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Video Report: DirectBuy
May 22, 2008 12:01 AM

Are buying clubs like DirectBuy a good deal? Our new video (right) details the experiences one of our reporters had at sales presentations for the nationwide buying club.

Although some readers commenting on our earlier story on DirectBuy have noted that the club’s prices are competitive, the video includes an interview with one DirectBuy member who found consistently lower prices elsewhere.

If you’d like to share your own experiences at buying clubs with other readers or discuss the pros and cons of these clubs, visit our forum for home shopping.—Gian Trotta

Essential Information: You can save money on cabinets, appliances, and other big-ticket items without committing to a buying club. And, remember, another way to save on appliances is to take advantage of the rebates and tax credits and tax holidays from local utilities and state governments.

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Comments:
44

This man obviously did not go with high-end merchandise. I think they tell people up front that the savings ARE in the high-end ranges. However, as a designer, I seldom see people these days opting for white appliances, non-wood nor laminate flooring, etc, as this man did. I would like to see more videos on this, could you not have someone who WAS satisfied and went with high-end products, the pictures could then be contrasted with this person's purchases outside of Direct Buy. I wish I could purchase most of my clients needs from Direct Buy, (and pocket the difference?) Really I do suggest that they purchase their own memberships. I do understand that the store itself may make a difference, so that was a good warning in your first article.

We joined DirectBuy. It pays to be prepared for your visit and certainly in our case we were allowed to do some spot checks of prices on our initial visit. Big savings on high end items are possible. I had researched some shower fittings (Grohe etc) and a Kohler infinity bathtub and came with the best prices I had found on these and DirectBuy beat them handily. When our tiling contractor found out we'd got our tiles from DirectBuy he warned us that if we were short he couldn't get extra tiles as cheaply as we'd got the original batch! You need to be on the verge of spending a lot but if you are you can certainly make the membership pay.

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

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

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

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

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

Look it over carefully.

The Currant.com found

"More disturbing to me is that DirectBuy attempts to hide the fact that not all savings it sees from manufacturers are passed on directly to members.

By reviewing the 260-plus page agreement with its franchise owners, I learned that DirectBuy reserves the right to keep rebates, discounts and other payments from manufacturers and suppliers.

It also keeps early-pay discounts, and all DirectBuy purchases are paid by the member at the time of ordering."

www.courant.com/business/hc-watchdog0511.artmay11,0,3450527.column

Hope this helps everyone who wants to do some research. It might explain a lot.

In the June 2008 issue of Consumer Reports magazine the article concerning dehumdifiers needs revising.
The Kenmore Model # 54701 sold by Sears should be judged "not acceptable",in my opinion.
I purchased one of these dehumidifiers in 2004 and now I am replacing it.
Like many other consumers I had problems with the unit when it was less than two years old. The fan motor had to be replaced, and now the coils ice over, making this unit basically useless.
Check the "reviews" section on this model at the Sears website.
You will find many other consumers with similar stories of problems with this particular model.
I am surprised that CR has given this model such a good rating.
I hope that the Danby unit that I have just purchased will last a lot longer than this Sears unit.

I've joined thinking the same as everyone else…but be ware!
1. They have made their profit up front, so there is no stimulus to provide any service. 2. When you do place an order, it takes them days to place the order from a company because they wait for a “full load” order.
3. You have to pay shipping and sales tax!
4. You can get a very similar deal on line and not have to pay the sales tax…and get it instantly!
5. The hidden problems are that if/when you buy something from DirectBuy, you sign a contract that you will not return any of the items! At a store or online you can always return it.
6. If you are a subscriber of Consumer Reports, you are looking for a great value or quality…you are not right for DirectBuy because, most of the time, they do not have a contract with that particular company you have researched and will get very frustrated with them when you can’t even order the product.
7. Everything is cataloged on paper!!!! It is very painful to find anything!
The few dollars you might save from DirectBuy will easily be burned up with not able to return products, long wait times (6 to 8 weeks) and having to pay shipping and sales tax.
This is not worth it for anybody.

What guarantees, if any, does Directbuy offer or is it true that in DirectBuy’s sales contract says:

QUOTE:

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

http://edumacation.com/DirectBuyMembershipAgreement

No Warranties, No Price Guarantees, No Returns, No Guarantee of any savings, 100% purchase price due upon ordering, "Suppliers" can change prices or cancel at any time, and no guarantee of "Supplier" availability; this just to name a few of the "benefits" agreed to in their sales contract costing what? $5000.00 or more depending upon the franchisee and the financing terms.

You guessed it: I think it is a scam.

Here's what the Consumer Watchdog in Hartford, CT found:

QUOTE:
If you don’t like the product, tough. You are stuck with it. DirectBuy unlike retail stores has a no-return policy and provides no warranties.

Sales books are not always up to date, and not every item is always available.

More disturbing to me is that DirectBuy attempts to hide the fact that not all savings it sees from manufacturers are passed on directly to members.

By reviewing the 260-plus page agreement with its franchise owners, I learned that DirectBuy reserves the right to keep rebates, discounts and other payments from manufacturers and suppliers.

It also keeps early-pay discounts, and all DirectBuy purchases are paid by the member at the time of ordering.
Quote Source:
http://www.courant.com/business/hc-watchdog0511.artmay11,0,3450527.column

This might explain why some people are complaining that the expected savings are not really there.

