussion taking place on your website, I would love to schedule a time to talk so I can provide you with additional information about DirectBuy and answer any questions that you or your readers might have.
Given that you have already taken the time to visit one of our showrooms, I thought it might be useful to provide you with some additional information on our company, and allow you to ask questions of me. With some of the recent posts to your site, we also would like a chance to directly respond and provide clarification on our business and our policies.
In the meantime, I encourage you to visit www.directbuycares.com to see for yourself how some of our members have used DirectBuy to build, remodel or furnish their homes, and also how our franchise owners are giving back to the community.
Let me know what day/time works best for you. I look forward to speaking with you.
Best regards,
Sara Shragal
Sr. Communications Coordinator
DirectBuy, Inc.
act II: I reply. or–What the hell?
Hi Sara,
Your email intrigues me on a number of different levels.
So first I have to ask: How did you find my blog? I’m always interested to learn how people have come to find me. And since I don’t remember leaving this email address on my blog–how did you find that? And finally, why bother with little ol’ me and my blog? I mean, c’mon–it’s not like I’m Barbara Walters.
Mine is not a consumer awareness blog. I don’t really have a niche. So when I wrote that particular post, I never expected it to get the traffic and spark the discussion that it has. And I certainly never imagined it would catch the attention of DirectBuy corporate. Yet despite the traffic the post attracts, I really haven’t given DirectBuy much thought since writing it. I read the comments, but I don’t encourage (or discourage) the discussion. Heck I rarely even take part in it, other than to say something like, “Interesting. Thanks for stopping by.”
But, after getting your email last night, and thinking about it a little more today, a sort of follow up article might be interesting. From what I understand from your email, it sounds like you’d like to directly address some of the ideas, conceptions, or misconceptions about Directbuy that are floating around.
(I then basically brought up the idea of me interviewing her)
Act III: Direct Buy lets down its guard, takes a chance with an independent blogger, and agrees to an interview it has absolutely no control in publishing
Hi Chris,
Thanks for your note! I hope you weren’t too frightened when you got my initial email - we actually found your blog and your email address on Google. Here at DirectBuy’s headquarters, we are always on the lookout for outlets – online, media or otherwise – that are interested in our company. Since you have quite a bit of space devoted to DirectBuy, I thought I could offer some helpful insight into our business.
(She then went on to accept my offer for an interview and explained a few of the things you’ll find below)
Kindest regards,
Sara
The final act: Chris Wondra goes head to head with Direct buy in a no holds barred knock down drag out interview that may, in the end, bring the corporate giant to its knees and award the first ever pulitzer to a blogger.
Not really, of course, but a guy can dream can’t he?
CW: Tell us a little bit about your position with Directbuy. What are your responsibilities and how long have you been with the company.
SS: As senior communications coordinator at DirectBuy, I spend a good portion of my time educating consumers about DirectBuy’s business model, because it’s different than what many people are accustomed to. As such, my focus is primarily public relations, branding, and internal communications. I started working with DirectBuy in May of 2001, and since that time, I’ve seen our company evolve and most importantly, grow! From the day that I’ve started, we’ve more than doubled the number of franchised locations we operate, and our members have increased their purchasing by over 500%!
CW:What are some things that you enjoy about your job?
SS: I’m naturally an outgoing person, so I love that I get to speak with so many people from so many different areas in a given day. Throughout the day, I’ll speak with many of our franchise owners, media representatives from newspapers, television, radio, and the Internet, and prospective and existing members from all over the U.S. and Canada. By far, the best part of my job is hearing from our members! Their experiences are so important to what we do. Just recently, I spoke with a family from Chattanooga that built a home, and purchased most everything they needed, from flooring, lighting, plumbing and cabinetry, to furnishings, appliances, and outdoor furniture, at DirectBuy. They were absolutely thrilled with their savings – in fact, they saved so much on their purchases that they were able to buy a brand new truck with the savings they incurred through DirectBuy!
CW: What are some of your biggest challenges?
SS: As a communications coordinator and spokesperson for DirectBuy, one of my biggest challenges is managing communications issues across our growing network. I’m finding myself traveling more and more to attend new showroom opening events, franchise owners meetings, video shoots. Just last week I was in Palm Springs for one event and then Columbus for another, to highlight some of our new showrooms. It has been difficult to keep up, but a lot of fun as well.
CW What would you say are some of the biggest misconceptions people have about Direct Buy?
SS: Some of the biggest misconceptions I’ve seen and heard about DirectBuy are that:
1.) DirectBuy’s sales process is high-pressure; and
2.) DirectBuy members don’t save on their purchases.
First, to address claims that our sales process is high pressure, it’s important to fully understand our business. Briefly, DirectBuy has a unique business model that requires prospective members to attend an open house and learn about the company, savings and product selection. The information shared during this session is confidential, and therefore we require consumers to make a decision to join during the open house. While this format is non-traditional (and somewhat “foreign” to most consumers), it is required to protect our manufacturer relations and ensure incredible savings.
Next, is the misconception that DirectBuy offers no savings on merchandise. Again, the answer to this question requires a little insight into our business model. DirectBuy requires a membership fee that is paid upon joining. In return, members are able to purchase merchandise at manufacturer’s prices. Since we derive no income from the sale of merchandise, this means that members will receive substantial savings on the majority of products offered through DirectBuy, including furniture, cabinetry, lighting, flooring, plumbing fixtures, etc. One point of clarification is that some products, such as appliances and electronics, tend to be very competitive amongst retailers. In such instances when we are advised by a manufacturer that their products may be similarly priced at retail stores, we notify our members via a label on that catalog that explains that the pricing on the products in the catalog, such as electronics and appliances, may offer only marginal savings.
Chris, I continually receive testimonials from our members all across North America, and I know we have tens of thousands of satisfied members who are saving significantly on a wide array of items for their homes. I’d like to find a way for your readers to understand that. I’d also like them to keep in mind that DirectBuy is not for a person who just wants a good price on a faucet or a television. We’re ideal for homeowners who are planning to make multiple home-related purchases in the near future.
CW: That’s interesting. It sounds like you’re saying that, in some cases, a DirectBuy membership may not be able to save you much if anything.
SS: Our business model enables us to offer savings in every product category we sell. The key is that savings on certain types of merchandise is more significant than others, because retailers tend to mark up certain products more than others. That said, our members still find savings on products with smaller margins because they buy them at manufacturers’ prices. In some cases, savings on merchandise with smaller margins is not as much as the savings they would find on other products. I mentioned how we communicate this to our members by labeling our catalogs. When prospective members visit DirectBuy at an Open House, we also make sure to tell them where they will find the most significant savings.
CW: What sort of person would get the most benefit from a DirectBuy membership? In other words, what sort of items would a person want to buy through DirectBuy to save the most money?
SS: Well, any homeowner planning to make major purchases for his or her home over the next ten years would benefit from a membership. However, the families who benefit the most and in the shortest time frame are homeowners who are redoing a room, building a home, or moving into a new home. For example, members often save tens of thousands of dollars on remodeling their kitchens by purchasing items through DirectBuy. The savings on kitchen cabinets alone is typically thousands of dollars. We do not pretend that we are for every consumer, and our marketing efforts are designed to reach out to people who will benefit from our savings.
CW: Let’s talk a little about that so-called “high pressure” sales tactic of requiring a member to sign up on the spot or be banned from the showroom for 4 years. In my original post, I made a pretty big deal about being able to get and print out an invitation for another showroom appointment even after I’d visited once. What would happen if I had actually shown up for the appointment?
SS: That’s a good question. When you sign up for an Open House appointment online, your information is added to a database and then sent to the appropriate showroom so that they may follow up with you to confirm your appointment. If you had signed up and attended an Open House previously, the database would recognize the duplication, and you would be contacted by a representative from the showroom.
CW: You say,
“The information shared during this session is confidential, and therefore we require consumers to make a decision to join during the open house. While this format is non-traditional (and somewhat “foreign” to most consumers), it is required to protect our manufacturer relations and ensure incredible savings. “
Explain how this arrangement “protects” your relationship with manufacturers.
SS: The relationships we have developed with top manufacturers is one of the elements that provides our members with outstanding value and makes DirectBuy a success. Out of respect for the retail community and our manufacturers, the information shared during the Open House session is confidential to prevent individuals from using our prices as leverage at traditional retail outlets. Without this policy, our pricing could adversely impact our manufacturers’ relationships with their other retailers. For example, if a store has a price match policy, and consumers continually visit the store with lower DirectBuy prices that the store is obligated to match, it would hurt their business. That store could and probably would complain to the manufacturer about DirectBuy advertising and delivering on much lower prices, and that could ultimately hurt our relationship with our manufacturers.
CW: You also say,
“ . . .we derive no income from the sale of merchandise.”
Yet I’ve also read (in comments on my post and elsewhere) that in addition to the manufacture’s cost, you charge an 8% “service fee” above and beyond shipping and sales tax. Can you explain this?
SS: To ensure that our members receive the items they requested in ideal condition, our product service staff receives and inspects each piece of merchandise ordered through DirectBuy. Some items include a 6-8% charge to cover this. As I mentioned, this is not an aspect of our business that we profit from, but a service that we provide for our members.
CW: What would you say to those who call Direct Buy a scam?
