DirectBuy
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Category: Lifestyle
Contact Information Orleando, Florida, United States
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DirectBuy Reviews
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Betty
June 17, 2009
Scam
We were warned by friends that they were cheated out of about $5, 000 for a DirectBuy membership fee. They forked over all that money because DirectBuy told them that they would be able to buy things for their new home at the manufacturers' price -- at a 50% to 60% discount. Little
did they know, after DirectBuy tacked on hefty shipping and handling fees, they were able to find most of the items for sale through DirectBuy at the same prices, if not lower prices, at retail stores like Lowes and Best Buy!!
If you were scammed by DirectBuy, like my friends, you should contact the law firm Craig T. Matthews & Associates at [email protected] or 937.434.9393. That law firm has sued DirectBuy before in both Ohio and
Indiana (where DirectBuy's are located), and it's conducting an investigation about DirectBuy's misleading promises. If you want your membership fee refunded, you should contact Craig Matthews to pursue a class action case against DirectBuy. No matter what state you're from,
his firm should be able to help you. Be warned!!
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nsrlf
May 24, 2009
pricing
began pricing units and found that we could get both washer and dryer and a refrigerator for less on the open market. Directbuy lied about the pricing and shipping charges. Am sincerely sorry we lost 5, 000 dollars to scam artists
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Rita Robinett
May 20, 2009
scam pressure tacticts
I agree with what everyone is saying.We went thru a nightmare over our first and only purchase.This was very unfriendly and i felt confused and my train of thought was a mess when we sighned.I have fibroalgia and a bad back cant take the kind of stress i went thru.I filed a complaint with the BBB.And directbuy replyed back to them saying just the opposite of what happened.I found at least 12 things they said that was just not true.Shame on the founder all the way down or should i say up the ladder.They dont have any morals or feelings.Allt they care about is decieving innocent hard working people just trying to save a little money.Thats not going to happen with us because i am afraid to buy anything else.This D.B. we went to In my opinion is totally backward in the way the process is done.
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Karlo
April 1, 2009
Scam and cheating
I worked for DirectBuy for 8 years (and still do) and find that this company has helped far more people than it has hurt. However, it all depends on the owners of the franchise. Owners Michael Ricketts and Karen Hansen run their business with absolutely no business ethics are moral values.
They do not pay their bills in a timely manner which makes me question whether or not their members are getting their orders in a timely manner. They treat their employees with complete disrespect. Michael Ricketts and my company parted ways and it has been over a month now and he is still refusing to pay my last invoice.
He proclaims that he is not signing enough members which is why he is having money issues. He then places blame on the finance company. Again this leads me to wonder about the member orders and whether or not they are being ordered in a timely manner.
I would strongly suggest that you do not trust these owners and would recommend you move your business to the DirectBuy in NW Phoenix. DirectBuy is a great concept and WILL save you a ton of money. I just wouldnt suggest you trust these owners because your money isn't safe with dishonest people!
If you are a member make sure they are placing your order the day that you put it in and not 10 days out. If they cannot ensure this then I would contact corporate regarding this matter. Do not let these owners scam you as they have me!
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rma
March 13, 2009
Fraud
There are probably thousands upon thousands of complaints on DirectBuy. I will add my two cents of how much of a scam they are reflecting the opinion of many.
Their membership fees are $5000 which they do not disclose till the end of a very boring, annoying presentation and tour that they make you take. Ok fine that is their business model and I will accept that. But they are fairly pushy when getting you to sign, essentially threaten you by saying you can never come back and sign up again for the next 5 years and in our case, we were mislead be a rep saying that their online website was getting a makeover and would give us access to all their products availabel in the catalogues.
Let me tell you, THAT IS NOT TRUE! They have the worst website and what they dont represent clearly is though you are getting products at the manufacturer's rate, they charge 8-16% in handling fees and then regular tax of 8% or so. So you might say well, that might not be too bad but wrong!
