Direct Buy -- 2

I came back from Direct Buy open house just now. I searched more online and understood more about what happened.

So they greeted me, warmed me up with some history and then all visitors sat through the introduction session, conducted by one person with the aid of DVD. At the very beginning, the person asked us to save questions until later since most likely we all will have questions. Then we watched the DVD and listened to his chosen examples of savings on items, big and small. Some of the examples he used :

. some name brand (forgot which one) hardwood bedroom set, newspaper clip showed deep discount sale at $3200 (originally $6000), member's price : $2500

. Samsonite luggage (30% savings)

. Vacuum cleaner (30% savings)

. crystal candle holders, on sale on Macy's site : $99, member's price : $54

I was impressed that they actually carry small items though. I thought it was for big, high end stuff, that you need to spend $20000 in order to save $5000.

After the intro, we were quickly broken apart into individual groups, each party had an agent, and the group never got back together again. We never had a chance to ask questions together. As I read the forum now, they were doing this on purpose. Because they sometimes offer different package to different members, but they don't want others to hear it. I was thinking now, they knew there would be negative view points among visitors and they do not want potential customers to get influenced.

Well, at least the standard package was revealed in front of the whole group :

$6990 (first 2 years) + $198 per year (for the next 3-10 years)

I had to say I was pretty shocked!

In my mind, the friend paid $2500! Later I learned that was the price 7 years ago. Oh well... I did not just walk out yet. Because my goal has not accomplished yet. I first asked a few questions that I have concerns, for example, return.

Q : "How about returns? Can I return stuff here?"
A : "It depends on the manufacturer's policy. For most cases, small items, non-customized pieces, you can return them but there will most likely be restocking fees. "
(I thought. At least mentioned possible fees. "Plus shipping" I guess)

Q : "Can I look at few prices for Anderson Windows?"
A : "We don't carry Anderson windows. We have Pella."

Big disappointment! (RED FLAG). I immediately lost my first and biggest indicator. I requested to see some 'real' things to compare. The agent took me on a tour around the show room.

At the hardwood floor section, I asked for Pergo floor. I thought it was a good indicator as it was well known name for laminate.
A : "We don't carry Pergo."

RED FLAG!

Kitchen section -- my eyes shined when I saw Wusthof knives! I love those. Then I had to ask for more :

Q : "Do you have All-Clad cookware?"
A : "No we don't have All-Clad."

BIG disappointment!

Still, I have not given up the possibility of membership savings, given that it's spread over 10 years. I found the agent was not helping much when I tried to poke for price comparison and I was told to think about 30% in average.

And then I realized I needed to make a decision to join on the spot or would not be allowed to go back again. I was denied of any chances to come visit together with my boyfriend since he could not make it today. She claimed the policy was to protect members. Because if we walk out the door and tell retailer that we know the mark up, and try to negotiate for a better price, it would irritate retailers. And if they complain to manufacturers, manufacturers may stop working with DirectBuy and members will have less selections.

Here is the puzzle ---

1. If we, as visitors, can not see the catalog, how could we walk to retail stores and claim the price on this item is $$ ? Who does not know retailers need markup to run their biz? It sounds foolish to just say "hey, you must have 30% mark up there. I want another 20% off.".

2. Even if we, as visitors, do somehow see some prices upon open house, if we don't join, we are banned from joining. What's the use to walk to retailers and ask for discount? It's not like "if you don't sell it to me with extra 20% off, I am gonna buy from DirectBuy." Because we can't, ironically.

So what's all the pressure about asking us to make a big decision while refuse to reveal enough information (real price comparison)?

I have not thought that much on the spot, yet was mainly under the pressure about deciding, fearing I would be making a decision that I regret deeply later, either spending a fortune right on the spot or being banned from possible savings for years to come! I had no idea I needed to make such decision before I came over. It was printed on the visitor's pass at the bottom, which no one really reads!

I spent totally about 3.5 hours there, being through the intro session, walked around with the agents, lots of talk with the agent, sat around to look at the 'Direction' periodical myself (only material allowed for visitors) to guesstimate my potential savings, talked to a couple who just sign up (yes, at least one couple signed up)... My left brain and right brain could not reach an agreement.

Funny, at last the agent gave up on me. She decided it was not for me, and walked me out to the door. At that point, she became cold and did not even bother to respond when I said 'thank you' twice.

I was a bit surprised by the fact that they really tried to sell you the membership, however, they were reluctant to give you much choices. She stayed firm I could not visit again, and no fee negotiations. She even told me if I sign up at a different location, and if they find out, they will revoke my membership, with no refund on fees of course. (Oh, fee is non-refundable once you sign up.)

I wonder if other members were treated the same. The only discount I got was if I pay full price of $6990 immediately instead of installment, I can get $600 discount. That's it.

I drove home, still not knowing if I made the right decision. I then found and read this forum. It explained a lot, and perhaps I did make the right one.

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