If you want to confirm the wathdogs's information, look in Directbuy's publicly available UFOC - Uniform Francise Offering Circular. It contains disclosures on how they operate and that they do in fact received discounts and rebates without passing them on to the franchised location and members. These discounts and rebates include volume incentive discounts, quantity discounts, and pre-payment discounts, among others. Also, contained in the UFOC is a copy of their Standard Franchise Agreement. Conataind within that are contractual clauses that allow the franchisor to keep all discounts and rebates without passing them on to anyone, just as the Courant reported.

Here are two companies who collect and sell copies of franchise offering circulars:

FRANDATA Corporation,
http://www.frandata.com/shopping/products/default.aspx
and enter "Directbuy" in the search terms box. They have the 2006 and 2008 Directbuy UFOC available

FranchiseHelp, Inc.,
http://www.franchisehelp.com/Direct-Buy/public.showprod.cfm/productid/1768
brings you directly to where you can obtain the latest UFOC from FranciseHelp.com

Hope this helps everyone who wants to do some research about this company.

Josh

This is one of the poorest articles I have ever seen and I am shocked that Consumer Reports would put their name on it! The man's kitchen was not very nice, it had low end appliances, floors and counters....I don't know what to make of the cabinets, not even IKEA quality. There is no mention of product numbers to do an apples to apples product comparison. Something strange is going on at consumer reports. They need to review their junior reporters work prior to releasing to the general public. I have lost respect for teh Consumer Reports Brand.
Sincerely,
Tom Smith

We just joined Direct Buy. After reading numerous complaints regarding Direct Buy, we researched it very carefully. In Arizona you have three days to cancel the contract, so we did our homework.

We are in the process of building a high end home. One area we checked were the appliances. I was worried that the Direct buy cost would be no less than our contractor proce. When all was said and one, savings on the appliances will be about $3500. We also checked flooring and found at least a 15-20% savings over the contractor price. Cabinets are about !5% less.

Of course, the weekness is, as others have said, they do not offer any after sale support. They are very clear that you are acting as the dealer.

Hopefully everything well go well.

My experience in Fairfield, CA was low pressure and very pleasant. The presentation and people helping me were courteous and patient letting me look up and ckompare anything I wanted including looking on internet discounters to compare BEFORE I signed up. My savings on almost everything I have purchased has been significant although on an item here or there the savings will be not that big. In fact, I even found one Sony game system cheaper on clearance at the store. One thing that I alwyas do to is use get my rebates and tax credits on all the items I buy where they apply. I highly recommend DirectBuy to anyone that is remodleing and wants the nicer quality stuff or has to buy a lot of furniture or flooring. I did really well in these areas and I shopped long and hard before buying.

I worked as a Director for Directbuy for Five years. If you are building a home and can wait weeks and even months for products, Directbuy could save you money. If not, do not join. It's not worth all the trouble involved, in my opinion.

DirectBuy Sued! A federal lawsuit has been filed in U.S. District Court in Hartford against the national high-end DirectBuy franchise operation, accusing it of falsely telling prospective clients that they are getting furniture, appliances and other household products at manufacturer prices. In a lawsuit filed by attorney Seth R. Klein of Hartford, DirectBuy is accused of hiding the fact that DirectBuy receives rebates from manufacturers which are not directly passed on to their members, who pay as much as $7,000 to join for two or three years. The lawsuit, which seeks to be certified as a class action representing thousands of present and former members of the more than 100 franchises, was filed earlier this month. It follows a column on DirectBuy that disclosed the rebates, which are kept secret from its members and from those it entices to join through high pressure sales techniques. DirectBuy officials had no comment on the suit but had said earlier that it uses the millions of dollars it received in rebates to the benefit of its members. We will see what a jury has to say about that.

My wife and I have found some good buys being members of this club. Our last transaction has ruined us for life though. The local showroom delayed entering our order so that our annual membership expired. They then told us we had to renew our membership for us to order the furniture we wanted. I am a reasonable person and would have accepted the fact if the membership had actually expired, but come on.... we were several days ahead of our expiration date... I can't trust Direct Buy anymore.

I have been a DirectBuy member now for a little over a year. I was hoping that video would be useful, but it appears to be one sided. The guy in it obviously shopd for bargins, and has awful taste. Everything in his home looked cheap, from the formica counter tops to the crappy open hinge cabs he had. White appliances?

Some people are just fools. I have saved twice the cost of my membership buying NORMAL things like a TV here, a sofa, even a new stainless fridge. I am not RICH by any means, but I don't decorate my house like the guy in the video either.

Just came home from a sales presentation. Their prices are not cheap. The comparison prices they are using are not real. I caught them on items I just purchased in the last year. One is a chair they claim is worth over $2,000 but you can get it for an extraordinary price of $792.00 - sorry but I paid $800.00 for it at a high-end furniture store - they would have saved me $8.00 (well I guess I didn't pay any 'handling' fees at the furnture store so perhaps it may have actually cost more). They want $129 for a Keurig coffee maker that I paid $99 for but they claim others charge $199 - I don't think so.