For the online generation thisis the WORST way to shop, you cannot find most products online, there inventory represented online is never up to date with pricing or pictures or product. You have to go in physically each time to possibly only one locaiton in your area, you cannot take friends/family for tehir opinions, you have to be married and only then get in, and after all that you are sifting through the most archaic way of shopping - physical catalogues that are such a STUPID way to shop in comparison with online shopping and using keyword searches.
DIRECTBUY IS A SCAM. Even if you see it in the catalogue, you hvae to search around all over teh place to find that product physically somewhere to get an idea of what it looks like and almost everytime you will find that same product online cheaper!! Online stores do not have the same overheards that are associated with physical storefronts and often times they will take a loss for volume sales which directbuy will not.
I do not forsee DirectBuy surviving the era of people shifting to far more sophisticated methods of online shopping - they are misrepresentative, pushy, they scam you into a decision of membership with little time to think it over and use pressure tactics, and in our case misrepresented the online functionalities, and if you are smart shopper you can find ANYTHING online cheaper than DirectBuy.
We obviously learnt the hard way. PLEASE DO NOT JOIN DIRECTBUY, IT IS A WASTE OF TIME AND MONEY AND YOU CAN ALWAYS FIND IT CHEAPER ONLINE!
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James
February 11, 2009
Fraudulent company
We are doing some remolding on our townhouse and seeing all the advertisements from these frauds; we thought that we would check them out (well I did, the wife was suspicious to begin with). First they hound you with emails and phone calls to not forget your appointment time and remember both you and your spouse have to be there (like were little children).
We arrived on time (both of us) and as with almost everyone else that has listed here, we were grouped into a room and watched more infomercials (boring) with the pitchman coming in on queue to run some more of his tactics and refusing to answer any questions until the end of the pitch. Finally was informed that the membership price would be $6, 435 for the first 2 years and then $198 per year for the next 8 years...oh and did I mention that if we didn't sign that day we would not be allowed to be a member EVER...
Then we were headed out for the BIG tour...where he basically read the headers on the wall where all the catalogs were and then stopped and showed how much we could save on a $100, 000 kitchen upgrade by using them as opposed to using a (in his words) 'discount box store'.
Then came the time to be reunited with our salesman who tried to reiterate the selling points that the group pitchman made (still at this time would not discuss membership payment options). Then the time came and we could pay as low as $990 up front (right then) and $271 a month for the next 24 months and then just $198 a month thereafter for the following 8 years.
I'm not somebody that just jumps up and writes thousand dollar checks on a whim, so after he asked me three or four times and I reiterated that I would need time to mull this over, he kept looking at my wife (like she was going to jump up and make me sign). Finally I told him just forget it and when we got up to leave he acted as though we were trying to steal those paper name tags (like these were the whole reason I drove 30 miles). The look on his face was priceless;
I'm a salesman myself and would never ever work for a company as unscrupulous as these guys.
Stay away from any company that tries these types of pressure tactics.
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Marcus
February 9, 2009
Fraud and cheating
This complaint is about the violation of basic consumer right at DirectBuy. I and my wife saw an advertisement inviting us to visit the showroom at DirectBuy. When we got there, we were treated like prisoners. The basic right of a consumer to walk around a showroom to look at displays was denied us. When challenged, the store manager resorted to brute force in an attempt to kick us out. The incident occurred at the DirectBuy store in Mountain View, California on 12/6/08.
We are in the middle of adding a second story to our house. We saw an advertisement of DirectBuy on TV and decided to visit their showroom to check it out. we arrived at DirectBuy and were greeted by a host and the store manager. Then we were shown to a desk by the host for a short interview and to wait for the start of the infomercial presentation.
The infomercial was long and boring, but we found out how much the membership would cost. I was almost ready to pay that, if we find the right merchandises in the showroom. After the infomercial, we were walked to the showroom for more presentation on how low prices were at DirectBuy. Surrounded by interesting furniture displays, my wife started walking around to examine them. She did that also to escape the never ending presentations. She was bluntly told by the store manager that she is not allowed to walk around. We were offended by his action. We are not used to being told what to do and what not to do within what we considered our right.
