Direct Buy - feedback request
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Thread: Direct Buy - feedback request

  1. #1
    What we play is life. Array RiceRocket's Avatar
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    Direct Buy - feedback request

    I just got a telemarketing call from a company called Direct Buy (http://www.directbuy.com). Sounds like they're sort of on the same lines as Costco. Pay a membership fee and buy products at below retail price. Asked what membership fees were but they would not disclose. I'd have to go in to their wareshouse so they can give me the hard sales pitch.

    Anyway, just wondering if anyone is a member and/or been to their warehouse, and what the feedback is on this company.

  2. #2
    AKA Newfie Girl Array Newfie Girl's Avatar
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    Stay the fuck away!
    $4000 membership fee, no refunds, very high pressure sale.

  3. #3
    What we play is life. Array RiceRocket's Avatar
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    Quote Originally Posted by Newfie Girl
    Stay the fuck away!
    Thanks, but can you give me specifics. I am very skeptical but would like to know why I should be.

  4. #4
    AKA Newfie Girl Array Newfie Girl's Avatar
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    This would be second hand info, a friend just attended one of their "seminars". Its a 3 year membership I believe, for $4000. Gets you deals on major applinaces, TVs, cameras, etc. After 3 years it becomes $400 a year to be a member. The sale is said to be extremely high pressure, there are no refunds, they do not allow you time to debate your purchase "its today or not at all" kind of thing. From the conversations I have had with my friend about it, I would not get involved. Just looks like another legalised pyramid scheme to me.

    EDIT: I do believe there may be some complaints registered against them with the BBB, but I am not positive. Do your homework here, buyer beware for sure.

  5. #5
    Registered User Array Jager's Avatar
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    Actually, I have two friends who are members and they have saved a lot. they both just outfitted new houses, though.

    For anybody who is building a house or outfitting/furnishing a house and intending to spend $10K+ on furniture, flooring, faucets, stereo equipment, etc., you will make back your membership.

    As an example, a friend of mine bought a Samsung 60" DLP TV thru Direct Buy. He did his shopping around everywhere (big boxes, independent dealers). Direct Buy's price was $2,000 less. He saved half his membership on one item.

    When I buy (or build) a house, I will definitely join. But until then, I'm staying away from the sales meeting cuz they really put the pressure on and tell you that if you say no at the meeting, you're not ever allowed to join again.

  6. #6
    Mr. Sophisticata Array toomuchgsxr's Avatar
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    bought $2.200 worth of home speakers for $1000
    Team Troll - Triple T

  7. #7
    Registered User Array VanDave's Avatar
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    Quote Originally Posted by toomuchgsxr
    bought $2.200 worth of home speakers for $1000
    I hope they weren't the same as these speakers:

    http://www.bcsportbikes.com/forum/sh...ad.php?t=42965

  8. #8
    Got Hammer? Array gixxstar's Avatar
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    Membership is $4k and that just gives you a membership for 3 years so that you can shop through them. Don't waste your time going unless you have that kind of coin and plan to spend a lot more to make up the difference. It can be worth it if you have a lot of big purchases planned in the near future. You can't make up the difference by selling stuff.....you lose your membership and the $4k that way. They really turn the pressure on to make a decision before you leave and there's no refunds on the membership.

  9. #9
    What we play is life. Array RiceRocket's Avatar
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    Quote Originally Posted by gixxstar
    ...You can't make up the difference by selling stuff.....you lose your membership and the $4k that way. They really turn the pressure on to make a decision before you leave and there's no refunds on the membership.
    You mean you can't buy for friends or family? How would they know.

    I was thinking what if I paid a person who has a membership a hundred bucks to pick me up a DLP tv for me. Seems ridiculous if you pay $4k for membership that they restrict what you can purchase.

  10. #10
    Registered User Array grant's Avatar
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    I went to their sales-pitch and did my own research, here's the down-low:

    Each location is a franchise. The vancouver location seems to be a lot scummier & has BBB complaints against it. The coquitlam one has a better reputation, and when i checked no BBB complaints.

    The concept is that you pay them about $2300 to become a "member" for 1 year. You can renew for up to 9 more years for about $150/year. The theory is, they make 100% of their money selling memberships, and $0 on markup.

    They have shelves full of manufacturer's catalogues, colour coded by what % the savings off retail are. Even though their literature claims you'll save "an average of 55%" or whatever, most of their books are in the 10-20% discount range. Only a few are above 50%.

