- Report: #215579
Complaint Review: Directbuy
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| Directbuy directbuy.com
Hunt Valley, Maryland United States of America |
|
DirectBuy ripoff What it costs to break even on membership Hunt Valley Maryland
*Consumer Comment: Not a ripoff exactly - but predatory nonetheless
*Consumer Comment: ripoff is a little harsh
*UPDATE Employee: Each DirectBuy is different
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Recient visit, October 2006,to showroom for sales presentation a/k/a Guest Visit Pass was quite interesting. Sales presentation did offer examples of how the system worked. As is with most sales presentations only the aspects that were the most favorable were stressed. Little time was used in explaining the additional fees that are attached to each purchase, actualy just glossed over (one sentance total). By way of example : buyers premium of 8% of purchase to DirectBuy,shipping and handling fees, setup fees. As in all high ticket sales presentations the effort was on the warm fuzzy feeling of the item. In this case the ability to buy at a discount. No effort was made to demonstrate at what point there would be a break-even point on costs. A discount is only a discount when you actualy save money, not just think that you have.
With the information that I was able to obtain while I was there ( 2 hours ) I have come to the following concllusion.
With a member ship fee of $4,500.00 for the first three years and $199.00 for years 4 through 10. The minimum break-even point would be aproximatley $20,000 in purchases through DirectBuy assuming the best case, worse cast (depending on the discounted amount of the murchandise)would yield a break-even point at aproximatley $49,000.00. Thats is $20,000 to $49,000 just to get to the point that you actualy start saving money during the first 3 year $4,500 mimbership fee pluss DirectBuy added costs. My caculations do not take into sales tax.
I am confident that the DirectBuy Franchise System throught the country opperat at about the same level of fees and costs. I am not saying that someone can not save money using DirectBuy. But rather at what cost. Sales people can manipulate numbers to creat the outcome that will entise the customer.
If DirectBuy were to lay out the actual fees and costs of purchasing demonstrating a realistic projection of actual amounts meeded to be purchased through their system, I dought that many would come to the sales presentations much less actual join after being shown real cost benifit ratio of their projected membership.
I have a backround of 35 years in sale and bussiness, and a sound backround in math. I didn't just off the back of the pumpkin wagon. Needless to say I did not join DirectBuy on my visit.
The best purchase is an informed purchase.
Harry glen arm, Maryland
U.S.A.
With the information that I was able to obtain while I was there ( 2 hours ) I have come to the following concllusion.
With a member ship fee of $4,500.00 for the first three years and $199.00 for years 4 through 10. The minimum break-even point would be aproximatley $20,000 in purchases through DirectBuy assuming the best case, worse cast (depending on the discounted amount of the murchandise)would yield a break-even point at aproximatley $49,000.00. Thats is $20,000 to $49,000 just to get to the point that you actualy start saving money during the first 3 year $4,500 mimbership fee pluss DirectBuy added costs. My caculations do not take into sales tax.
I am confident that the DirectBuy Franchise System throught the country opperat at about the same level of fees and costs. I am not saying that someone can not save money using DirectBuy. But rather at what cost. Sales people can manipulate numbers to creat the outcome that will entise the customer.
If DirectBuy were to lay out the actual fees and costs of purchasing demonstrating a realistic projection of actual amounts meeded to be purchased through their system, I dought that many would come to the sales presentations much less actual join after being shown real cost benifit ratio of their projected membership.
I have a backround of 35 years in sale and bussiness, and a sound backround in math. I didn't just off the back of the pumpkin wagon. Needless to say I did not join DirectBuy on my visit.
The best purchase is an informed purchase.
Harry glen arm, Maryland
U.S.A.
This report was posted on Ripoff Report on 10/13/2006 10:47 AM and is a permanent record located here: http://www.ripoffreport.com/r/Directbuy/Hunt-Valley-Maryland-21030/DirectBuy-ripoff-What-it-costs-to-break-even-on-membership-Hunt-Valley-Maryland-215579. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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Search Tips#1 Consumer Comment
Not a ripoff exactly - but predatory nonetheless
AUTHOR: Gary - (U.S.A.)
SUBMITTED: Tuesday, January 01, 2008
I agree that DirectBuy is not a ripoff per se. It sounds like they lay out all the fees and costs, and say pretty explicitly that they don't guarantee anything they tell you. It also sounds like, if your situation is right, you can save a lot of money.
However, it also sounds (just in my opinion) like they are predatory - that they prey on the weak and ill-informed consumers who only listen to the good parts of the infomercials and are not savvy enough to check all the numbers out for themselves ahead of time, go in completely prepared, and can resist strong sales tactics.