Has anyone that turned down the 'on the spot' pressure to join actually gone back at a later date and tried to join? We are going to the showroom this weekend but dont want to join just yet. Will they really turn us down if we go back next year and want to join?

I GOT AN E-MAIL FROM DIRECT BUY AND DECIDED TO MAKE AN APPOINTMENT ON-LINE TO VISIT THEIR LOCAL SHOWROOM. SINCE THEN, THEY HAVE CALLED ME TWICE A DAY, LEAVING A MESSAGE ONLY ONCE.
LAST NIGHT I ANSWERED AND WAS GRILLED BY THEIR SALES PERSON ABOUT QUESTIONS I ALREADY ANSWERED ON-LINE, INCLUDING IF I HAD ANY CHILDREN UNDER 12 AND IF I HAD ARRANGED FOR A SITTER. I RESPONDED "IT WAS NONE OF THEIR BUSINESS" AND I WAS TOLD IT WAS THEIR BUSINESS AND I WAS RUDE AND THE SALESPERSON WAS "UNINVITING" ME TO THE SHOWROOM. GOOD !!! AFTER DOING SOME RESEARCH AND READING THESE REVIEWS, I'M GLAD I DIDN'T WASTE MY TIME AND MONEY !!!

I just found this article. My wife and I have been members for 2 yrs. You cannot save any money buying cheap furniture, appliances, doors, windows, etc at DirectBuy. However, if you are looking at high-end quality items, you will save money... lots. We completed a master bedroom/bath last year and went with high-end grohe fixtures, high-end cherry cabinets, tile etc. I estimate we saved at least the price of membership on that project alone... and believe me, I priced everything we purchased elsewhere. Since then, I have purchased baby furniture, replaced windows, interior doors and recently purchased 2 fireplace gas inserts. Doors and windows were ~60% of the cost elsewhere. I saved ~$1000 on the 2 inserts alone with free shipping to my home! Oh, forget electronics. DirectBuy has terrible electronics prices. Staff is generally helpful, but it is up to you to do the research.

My wife and I just went through the high pressure sales treatment, I cannot believe they treat people like this and expect them to think well of their company. We came in went through the reception process and met a sales rep who immediately wanted to know what upcoming household purchases we would planned for the next ten years, the he hopped up and ushered us into a small audience room with several other couples and the presenter. We sat through the two videos and the sales presentation, when we were done our sales rep was waiting at the door to press the membership sale. He started trying to show us how much money we would save but we never had a chance to look at any pricing of their products, when we started to balk he became rude and asked us why we had come there, then demanded our name tags back and asked us to leave. I'm in retail sales and even if they don't purchase you never treat a customer like that, if you do they'll never have a good thing to say about you or your company....... I don't and I won't....

My husband and I were at a direct buy presentation yesterday and were told that if we did not join on the spot that we would not be allowed to attend another presentation or have the opportunity to join for 7 years. We had the option of joining on the spot for the tune of $5,400.00 or wait 7 years, we chose NEVER.

It seems as though the price would break about even after the upfront investment, and the later savings. Might as well keep your loot and look for the best deal yourself.

I was intrigues by the commercials as I have a lot of repair work after Hurricane Ike. There is no way I would do business with a company like this after reading these words. I'm so glad I checked before I bothered with them.

My wife and I sat through the first half of the presentation, typical gasbag sales job, which I despise, to the point where they have disclosed the so-called "manufacturers prices" of the retail, THEN told us we had to either join right then and there or never be allowed to join. Should have seen it coming. We weren't prepared to join that day, had no reason to at that time, no intention to, but just wanted the information for possible future use that they had invited us to hear. I correctly pointed out that at NO time prior to that, not in the printed invitation we had been sent, not in the phone call to set the appointment, nor anywhere else, had we been informed of this. At first the guy did not believe me, but sure enough, nowhere in our invitation did this condition appear. He got all flustered and said this had never happened before and what a shame, and wouldn't you know it, that "they" had discussed amongst themselves at the store just the other day the idea of disclosing this verbally to every person before the presentation, giving the consume the opportunity to forego it until another time. Gee, what a novel idea. I'm a bank vice president. The rule we live by is to disclose before the fact, not afterward. With those kind of deceptive practices before you're a member, I can only imagine what it would be like after. Oh, never mind, I don't have to imagine. All I have to do is read the thousand of complaints about this company.

WHAT A COMPLETE HOAX THIS TRULY IS!! I joined the DirectBuy in NW Arkansas, and was totally floored. After trying to place my first order, I realized that it was a total joke, there was maybe a savings of 20 bucks on a $1200 item. I paid $5000 for my membership, and was saving 20 bucks a couple of times a year. I truly am not a happy camper, I don't recommend DirectBuy to anyone, PERIOD!

We went to the DirectBuy presentation last week in Houston, Texas. Although I did not like the "get it now or forever be without it" statement and I agree with Norm above that it should be disclosed when you first contact them to set the appointment, we still joined. The up front memebership price is steep but gives you THREE YEARS membership and the annual renewal fees beginning on the fourth year are very, very reasonable. We are remodeling our home and own acreage property where we will be building a new home. We also plan on accumulating some rental and flip properties that will require remodeling and other work.

