Top 5 Reasons Not to Join Direct Buy
It just makes sense that to get bigger discounts all you have to do is join a large group. Sam's Club, Costco, Bj's, etc have all flourished because of this concept. One company promises to have the biggest savings of all: Direct Buy. But it seems their customers are getting more than they bargained for--and by that I don't mean more low prices.
Top Reason Not to Join Direct Buy #1: The Membership Fee
Normally you would have to attend a 90 minute, high-pressure sales presentation only to find out how much a Direct Buy membership actually costs. But because so many people are speaking out about this company, almost everyone knows by now. In order to join Direct Buy, a couple must pay $4000 for the first year, and then pay to renew every year after that in order to remain members. That is a lot of money. Period.
That would mean that a single household would have to save $4000 for the membership to pay for itself.
The 2 lines that Direct Buy uses to convince people to join are:
1. "If you purchase $4000 worth of goods in a year, you will have paid for your membership" and
2. "Most people pay for their membership fee even if they only buy carpeting".
That would mean that their customers would have to save 50% every time they set foot in the door. So let's see how they stack up in that department next.
Top Reason Not to Join Direct Buy #2: No Real Savings
You can pretty much find everything they have, brand for brand, style for style, somewhere else for less. If you do save someone money, it is not even close to the 50% that you would have to save in order for your membership to pay for itself. And this is coming from countless real customers who have joined and put their memberships to the test. One customer was even told, after he couldn't see any real savings, that the great thing about Direct Buy wasn't the savings but that you don't have to shop around from place to place to purchase goods from their manufacturers!
Add to that a mandatory 8% "order fee" on the total amount of your order--even if you place your order yourself via an online portal. You would think that all of this would translate into the Direct Buy staff really taking care of their customers, wouldn't you? Until you read the next reason not to join Direct Buy.
Top Reason Not to Join Direct Buy #3: Poor Customer Service
When you arrive for your introductory tour, you are greeted and asked to check in and are given a name tag. Then, in Time-Share presentation style, you are assigned an aggressive, sometimes rude salesperson who force-feeds you everything they want you to know about the great benefits of owning a membership. All you are shown while you are there is cabinetry and flooring samples. As a returning customer going back to browse and buy, you are given huge tombs of dealer catalogs to sift through. Or there is an option to order online. The problem is, if the merchandise arrives damaged, it is very difficult to get Direct Buy to do anything about it. Most of the customer service staff seem to have an extreme case of Pass-the-Buck Syndrome. I have read countless cases of issues not being resolved, ending in the membership being suspended arbitrarily. One member reported exiting the showroom after placing a furniture order and meeting an older couple in the parking lot who were coming for their presentation. The member was very candid about the sales and ordering process, and the couple apparently came away with a negative view which they then brought up with their Direct Buy hosts. The member got a phone call from the franchise owner telling her that her order had been cancelled and that she would no longer be allowed to use their services because she had lost them a sale. The company president, Scott Powell, responded to this customer's complaint by saying that a franchise owner has the right to refuse to do business with whomever he or she chooses.
Top Reason Not to Join Direct Buy #4: Poor Quality
J.D. from Dunnellon, FL reports that he recieved a love seat that was broken underneath, and a couch where the wicker pieces were cracked and now the wicker reeds are breaking off. His dining room table was sent with one piece of glass to fit the table when it seats six. When the leaf is in, the glass top does not fit a table for eight. Also, the leaf does not even fit the table. It is unusable. It was made for another table. Another customer took delivery of maple cabinets that were of such low quality that she cried. Screws protruded from drawer fronts. Cabinet doors were poorly painted and had holes. Trim was broken. Hinges didn't fit and replacement parts took months to receive.
Top Reason Not to Join Direct Buy #5: Limited coverage
When you sign your contract with Direct Buy , you agree never to disclose the pricing to anyone outside of your immediate household. You are not allowed to share your membership with anyone in your family or your membership will be suspended. I know of one customer who wanted to purchase an engagement ring for his daughter on behalf of his soon-to-be son-in-law. As soon as he mentioned his intention, he was told that he could no longer purchase the ring. I am not kidding.
So how do you find the prices that Direct Buy brags about so much in their false advertising? Well what I did was join a group savings program where the members are allowed to share information about the company--in fact, there is no advertising--infomercial or otherwise--only memer referrals, which earns the individual member a very nice referral fee. Plus, the membership costs half of what Direct Buy is charging and it is only paid once in your entire lifetime. It covers you, your parents, your grandparents, your children, your grandchildren, and your business and up to five employees. We have looked, and nobody can beat their prices on furniture and jewelry, and they get you huge savings on cars and motorcycles, too. The list of savings is huge. In fact, they even have a way to save through local merchants, which is cool because then small businesses are supported, too. We love it.
Oh, BTW, I did show up for a tour one day to a Direct Buy in St. Louis, MO. But because my husband couldn't make it, they wouldn't even let me set foot in the door. Apparently, they have a policy that you have to buy a membership the day you take the tour or you are never invited back. If that isn't high-pressure sales, I don't know what is.
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John Cloutman wrote
Hi Rana, Thanks for the concise rundown of the DirectBuy pitch. They have been callin incessantly but my wife and I can't hire a babysitter and they won't let us bring the kids - and they won't let my wife attend without me - which is kind of stupid on their part - maybe in the 1950's the man of the house was guaranteed to be the one controlling the purse strings, but not these days. I wouldn't do business with these folks anyway, now after the voluminous amount of negative info that's out there. Thanks for the good breakdown. By the way, to save $4000 at this place you'd have to spend $20,000 and have saved 20% on everything... thus its nearly impossible to re-coup your initial membership fee.
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by mentormommy
Rana Burr is a stay-at-home mother of four children. Her website www.smart-money-management.com educates hundreds of people per month on how to...
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