The DirectBuy Infomercial
I recently received an invitation to an orientation session with DirectBuy. I had heard some rumours about DirectBuy, mainly that it is very expensive to become a member, but that the prices were very good and I was very curious to find out the truth. I was intrigued, and therefore accepted the invitation.
There were a couple of things going into the visit that should be stated. I did not really know anything about DirectBuy before going, I did not read the material that they sent me prior to my visit, and I did not have a good deal of large impending purchases.
As we arrived at the DirectBuy showroom it was largely a lot of people looking threw binders and that is one of the main selling points. I will provide some thoughts based on my visit:
Shopping By Catalog - This is how you shop through DirectBuy. They have a binder per supplier which lets you select products and buy them at the retailer cost. These prices are generally very good, but it is important to keep in mind that retailers will frequently receive a volume discount, and buy the items below this cost.
While the prices are great, I am somewhat irked by the shopping by catalog, as I think I would miss the physical presence of goods, especially in the picking of furniture and electronics as some of this stuff is based on personal tastes.
Can’t Shop Around - This is a strange rule. They do not want you to use other retailers services to demo the products with the intention of shopping through DirectBuy. This would be a major downfall if you have any intention of obeying the rule. Having said that, I have no idea how they would enforce it.
The Sales Pitch - For the better part of an hour I was subjected to the worst infomercial style sales pitch imaginable. There was about 16 of us in the room, and the woman giving the presentation was nauseating. As well some of the people in the presentation were suspect. Either they were on some sort of an upper, or they were planted to ask loaded questions. The presentation really turned me off the company.
The Prices Seem Good - During the nauseating presentation they passed around a bunch of flyers that showed sale prices, and then showed what you could get the same model from DirectBuy for. The prices were pretty good.
Handling Fees - There was an 8% handling fee tacked onto almost every price so that a DirectBuy employee could inspect the item before you receive it. This could cut into the discount by a large amount.
You May Not Save Money - DirectBuy seems to sell relatively high end merchandise. If you shop at discount stores you may not save money, but having said that, you will get better quality stuff at the same price.
It Is Expensive To Join - The cost (for Canadians at least) is $5500 for the first 3 years, then $220/year for years 4 to 10. That initial hit is quite large, so you want to make sure that you have some big ticket purchases of furniture, home renovation materials to justify it.
YOU ONLY GET ONE SHOT! - This is the real kick in the pants for me. On the day you do your visit it is the only day that you are allowed to join. They justify this by saying that they do not want people using the prices they find in the orientation to negotiate with retail stores. This is supposed to be to protect the interests of the manufacturers because they need to sell their product through retail as well.
It is my opinion that they want to make it seem like a great deal and then force you to make a snap decision. I told them that there is no way I could commit to a $5500 purchase in a matter of hours. And that it would take close to 2 months. I was told that I had until I left to join, and that if I didn’t I would be ban for 7 years. So now I’m ban.
If I were to join sometime (apparently 7 years) in the future. There is a few things I would do.
- Bring my iPod for the presentation -so that I don’t have to listen.
- Bring a spreadsheet of purchases I could see myself making in the next 3 years with the best price I could find
- Be prepared to sit there for several hours with a calculator to decide whether it is worthwhile to join
From my visit I do think that DirectBuy would be something that would save me money, but I was not at all prepared for their high pressure sales tactic, and I balked. I was not prepared to make the commitment immediately, and I am left feeling uneasy about the tactics of the company.
DirectBuy can be a good deal, I am confident of this, but before you take your visit, do your homework and be prepared.
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Loading ...Tags: DirectBuy, DirectBuy dues, DirectBuy Membership, DirectBuy rules, DirectBuy Scam, DirectBuy tips, DirectBuy visit
September 6th, 2008 at 1:40 am
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.