With this membership we will be able to put higher end kitchen cabinets and appliances in our remodel project as well as better insulation and fixtures with the same budget we had planned. Additionally, we our new build will be "green" and DirectBuy offers many products for that -- including solar panels! What is not to like about that? Since we are in a good neighborhood, albeit not a million dollar area, we will be able to amp up our current house that we plan to rent out when we begin our new build. With all the intriguing and awesome decorating shows that are on TV these days, people now have an expectation of what they want to see when they are looking at a property to buy or rent. We will be able to rent our home at the high end of the market for our area with no problems. We will have a better quality tenant and better potential for long term tenants. Not only will we be able to put in a KitchenMaid cabinet system for the price of what we could get at Ikea but will also coup the additional money from a higher rent base.

We were permitted to look at the catalogs, the products and samples displayed in the showroom, and their "mailer brochure" comparisons. We knew approximate prices before we went in because we watch the Discovery decorating/remodeling shows, have researched for our own products and we get an obscene amount of mailer ads daily.

You want to check their prices? Find out what granite costs and compare it to what they offer. People want granite countertops, period, end of story. Do your homework before you go -- find some things you want to get or install. Find the cheapest price (and be fair -- more than one item!) you can and then, armed with that, go to your presentation and get the cost comparison on those products. You are the consumer -- it's up to you to do the work because no one else knows what your plans are or what your budget is. For instance, they also have contractors for installations which allow you to act as the general contractor on your projects resulting in additional savings of 20% or more. Again, do YOUR OWN INVESTIGATION and think about ALL angles (short and long term) before making a decision.

I am satisfied that we got the membership. If I deal with a rude sales rep at DirectBuy, I will complain about that person - not the company as a whole. If my products are delayed, oh well, that doesn't happen at DirectBuy only -- it happens everywhere. We were put off by BestBuy on an appliance we purchased for over 8 weeks before we canceled and got it elsewhere and got it in three days. Whatever issues may or may not arise during the course of our membership, I am sure I will deal effectively and reasonably with each INDIVIDUAL matter. I am certainly not screwing myself out of MY MONEY based on one person or issue in the process. DirectBuy is a long term investment and I am confident they have better deals which will save us and make us the money we want in our future.

We stopped into a Directbuy showroom to see how they worked. We became skeptical when they wouldn't answer our question about how much membership cost and said we would have lots of questions and to come back for an orientation. We did show up for their well rehearsed song and dance. The high upfront cost of $5400, demand that you join right then or don't come back for 7 years, and ordering system of paper catalogs was very off-putting. I do have to remodel my house, but I didn't like their tactics. Any other reputable business would give you a window of time to think about joining, even 2-3 days would have given us a chance to think about it, and we may have joined. But if you are someone who likes to mull decisions over and weigh your options then don't bother with Directbuy.

Thanks, everyone for the comments. Any business that exerts more energy on marketing than customer service is bound to be a disappointment.

It's a shame, because with the right business model DirectBuy could probably provide a valuable service and still make money, without the high pressure and ultimatums. I have a feeling that their satisfied buyers are the ones who don't know how to research deals on their own and would otherwise pay full retail.

Take a look at Costco; great prices and great service created a very successful company - and they managed to remain forthright and polite throughout the process.

I just returned from a sales pitch tonight in Rocklin, CA -- politely declined and was outta there when they mentioned the [now] $6400 for a 2 year membership. ouch. If you're into some serious remodeling over that amt of time it might be worth it, but not for me. No high pressure sales, though, at that location. I just said no thanks and the salesman said OK and shook my hand before I left.

My wife and I walked past a Direct Buy booth at a trade show and I signed up to see what it was all about. We just got back from the show room in Mountain View California. Here is my experience and my take...

1. They called me 2 - 3 times a day, but never left a message. When I was finally available when they called, I explained that they kept calling me when I was not available and if they had just left a message I would have called them back. The lady on the phone said, "that's odd, we always leave messages...I'll have to check into that." I've seen enough other posts that I believe this is a standard tactic.
2. They inquired about me having children, and indicated that I could not bring my 20 mo. yr. old son to the showroom the 1st time. I explained that I would not be attending then. She said that it would be simple to get a baby sitter and that "you can just use your regular sitter." I explained we don't use a baby sitter (we don't) and that I didn't need the stress of trying to find somebody to watch my son, whom I didn't even know in less then 24 hours so I could go attend a sales pitch. In the end, she caved and allowed me to bring my son.
3. We showed up and were escorted to a 12x12 room which had a DVD player, a TV, some chairs and a table where we watched a 45 minute video that was made for idiots which explained how consumer mark ups work. The best part? We were chaperoned the entire time. At the end of the video you are told that it costs $6,600 for a 2-year membership but that you have to decide to join today, and if you leave the building you will never be able to join any Direct Buy club anywhere (I was later told by the sales lady that "if you tried to join in Canada, when the contract gets to corporate it will be terminated and your money will be refunded.") At that time I told my wife that we should leave, she wanted to look around (unfortunately)

After the initial 2-years, it costs something like $200 a year for up to 8 more years. Then you have to re-pay whatever the going rate for the 2-year contract is.
My wife and I walked past a Direct Buy booth at a trade show and I signed up to see what it was all about. We just got back from the show room in Mountain View California. Here is my experience and my take...