SS:We have a 35-year track record of serving tens of thousands of satisfied members, and we are continuing to grow across North America with new showrooms opening each month. DirectBuy continues to have success because we offer our members a unique opportunity to save money on items for their home. With any company, there are going to be isolated incidents where customers or members have issues or difficulties. That said many of the individuals who criticize us are not members and some have not even taken the time to visit a showroom. At the end of the day, I am proud to work for a company that helps so many families enjoy and improve their homes.
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89 responses so far ↓
1 Don // Dec 19, 2007 at 10:49 pm
Interesting. I wonder what she would say about the $130 dollars in shipping they wanted to charge me for a $120 dollar office chair. That is only one of many problems I have encountered so far with DB. A 7 month wait for a front entry door manufactured 20 miles from my house. I am still waiting for a complete kohler order made 5 months ago. I have dealt with kohler directly many times, they have less then a week turn around for any product they carry. If you consider your personal time to be worth 2 cents an hour, then join Direct buy and reap the benefits of endless headaches and “we will call you back with and answer to where your products may have been lost.
Don,
Wow! Thanks for sharing.
Chris
2 Kevin Crisp // Jan 3, 2008 at 12:20 pm
I was reading all of your information on Direct Buy and I am one of the many people who feel like they were scammed. Negative reports are all over the internet about Direct Buy, in my city alone I have spoke with many people who feel as though they were stung.
Has anyone ever sued them and won, they seem to have many attorneys working for them, if this many people are dissatisfied, then something is wrong. I am going to court because I was pressured into signing the contract with my wife. Then when we tried to cancel they would not do it. Now they have a lawyer coming after me! Now what! I get bad credit and a judgment.
3 Judy // Jan 3, 2008 at 7:53 pm
We joined Direct Buy about 4 months ago, because we were redecorating 2 rental units and converting our garage attic to living space. Like everyone else who has added to this blog, we were given the same pressure to join before or never come back. We obviously joined thinking that the savings would be substantial. They are, until they add on the Handling fees, shipping fees, and taxes. I have ordered an entire unit of furniture from them, and it seems that you could double the price you see for each product to get a true idea of how much you will spend. We joined the New Orleans franchise but have been working with the Baton Rouge franchise since our projects are there. Baton Rouge just changed hands, and no on really knows what, or where anything is…including our money for items that the manufacturers discontinued! I did order my last item through the New Orleans franchise and it has actually arrived and awaiting pickup in Baton Rouge…before the first order placed at the Baton Rouge franchise! My theory is that it depends on the franchise. The New Orleans folks went out of their way to accomodate me when I went there complaining that no one would answer the phone for 2 weeks. They informed me about the “change of hands” for that franchise. To date, I am still waiting for more that 50% of my orders, not to mention my refunds. I’ll let you know how the story (nightmare) ends, if that ever happens!
Thanks for visiting and sharing your story Judy.
I truly hope everything works our alright for you. I can’t imagine the stress of having to deal with two different franchises. At least it sounds like the folks in New Orleans care. You’re theory that it depends on the franchise (at least when it comes to service) sounds valid. People are people. Some work hard for you and some just don’t care.
Please do stop by to update us on your progress.
Thanks again for sharing your story.
Chris
4 Judy // Jan 3, 2008 at 7:56 pm
I forgot to mention, that we would be interested in a Class Action Lawsuit as well! We’ll never recoup the $4000 investment.
5 Lesli // Jan 4, 2008 at 12:06 am
I joined Direct Buy in Palo Alto, CA several months ago and I would like to cancel. I have visited their showroom once in all that time and found them quite cumbersome in even trying to find what/how to use them. I have never purchased anything through them. Since no service/product has been bought, why can’t I get a refund. Is anyone starting a class action lawsuit? If so, I want in. Any thought, comments would be very helpful in this direction.
6 Mary Lewis // Jan 4, 2008 at 2:10 pm
Hi Chris:
Perhaps you explain the warped thinking of Direct Buy.
My daughter made an appt with D.B. When she got there with her best friend and her interior decorator, she was told they could not come in with her. To make a long story short, they told her that she could bring in a spouse, significant other, boyfriend/girlfriend, but NOT a friend. She asked: You mean if I had a gay lover, I could bring her in? The answer was “yes.”
She asked: You mean if I said BOTH of my friends were gay lovers, they could come in? “Yes.”
She left.
A few days later she received a call asking if she wanted another appt since she missed the first one. She told the person, “no, I didn’t miss it,” and proceeded to tell her what had transpired.
This person said, sorry, but that’s our rules.
Needless to say, my daughter DID NOT make another appt.
I want to add, my daughter has a DDS, an extremely lucrative dental practice, a 900+ credit rating, and LOTS of cash money to spend.
And this is the way DIRECT BUY TREATS HER???????
I would like to hear from D.B.HQ, exactly what the hell is logical in this kind of thinking, NOT TO MENTION DISCRIMINATION.
Hi Mary,
Marketers have done sophisticated and extensive research on all things related to motivation. My guess on that one is that Direct Buy did (or found) research that indicates a person is less likely to buy if they have an impartial friend with them. Kind of like they won’t let you bring your kids.
Just a guess.
Regardless of whether it’s fair or discriminatory, what do you think? From DB’s perspective do you think that would that make sense?
But that totally wouldn’t make sense if this was also an interior decorator!?!? You’d think bringing in an interior decorator would be a win win win for everyone. Too bad. Sounds like DB might have just missed out.
Thanks for sharing your story Mary, stop back again.
Chris
7 Steve Bernstein // Jan 4, 2008 at 4:19 pm
Well I understand some of their business model but not the financial part. Sara states “ . . .we derive no income from the sale of merchandise.” She also states “the 8% “service fee” … is not an aspect of our business that we profit from, but a service that we provide for our members.”
So just how does DB derive a profit? A kickback from the manufacturer based upon the volume of business? Other hidden charges? DOes anyone know?
Steve,
Thanks for the question. I wish I would have thought to ask it of her.
I thought Direct Buy made a profit from the sale of new memberships. That would be the biggest source of revenue. But I’m starting to wonder if that service fee is another way to bring in a few extra dollars.
What do you think?
Thanks for stopping by Steve.
Chris
8 Rich // Jan 7, 2008 at 4:52 pm
I joined DirectBuy 10 years ago it was UCC then. My experiences were all frustrating with wrong size blinds due to their so called expert not knowing what he was doing. Of course no returns. Wrong color couches, they said it was my fault should have known do not expect blue couches in the catalog to be blue they were green. Of course no return. Ordered a sink for a bath room I was remodeling excellent price even with their extra charges for handling. It came broken they took so long to return it, I was forced to pay double the price at a plumbing supply so my contractor could finish the job. Took months to get my money back for the broken sink. Ordered 2 leather couches and a chair good price but the aggravation of renting a truck and getting a friend with his truck to pick the items up at DirectBuy was hardly worth the savings. I have paid a hundred and something dollars for 7 years to keep my membership hoping I would someday save enough to get back the cost of my membership. I receive a letter from DirectBuy that my 10 year membership is up and because I am such a good customer I can join again for only $2500. Well when I joined no one told me it was only for 10 years, so I was quite surprised.
Bottom line do not waste your money you almost never will save enough to justify your membership. The frustration you will endure is hardly worth the supposed savings as anything that you get and are not happy with you are stuck with it no returns.
9 AB // Jan 9, 2008 at 4:52 pm
Wow … I just made an appointment to go to an orientation or whatever they call it, and decided to do a little online research … I’m really glad I found this site! I am going to cancel my appt. I surely don’t need the the headaches, or another way to get ripped off of my limited and hard-earned money! As a previous responder said — and WHY don’t I remember this all the time! — IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS TOO GOOD TO BE TRUE!
10 Mike // Jan 11, 2008 at 1:36 pm
Hey…I found your site, because I have been finding clients touting the costs from DB…I work in the Custom Electronics field…Having previously been a Purchasing agent for a company and dealing with many manufacturors, this is typical of how business IS done on the back end…product deliveries are between 4-12 weeks and most have minimum amounts to even ship, hence the high shipping costs on smaller (at least to a mfg) orders…anyhow…keep one thing in mind..COSTCO…do some research and you will come to a conclusion on your own…but I have heard that Costco operates on a fixed margin of somewhere around 6 to 7 % …so it looks to me like the extra 1 - 2 % DB charges puts them into the same “Profitablity” category as Costco…but Costco’s membership fee’s are between $ 45.00 and $100.00….granted the selection may not be as huge, but I just wanted to illustrate the similar pricing structure….NOBODY want’s to deal with manufacturors direct….that is what retailers are for, and ordering thru mfg catalogs can be very risky….Retailers at least make their catalogs readable for the everyday buyer…but that has a cost also…
Mike,
Thank you so much for that perspective from a purchaser. What you said about profit margins and Costco is totally new information for me. Very cool to know!
Thanks for your input!
Chris
11 Thomas // Jan 11, 2008 at 10:53 pm
Chris!!!
Get real. This is a scam, stop pandering! Your playing nice with a company that would pull the rug out from under you on a train platform!