    The idea is that you look in the catalogue for the product you want, subtract the discount from the MSRP (most books use codes for discounts, so customers will only see a MSRP $ amount). And then you add special shipping and handling charges. Pay the discounted amount and shortly your product shows up. This is not a bad idea except:
    a) those extra charges can be significant, some would say even atrocious
    b) you can't inspect the product before you pay... so 2 weeks later, your new blinds show up in the wrong colour... well now you're behind the 8-ball trying to get your money back
    c) most stores already discount the MSRP to some degree to remain competitive.

    When you show up for the seminar, they have you in a group watching their propaganda video. This is the owner of the store spliced with corporate footage trying to convince you how you can save zillions of dollars on all your household purchases. They keep harping on "the average store markup is x%! That's how much extra you are paying!" As I mentioned before, the discount indicated by their catalogs does NOT match their purported savings. And the examples they use exclude the "special charges" you might get dinged with on certain products.

    After the video, everyone is split off to talk to a sales person. The guy I had was very pleasant, and not that pushy, but it was still a hard sell. They will really take all the time they need to work you and try to convince you it's such a great deal.

    The biggest issue i had with them is you must sign the contract that night or else they will never let you join. They claim it's so you can't run off to competitors and try to use their claimed discounts as leverage. What a crock of feces. They are simply following the 2nd cardinal rule of sales: "create urgency"... if people are convinced this is a 1-time-only opportunity, they are much more likely to sign up immediately. ALSO, they don't want to give people the chance to properly think through the offer, and/or perform serious research.

    I was allowed to examine several of the catalogues they had on the shelf. I do remember that the savings off MSRP on some blinds would be very large. Something like 60%. Many people complain they are not allowed to view the catalogues before signing up. The official chain policy is that prospective customers CAN view the catalogues.

    I was very tempted to sign the contract, but in principle, i will not commit $2300 on a whim. Their attempt to bully people into signing immediately is PURE SLEAZY.

    After leaving I bought some no-name blinds for a bit less than name-brand would have cost from direct-buy.

    It is my belief that there MAY be some savings to be made through direct-buy... but, a savvy shopper can realize MOST or ALL of those savings outside direct buy simply by shopping around. We all know that MSRP is a fantasy figure, and that most stores will knock %s off it to retain customers.

    Also, there is a lot of risk with direct buy... you pay now, receive later, you don't know what extra charges you'll need to pay, and it can be a huge hassle if items arrive damaged or incorrectly.

  11. #11
    Outlaw
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    Man this is gettin ridiculous....has anyone else noticed a huge increase in telemarketing lately.....we get a least one call every night of the week.
    We're almost ready to change our phone# and make it unlisted!!

  12. #12
    Ride Solo Array GSP's Avatar
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    Quote Originally Posted by grant
    I was very tempted to sign the contract, but in principle, i will not commit $2300 on a whim. Their attempt to bully people into signing immediately is PURE SLEAZY.
    I also attended a seminar, but I think the price to join was closer to 4K? The wife and I had fun trying to guess the membership fee during the video (understandably, they don't offer this info up front). The examples used in the vid made it apparent that the price would be really high.

    It might be worthwhile if you're going to be outfitting a house and/or if you have a huge disposable income that you like to spend on big-ticket items.
    I didn't want the pressure of having to spend money so that I could realize some savings. You don't "save" anything unless you're going to spend a great deal--I'm thinking at least 20K during the first few years of membership. Most of the other people at our seminar didn't look like the types that would benefit either, but no doubt some would have succumbed to the pressure of "join now or never again". If you're a person that always buys the Future Shop extended warranty, even when you didn't want to, a trip to the Direct Buy seminar could prove very expensive.

  13. #13
    Registered User Array Jager's Avatar
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    I also think the price is closer to $4K. I believe I heard my friends say $3,500 plus GST.

    You're kind of on an honour system with regards to purchasing for others. I think it's in the contract that you're not supposed to do it, but I'm sure it happens. Personal purchases as gifts for other people is apparently allowed because they do allow members to bring friends & family to the showroom/office to pick out what they're getting as a gift. I imagine if you were to buy a half dozen refrigerators to give as presents to your friends, they would probably question it.

  14. #14
    Got Hammer? Array gixxstar's Avatar
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    Yup, it's 3900ish plus GST so it's just over $4200 for 3 years then $400 every subsequent year. You need to spend a shitload to get it back. Most things are in the 10-20% savings and a few are high savings. Sleazy opporation. It's one of those things that's just barely legal. Like I said, stay away.

  15. #15
    Registered User Array ZedX7R's Avatar
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    My parents friend is a member, He has outfitted 3 houses and has saved a fortune. It is only worth it if you are going to spend over 15g's in the first 3 yrs of membership and 1500 to 3000 ever year after you are a member

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