1. They called me 2 - 3 times a day, but never left a message. When I was finally available when they called, I explained that they kept calling me when I was not available and if they had just left a message I would have called them back. The lady on the phone said, "that's odd, we always leave messages...I'll have to check into that." I've seen enough other posts that I believe this is a standard tactic.

2. They inquired about me having children, and indicated that I could not bring my 20 mo. yr. old son to the showroom the 1st time. I explained that I would not be attending then. She said that it would be simple to get a baby sitter and that "you can just use your regular sitter." I explained we don't use a baby sitter (we don't) and that I didn't need the stress of trying to find somebody to watch my son, whom I didn't even know in less then 24 hours so I could go attend a sales pitch. In the end, she caved and allowed me to bring my son.

3. We showed up and were escorted to a 12x12 room which had a DVD player, a TV, some chairs and a table where we watched a 45 minute video that was made for idiots which explained how consumer mark ups work. The best part? We were chaperoned the entire time. At the end of the video you are told that it costs $6,600 for a 2-year membership but that you have to decide to join today. After the initial 2-years, it costs something like $200 a year for up to 8 more years. Then you have to re-pay whatever the going rate for the 2-year contract is.
Here’s where the psychological ware fare comes in. They tell you that if you leave the building you will never be able to join any Direct Buy club anywhere (I was later told by the sales lady that "if you tried to join in Canada, when the contract gets to corporate it will be terminated and your money will be refunded.") At that time I told my wife that we should leave, she wanted to look around (unfortunately). Later in the process the sales rep did ‘allow’ us to leave to get lunch.

4. I ran some numbers, and I felt that if we spent around $45,000 over the term of the contract it would be worth it (they state a ROI after $20,000, it all depends on what you buy) But you really have to factor in the lost opportunity costs of the membership (that $6,600 dollars could have been used on other, similar or better opportunities)

5. In looking at the people who were there to buy, my wife made the observation that "you would really have to enjoy looking through catalogs and just picking through stuff, and that we would have to change how we bought things to make this work."

I made the observation that:

1. This membership will probably drive spending because the discounts on a lot of things are very good. And that you would have to really be disciplined about your spending.

2. Having a membership would be very similar to going to your local suit store to buy a tie, then finding that they have a 50% sale on suits. Well...you didn't go in to buy the suit, but you couldn't pass up that deal. Did you get a good deal? Absolutely...did you save money? Sure you did, on that purchase, but not in the long run because you allowed an event drive you to buy more then had planned.

Finally the sales rep came back indicating that the owner would guarantee the return of our money if we didn't save $6,600 within two years. I thought..."well, geez, why not?"

When I went to read the contract there are two critical clauses: 1. A clause which indicates that "there are no refunds.” and another clause which indicates that all oral or written agreements, which are not a part of this contract, are null and void. It’s possible that an addendum which nullified the nullification might work, but I believe the original contract would have had to reference the addendum, which they weren’t willing to do. I’m not a contract lawyer, but I’ve read enough contracts to know when to be wary.

The sales lady attempted to maneuver me to think I was reading something else. I pinned her down and finally she realized it was pointless and gave up looking a bit dejected. She then went to the "the owner's word is as good as gold...". I told her that the owner was assuming no risk, had made a legally empty offer and that I had no reason to "trust his word."

They stated that I could not red line the contract or write an addendum to it because it violated the franchise agreement. So, they were making me what was, legally an empty offer.

I told my wife that I was going to go with my gut and that there were too many signs about this situation that were wrong for me to feel comfortable.

This is where I felt that she started subtly playing my wife off of me. 2 hours later (a total of 5 hours there) I finally convinced my wife that this wasn't a good move.

Would I have saved money? Absolutely, I have no doubts about that. But I only would have saved if I had spent money. So yes, I could have saved $15,000 on a set of $30,00 cabinets. But I never would have considered buying $30,000 cabinets. IF I had been looking at cabinets, I would have been looking at the $15,000 cabinets. So I wouldn't have saved any money, I just would have gotten higher quality items at the cost of a $6,600 membership fee.

Is this a scam? No, I don't think so...but it's definitely not for everybody and their sales tactics are...well...total bull shit.

4. I ran some numbers, and I felt that if we spent around $45,000 over the term of the contract it would be worth it (they state a ROI after $20,000, it all depends on what you buy) But you really have to factor in the lost opportunity costs of the membership (that $6,600 dollars could have been used on other, similar or better opportunities)

5. In looking at the people who were there to buy, my wife made the observation that "you would really have to enjoy looking through catalogs and just picking through stuff, and that we would have to change how we bought things to make this work."

I made the observation that:

1. This membership will probably drive spending because the discounts on a lot of things are very good. And that you would have to really be disciplined about your spending.

2. Having a membership would be very similar to going to your local suit store to buy a tie, then finding that they have a 50% sale on suits. Well...you didn't go in to buy the suit, but you couldn't pass up that deal. Did you get a good deal? Absolutely...did you save money? Sure you did, on that purchase, but not in the long run because you allowed an event drive you to buy more then had planned.

Finally the sales rep came back indicating that the owner would guarantee the return of our money if we didn't save $6,600 within two years. I thought..."well, geez, why not?"