Thomas
12 Rob // Jan 12, 2008 at 8:22 pm
How can Sara from Direct Buy NOT be very concerned about the negative comments? In my work, which is the same as hers, I have to make sure the customer is taken care of, sometimes at the risk of losing some profit short term. If any of my customers had the experience eith me as I had with Direct Buy, I would be out of business. Wouldn’t it be “ethical” to refund at least a portion of the membership fee? Their business model makes no sense. It cannot work, long term. Can it?
13 francine battle // Jan 13, 2008 at 11:43 am
Wow!! My husband and I, too, have an appointment today to go to a Direct Buy orientation meeting and I am canelling that appointment as I write. Life is too short to have to deal with the aggrevations I have read in the comments and one doesn’t need any more stress in this day and time for a few hundred or even a few thousand dollars. As one of the other comment writers wrote, we’ll stick to Loews, Costco, Home depot and Websites and save the exorbitant joining fee and ongoing membership charges.
14 Helen // Jan 15, 2008 at 7:03 pm
I am a member of 2 years. I’m yet to find promised savings. It got to the point that Home Depot prices were BETTER then DirectBuy. There were other instances of false advertising as well. Is there a possibility of a class action suit? I would gladly participate. This membership is an absolute waste - you can do better with local vendors - by the time all the “service charges” are added - you are better off in a local store!
15 Tim // Jan 17, 2008 at 2:06 pm
Cough Cough she’s FULL OF SHIT if you’ll pardon my french.
This is coming from someone who has a Direct Buy membership and has not used the $4000 paperweight (kidding, the day they give me anything as substantial as a paperweight, pigs will be flying) in the entire two years I’ve had it. The reason my membership has not been used once? Their prices suck. Plain and simple. You can find nearly everything you want for a cheaper price at a regular old retail store. Not to mention that itty bitty 8% handling fee. By the time you add that, AS WELL AS the exorbitant shipping, you could have bought two of the item you’re looking for. Also the fact that their employees can’t remove their heads from their respective asses long enough to learn how to fill out an order form, find the item for you, or to help you in ANY WAY tends to put somewhat of a damper on the “Amazing Deals” available.
The fact that Ms. Shragal would even dare to say that their sales pitches are NOT high pressure has ABSOLUTELY NOTHING(!) to do with the fact that their practices are confidential, blah blah blah. From the looks of it, Ms.Shragal talked in circles throughout the entire interview, as I’m sure she was well trained to do. The instant you walk in the door of one of their “showrooms” to the instant you walk out you are pressured so much I’m sure they see some people pop and give in within 10 minutes. They constantly repeat that if you don’t give in and shell out four grand you will not be allowed back for X amount of years so much that I’m sure some may break into tears, albeit not as many as those who actually shell out the four grand break into tears later at the total waste of hard earned money they were just forced into.
Direct buy uses absolutely every psychological tactic out there to try and force you to fork over your life savings. From shaming you (indirectly, of course, “How would your family feel if you left them out of this great deal?”), to making you feel as if you’re about to miss the last ship off of an apocalypse bound earth, to treating you like a leper as soon as you seriously mention anything about leaving.
In short, Direct Buy IS (let me repeat IS!!!!!) a huge scam that has absolutely no interest in saving you money, or helping you rebuild your kitchen, etc. ALL they want is that $4000-$6000 upfront fee and then you might as well go hump a lamp post as it’ll get you about the same amount of savings, though I think the lamp post actually might win out in the end.
(BTW, in case you’re asking what we’ve tried to get cheaper from Direct Buy as opposed to everyone else, the list ranges from everything from matresses to pianos, and Direct Buy was more expensive every time)
So to anyone contemplating going to an appointment at Direct Buy, DON’T, unless you happen to enjoy pouring thousands of dollars down the drain.
Tim
16 Kym // Jan 20, 2008 at 2:00 am
Just signed contract to the tune of $5100, what did we do? The comments and reality is setting in… that your really not saving and they don’t say what the shipping charges are they just stress retail saving and not whey the tack onto your purchase… is there a way OUT! They do pressure you…now or never so you loose the saving. But afterwards I realize they never really compare apples to apples or show you real invoices of what customers actually save during a purchase.
I don’t think anyone has $5100 to throw away… if you are told you will save…then reading here you really never save, bate and switch. I wonder what they say if there script and selling was recorded. They to use pressure! and I feel that to say you are not allowed back now or never is really a threat.
Nightmare in MD!
17 Tony // Jan 23, 2008 at 3:09 pm
Thanks for the feedback everybody! After reading this I’m no longer interested in looking at Direct Buy.
18 Jacqueline Jackson // Jan 23, 2008 at 10:46 pm
Is there a lawyer out there reading this. I’m got duped I know I’m stupid. I only paid $500 dollars up front but now i’m stuck with an installment contract for the $5000 dollar balance. Would somebody offer a solution for as to how to get out of this situation? Is there some law against uncancellable memberships? Help Please!!!!
19 Sue Cotton // Jan 26, 2008 at 10:25 am
I have been a member since September of 2007 and consider myself and my husband good business people, but clearly made our decision at the heat of the moment and wanting to build our dream home. Since that time, we’ve have unbelievably poor service at our location in Tinley Park IL. Last night we were literally accosted by the owner in the parking lot. I had spoken to him on a few occasions about the stress level of his staff and how they were lashing out at one another and the clients. He basically told me I was the cause of one of his employees quitting, since I told her in front of him that she needed additional support to do her job. He was furious and told my husband and I, he didn’t need members like us (that was after collecting our $5k and a cool $23k in products last evening. Any GOOD and SMART business person would love to have customers like us. I am filing a complaint today with the Better Business Bureau and telling everyone I know to beware. I’m also contacting a lawyer who is successful in engaging consumer reporters.
It is very true that there marketing ploys are not accurate and are extremely misleading. I have been treated extremely poorly and have witnessed many members in this showroom being serviced extremely poorly. Their are so many policies in place for this showroom that are in direct conflict with what they “profess” in their “open house.”
20 J~ // Jan 27, 2008 at 9:20 am
We went to the “orientation” yesterday, 01-26-08, a.k.a. high pressure sales tactic, at DB. I develop commercial real estate and have several close friends that develop residential real estate. When the sales pitch came through about the cabinets I had not heard of one single company brand they presented. In fact, the brand Brookwood they touted as “high-end” and sold in other big boxes at substantially higher prices, is not sold anywhere but DirectBuy which makes an apples to apples comparison impossible. The sales person told me to bring in the quotes I had received for cabinets we were pricing for house which I did. Upon arriving at DB and hearing the presentation though they would not do a price comparison unless I joined, at $5,100. When I asked the sales person, who happened to the be franchisee, if I could get a refund, full or partial, if I was not happy with their concept or it did not live up to their promises and he said no. So the gist of their presentation I found to be this; trust them though you don’t know them, you will save money though they won’t give you time to verify it and sign up now or we won’t let you come back. High pressure is entirely what their presentation is designed to be. If the “know” you will be happy with their service and no one can match what they are doing then they have no reason to demand you sign up now or lose the opportunity. If DB’s concept is really that good you’ll come back and sign up once you have had an opportunity to verify it.
I also went online and it appears DB has filed lawsuits against a large number of people to collect their intitial membership fee. Why so many lawsuits if they “guarantee” their customers will be happy? There will always be people who are delinquent but given the number of lawsuits DB has filed to “recover”their initial membership dues (especially when DB has really incured no expenses on behalf of the member) makes you think there has more to the story than a few deliquent customers.
My advice, ask lots of informed questions, and never give someone or some business thousands of dollars until you can verify factually, from an outside source unrelated to them, what they are saying is true.
Good luck to all and be careful.
J~
21 Jose' (not my real name) // Jan 31, 2008 at 1:13 am
Firstly my wife and I would like to say how much we have enjoyed reading your blog on this issue and the associated posts. I have never been so stupid in my life as to fall for such an obvious setup as I did last night at DirectBuy. Yes my wife and I buckled under the pressure of never ever ever ever seeing the DirectBuy’s Holiest of Holy’s innersactum of amazing savings unless we paid the mind boggling $5560.00 for a 3 year membership. It is amazing to me that even though they couldn’t or wouldn’t give us a specific answer to our direct questions on what this product or that product would cost us we still signed up. Unlike some people we were fortunate. I didn’t sleep at all last night and at 3:00 am this morning I called VISA to see if we could cancel this rediculous membership. Thank God they said it would be no problem to cancel the charge if the merchant refused to refund us. I will give the DirectBuy franchise here in Washington credit, it only took us 4 calls today and the threat of a lawyer to get the promised return phone call from the head cheese in charge of memberships. To our delight and surprise we were told to bring in our copy of the contract and the membership brocher and we would recieve a full refund, they understood that the holiest of holy savings were not for everyone. Shocked I did just that and praise the lord we were free at last, thank god free at last! With major stupidity corrected and only minor psychological damage here are some observations. The contract- Unbelievably we didn’t read it until we got home and nearly had a corinary. It basically said that anything any representive said was not binding unless it was in writting. Meaning none of what we were told about the merchandise the potential savings or returns could be trusted because it isn’t in your contract!