After the presentation, we were told to fill out a survey. I began to feel that we were being herded around like animals. So I told the host and the store manager that we are not going to comply. The manger asked us to leave. We asked if we can visit the showroom to see the merchandises. He said we cannot because there is confidential pricing information there. I told him that I was only interested in looking at the merchandises and will not look up the pricing information in the catalogs which are kept in a separate library. He said no and quickly showed us out of the store.
While at the parking lot, I had a second thought. We spent money and time to arrange for a babysitter, drove the distances to get to the store, and set aside time from our busy schedule, why should we leave without seeing the showroom? I have a free visitor's pass to Direct Buy's showroom. I can challenge the store manager. I asked my wife if she wants to go back to see the showroom. She declined. S
o I went back in by myself and asked to see the showroom as part of the activities DirectBuy invited me to do. He was visibly annoyed by my challenge to his authority as the store manager (I later found that he is also the owner of the store). He called his security team to throw me out. Two heavy fellows and their security manager came. The heavy fellows grabbed my arms and started removing me from the store. I resisted.
Sensing that the manager's order was inappropriate, the security manager disobeyed him and stopped the forced eviction. He started reasoning with me. I gave my reason and he appeared to have understood it. He seems to be a more reasonable person than the store manager, who appears to be more concern about exerting his absolute power like a dictator. I also sense that he is so concern about his big ego that he is willing to drag down the corporate image of DirectBuy with it.
I told security manager that he has to call the police to get me out. I ignored their order and walked around the showroom. But needless to say, by that point, I was in no mood to examine any merchandise. I did that just to make a point that a consumer has rights. I don't know if he called the police or not. I am not a lawyer. I don't know what the limit of my right is within their store, and I don't really want to go to court to find that out. So I left after I proved my point.
Most stores treat customers with respect and trust. We can walk around freely in the showroom of almost any store because the store trusts that we would not do anything inappropriate. All DirectBuy needs to do is to inform visitors that it is not appropriate to look at the confidential pricing information during the visit, and almost all of us would have complied. For the few who do not, a case can be made to kick them out.
At DirectBuy, my wife and I were treated like thieves even before we have done anything they considered inappropriate. The so called “confidential pricing information" is just a poor excuse for a brute business practice. I frankly do not see what benefit DirectBuy could derive out of such a practice. That is why I was dumbfounded by DirectBuy's insistence that they had acted properly when I complained about this instance to the corporate headquarters.
I filed a complaint to the Better Business Bureau and ask for an apology as a settlement. Not only did the store manager refused, he accused me of “trespassing“ and “walking around the areas of the building that are off limit to guests". When DirectBuy invited us to visit its facility and we agreed, we assumed that both parties agreed to be abided by commonly accepted societal rules of conduct. For example, both parties would have understood that private offices of staffs at DirectBuy are off limit to guest, and bathrooms are not.
I continue to challenge DirectBuy's right to impose a new rule that its showroom is off limit to guests without clear notification in its advertisement that it has unusual requirements beyond standard accepted practices. Also, if the showroom is off limit, then it would be unethical to use it as an advertising tool to entice unsuspecting consumers to visit DirectBuy.
The charge of “trespassing" is also a way to justify the belligerent behavior. I have not yet left its parking lot and went back to challenge the terms of the visit, all within a period of 3 minutes. Again, common societal rules of conduct would not call this a “trespassing". Instead of trying to understand my point of view for the challenge, he used “trespassing" as an excuse and ordered my removal by force. Both I and my wife have engaged in many debates, disputes and contests through our career. Challenges and counter challenges are ways our society uses to settle differences. We have won some disputes and lost others; but we have not yet met an opponent who would resort to violence to settle differences.
An apology from DirectBuy would be a respectable way to end a bad business practice.