When I went to read the contract there are two critical clauses: 1. A clause which indicates that "there are no refunds.." and another clause which indicates, "all oral or written agreements, which are not a part of this contract are null and void."

The sales lady attempted to maneuver me to think I was reading something else. I pinned her down and finally she realized it was pointless and gave up looking a bit dejected. She then went to the "the owner's word is as good as gold...". I told her that the owner was assuming no risk, had made a legally empty offer and that I had no reason to "trust his word."

They stated that I could not red line the contract or write an addendum to it because it violated the franchise agreement. So, they were making me what was, legally an empty offer.

I told my wife that I was going to go with my gut and that there were too many signs about this situation that were wrong for me to feel comfortable.

This is where she started playing my wife off of me. 2 hours later (a total of 5 hours there) I finally convinced my wife that this wasn't a good move.

Would I have saved money? Absolutely, I have no doubts about that. But I only would have saved if I had spent money. So yes, I could have saved $15,000 on a set of $30,00 cabinets. But I never would have considered buying $30,000 cabinets. IF I had been looking at cabinets, I would have been looking at the $15,000 cabinets. So I wouldn't have saved any money, I just would have gotten higher quality items at the cost of a $6,600 membership fee.

Is this a scam? No, I don't think so...but it's definitely not for everybody and their sales tactics are...well...total bull shit. There were plenty of warning signs along the way, I should have gone with my gut early on and saved myself 5 hours.

My husband and I joined since we are remodeling our whole house.
I have spent hours going through each manufactures catalog looking up items and comparing items. It would of
been way easier to go the the store and look at the items. We did save money on our hardwood floor. The people that work there have all spent a lot of time with me trying to find the items that I want to buy. The down side is the wait time once you order something and the almost hidden costs. The price in the book plus the dealer markup and the shipping charges etc. They are ok but!!!!

We went to their sales pitch, our state gives us 3 days to back out.
We ordered something over $1000.00 and it has taken over 7 (yes SEVEN)weeks to get our merchandise.
I want to know why after getting my money that we can not get what we paid for in a reasonable time.
When I asked for some kind of explanation,no one will give me one or return my calls.
IF this is a "REPUTABLE" company,why is it impossible to get corporates phone number?
What are they trying to hide???
If anyone knows Direct Buys corporate phone number PLEASE post it.

I've bought into this membership and found that it was not worth the immediate cost. My wife and I are planning on purchasing a log cabin home from one of the manufactuers they work with. On the 75k package, DirectBuy's price is only 55k. The problem is that the convienient layaway plan that is available from the manufactuer does not extend through directbuy...so instead of commiting now and paying on it for the next three years and getting it sent all at once. we'll have to save our money and hope the price difference still justifies the purchase when we reach our target savings.
Other items we needed to purchase have varied in savings...though in directbuy's defense, our presenter did warn that appliances and mainly electronics are not marked up that much to begin with and not much money is there to be saved.
I have found many items there can be found cheaper online, sometimes from mainstream stores like lowes and walmart.
However, flooring, cabinents, some furniture and many other items there I have found savings similar to what was promised, although I won't have the need or want for most of these things until I buy my new log cabin. In the meantime, I'm stuck paying $200/mth for a membership I can't use because the need is not currently there. If anyone is intested in saving money and does not see the bulk needed to justify the 4500+ membership, don't buy.
The other big problem i have with these people is they can't just tell me how much an item will cost to ship. The weight and carrier are in every catolog, however, the sales people are unwilling to do the footwork to get you an exact shipping before you fill out a purchase order. They work with these carriers every day and could easily keep track of the shipping cost or make an online calculator they can access to give you shipping. Instead, you have to call the carrier and give them the details of your shippment to get your shipping yourself. Some manufactuers like LG only charge a flat rate shipping of $15 per item but those manufactuers are few and far between. Also, some of the manufactuers, again like LG, don't charge the 8% handling, or any at all, and again, the latter is true.(few and far between)

They also make you sign what for all intensive purposes, is a no compete clause in the contract stating that you will not buy things for outsiders using outsider's money. They say this is to prevent disturbing the relationship they have with the manufactuer, but in reality, it is so you don't buy things for people who might join themselves otherwise. I don't think they have the right to resrict my purchases and can't wait to see if they question my purchases in the future when I start buying similar items in bulk for "presents".

All in all, i regret my decesion to purchase now, they don't really keep track of all the people they present to and deny you future membership. Hell, the way the took attendance on their presentation was to pass around a paper and have YOU put your name on it. I even told the lady who received us that this was our second trip and she was delighted, thinking that it meant I only came back to purchase the membership. It was not the right time for me to buy into this and hopefully, the need will arrise for it before my membership runs it's course, otherwise, I wasted 4.5k to save pennys on small items.

Yes, be afraid! Be very afraid! The kicker for me was Direct Buy's assignment of an attractive female chaperone, to urge me into laying down thousands of dollars for "future purchases". I am very glad I didn't join! As for the "Excommunication".. this was a joke! I just didn't believe that they would exclude me if I didn't join that very day - an obvious scare tactic! The many references of "going with your gut" here, are certainly appropriate with this company of high pressure sales! By the buy: The man's kitchen looked OK to me!(Of course I'm not "Hoity Toity"!).