The Secret Pricing- There logic is that by attending the open house you now have insider knowledge that is damaging to the retail establishment and therefore you are obligated to now protect that information by paying a huge membership fee. Yet in truth no such information was really ever made available. Sure they show you retail adds and tell you that you can get the same product for less. But at no time were we shown an actual catalog with the manufacturers pricing. In fact when we asked do you carry Vermont Casting wood stoves? No but we have these brands. Can we see the catalog to compare models, price and specs with what we know we want? No we can’t show you that information. Do you carry Rennai or Bosche tankless water heaters? No but I think we might have a manufacture that makes something like that. And no we won’t let you see anything that would let you make an informed decision.
The bottom line for me - is that a vaccum of information is intentially propagated to force your decision to be made from emotion rather than the evaluation of facts. This to me is not a business that I would ever feel comfortable trusting.
22 J L // Jan 31, 2008 at 6:06 am
Thanks for the heads up. I have a scheduled appt with DB, which I will be canceling. I am so glad I checked the web regarding DB before going to the showroom. I appreciate sites like this one to let people know about the unscrupulous business practices of DB. Good luck to those of you trying to recoup your losses. I do hope a class action suit is filed for this purpose. No one can afford a loss such as this, especially now when our economy is on shaky ground. Thanks again for saving me time and money.
23 new employee // Jan 31, 2008 at 9:08 am
Hey DB employess, MA’S (marketing associates) (the ones that call for the appointments) what kind of training have you been giving and do you love going to work?
24 Michael // Jan 31, 2008 at 3:09 pm
We’ve been members for just over a year. I’ve yet to find promised savings. It got to the point that Home Depot, Lowes, Sams Club, Circuit City and even Best Buys, prices were BETTER then DirectBuy. There were other instances of false advertising as well. In order to place an order the “staff” is unaware of the products and how to fill out the forms, at times there would be 2,3 even 4 staff people we would have to chase down to complete the paperwork, not just one time but everytime we’ve had to place an order, mindboggling. Is there a possibility of a CLASS ACTION SUIT? I would gladly participate. This membership is an ABSOLUTE WASTE - you can do better with local vendors - by the time the 4-8 weeks lead times for shipping and all the “service charges”, delivery fees are added - you are better off in a local store! Sara is a glorified PR person selling DB’s brand of BS!!
25 Dave // Feb 1, 2008 at 1:35 pm
I’ve been a member for years - with a few exceptions - satisfied. My wife and I saved our membership fee in kitchen cabinets for our new house. They were less expensive ($6k) and an upgrade from our home store quote. Everything since then has been gravy.
Furniture, high end appliances and cabinets are where we’ve seen the real savings. If you can call them savings. Because we can buy better things for less we usually end up spending the same as we would at a retail store but getting a lot more. We did save literally $50 each on 6 higher end toilets and $300 on a single high end kitchen sink - delivery charges did not add up because it was one big order from Kohler.
I’ve found four things important when using my membership. First, go to the club prepared. Visit a store that carries what you want or at least the manufacturers web site. Go in knowing the colors makes and specs. Next, make sure you really want it. There are no returns in this kind of shopping. Third, if it’s a lose leader at the home store (or they sell 40,000 of them a year) buy it there. I’ve found the real savings in buying direct to be on higher end and designer lines. Last be patient. Unlike the home store they don’t keep 10 of what you want in the back.
We’ve never use the club for building materials becasue we find what we need at auction. And I’ve never found them to beat the internet on electonics so we just never go to DB for them.
26 Mike VF // Feb 2, 2008 at 11:04 pm
Chris,
Great posts, thanks for taking the time to write them.
When I read about DB’s “must decide on the spot or be banned” membership policy I thought it was an effective but ethically questionable closing tactic. I was pleased to see you ask Sara for clarification on the “protection of confidential information claim”. Great question! But then you let her response go unchallenged. Sara claimed prospective members would use multiple visits to collect confidential pricing information and put pricing pressure on retailers. Why not have a policy that reveals confidential pricing only on the first visit? Or bar folks from returning until they becomes members? This would allow a prospective member to only get one bite at the confidential info, same as they get with the current policy. The big difference would be prospects could go home and think about whether or not this big purchase is right for them and then sign up after they were confident they were making th right decision. By Sara’s own admission, DB isn’t for everyone. Doesn’t DB want it’s customers to be sure they’re making the right decision?
It seems to me that any legitimate business concerned about customer satisfaction would permit customers to sufficient deliberation time to be certain of big purchase. Anything less would obviously lead to unstatisfied customers. But more importantly, the explanation for the current policy just doesn’t have the ring of truth. I find it much more plausible that the existing policy is exactly what I originally thought it was… a closing tactic. I find myself asking… if I don’t believe the explanation they’re offering for their membership policy, how can I trust any of their claims?
Anyway, thanks again for the great posts. I’m certain you’ve helped a lot of people with this information.
Great comment Mike,
If I were in DB’s sort of business, I’d certainly let folks back in order to sign up after they’d had some time to think about it. Most high pressure closing tactics give you a reward for signing up “today,” like a significant discount. I wish I would have followed up with a question like that.
Good idea Mike.
Thanks for stopping.
Chris
27 John // Feb 3, 2008 at 9:42 am
Thanks for saving us thousands in membership fees. We’re about to move into a home needing work but since we’re not looking for extreme high-end merchandise I think we’ll pass on DB. Great discussion site Chris!
28 Glenn // Feb 3, 2008 at 11:13 am
Man am I glad I found this I had been contemplating setting up an appointment AND taking a friend. Dont think I will bother. Thanks!!!!!
29 Rick // Feb 3, 2008 at 11:05 pm
Broke down and went to DB on Saturday to get the pitch. I kind of had an inkling of what DB was all about by the following red flags: (1) you must bring your spouse or significant other with you. This says that there is going to be a significant surrender of funds and they don’t want you saying “I have to talk this over with my wife.” I just registered as single. (2) You are hearded into a separate room to hear 1.5 hours of infomercial interspersed with “interactive sales pitch” where the sales honcho asks you to read competitor ads for the group. This is designed to suck you in. I simply declined due to poor eyesight. (3) When you enter the showroom it looks like a “boiler room” with tables, chairs and calculators. You may think that is to help the members, but its really to calculate your membership payment schedule. (4) You only hear the dues cost AFTER spending 1.5 hours there. If you heard $4K to start, how many would even come by to hear the pitch?
The funny thing is that after being paired up with a salesman (a happy DB customer who was buying a franchise and was there to “observe” a successful showroom, I started doing net present value calculations based on the $4K front load to determine how much I would have to buy and how fast to recover my heavy investment. I said, “So, assuming a 25% discount available through DB, basically I have to buy over $16K of stuff in two years to break even, right?” He said, “Ah, well, I guess, [Doh!].” I said, “Well okay, lets look up a few things, like a washer-dryer combo.” What was suprising was that this satisfied customer who was buying his own franchise could not use the DB showroom materials to get the price. Finally he got it from someone else. Total DB price? $1500. Total Best Buy price (today)$1450. By this time the guy was pretty sure I was a no sale so when I told him I did hot think DB was going to work for me, I got no hard sell.
The really sad thing is that there were two couples that just should not be fronting such a steep membership fee signing a financing agreement to become members. I pulled one of guys away to has his opinion on a display grill to advise him of the bare numbers related above. He had not thought of it that way and he said that they could not afford $16K in purchases over the 2-3 year future. He then collected his wife and we all left together. One good deed for the day.
For those who have endured a time share sales pitch to get the B&W TV free gift, the DB orientation experience is real close.
For those who signed a contract, and want to back out, see about your state’s “cooling off” period. Some places its three days so you can cancel your contract in that time and walk away without paying anything. Each state is different though, so call your State Attorney General’s office for details — usually a comsumer protection division or something of the like.
Someone said it before, if it is too good to be true, it probably is, and you don’t get something for nothing. In the DB case, you are very likely to nothing for something!
Rick,
Your exercise to figure out how much you have to spend to recoup your investment (assuming a percentage discount) is great! I wish I would have thought of it. At any rate, thank you so much for sharing it. It takes a lot of mystery out of things and takes the emotion totally out of the decision. Genius.
Thanks again Rick, both for stopping by and for sharing a bit of wisdom.
Chris
30 DJ from PA // Feb 3, 2008 at 11:38 pm
I recently sent for a DB open house invitation. I spoke to a friend of mine and she told me her aunt said the membership fee was several thousand dollars. Upon learning that I did some internet digging and found many complaints. Needless to say a Rep has been calling my home. I do not take the calls I screen them via caller ID and the answering machine. My invitation came in the mail this week and it went into the shredder unopened, and the next time they call I am telling them I am not interested in their scam and to remove me from their call list. For that high of a membership fee I can put that money into making some miner home improvements and updates in more then one room of my house. I will stick to local business. Thank you for this blog.
31 Greatful from LA // Feb 5, 2008 at 11:44 am
Thank you, thank you , thank you!! To everyone who posted on this blog. I’m about to start construction on my dream home and just sent off for the DB open house packet. And after reading your comments it makes my decision easier to not be a statistic.
32 from CA // Feb 5, 2008 at 8:10 pm
Good I googled about DirectBuy before making any decision to visit the store.
33 Mike // Feb 7, 2008 at 9:42 pm
So glad for the internet. Thanks for the blog - sounds like a total scam!