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Anonymous
January 27, 2009
Misleading/Hard Sell
I'm a former DBer. The 'High Pressure/Hard Sell B/S' at DB starts at Corporate with it's Franchisees, who trickle it down to their Centers.
Corporate likes to feed it's Franchisees with the thought that they're 'helping families to a better life style', when in fact they are putting them through a maze of burning hoops, to justifying the enormous amount of money they've charged them. The Franchisees assume that they're getting the best Boot Camp Training, since their life is made a living hell. Unfortunately 'The Originals' who made their money 'back in the day' and created this Company, never had any Business Training or any previous success at anything for that matter. They bought into the top of the pyramid. They remain stuck in 1980 mentality and still take money out of Franchisees pockets as 'Consultants'. Unfortunately, most of them don't fit a Mentor role, and are far beyond the age where their counsel is worth anything. That being said, when DB was sold last year, all remained on board Part Time, training and developing new Franchisee hopefuls, in the school of 'back in the day'. The big winner at DB continues to be it's original owner, who in spite of his years figured out how long this type of business model would last before it would implode. He sold it for millions of dollars to a private investment firm in 2007.
The DB 'Now or Never' buying system would continue to work if it were still 1980, but Consumers are much more savvy these days. The laws are tightening, as the Federal Class Action suit filed against DB in Connecticut will attest to.
Unfortunately for DB, I have to agree with the Consumer. In these uncertain economic times, a Consumer really has to think about a Membership before parting with that kind of money up front. In these hard times, DB has lost a significant amount of Manufacturers in 2008 alone. Who can predict how many will be left by the end of the year, and with such negative publicity, how can they attract new ones.
Directbuy continues to mislead the Public with fictitious websites attesting to how fabulous they are. In Directbuy's efforts to suppress all the negative Complaints on the Internet, they have hired 2 different Companies to create websites such as 'The Truth about Directbuy. com", in an effort to establish an algorithm that will put true complaints on Page 2, rather than Page 1. They're banking, or should I say hoping, that Consumers won't read beyond the first page of the Search. These 2 Companies specialize in surpressing bad internet reviews, and actually create blogs to throw Consumers a curve ball. Most recently in an extreme effort to suppress Infomercialscams.com, the number 1 complaint site, DB has bought them out and forced them to remove the record number of complaints listed there.
In regard to the 9% handling fee, Guests were told that "They always paid that in retail. DB is just up front about itemizing your costs." Directbuy misleads Guests into believing that they make "No money off the merchandise". The Class Action suit is going to expose the truth about the Handling Fee, as well as the rebates that have been kept. In a statement issued from DB, "The rebates went to benefit our Members".
If you want out of your contract, there are 2 ways:
1) Hire an Attorney to write a letter for you. DB is afraid of lawsuits.
2) File a Complaint with The Attorney General's office in your state. The AG keeps a log on complaints, and will begin an investigation if there are too many.
DB worked in the 70's when buying co-ops were 'all the rage'. Consumers have more options than ever before, and those who have the good fortune to make major purchases, can get a better deal than DB can offer.
Employees at my Center were over worked on the Service side, and on the Sales side pressured and even emotionally abused, before realizing that they had committed career suicide. They have however, the luxury of leaving and going on to a more honest environment.
To quote John Irving..."It's a good job to lose".
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Piter
January 15, 2009
Bad experience
My wife and I went to a DirectBuy warehouse tonight after being invited to attend an open house. The center manager was a really friendly and personable guy from Missouri (the show-me state). We both signed in, received a name badge and were introduced to our "host" who was the center manager's son-in-law. He interviewed us and we shared with him that we were remodeling and would be purchasing carpet, tile, windows, kitchen and bath appliances. He said DirectBuy would be able to save us money and seated us in a room with a TV monitor. There were two other couples in the room and the meeting started out with a seven minute informercial on what DirectBuy does - in short, they claim to save money by bypassing the local retailer and purchasing direct from manufacturer - the proposition sounds cool (emphasis on the word "sounds").