Is this illegal? No. I agree that companies do not have the legal obligation to bring their sales pitch down to the lowest common denominator, and I would resist any government efforts to force them to. But immoral? I think so. I also believe that companies have a moral obligation not to use such high pressure sales tactics. I have read scores of reports from people saying DB does use such tactics; and although I have not experienced them personally (being warned by these reports), I have experienced them from other similar companies, and one time succumbed - at a cost of thousands of dollars for a few hundred dollars return. I have read that DB does not "force" people to stay and listen; but this is double talk, and everybody knows it.
So, DB should not be legally required to change their tactics; but I don't understand how anybody working there can live with themselves. Is it technically the fault of the poor consumers who buy memberships and then never use them? Totally. Still, I personally would not be able to sleep at night knowing that I had drawn in poor people who can ill-afford to spend the money they spent, when it could have been easily predicted in advance they'd never recoup that money.
However, it also sounds (just in my opinion) like they are predatory - that they prey on the weak and ill-informed consumers who only listen to the good parts of the infomercials and are not savvy enough to check all the numbers out for themselves ahead of time, go in completely prepared, and can resist strong sales tactics.
Is this illegal? No. I agree that companies do not have the legal obligation to bring their sales pitch down to the lowest common denominator, and I would resist any government efforts to force them to. But immoral? I think so. I also believe that companies have a moral obligation not to use such high pressure sales tactics. I have read scores of reports from people saying DB does use such tactics; and although I have not experienced them personally (being warned by these reports), I have experienced them from other similar companies, and one time succumbed - at a cost of thousands of dollars for a few hundred dollars return. I have read that DB does not "force" people to stay and listen; but this is double talk, and everybody knows it.
So, DB should not be legally required to change their tactics; but I don't understand how anybody working there can live with themselves. Is it technically the fault of the poor consumers who buy memberships and then never use them? Totally. Still, I personally would not be able to sleep at night knowing that I had drawn in poor people who can ill-afford to spend the money they spent, when it could have been easily predicted in advance they'd never recoup that money.
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What's this? #2 Consumer Comment
ripoff is a little harsh
AUTHOR: Mcoke - (U.S.A.)
SUBMITTED: Thursday, December 27, 2007
I joined the direct buy in Columbia almost 1 year ago and frequently visit the hunt valley directbuy. While I admit the 4500 I paid for a 3 year membership is high it didn't take very long to recover. I was rehabbing a house in Baltimore city and saved over 4500 on just the cabinets and granite counter tops.
In the beginning I would always compare the direct buy price on a item (including handling + tax) to the best deal I could find online I found the saving to me marginal. On appliances for example the saving was 50-100 per item. It adds up but I agree it would take a long time to equal 4500. We purchased almost everything for the house from direct buy, cabinets / hardware, flooring, tile, appliances, lighting, fans, tubs, toilets, bathroom fixtures, exterior lights, etc. I would guess we have spent over 40K with them already. I plan to use them again when we rehab our next place.
Bottom line is yes it's expensive to join and unless you plan on buying a lot of things it's probably not worth it. I don't think calling it a rip off is appropriate, you will save money in the long run, it's just not for everyone.
In the beginning I would always compare the direct buy price on a item (including handling + tax) to the best deal I could find online I found the saving to me marginal. On appliances for example the saving was 50-100 per item. It adds up but I agree it would take a long time to equal 4500. We purchased almost everything for the house from direct buy, cabinets / hardware, flooring, tile, appliances, lighting, fans, tubs, toilets, bathroom fixtures, exterior lights, etc. I would guess we have spent over 40K with them already. I plan to use them again when we rehab our next place.
Bottom line is yes it's expensive to join and unless you plan on buying a lot of things it's probably not worth it. I don't think calling it a rip off is appropriate, you will save money in the long run, it's just not for everyone.
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What's this? #3 UPDATE Employee
Each DirectBuy is different
AUTHOR: Richard - (U.S.A.)
SUBMITTED: Saturday, October 21, 2006
I work for DirectBuy in their call center and I truly do believe in their concept if you are some-what young and still have quite a few purchased to make. Examples include: remodeling, building a new home, buying gifts, furniture, etc. DirectBuy carries just about everything for, in, and around your home at factory direct prices.
Now after reading your post about the price and how long it lasts I was like "that can't be right!" but then again each showroom is different.
The DirectBuy I work at has been around for 6 years and the membership fee is $4,200 and lasts you for 10 1/2 years and it is only $99 a year after that! THAT IS AN EXCELLENT DEAL! If you're building a home or doing major remodeling and you can find a DirectBuy with the same prices that last that long, then I would say go for it! DirectBuy can save you a LOT of money!
Now after reading your post about the price and how long it lasts I was like "that can't be right!" but then again each showroom is different.
The DirectBuy I work at has been around for 6 years and the membership fee is $4,200 and lasts you for 10 1/2 years and it is only $99 a year after that! THAT IS AN EXCELLENT DEAL! If you're building a home or doing major remodeling and you can find a DirectBuy with the same prices that last that long, then I would say go for it! DirectBuy can save you a LOT of money!
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