34 Doug from RI // Feb 12, 2008 at 9:58 pm
Chris,
This blog is awesome!! We were feeling awfully stupid for having signed the DB Contract. I didn’t realize so many folks had been caught up in this scam…not that that makes it any better. The fact that we were duped is maddening, but even more infuriating is the way we have been treated and the out and out lies we’ve been told throughout the process. I like many others have stated, would be interested in participating in a class action suit. Someone mentioned that they had tried to get a DB person to call them back. I, too, had a difficult time getting someone to talk with me. It took at least a m0nth of calling before anyone returned my calls. After the experience we went through, and are still going through, I know we won’t be making this kind of mistake again. And we weren’t even looking for a refund…just the opportunity the exit the membership and go our seperate ways.
35 From VA // Feb 14, 2008 at 9:50 pm
I must say that I did join DB back when it was UCC in my local area. My wife and I had just moved into a new home and we knew we were going to spend a lot of money purchasing furniture over the next 10 or so years. We had a friend recommend it to us so we thought “Hey - might as well give it a shot!” We ended up joining and we haven’t had any regrets. Our first major purchase was an entire set of dining room furniture and our savings was more than the inital joining fee (which was much less back then). Since then we’ve furnished about 3 other rooms and our savings have been substantial. Since everybody’s situation is different in terms of what they will be spending over a 10 year timeframe - you have to consider that. It does however require planning purchases in advance since it can take quite a while to recieve shipments. But in some cases - not much longer than if you had to order custom from a usual retailer. So the lesson I guess is that it’s definitelt not for everybody but it is for some under similar circumstances. If I was asked to join now I would think twice (or more) but we’d have to think about our plans for the next 10 years. Is it for everyone? Definitely not.
36 LisaII // Feb 15, 2008 at 8:40 pm
DirectBuy members get option to back out
Thursday, February 14, 2008 3:24 AM
By Tracy Turner
THE COLUMBUS DISPATCH
Ohio consumers have gained the right to cancel a contract with DirectBuy, a national membership club with a showroom in central Ohio, if they change their mind within three days.
The agreement was struck between the Ohio attorney general’s office and DirectBuy even though Ohio law doesn’t mandate such a provision, said Melissa Wright, an assistant attorney general.
DirectBuy is a company that sells consumers a membership that allows them to buy home products, electronics and furnishings directly from manufacturers and suppliers. Memberships range from $3,000 to $4,500 for a one- to three-year period, Wright said.
The company agreed to offer Ohio customers the right to cancel their memberships after 90 of them filed complaints with the attorney general, Wright said. Most complaints targeted sales practices that left consumers feeling misled because certain terms and conditions of membership were not disclosed, she said.
“Consumers were told they had to make a decision on the spot after a sales presentation and weren’t allowed to look over the product catalogs before joining,” she said. “They were made to believe they’d get these great discounts, but later realize the savings aren’t as great.”
Wright said consumers also weren’t told that problems with the products or the product delivery would be handled through the individual manufacturers.
She said that the club is “not a scam (because) they do offer a service; our concern was the high-pressure sales tactics” the company used to get customers.
The agreement will “allow consumers more time to make more of a wise decision, see the product catalogs ahead of time and understand that the company doesn’t handle customer service,” Wright said.
“The voluntarily agreement was a huge step that will cut down on complaints,” she said. “We worked with them instead of filing a lawsuit.”
DirectBuy, based in Merrillville, Ind., has more than 90 locations nationwide, with five franchise locations in Ohio, Wright said. That includes a showroom at 2188 Citygate Dr. that the company reopened in October.
A message left with co-owner Mark Lankford was not returned.
Consumers experience this most often with companies that have similar upfront sales practices, said Kip Morse, president of the central Ohio Better Business Bureau.
“While it’s unfortunate that the (company) needed the attorney general’s office to intercede in order to come to this agreement, we think it’s a good move that’s fair to the company and for consumers,” Morse said.
The agreement also calls for DirectBuy to pay the state $20,000 for materials to be used to educate consumers on financial literacy and protecting their rights, Wright said.
Tracy Turner
tturner@dispatch.com
Cancellation periods are measured in business days, and generally they do not begin until the consumer receives written notification of the right to cancel. Business days are Mondays through Saturdays. Sundays and legal holidays are not included.
To cancel a contract, send the seller a written notice of cancellation. You can cancel by mail or by personal delivery. If you cancel by mail, send the letter via certified mail and request a receipt as proof of cancellation. Cancellation is effective upon the date of postmarking. If you personally deliver the cancellation, take it to the appropriate address of the seller and bring a witness. It is not acceptable to send the cancellation notice by fax or by e-mail.
Source: Ohio attorney general’s office
37 Anonymous // Feb 16, 2008 at 4:19 pm
Thank you all for taking time to alert other consumers. I had an appointment and am very, very, thankful to have found this site. You all saved me, I cancelled my appointment.
38 Mike // Feb 18, 2008 at 8:38 pm
Chris
We have been members for 22 years. Our initial investment at that time was $1000 and a $55 yearly fee. It was like $4500 feels today, a huge decision. Certainly not a short term investment as many who write seem to think. With all the information floating around at these sites, nothing should be a surprise once you go for your presentation, so I do not know why one would cancel. My guess is they simply can’t afford it.
As far as our personal experience has been, we have recouped our membership many times over. If a person has an immediate plan of furnishing a couple rooms you are well on your way to recouping your costs. We recently replaced our original purchase of couches and loveseats in our living and family rooms and saved $3000 after all fees and delivery. We visited a very popular discount furniture store in our area and found the couches and loveseats that we wanted, made our best deal which was 20% off of their already 40% sale. But get this, that price was good until we walked out the door!! Sound familiar? We went to our showroom and realized the savings I just wrote. Other major purchases in the last few years included a 72″ TV and a beautiful dining room set that we could have never afforded out of a store. It simply is not for everyone, especially those who need instant gratification. For us to have to wait 6-8 weeks for our furniture and to have to pick it up ourselves is well worth $3000.
I do not know of all of the current particulars of a new membership but we have never in 22 years had to re ante after 10 years. Our yearly membership has risen to $175 but other than that we have seen nothing but improvements in the showroom. Also, I do not expect the people in the showroom to be experts as they would be in the store, just that they could get me timely answers to any question I may have, which they have done.
I do not like high pressure sales tactics myself but I am sure many of their reasons for using them are valid. Again, if one has gone into the presentation prepared there really should be no pressure. I also have seen some of the people being shown through the showroom and have seen sales reps showing people savings on items they are thinking of buying in the near future. So I think that maybe this varies from store to store. And as far as some of the so called internet savvy buyers that say that they can beat any price one could get, they are wrong. I have spent hours trying on our larger purchases.
In the end it boils down to being able to afford it and how much work you want to do. We do not buy anything without finding it in a store first. If you know you will be making significant purchases in the next 10 years I personally think it is a no brainer if you can afford it. The membership will only cost more 5 years from
now.
As far as all of the accusations of this being a scam, that is ridiculous. A company does not last 35+ years and continue to add showrooms each month without many satisfied members.
39 Toney // Feb 26, 2008 at 9:41 am
All that is well and good… and may be true… If you have a certain amount of ready cash available or are building a house from scratch or even doing siome major renovating then it can be a good thing.. If however like most of us you are an average Joe Schmoe working stiff with kids in school etc… it becomes questionable.. but the fact that they run that get it now or you miss out bit and the fact that they give you a VERY hard time about cancelling.. even if you go back and weigh the cost and come back the next day to cancel… makes their motives suspect at the very least. And yes.. I know… Let the Buyer beware…. be careful what you sign… etc… but if I am going to lock in a few hundred grand on a house… I can still cancel within 3 business days… yet these people will not allow that. To me that smacks of shady business practices. If they are so legit then they should allow for error on the part of people whose business they are trying to get and keep….
40 Leighe // Feb 27, 2008 at 12:37 am
41 Tonia // Feb 27, 2008 at 9:19 am
My husband had also signed up for their “open house” for this Friday and after reading all of the horror stories from “ACTUAL” members unlike Miss Sara claimed that most complaints were from non-members, but anywho we read into so many complaints from this sight as well as MANY other websites that we have also cancelled our appt. I am sorry that others have lost so much of their hard earned money but I am grateful for all of your posts in order to save the rest of us from losing our money. Thanks!
42 Fred // Mar 1, 2008 at 8:59 am
I’ve had the unfortunate chance to experience DB recently. I decided I wanted to setup an appointment and see what all of the these infomercials are about. I about quite savvy typically in detecting scams. DB sounded pretty darn good from the presentation, but I knew in my mind it would be hard to beat Costco and the like.
I was floored. You want me to spend $6k without even proving out the savings? I said, “You’re insane, who’s really that gullible?” AND I was not allowed to crack open any catalogs or validate any of the claims before signing. Very, very shady.
Well, I read my contract. It was apparant that my location in Roseville, CA has a well written 3 day cancellation policy. I decided to plunk it down so that I could do the research. When I was just sitting there asking questions for nearly 2 hours, the sales person finally said, “go ahead and have a look around”. I was shocked. Anyway, I didn’t see any massive savings right up front.
I went straight to electronics, because I know there is severe competition and low profit margins already. Faggedaboutit. Costco is cheaper.