Thats weird people were saying they didn't compare prices... that's all i did when i visited. we compared prices on cabinets counters flooring whatever we wanted. I only purchased a 3 month membership so it just cost me $1200 But if you found the SAME cabinets at DB for $3,000 LESS than cost... something isnt right with your supplier. I bought everything at COST. there is NOTHING CHEAPER than COST!! Appliances I only saved a couple hundred total... but the custom cabinets alone were worth it.

We recently purchased a Directbuy membership; as many said it is buyer beware. Prior to going I researched many of the product we will be purchasing over the next couple years. I knew the cost of membership from online ready; as many who go price comparison is the norm. After doing the comparison on: new floor tile and hardwood, matresses, carpet, larger kitchen applicances, and other large purchases some of the saving is considerable some are not so great; the only way it will be worth the money is if you use the program.

If you are just trying to save money on a remodeling if you kitchen and that is it, save your membership fee and place it toward your kitchen. If you are willing to put the time in and use the program over the 3-10 years the membership will more the pay for itself.

Bottomline is that it is not for everyone you have to be willing to wait and plan for your purchases; if you are a compulsive buyer it is not for you, if you life to save your money and not buy on credit, which for many of us it gives us time to look and find the deals. Best of luck to all and remember make your own mind up everything today has both positive and negative write ups. Never go into anything with a blind eye.

My blood boiled listening to his comments. I have been a membar since 2004. I also became an employee for 3years but since move on to other ventures. Directbuy will help you save a whole lot. I saved $6300.00 in my first two years of membership which is $2300.00 more than my investment. I still have 5 years of buying for anything I need for the home. If you like cheap floor sample stuff, don't waste your time. If you want quality merchandise with lots to choose from, you can close your eyes and join. Do your research and plan ahead before attending an open house, plan to join before you leave. You wont regret it if you are planning to spend.

We are in the middle of adding a second story to our house. We saw an advertisement of Direct Buy which specifically invited us to sign up for an exclusive tour of it showroom. We had no idea what kind of operation DirectBuy was and innocently signed up for the tour. Our prime objective was to get some design ideas from its showroom and explore what Directbuy has to offer that would fit our remodeling needs. But contrary to what the advertisement said, we were not given a chance to see the showroom at all. All the time we were there, we were subjected to high pressure sales presentations aimed at making us buy the membership. We declined the membership because we do not like the pressure and were quickly shown out of the door.

While at the parking lot, I had a second thought. We spent money and time to arrange for a babysitter, drove the distances to get to the store, and set aside time from our busy schedule, why should we leave without fulfilling the objective of seeing the showroom? I have a free visitor’s pass to Direct Buy’s showroom. I can challenge the store manager. I asked my wife if she wants to go back to see the showroom. She declined. So I went back in by myself and asked to see the showroom as part of the activities promised by DirectBuy’s advertisement. He was visibly annoyed by my challenge to his authority as the store manager (I later found that he is also the owner of the store). He called his security team to throw me out. Two heavy fellows and their security manager came. The heavy fellows grabbed my arms and started removing me from the store. Sensing that the manager’s order was inappropriate, the security manager disobey him and stopped the forced eviction. He started reasoning with me. I gave my reason that DirectBuy should honor its advertisement and let me see the showroom and he appeared to understand it. Then he said that any store has a right to throw any customer out. He seems to be a more reasonable person than the store manager, who appears to be more concern about exerting his absolute power like a dictator. I also sense that he is so concern about his big ego that he is willing to drag down the corporate image of DirectBuy with it.

I told security manager that he has to call the police to throw me out. I ignored all their order and walked around the showroom. But needless to say, by that point, I was in no mood to examine any merchandize. I did that just to make a point that a customer has the right to seek what is promised by an advertisement. I don’t know if he called the police or not. I am not a lawyer. I don’t know what the limit of my right is within their store, and I don’t really want to go to court to find that out. So I left after I proved my point.

This incident occurred at the DirectBuy store in Mountain View, California on 12/6/08.

I work for DirectBuy and I read all of these write ups and see clearly don't understand the concept. Here you are the store that is why you buy at lower costs. It is a buyers club and there are savings across the board. I for one have seen and partook in helping many happy members and families. There are confidentiality agreements to offer the prices from the vendors we have and that is why decisions are needed at that time. It is not a scam it is a reputable place that I love working for. Also I take great offense to the statement that once you are a member we do not offer good service. We at our location bend over backwards and know our members by name a majority of the time. If the club isn't for you that is your choice but I think that unhappy people tend to be louder than the hundreds of happy families we have helped.

I joined DirectBuy a year ago because I was building my home. I researched high end products through them and my contractor. I also looked on my own. It was a waste of my money. I did not save any more money than had I looked for the material myself. It's a rip off if you ask me. Even if you are buying high end.

Don't you think it's weird that Direct Buy doesn't tell you the prices of anything if they're so great?
Direct Buy is a total ripoff. Their prices are terrible, plus you have to pay $3500-$9000 to join and they charge a 6% handling fee on purchases so you are actually losing money up front on top of paying way too much.
I'll stay far away from Direct Buy

IF YOU WANT A REFUND ON YOUR MEMBERSHIP YOU ONLY HAVE "3 DAYS" TO GET A REFUND. YOU MUST SEND A CERTIFIED LETTER OR GO IN PERSON TO DEMAND A REBATE & GET A SIGNATURE AND YOU COULD EVEN RECORD IT WITH YOUR CELL PHONE JUST IN CASE!

