Is the $3K+ membership worth it? Any members on board here that can share experiences like the savings they claim or the quality of their merchandise? Before I jump in I'd rather hear it from MJ than from those actors in the commercials. Just wondering.
rip off...straight up...I listened to the sales pitch a few years ago....their prices are better than M.S.R.P. but I don't know many people that pay full retail anyway.
Quote from: Cricket on December 20, 2009, 01:36:04 PM
Is the $3K+ membership worth it? Any members on board here that can share experiences like the savings they claim or the quality of their merchandise? Before I jump in I'd rather hear it from MJ than from those actors in the commercials. Just wondering.
Watch your step Cricket... I wouldn't touch it with a ten foot pole! This is just one of many articles:QuoteSeptember 13, 2007
With DirectBuy, it will cost you a lot to save
Your town or city might have been blanketed recently with newspaper ads and TV commercials for DirectBuy. The nationwide buying club, with headquarters in Merrillville, Indiana, promises members access to 700 brand-name manufacturers of home goods and the opportunity to buy merchandise with no “hidden store markups and middlemen costs.†Ads invite you to an open house, where you’ll see “confidential†wholesale prices. “We can’t show you the brand names and we certainly can’t show you the prices,†read one ad. What it also doesn’t show you is DirectBuy’s steep membership cost.
The Real Deal
To evaluate the pitch, we went undercover at two DirectBuy franchises in New York. Both gave us the same hard sell and offers of up to 70 percent off retail prices if we were to join. Only after an hour and a half of sales pitches and video testimonials from members did we learn the membership fee: $4,900 to $4,990 (plus tax) for three years and then $190 a year for seven more. Financing is available at 17.75 percent.
After the fee disclosure, we discovered that we had to sign up on the spot or never come back. We couldn’t bring DirectBuy’s “confidential†prices elsewhere to comparison shop, the representatives said, because this would likely anger retailers who might then retaliate against the manufacturers by refusing to sell their merchandise.
The fine print in the DirectBuy contract says you cannot return items, cancel orders, or terminate your membership. When we asked if, after plunking down $5,000, we could cancel and get a refund, a salesperson said, “You’ll have to check state law.†A review of New York state law revealed that the three-day cooling-off period for canceling contracts wouldn’t apply in this case.
Tacked onto the cost of merchandiseâ€"which you select from catalogs since DirectBuy has limited showroomsâ€"are a 6 percent handling fee, shipping fees, and tax. Goods are typically shipped only to your local center, so you might pay additional fees to actually get your new stuff home.
Just how good are the prices? We compared them against those of other retailers. Prices for electronics and appliances were often only slightly better than those at online retailers and in some instances higher. For example, a 46-inch JVC flat-screen TV selling for $2,586 on DirectBuy’s site cost $2,095 elsewhere. We did find deep discounts on flooring and high-end furniture. In fact, one member we interviewed estimated that she saved about $50,000 over several years on furniture and a kitchen remodel using DirectBuy. Yet the club did poorly on some basics. We found a Kohler bath faucet for $300 less on a kitchen-and-bath Web site.
Some DirectBuy members complained to us about poor customer service and long waits for merchandise. But since DirectBuy outlets are franchises, service varies by location. Most outlets have a good record with the Better Business Bureau, though some have a poor one or have been suspended from the BBB.
The Bottom Line
The lack of price transparency makes it hard to evaluate whether you’ll save by joining DirectBuy. But even if you were to save 25 percent on purchases after joining, you’d need to spend more than $20,000 just to recoup your membership fee. DirectBuy might save you money if you’re furnishing a house from scratch or doing a major renovation. But since you can’t shop around beforehand, you’ll be joining blind.â€"Chris Fichera
This article first appeared in the September 2007 issue of Consumer Reports Money Adviser.
Bottom line? If it sounds too good to be true, it probably is...OCKLAWAHA
I always have a hard time paying some place for the privilege to shop there (costco, sams, etc) - after bagging your own groceries they then ask to see your receipt, treating you like a criminal.
Quote from: coredumped on December 20, 2009, 06:47:08 PM
I always have a hard time paying some place for the privilege to shop there (costco, sams, etc) - after bagging your own groceries they then ask to see your receipt, treating you like a criminal.
It's a tough change, and a real challenge on the pocketbook for the first few months. Retraining the mind to buy in huge bulk quanity's, finding a way to break down the packages and the investment in throw away bags, "superware" or sealer and supplies. You REALLY do safe money and save it in spades too. We did our own at home test, picked I believe 20 common items, bought them at Publix, Winn Dixie and Costco, Sams, BJ's. The results were a real "Oh wow REALLY?" moment.
If I had to rank them in order I'd say #1 Costco, #2 BJ's, #3 Sam's. Sam's falls behind not for any relationship to Wal-Mart, but for the "Gotta stay with Wal-Mart branding" that limits the stores. BJ's is a nice East Coast alternative to Wally World II. Costco, IMO was/is the nicest of the lot, with many more exotic brands and items then the others. Perhaps Costco is hot because it has a HQ in distant Washington? Perhaps because Seattle is a truly international city? I dunno but it is a nice store and well worth the membership money, but only IF one is willing to convert the kitchen and household to the new bulk buying.
QuoteHow to Buy in Bulk at Warehouse Stores
By Jennifer Glennon
Many people are starting to turn to warehouse stores as a way to save money. On the surface this looks like a really great money saving plan to buy in bulk. Before you head to the warehouse stores, make sure that you know that not every buy in them is a deal. There are many ways that you will end up losing money if you do not know how to buy in bulk at warehouse stores.
Difficulty: Moderate
Instructions
1.Step 1
Make a list of what you need before you head out to the warehouse store. Just because an item looks like a good deal, it does not mean that you need to buy it. To save money buying in bulk, you need to purchase only the items that you have need for. Items that will sit in your pantry and collect dust will waste your hard earned money.
2.Step 2
Shop in bulk with a buddy. Your friend will be your ally in not over spending. When it comes to warehouse shopping, there is a tendacy to buy things based on emotions rather then logic. Keep your friend at your side to make sure that logic is used with every purchase.
3.Step 3
Factor in other costs when shopping at the warehouse stores. Did you have to pay a lot for the membership? Is the store out of your way and cost you more money in gas? If the answer is yes to these then you will want to make sure that you purchase items that will cover these costs and more.
OCKLAWAHA
I was all piss & vinegar about ponying up ~$100 for an "Executive" membership at Costco, but by the time we arrived at our house after the first day & my wife was off of the phone, it had paid for itself in the deep discounts on our auto insurance alone. Also, they track your "savings" & if by the end of each year you haven't reached the $100 mark, they mail you the difference (not too sure about the criteria used). The customer service seems a little better there, and unlike places like BJs or Sam's, there seems to be more of a presence on the floor to answer questions. I remember trying to get answers on a camera purchase a few years ago & the only person that I could locate that seemed even "pseudo employed" by Sam's was handing out sausage samples at a kiosk. They have "boxed" our groceries on every visit to date as well........Another thing that I like is their vast online inventory - which, in most cases, is inclusive of shipping or freight - regardless of size.
the best deal is always paying for exactly what you want then keeping it forever....
Pyramid schemes, all of them, you feel good when you get back your money 10 months later, but til then, you still feel like you are being screwed.