Headed to backyard, hardly any Gazebos and structures. They had very few to choose from. Costco is better, or just head to a local lumber yard/mill and have them help you spec one out.
Awnings - they only carry sunsetter. Costco is cheaper.
Tropitone outdoor furniture - a mere 19% savings from the msg.
Telescope Casual outdoor furniture - ahhhh 50% off. I actually found a deal. Still, I picked up a better deal myself when my local California Backyard was dropping the Telescope line and wanted to liquidate.
John Boos blocks - heeeyyy! another deal. 50% off retail. This actually proved out to be a nice deal.
All in all, I found about 10% of the specific things I was looking for over my 5 year outlook of intended and dream purchases. There was no way that I was going to plunk down $6k just to wind up saving a thousand or two on the very few items that I could find on my list. Now, that’s even before considering shipping and handling fees so after reading the above, I am skeptical that I would even have saved as much in the end.
Anyway, after I spent the next morning researching all of my potential purchases, I am happy to report that I was promptly refunded my submission fee, er, I mean initiation fee. They didn’t even give me any hassle about it.
All in all, I lost a night’s sleep after reading over testimonials the night after I signed, but in the end was treated pretty well during my endeavor.
I am so pleased I did not sign and become part of this ‘club’. I am very sorry for those of who signed up and were not able to find any savings. It is just terrible to see thousands of hard earned dollars go down the drain.
I feel that if DirectBuy were truly ligitimate (which I feel they are completely full of BS and themselves) they would instead charge no initiation and instead charge a hefty annual fee instead. It would make more sense and it would prove out their business model, because if they truly had such an amazing system and set of prices, they would be flooded with members just like Costco. Since they are unwilling to go this route, it speaks clearly that they are nothing close to what they claim to be.
43 Paul // Mar 2, 2008 at 6:34 pm
Direct Buy has a very impressive, slick, and interest peaking infomercial, which as I write this, has been running every Sunday morning here in the Washington DC metro area for quite a while. I too was going to jump at the opportunity to take advantage of “buying direct” and realizing substantial savings. They make their infomercial appear as if their showrooms are beaming with merchandise , clients, and oh-so-friendly sales reps, not to mention their “satisfied customer testimonials”. I decided to research the internet first and thank goodness I did, as it saved me precious time and money. From all the information I’ve been able to gather here and all the other consumer web sites and blogs I’ve visited, there’s no way on God’s green earth I’ll ever set foot in their establishment. For those consumers who’ll be spending a lot of cash for a home purchase or major remodeling project, you’ll recoup your initial membership and make some good savings, with some caveats to consider that I’ve listed below. You’ll also need to consider what type of schedule you’re going to be on as it could be awhile before you receive what you ordered. God forbid if its damaged or not exactly what you ordered. You could be stuck with the order or have to expend much effort, time, and money to place a new order and receive it. For the average consumer though, Direct Buy isn’t likely a good choice. Here’s my take:
Considerations:
1) Expect 2 hour sales pitch ending with a high pressure tactic that you must become a member and decide now and also pay the membership fee ( ranging from $4,500 - $6,000 ). If not you’ll be banned from joining for 7 years. There’s also a $200 or so annual membership fee for years 4 - 10. After year 10 you’ll likely get a renewal fee offer of $2,500 or who knows what.
2) The signed contract states that anything any representive said was not binding unless it was in writting meaning none of what you’re told or promised about the merchandise and the potential savings or returns could be trusted because it isn’t in your contract. The fine print in the DirectBuy contract says you cannot return items, cancel orders, or terminate your membership.
3) They’re tacking on an additional 8% “handling fee” plus shipping to every order. Delivery is at least 6 weeks or more. You also have to pick up the merchandise from their center.
4) Customer service and assistance after signing the contract is questionable and dubious.
5) Quite simply, as stated from Rick in a post above, lets say your contract is $4,000. Lets also say that your savings on purchases you intend to make average 25% including fees and shipping. That means you’ll have to purchase at least $16,000 worth of merchandise to at least recoup your membership fee. Do you intend to at least do this? Is the lead time to get your order and likely aggravation really worth it?
Actually folks, retail isn’t as bad a thing as Direct Buy wants us to believe and demonize and so states on their infomercial as “wasting money when you buy something from a store”. Direct Buy’s infomercial correctly states that “retail is the second largest industry in the US”. What they don’t say is that it employs people, provides a living, provides insurance, pays taxes, keeps our economy going, and improves our standard of living. Retail provides a multitude of choice, competition, and instant receipt or delivery in most cases of what we want or desire. Stores even quickly replace or refund your money if we’re not satisfied. Their has to be incentive for someone to make or invent something and provide a service. This isn’t a communist country. It isn’t going to come for free. That’s why there’s some risk utilizing Direct Buy which includes the long and low priority delivery times and possible screw ups on orders, plus their membership fees. Direct Buy is a business middleman like any other retailer buying from a manufacturer. They charge the upfront membership fee to the public plus 8% and the shipping fees to utilize their capability to buy wholesale through their license. They offer the great prices because they have no overhead and no stock. Retailers have to charge more because they do.
Lets be honest. We all want to save a buck. A savvy shopper with determination and patience, plus don’t forget internet access ( thank goodness for the internet ), can still save a bundle. I also use those 1 year no interest fee plans a lot of stores advertise all the time. When I first bought my present home, I went to a local, independently owned furniture store and got a heck of a bargain. He had shelves of furniture books to browse through from all the manufacturers. We eventually went to a local major chain store, wrote the make and models of what we wanted and took them back to him and saved thousands. We even got 1 year with no interest payment. We did, like Direct Buy, have to wait 10 weeks to get the 3 bedroom suit order in. It did have slight damages but he deducted for that and also delivered and set it all up.
As I’ve noted above, Direct Buy can be an effective way for some to save a lot of money. Just be prepared and informed as other people here mentioned. Don’t be fooled by the slick advertising and pressure tactics of Direct Buy whose infomercial is now hosted by Tanya Memme and has Christopher Lowell’s Direct Design Center selections feature and assistance now being touted. If you’re intending on making a large purchase, and don’t mind the tedious researching at their showroom plus the long lead times on delivery and self pickup, Direct Buy may be for you….
44 Pete J. Hawk // Mar 5, 2008 at 10:19 pm
Chris,
I wonder if you’ve ever checked the IP addresses of the satisfied DB customers. Seems like they doth protest too much.
45 Jennifer // Mar 6, 2008 at 9:12 am
This was the best, direct, informational, non-biased opinion I have seen about DirectBuy. They should hire you in public relations.
46 Lori // Mar 6, 2008 at 10:16 am
Thanks everyone for all your comments. We were booked in for this weekend’s open house but after hearing all this, I’m going to cancel. Never mind the member fee - totally outrageous, but all the extra fees and hassle getting the products. I think I’d rather have a root canal!!
47 Lauren & Gianni // Mar 9, 2008 at 10:11 pm
WE LOVE YOU ALL!!!! Thanks for saving us all the time, hassle, energy and babysitter fees. We will not be going to our open house appointment on Thursday. Sounds like DB is for house flippers/contractors or people with a lot of money who like to completely redecorate often.
48 Wendy // Mar 11, 2008 at 4:08 pm
We’re scheduled for an appointment later this month I’m cancelling based on what I’ve been reading here.
While DB doesn’t sound like a scam per se (because it does provide a service), I note with interest that Ohio now provides a 3 day cooling off period. Ohio used to have this for contracts signed in consumers’ homes, but pressure is pressure in home or in showroom, and this sounds like a good step in the consumer protection direction.
I’m surprised to discover that from this reading I’ve also developed a new respect for retailers. Their prices might be a higher, so if you’re looking for savings it might take some shopping around, or waiting for sales, or searching the internet for good prices, but if retailers cushion small buyers from the vicissitudes of dealing directly with manufacturers, maybe that’s worth a couple extra bucks.
Bottom line: Based on the stories I’ve read here, I’m thinking think DB would have to pay me for the time and trouble I’d have to use to shop their “deals”!
49 Mary // Mar 12, 2008 at 11:13 am
I joined by falling for the high-pressure pitch - join now or walk away forever. I cannot find the promised savings and am kicking myself for joining. Local vendors and even Home Depot/Lowes prices are better than DirectBuy because DB tacks on the handling and steep shipping costs. If there is a 3-day cancellation window why can’t there be a 1 or 3-month window to cancel also? If there is the possibility of a class action suit, I would like to participate. This membership is an absolute waste of hard-earned money.
50 Anne // Mar 14, 2008 at 7:33 pm
Help! My husband and I joined Direct Buy at the end of August. We were getting married in November (married now!) and knew we’d have a lot of work to do on building up our house (remodeling the kitchen, new furniture, etc.). We both usually have VERY smart heads on our shoulders, but we feel victim to this scam. Alkl the bedroom sets we like, they don’t sell. The kitchen quote just came in and it’s INSANELY above retail. We are not saving money. It’s now been months since we joined. We still have not bought anything. Has anyone been able to get their money back? It cost us $4500 and being newlyweds (or any normal person!) this money would be well put towards something else.
