KDKA.com Consumer Web Extras
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Mar 5, 2008 8:48 pm US/Eastern
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Consumer Reports Rates DirectBuy
(KDKA)
If you're remodeling your home, you may be tempted by ads for DirectBuy.
KDKA Consumer Editor Yvonne Zanos has more on what Consumer Reports says about the club.
The nationwide buying club promises to let you buy directly from some 700 manufacturers and save on retail markups. Consumer Reports recently took a look at what it offers.
Direct Buy's commercial is full of testimonials from people who say they've been able to save a bundle, like:
"Just on our kitchen alone we saved almost $10,000," one testimonial said.
"It adds up to a $30,000 to $40,000 savings overall," says another.
Consumer Reports' Chris Fichera checked out DirectBuy and says the sales pitch is intense. He visited two franchises near Consumer Reports' New York headquarters.
"After you sit through an hour and a half pitch, you find out at the end that you have to sign up for a three-year contract, which costs $5,000," said Fichera. "And if you don't sign up immediately, you can never come back."
Rob Dotson joined DirectBuy three years ago, paying $4,000 to the franchise in his area. He was building his dream home in Utah at the time.
"We felt it would probably most likely give us an option to save lots of money," said Dotson.
But as it turned out, everything Dotson checked out at DirectBuy, he says he found cheaper elsewhere.
"We ended up with cabinets that were three or four thousand less," said Dotson.
He says the same was true of all the appliances he researched, as well as the lighting and the flooring.
"So we purchased absolutely nothing," said Dotson.
While Consumer Reports did find some people who say they've saved with DirectBuy, as Dotson found you can't compare prices before you pay the membership. So it's impossible to tell if it would be a good deal for you.
Consumer Reports says there are other downsides with DirectBuy. Its contract says you cannot terminate your membership and you may not be able to cancel orders or return items. Also, be aware that goods are typically shipped to a DirectBuy center, where you have to pick them up or you could face extra charges for delivery.
DirectBuy has been in our area for the past 20 years. It three clubs in our area, Cranberry, Monroeville and Bridgeville, where co-owner Doug Barrante invited KDKA.
Here in the Pittsburgh DirectBuy stores, consumers will pay about $4,500 for a three year membership. And there are no refunds on that membership fee, but here's what you do get.
"That gives our members the ability to buy from almost 750 name brand manufacturers," said Barrante.
That's at the same price retailers pay. Barrante says retailers make their money off of markups, DirectBuy makes its money just from membership fees.
And as far as the hard close goes, Barrante says:
"That's a definite concern, but keep in mind when people come in they want to look at the pricing that's very confidential," says Barrante.
Although DirectBuy is the first to admit not all members are happy, they also add that many are.
The three DirectBuys in our area have a satisfactory record with the Better Business Bureau, but that doesn't mean there are no complaints. However, it does mean they do their best to handle complaints when they get them.
But KDKA's Yvonne Zanos say the best advice here is to make sure you plan to buy enough merchandise to merit the $4,500 membership fee.
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