Problem with DirectBuy

Megalodon · #1 09-25-2008, 10:08 PM

Has anyone done this? You've probably seen one of their infomercials on TV by now.

I have learned this is one strange cult-like company. And I was so stupid as to go to one of their open houses BEFORE reading all the warnings on the web about them, which is something I don't often forget to do. I did however check the BC Better Business Bureau and this particular franchise is not only in good standing, but accredited, so I didn't suspect anything.

The first indication something was wrong was when they wouldn't tell me on the phone how much the membership fee was, only that I could have savings of 30% to 50% on unspecified brands. This prompted me to decline their initial open house invitation but I after a few days of thinking about it, and their good standing with the BBB, I decided to go in anyway and see what all the hype was about.

At first a sales guy sat me down for some small talk. At that point they still wouldn't tell me how much the membership fee is. Then he sits me down in a room to watch a 40 minute infomercial about how great DirectBuy is and how I can save a "fortune" bypassing retailers.

Then, after all that, comes two surprising revelations. 1) The fee for the first three years is $5330 then $300 for every year after, and 2) I must decide and sign the contract that night or never come back again.

I was shocked, to say the least. However, thinking that if I could save more than $5330 over the next three years on partial renovations on my current place and refurnishing my next place, I thought it could actually still be viable, so I let them take me on a tour. It then became clear that everything must be purchased through catalogs, items can take up to two months to receive, there's often an 8% handling fee, and once you take the item, you're on your own for the warranty as they don't accept returns.

Then the reality that I had only that night to sign up kicked. Next thing I know I have two sales guys in my face trying to get me to sign up or miss an opportunity of a lifetime.

So I told them, if I have to decide tonight without doing more researching and planning, then the answer is no! It wasn't easy. They talked to me like I was crazy, and even acted like they were shocked someone was actually turning it down, like it had never happened before.

But I'm glad I did so. I found out that unless you're exceptionally patient, willing to accept risks, and you're intending on doing something major with your house over $25,000, it probably won't be worth it. (Plus, they don't sell any saltwater aquarium equipment or supplies, hehe.)

Buyer Beware!

mark · #2 09-25-2008, 10:35 PM

Now that was close.

I seen the ads also, called the phone number, got the invite but I was lucky enough I did the google thing first so skipped even going.

As for the BBB, that's like the packing house doing there own meat inspections.

trilinearmipmap · #3 09-25-2008, 10:58 PM

Any offer where you have to buy it right now or the offer is revoked is a scam.

If the offer is good today, it should also be good tomorrow.

mseepman · #4 09-26-2008, 12:04 AM

I have some good friends who just did this a while ago. They were just beginning the building of their new house and though the builder wouldn't let them get most of their stuff there, they still figure they saved about $10,000. That being said, they went in prepared...had priced everything (I mean everthing) before their invite, re-priced it (took 2 2 1/2hrs) while they were there and decided it was worth it.

In the end, they told me that if you were generaling your own house build, it's a no-brainer as you can get everything...flooring, railing, roofing, siding, fixtures, appliances, etc there. Just look for it locally, pick the sku number and take it to them to match in their catalogues. Shipping and delays become the problem then, especially if it comes from the US where you have to pay duty.

I think overall this could be okay if you had nothing better to do with your time and no pressure to get the job done quickly.

mark · #5 09-26-2008, 01:43 AM

Was reading on the gripe forums they won't let you look at their catalogues until you sign on, only thing prior is sample items of their choosing. Megalodon?

workn2hard2day · #6 09-26-2008, 04:20 PM

From my research (on the net) I have found that the membership fee and maintenance fees varies between locations.

Phanman · #7 09-26-2008, 04:30 PM

My friends parents actually signed up a few years ago and they swear that it actually saved then in the range of $20-30k or so. But they were building their own house from scratch besides the framing and foundation. So if your a handy man thats looking to build a home from scratch then id say its worth it.

They also had a look at the online catalog and there are really good deals to be had no doubt. Since their son is my roomate, we got to order a few appliances and did save some cash since we didnt have to sign up, lol.

JME