51 t // Mar 15, 2008 at 12:09 am
I am very glad I found this posting. Thank you Chris and everyone for all the information. I feel I can now make an informed decision. I am building a house this year and thought this would be a good idea. I have also been in the construction industry for 25 years and I am not reluctant to deal with manufacturers directly. That being said on just principle I could not sign on with a company that has (in at least some of it’s locations) such low level business practices. I could almost understand the high membership fee. I do not understand the sign up now or we are going to ban you. I can only see one explanaton of such a practice and that is simply they want to get your money as soon as possible and they could care less for the customer and if they have that attitude beforeI give them my money how are they going to treat me once they have me locked in to a contract. So for me it’s more of an ethics thing then a savings thing. To Mike from above you are wrong that only people whoe can’t afford the membership fee would feel scammed. I can afford the fee but I would not enjoy having someone take my money under a high pressure sales pitch, not allow me to comparison shop, and refused to refund any part of my fees if I find out that it was a bad deal for my needs and in my area. I did not appreciate your condesending and judgemental tone. However I am glad that in your area and for your needs DB has worked for you.
To Mary Lewis, get over yourself you can not have a 900++++ credit score I don’t care how many dental patients your daughter has. Your anger makes no sense. Is it the gay thing???
52 USMarine // Mar 15, 2008 at 8:10 am
PLEASE, Do not ever purchase a Direct Buy Membership it is a SCAM and all the postings I read sound exactly like what I have encountered….Direct Buy needs to be stopped!!!!!! Once you join you can NEVER leave and they treat you like CRAP!!! This is not a beware posting it is a DO NOT EVER, in this lifetime purchase
53 fiona // Mar 15, 2008 at 10:50 pm
Hi
I just wonder why people can’t accept their own bad decisions? I could easily see at the open house that you would have to shop through catalogs, you needed to have money upfront, and that you needed to make a lot of purchases to recoup the 5k joining fee. Its like why would a single person join COSTCO to buy meals for one?!? DB was the right choice for my husband and I because we had just bought a new home that needed cosmetic renovations and all new furniture. I went to the open house after having shopped out the best prices on the furniture and cabinetry I wanted. DB even with fees and shipping beat them. I am sorry if people feel scammed but it is really because you didn’t take the time to see if it was the right thing for you. Most states have a cooling off period for you to cancel in too.
54 Happy DB Member // Mar 23, 2008 at 11:50 am
Chris
The only thing you’re doing here is ,letting people(most not all) who don’t want to be responsible for there decissions cry about it and just like many people, they want to blame someone else. This is foolish and very misleading on the part of your readers. Based on what I have read here
Direct Buy has been very upfront on what they do and why.I have never seen an add that proclaims that if someone joins Direct Buy they just hit the lottery .Has any of these people ever offered there lost savings in written proof(apples to apples)? The feeling I’m getting here is that they couldn’t. An thats exactly what a court would want to see. Buy the way the amount of intellegents a person claims they have dosen’t mean their SMART!!! Don’t believe me?? Would you like to talk politics :)..Not once have I ever felt taken. You dont just join and then STOP being a smart shopper. Sometimes you still have to research a little. Nor do you just shut your eyes, place an order and hope for the best. I’m sorry but these complaints to me hold no weight with blind results.
55 Charlie // Mar 25, 2008 at 9:56 pm
To Happy DB Shopper: You can’t be that smart, you don’t even know how to spell correctly. Nor do you care about other people, as long as you get what you want. Well, I feel sorry for people like you. Direct Buy is a royal rip-off and is taking advantage people. The number of negative comments FAR exceeds the number of positive comments. And for good reason.
56 matt // Mar 28, 2008 at 11:22 pm
57 PJ // Mar 30, 2008 at 5:51 pm
My wife and I joined 2 months ago in Rockland, MA. I wish that we would have read through this blog, or any of the others out there, prior to joining. Outside of the high pressure sales tactics they fall apart on member service. We were told that DB is like a “Private Country Club” for shopping. On the weekends we’ll find every sales person and associate on the floor helping the open house clients. If we go to the show room during non-open house hours the place is a ghost town.
Thus far we’ve experienced extremely poor customer service. This is by no means a “Private Club” for shopping. In addition, we found that after the order was place the prices paid for the items varied significantly from the listed member price.
The PR rep’s response to questionable sales practice is the exact same you’ll hear at the presentation. They can not truly believe they are selling a good product. Because if they did believe this they would have no problems letting you leave and come back to purchase at a later date… Don’t fall for the scam. Buy direct from retailers, at least you know what you’re getting.
58 Jon // Apr 2, 2008 at 10:17 pm
I had been hearing about Direct Buy for a couple years now and had finally went in to see what they were all about. My wife and I instantly thought we were back in Vegas and getting suckered into going to the Tahiti Village time share presentation but without $100 in Flamingo chips and the $100 dinner voucher. I actually “excused” myself to take a quick look around prior to the presentation because I wanted to see it they had the “party balloons” that members “pop” after joining for additional gifts. I saw nothing of the sort and thought maybe this was a legitimate opportunity. That thought lasted until the 1st video was over and out “sales manager” pulled out laminated advertisements from local stores so that he can show us the savings. Long story short, both my wife and I ended up joining and plunking down the $4900.00 membership fee. I can honestly say I was not jazzed about this but didn’t balk when my wife pulled out the credit card. My “spidey senses” were going off but not enough to say “no thanks” and walk away. Come on, who doesn’t want to save money on home furnishings and the like. We only joined because we were thinking of the long term house projects and we had to make a decision that night. Neither one of us had buyers remorse initially but it slowly crept into our thoughts. My wife woke me up at 4:49am this morning and asked if we did the right thing. I said “no,” grumbled a little and went back to sleep. We only joined because it appeared that there may be some benefit to being a member if you are doing a major home remodel, building a house, etc.
I spent the better part of the morning comparing DB prices to “store” prices and have found that initially DB is cheaper BUT you have to add in freight (which I would bet DB pockets as a profit center), the 6% handling fee, the fact that you need to go down to their location and pick up or you can pay an additional shipping charge to have them deliver to your door. From what I found today, the last 5 items I bought for my home were cheaper at the stores than at DB after you add in all the “extra” fees. As of 3:30pm today, April 2, 2008, we are no longer members of Direct Buy. I thought that there would be some sort of confrontation when I said I wanted to cancel but they surprised me and quietly called the store manager. He quickly led me into a back office and canceled our membership. He issued us a refund and handed back our credit card carbons, too easy. He did ask why I told him that in the future DB may be beneficial to us but not at the present moment and it was too bad that we can’t come back……………………………….
Here is the direct quote from the DB manager after my reason for canceling: “Oh, you and your wife can come back and join whenever you want since you did not decline our offer of membership. The doors are always open for you to sign up even though you just canceled your membership, because you joined initially.” What kind of BS is this? I hope they don’t keep the doorman waiting for me to walk back in. Just glad to be done. Learned my lesson.
I would rather go to the store to be able to see, feel, smell the items I want and take them home that very same day. Not go to some industrial office park and sit in a small, dirty office with wall to wall catalogs and “actors,” I mean DB members, diligently doing research and placing orders. Thanks but no thanks.
59 Jeff // Apr 4, 2008 at 12:20 pm
Haaaa haaa haa! You can tell the real people on here from the DirectBuy employees like night and day. (Honestly, there probably are some normal people who post with neutral/positive comments because they either 1. are trying to justify in their own minds that they weren’t taken, or 2. actually don’t know how much money they lost. Some people do shop at the mall and think they’re saving money.) I was suckered by another buying club, Uniway, that operated in exactly the same manner I see here. That was 15+ years ago and I’m still mad about it. I paid only $1200 then, and at 5%, it’s still worth only $2500 or so today, so it sounds like my “school of hard knocks” lesson was a great bargain! Hey - they really did save me money after all - LOL! Excellent site, Chris. Great work!
60 Ronald // Apr 10, 2008 at 5:03 am
Hello Chris
I just want to say thank you. I had made an appointment to attend the DB presentation, but after reading your blog, man you have just saved me three ours of my time by not going to the presentation; and God knows how much money i save by not signing. The reason why i was considering DB was, i though it was hassle free, now i see that is not the case. I’m better of buying ONLINE. I get endless selection of retailers. I don’t have to spend gas driving from store to store, or dealing with mean sales rep that didn’t get any the night before.
Thanks again. This blog is very educational
61 CRG of Gloucester // Apr 20, 2008 at 11:34 pm
Dear Chris and Friends
Your web site and all the “Respondents” do justice to the American way of speaking honestly. I am glad that you began this project and wish the best of luck to all the people who feel cheated by DB. I too have a story to tell, although it has a happy ending (thanks in most part to your respondents comments).
It all started with that TV commercial. Sounded good. My wife and I are remodeling a 60-year-old two-story Cape Cod here in Tidewater Virginia. By now the landscape is 99% completed (just trimming bushes and pulling dandelions… a never ending chore), the house outside is 85% complete (just rebuild 2 decks, its railings, and install 4 new entrance lights) but the inside has some major projects to complete, especially the kitchen. We saw that kitchen in the commercial… WOW! And asked ourselves… “Should we refinish the kitchen cabinets or replace them? Does the kitchen counter stay or go? (A no brainer) Do we pick out a new stainless steel sink or have one as a component of the counter. And what about the dishwasher, electric stove, and refrigerator? How much to spend and where to buy…SEARS or Lowe’s?”
