TWiki . Edumacation . DirectBuyAzcentral20070919	TWiki . { Main | Edumacation | TWiki | Test }
	Edumacation . { Home | Users | Changes | Search | Go }

This article is reproduced here without permission under the Fair Use Doctrine. It was originally published at http://www.azcentral.com/12news/consumer/articles/DIRECTBUYdealSCRIPT09192007-CR.html
Copyright © 2007, azcentral.com.

Dave Cherry
Call 12 for Action
September 19, 2007

There is this nationwide buying club-- maybe you've heard of it-- called DirectBuy. The club touts gigantic savings on home furnishings, but it may cost you a bundle to get those savings.

You've probably seen the TV commercials and newspaper ads touting the great opportunity to be part of the club. DirectBuy promises consumers access to 700 manufacturers of home furniture and goods-- no markups or middleman-- up to 70% off retail prices! advertisement

Ads invite consumers to what's called an "open house" where they will be shown "confidential" wholesale prices and great savings.

What you don't see in the ad is DirectBuy's steep membership fee.

Here is the real deal: Only after what Consumer Reports Magazine terms a "hard sell" sales pitch at the open house, are consumers finally told about the $4900 membership fee for 3 years. The fee is $190 per year for 7 more thereafter.

Consumer Reports says after the price is disclosed, consumers are told they must sign up on the spot or never come back-- no comparison shopping is allowed under DirectBuy’s marketing program.

DirectBuy outlets are all independently owned franchises, so service will vary among them-- so do records with the Better Business Bureau. Some have few complaints; others have many.

The DirectBuy contract comes with a lot of fine print too. You cannot return items, cancel orders, or terminate your membership. Tacked onto the cost of the merchandise are taxes, a 6% handling fee, and shipping fees. Goods are typically shipped only to your local center. It may cost more for you to get your new item to your home.

Just how good are the prices? Consumer Reports says prices for electronics and appliances were only slightly better than online retailers-- and sometimes higher. But, Consumer Reports did find deep discounts on wood flooring and high end furniture.

Also, some DirectBuy members have complained about poor customer service and long waits for merchandise.

Bottom line: Even if you save 25% on purchases after joining, you would need to spend more than $20,000 just to recoup your membership fee. Since you can’t shop around beforehand-- you will be joining blind.

Topic DirectBuyAzcentral20070919 . { Edit | Ref-By | Attach | Diffs | r1.1 }

You must register before editing pages or using other extended features on this TWiki system.

Revision r1.1 - 29 Sep 2007 - 03:26 by EliMantel  Privacy Policy

Copyright © 2000-2005 by the contributing authors. All material on this collaboration tool is the property of the contributing authors. Collect email addresses here. Ideas, requests, problems regarding TWiki? Send feedback.