| Owning a full time retail furniture store business | | | | overhead and make money off of higher volumes. |
| myself, I don't get much time to watch TV. But | | | | Direct buy does charge a markup over the cost of |
| when I do, I always come across those infomercials | | | | the merchandise it sells, just lower than what the |
| that help you get rich quick from stocks, real estate, | | | | retail stores charge. But that is what you paid for by |
| and pyramid schemes. The other day I came across | | | | paying that $5000 membership fee. I am pretty sure |
| a commercial for "Direct Buy" where you can buy | | | | they don't offer financing, so you better have all the |
| furniture and home goods direct from the | | | | cash to make those purchases within 2 years, or else |
| manufacturer, and pay wholesale prices, where you | | | | you risk paying more membership fees. Because I am |
| can join them as a member and get direct access to | | | | aware of new homeowners or remodelers that take |
| their furniture store and design center showroom. | | | | over 3-5 years to completely furnish their home. So I |
| First thing I thought was: "What's the catch?" | | | | guess if you have $5000 lying around and about |
| Because Direct Buy has to make money, how does | | | | $30,000 to spend to save a few thousand dollars |
| the customer only have to pay the wholesale prices? | | | | net, then Direct Buy is for you. Otherwise, take your |
| So I did some poking around and found some forums | | | | time and be a bargain hunter, you'll be able to save |
| and posts where people are complaining that Direct | | | | just as much and not have to lock yourself into a |
| Buy is a scam and their fees are outrageous. Fees? | | | | membership that will force you to spend money in |
| What happened to paying wholesale prices and | | | | order to save it (what a paradoxical statement). |
| saving a ton? But there were a few that said they | | | | Not everything you would expect compared to |
| had a good experience. So again, what's the catch? | | | | shopping a regular discount furniture store: |
| So after a reading a few posts on the Direct Buy | | | | Buying direct from the wholesaler may not be |
| topic at topix and various sources over the web, I | | | | everything you expected. You still have to pay sales |
| got a good idea of what was going on. | | | | tax and delivery fees. And you have the long wait |
| The truth about the Direct Buy furniture store and | | | | times, because wholesalers allocate inventory for |
| home goods membership: | | | | their bigger customers who are the retail stores, not |
| The commercial - you see it on TV spot ads where | | | | the person that is trying to buy the single unit sofa. |
| they pitch you a great idea about buying direct from | | | | So compared to all the other customers, a Direct Buy |
| the manufacturer and wholesaler. They have | | | | customer probably is not viewed with high respect |
| testimonials from customers that tell you they saved | | | | by the wholesalers. Items you purchase cannot be |
| $20,000, $100,000 etc. | | | | returned to the manufacturer if you decide it didn't |
| The sales pitch - So you are in the market to | | | | work out, unlike buying from the furniture store. And |
| remodel your home and refurnish it, and you give | | | | there are numerous comments that it is hard to get |
| them a call or visit their website. They give you a | | | | a hold of Direct Buy after joining or purchasing an |
| pass or invite you to their showroom tour. You visit | | | | item. So what about the customer service? You |
| one of their local showrooms and they herd you in | | | | really need to know what you are doing if you join |
| seminar style and go through presentation slides | | | | the membership. Because no one is going to let you |
| about how great it is to be a member. Being a | | | | into a club with the secrets of buying and saving |
| member you can buy direct and saves tons of | | | | direct for free, they charge you a fee and that is |
| money. And then they tell you how to become a | | | | pretty much all you are going to get: access to |
| member buy just paying the non refundable | | | | buying direct from manufacturers. And you give up all |
| membership fee to get all these discounts. | | | | the service and value of buying from a furniture |
| The membership fee - Now are you ready? To | | | | store that values your business (because once |
| know how much it will be to join this great network | | | | you've joined, Direct Buy already made their money, |
| and become a member to save tens of thousands | | | | they have no incentive to continue to sell you |
| of dollars? The membership fee is a $5000 for a | | | | anything and provide you continued service - you're |
| complete 2 year membership and $200 per year | | | | already a member that can't quit without giving up |
| thereafter. (Supposedly, in 1996 it was around $1000). | | | | the initial membership fee). |
| The purchases - once you become a member after | | | | If it feels like a scam and you're asking what's the |
| paying that membership fee, you can now have full | | | | catch? Then there probably is a catch. You just need |
| access to their local showroom and design center to | | | | to decide if you can live with that catch. If so, you've |
| buy direct for your home. | | | | found what you need. I don't believe in having to |
| Direct Buy is not the furniture store for everyone: | | | | spend more money to save money. What I have |
| The way I see it is that Direct Buy is very much like | | | | said here are only opinions and all of you are free to |
| an expensive Costco membership to buy a wholesale | | | | comment, but I just thought that before you spend |
| prices. So to save a lot of money you have to spend | | | | time calling and going to the seminars you should |
| a lot of money. Based on my estimates, you would | | | | know what you are getting yourself into. The |
| have to spend over $20,000 to make back the | | | | flexibility and freedom to spend when and where you |
| $5000 membership fee to save on discounts. Direct | | | | want at your own leisure may be better than joining |
| Buy pitches the fact that furniture stores and | | | | a club that costs you a lot upfront to know the |
| appliance stores have 200% markups. And that is not | | | | secrets of saving money. If you decided you wanted |
| always true. If you took that membership money | | | | to spend $30,000 in furniture for your home maybe |
| and translated it into some good shopping comparison | | | | you can try visiting my furniture store at visiondecor |
| time you will be able to get mark ups that are almost | | | | and contacting us through email or phone, I'll be glad |
| 10% to 20% above costs at some retailers. There is | | | | to have my customer service reps take care of you |
| so much competition among stores and the internet, | | | | and give you a worthy discount. But I'm really not |
| that prices are very close to cost nowadays, where | | | | trying to sell you anything, I'm just trying to bring |
| business owners are just making enough to cover | | | | some light into something I saw as kind of "shady". |