Major questions we had not addresses yet and thought maybe…maybe… DB would mean BIG SAVINGS.
So I got on line, selected the hot button and applied for an appointment. We live about 3 hours from the store in Richmond and 3 hours from the store in Norfolk, so I called their customer service and explained that we could not confirm a date. The service representative understood and sent an “Open Invitation” anyway. They explained that when and where we decided to go, just call the store before we leave the house and they will be looking forward to seeing us. Well that was 8 months ago and the invitation just sat on the steps to our staircase. Finally three weeks ago we were going up to Richmond and I said, “Hey, lets leave an hour early, swing by DB and check it out.” So that morning I called the store, was passed around, and finally got the manager.
I explained why it took us so long to use the “Visitor Pass” and that we were interested in looking at his kitchen models, and that maybe DB could save us some money. That’s when his sales pitch began and I realized what a mistake (my opinion now!) I was getting into. According to him, we would go through an orientation program first, then have to commit right then and there (sign the membership) before he would let us see his kitchen items and there were no “Kitchen Settings” to look at but catalogues. And the way he spoke to me, I felt like he was challenging me to show I had money to do this.
I vaguely remembered that it was a large sum of money to sign up (and only now know it is several thousands of dollars), so I baulked. I told him no thank you. I can buy a lot of kitchen improvements for the membership fee.
I happened to see the TV commercial again tonight and decided to investigate DB and see if they are genuine. I went to Google, typed in Direct Buy testimonials, and found your site immediately.
I am so glad I let my better judgment lead the way. After reading the first 8 respondents I see I made the right decision. Thanks for having this web site open to everyone and I hope all those who feel cheated get some resolution.
Sincerely
CRG of Gloucester
62 fiona // Apr 24, 2008 at 11:57 am
Do you realize only 13 of 61 postings are from actual members?
63 Johana // Apr 26, 2008 at 7:11 am
Fiona, what’s your point?
There are a lot of people who don’t post, and some are so humiliated to have been taken to the cleaners that they will not say anything.
In a sense, I’ glad I found this site and the other ones where all people agree that Direct Buy is a big scam but I can say that even if I attended their presentation, there is no way I would have agreed to pay anything more than $100.00 for their membership, and that is if I thought it was really worthwhile. Thousands of $$$?, No way!
Now, about the cooling period, most of the states have a 3 days one.
To the people who have been cheated, try to find an attorney who is willing to work with you and start a class action. These people have to be stopped.
64 SF // Apr 27, 2008 at 9:25 am
My wife and I went to DB sales pitch meeting. They are very cunning in their presentation. All basic, gut level psychological ploys are in play. My wife said after the presentation, “sleazy”. One and done is not sound business, it’s a disposable (disposable buyer) mentality, one that smacks of a con.
We were of course allowed to finance the balance over 2.5 years for only 17.99%! We walked.
65 fiona // Apr 27, 2008 at 5:30 pm
Johanna, should everyone who got sold a timeshare they dont use file a class action suit too? Everyone has a sales pitch. I made a shopping list of what I needed for my home renovation and had priced all of it at wholesalers, stores, and internet and direct buy’s prices (including their annoying fee!!) beat them and we have saved about four times the joining fee. I know their sales pitch is strong because I overhear them give it to visitors every time I’m there. When I over hear the small amount of stuff some people want to buy I want to pull them aside and tell them that they are morons if they buy the mebership. Direct Buy is great if you want to do a remodel or renovation or if you flip houses…if you just want to redo a bathroom..go to home depot or something. Do you want to know why there is no class action suit..because caveat emptor.
66 Milan // May 5, 2008 at 1:44 pm
Hi,
My story with DirectBuy is the following:
I visited the showroom in Greenville, SC. I was intrigued by the business model. Heck, wherever there is a good deal, I’m always eager to explore it. After all: One dollar saved, is one dollar earned.
So this is how it went for me:
I had only heard of DirectBuy from an infomercial.
I make an appointment and show up by myself. I was greeted by a woman at a desk, logged in, given a name tag, and asked to sit in the little waiting room.
An older couple enters and does the same.
After about 10 minutes a gentleman appears, introduces himself, and asks me to follow him.
I follow him as we walk through a big room, with many desks, shelves with catalogs, computers, some props (i.e. doors, windows, etc…), and even a room where children can play while parents are doing “business”.
Again, keep in mind I had no prior bias or knowledge of this business so I didn’t know what to expect. I did however expect a large warehouse to the like of Home Depot, etc… Not having that intrigued me even more.
So we sat down, the sales person across from me at one of the desks.
He looks at me and I look at him in silence. I break the silence by reminding him that he is the sales person here and I’m here to listen to his pitch. He wakes up.
So he begins the way any sales person should begin: he builds rapport. In plain english that means he’s trying to find a common denominator to make me feel at ease with him. In its simplest form the benefit of this is that it makes the customer more open to listening to what you have to say. After all, we’re more eager to trust those who we like - if we like them, they most likely like us, and a person who likes me wouldn’t want to cheat me — or would they?
So I find out the one thing we have in common is New Jersey. He comes from NJ, I came from NJ (keep in mind this is the Greenville, SC showroom). So we have some small talk.
On to business…
He explained to me the format: his role, followed by a presentation, and finally after the presentation I would come back to him with any questions.
He then went into how much money I would be able to save with DirectBuy. The picture he painted sounded as a pretty good deal. But as we know, if a deal sounds too good to be true… well you know.
Upon asking him one or two questions to how the business worked he would dodge the questions by telling me that everything will be explained to me in the presentation that was to follow.
Remember that I did not know anything about DirectBuy coming in. The skeptic (and business person) in me used common sense and figured that this is a business, and any business needs to make a profit. So the question was plain and simple “how do you make money?”
The answer was for me to wait till the presentation.
Well… having business experience myself, I used the rapport that we had built in my favor. I continued telling him that if they don’t make any money on the merchandise then there must be some sort of membership fee. It’s simply business logic: money has to come from somewhere. I was thinking along the lines of big box stores (i.e. Sam’s Club, BJ’s, etc…) where you pay a small membership fee to be able to get the savings.
Having brought up the membership fee he again said to wait for the presentation. I continued by telling him that I’m sure there must be some sort of membership fee because you gotta figure that someone has to pay for the showroom, all the way down to his salary. When I broke it down like that he blushed and smirked. I asked him if he can tell me if it’s more than $50, where he really smiled and told me to hold on for the presentation.
So on to the presentation…
We walk into a room with rows of seat. There are no other distractions other than a flat screen TV, desk under the TV, a DVD player, and white walls.
The room fills up to around 10 people including myself plus the speaker.
We watch an informercial explaining how DirectBuy works (their business model), testimonials, savings, etc… but what I was really waiting for was “the catch”. I paid attention to everything because I didn’t want to miss anything. I was waiting for something along the lines “and for $50 membership fee, you can…”
So the presentation goes on and nothing is revealed. Just happy customers.
The speaker then does his thing and tries to get everyone involved. He puts people on the spot, asking simple questions that he thinks he will get predictable answers.
He then asks me something to the likes of “when you go to a car dealership, and you see a nice car in the showroom, that is the car you want right?” Thinking if that’s what I really would do I replied to him something to the effect of “no, I would not. I would make sure to shop around, compare, and get the best deal for me”. Needless to say, he never called on me again because I could derail his evangelism.
Finally he popped the membership fee of $4,300 or $4,500. It’s been about a year ago so I don’t recall the exact number, but I know it had two too many zeroes. Yes, I almost choked upon hearing the number. I couldn’t believe people in the room were still considering… the room almost had the aura of “wow that’s a bargain”.
The speaker continued on a little whiteboard doing some math on how much the savings were gonna be, and that the membership fee was merely a fool-proof investment.
After the presentation which had a brainwashing feel to it, we were picked up by our guides (in my case the guy from NJ). I just remember him because he had funny ears.
What I thought was funny was that we were told not to ask any questions during the presentation and leave it till afterwards. Of course, I thought, it would be too inconvenient if someone like me was going to start think up questions others might not even have thought of. In other words, they did not want a “bad apple” (in their eyes) to spoil it for them… To them I’m a “bad apple”, to consumers I’m merely cautious, and want to be as educated as possible. After all, I thought, if I’m to spend over $4,000 (four thousand dollars), I have the right to ask questions until I turn blue, as I have the right to get satisfactory answers. Until that happens, my checkbook stays closed.
He asked me what I thought of the presentation.
I answered to him that as I had predicted there was a membership fee. I felt somewhat happy that I was right, but expressed to him that the fee itself is ridiculous.
So he challenged me to test the whole DirectBuy process. I thought that was a great idea! So I told him that the day before I had bought a bed in Ashley’s Furniture. Luckily, one of their merchants is Ashley’s. Great! So I told him I just had to drive home to get the invoice to get the part number, and he said that I couldn’t leave. Once I leave I can’t take advantage of it anymore. (So the whole protecting the merchants, etc… is a load of bullshit because in this case I just wanted to go home and be back in 5 minutes… why would I want to do a business who doesn’t trust the potential customer so blatantly?)
But anyway, I gave the collection name and a description of the unique design features. We went through different catalogs and finally after a good ha