The center manager speaks for a while, shows us another video and then proceeds to show us a wall of products covered with post-it notes. Each product has two post-it notes with a suggested retail price shown and the DirectBuy price underneath. They showed us furniture, washing machines, pots and pans, vacuums, mattresses etc. The DirectBuy price offered averaged 20-50% less according to the center manager. BUT, I wrote down a few prices and the magic ended when I researched the first item, a 46" Sony Bravia - the manufacturer's retail price matched DirectBuy's example - MRP $2799 but the actual DirectBuy price of $2251 was still more than my local Circuit City's price, $2099. The second item was a 21.8 cu. ft. refrigerator - the manufacturer's retail price matched DirectBuy's example - MRP $2299 but the DirectBuy claimed price of $1419 was lower than the $1900 retail price shown on the internet. The third item was a Jacuzzi - we were particularly interested in that one since we had priced them two days ago at all the local retailers. DirectBuy's price of $1131 was blown away by Lowe's price of $974. [Note that we didn't know the prices on the TV and refrigerator at the time we were at DirectBuy's office but when we we did know the price of the Jacuzzi] Needless to say, the Jacuzzi sowed some seeds of doubt in the process. And it got worse from there...
After the price game, the TV was switched on again and we were treated with a list of DirectBuy member rules (if we were to join). "Be nice to retailers, don't leverage DirectBuy prices against retailers, blah blah blah and then we got to rule #6. Rule #6 is a slick sales tactic that says, You can only decide to join DirectBuy right now. If you said no today, then it was no forever. DirectBuy said it was to protect their retailers. . . you decide. Not good. But not the end of the world. Maybe they are committed to making me happy. So I asked, about their written Customer Satisfaction Policy - "What happens if I am unhappy with my DirectBuy membership". The answer was that they don't have a satisfaction policy as to your membership. However, they will replace a defective product (well, so will Sam's Club). In my mind, I am thinking - they want me to decide RIGHT NOW and they won't guarantee my happiness. Bummer, could it get any worse? The answer is yes because they finally revealed their membership fee - $4500 for two years. And guess what, they want the $4500 today. In DirectBuy's defense, they did offer 10% down and they would finance the rest with no satisfaction guarantee.
Additional fees revealed by DirectBuy in their example was a $110 delivery fee (based on $70-90 per hour delivery rates) and a "handling fee" which worked out to a little under 9% in their example. The concept of buying at cost is a compelling one - I really would like to buy at cost, but I also don't want to be taken advantage of. So, I figured out a win-win for this bad situation which I offered up to the DirectBuy sales team (the center manager and the son-in-law) I would generate a list of what I wanted to buy with dimensions, stock numbers etc. and they could give me an aggregate price (so they would not have to disclose confidential manufacturer prices). If their aggregate price justified the membership fee, I would join. Not only did they turn me down, but they started getting smartass and asked where I had priced out my Jacuzzi - I told them Lowe's and Home Depot and the son-in-law said, "that explains it - we can't compete against the big box home improvement retailer".
Well that's my experience - The handshake was good as was the soft drink (did I mention they had free soft drinks). And they started out by being very nice.
I would recommend checking them out for yourself ... maybe you will have as much fun as I did.
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Collin
January 14, 2009
Fraud and cheating
The franchise owners at DirectBuy of Providence scammed all their employees, for the first two years of operation, out of their overtime pay. Basically, the people who put in the ground work to help get that franchise off the ground were bullied into not getting paid for overtime through the threat of losing their job.
Having been the person who managed the time keeping system for all of 2007, I downloaded the time log spreadsheet, which clearly shows they owe me, alone, over $2, 000.00.
Furthermore, they pushed all employees to attend a conference down in Florida and lied to them saying that DirdectBuy corporate required all employees to pay their own way and that attendance was mandatory. Once at the conference, a pol of all other DirectBuy locations revealed that no other franchise employees had to pay their own way.
To make matters even worse, almost all of the original 'core' employees have been forced out for one reason or another.
Unfair practice? Hmmm...
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