I just made the mistake of trying to sign up for a free trial membership on their site without researching them first. I just wanted to be able to browse their inventory online, but after entering my information, I saw that you have to make an appointment. I didn't make one, but I still got a phone call an hour later from a sales rep.

I told him I changed my mind but he kept trying to get more information from me (he wanted to know my husband's information, but I wouldn't give it). When he kept pressuring me to tell him why I changed my mind I finally told him it was because of what I read on consumer reports (I read this after I signed up). He was silent for a minute and didn't know what to say. Finally, he kept going on about how it was free and no risk, so I told him you can send your information, but I'm not making an appointment now. Hopefully they won't call me again.

Brent Gilliland I was calling him Gilligan on my reply to other complaints about Directbuy. I found him on face book and I will share my photo with you. He is a rude and he thinks slick salesperson. However, he is not. No one from out "open house" joined. Well no one but the family he took 20 down from on a 390 down agreement with 104 a month for 36 mo with 17.75% interest. Had them sign and they are taken. As for the rest of the 9 couples we split after having him jump from table to table loosing each sales with his close talking smokers breath and short fat way about him. He had no trust from any of the guest and I can tell you my wife and I did not like him from the start. We came open minded with a ton of projects to do around our three homes. Two rentals in Glenview and our new home need furniture. But it is worth paying more on some items to not line the pocket of this Chicago Franshice Owner. He has small man issues. He starts out by saying welcome to the club. I am Brent the Owner of the club. The guy is odd. the concept is sound the practice is scammable and weak. He should be bought out and replaced. I have read many complaints on this site and this is only my first stop.

Please help yourself and save the time and pain of the lost day. We went at 7pm and I wished we would have stayed home or been in a fine furniture store getting what we wanted and spending the 6500 on items. That is a night of my life I will never get back and I am here to help you save you time. The 30 day free trail is bullshit. It is just a way to get you into the sales process.

I talked to one of the members outside in the beat up parking lot of this old dark building that night. She is "stuck" until they recoop the investment they made. Now wishing they had not. They have done many things and have yet to recoop the money in 2 years.

Check out this photo I found online of this fat short slimer of a salesman. I am in sales and marketing and he is the reason salesman have a bad rap. Poor and empty will be his life treating people like this. I would not be surprised if he was on his 3rd or 4th wife by now or all alone when he goes home.

If you did join and want out. File a Complaint with The Attorney General's office in your state. The AG keeps a log on complaints, and will begin an investigation if there are too many.

I MADE A MISTAKE IN JOINING DIRECTBUY. ON THE THIRD DAY I CALLED TO REPORT I HAD DECIDED TO NOT BE A MEMBER. THE RECEPTIONIST WOULD NOT TAKE THE INFORMATION, TELLING ME I HAD TO TALK TO ONE OF THE OWNERS AND THEY WERE OUT. I CALLED THE NEXT DAY AND HE WAS OFF THAT DAY. NOW MY 72 HRS. HAD EXPIRED AND NO WAY COULD I GET MY DOWN PAYMENT BACK, THAT WAS PUT ON MY CREDIT CARD. NOW THE OWNER IS TELLING ME IF I PAY "HIM" $2,200.00, HE WOULD CANCEL. THEN HE CALLS ME BACK, OFFERED TO CANCEL THE CONTRACT, AFTER I HAD CALL CORPORATE OFFICE, FOR $1,200.00. I REFUSED, BUT DID OFFER TO GIVE "HIM" $200.00 HE WOULD BE RID OF ME AND I WOULD BE RID OF HIM. BUT HE REUFSES. THAT IS FLAT OUT "BLACKMAIL". NOW I HAVE REPORTED IT TO THE ATTORNEY GENERALS OFFICE OF MY STATE. I PRAY THIS MAN HAS TO GIVE ME MY $490.00 DOWN PAYMENT BACK AND CANCEL THE BALANCE OF $4,000.00, THEY HAVE FINANCED WITH THEIR FINANCE BETA FINCNCES. I DON'T OWE THIS MEMBERSHIP, AND I HAVE TRIED EVERY AVENUE I KNOW TO SAVE THIS MONEY. IT'S NOT MY FAULT HE WOULDN'T TAKE MY CALL. BUT THIS IS A WAY TO SCAM PEOPLE.

I purchased a membership with Direct Buy over 9 mos ago. 5000 dollars given to them at time I signed up. I placed an order last month for an office set and a lamp. BOth had April estimated delivery dates and here it is May and i have not received my merchandies. When calling the showroom in Bloomington, MN, i was unable to get a human on the phone the 1st ten tries and left several messages. Three days later, someone finally called back and i inquired about my purchase. I was told one item was back ordered and would not be here until June, the other was SUPPOSED to be shipped, but now had a new ship date which was a week later and i could expect delivery within 2 weeks. 3 weeks later, I have not received a call or my furnitnure or the refund check for the canceled order that was originally back ordered. There is no sales supprot at diret buy and this is a scam. They have my money and i have no merchandise. STAY CLEAR OF THIS CLUB!!!!!