I visited Direct Buy Cincinnati on 2-17-07 for an open house presentation. It was your typical marketing open house where there are several greeters and salesmen hounding over you offering coffee and lemonade. The sales pitch is very straight forward with excellent examples. The prices that consumers pay are really high... And that is the truth. The saleman continues to provide very specific examples of what consumers pay and what customers of direct buy pay. There is no scam in the sales presentation at all... It's all very honest.
HOWEVER, our "tour guide" Rich Koshner tries to set us up and then tells us the price to be a member is $4,590 for three years and then $190 a year for the next 7 years... Or about $592 a month for the next 10 years. I don't know about you, but $592 a month is rather steep for the next ten years. There are several payment plans available with various down payments. Rich became very irate and told us that, "now you're pissing me off" and gave several other examples of how Direct Buy has helped others.
After declining several times, he takes us back to the receiving area where there are saunas, hot tubs, and many other high end merchandise and explains to us the 8% markup fee and delivery charge. Again, he was being very honest throughout the entire ordeal, however, the math still did not add up right in my head.
I am looking for a plasma television at the moment... in the $3,000 range. Direct Buy had the model I am looking for for $1600.By the time it was delievered, taxed, and installed, it would be about $1750. That's a large savings... Yes it is. Now add on the additional $592 monthly fee (10 years) and we are up to roughly $2,300... Which is still a savings. But, when the next month's $592 fee comes and then next months... Etc, etc, etc... Is the savings that good?
You are not required to extend the contract beyond the three years. The original contract is for $4,590 or $1,530 annually. Granted, if I had a bunch of rooms to remodel and lots of furniture to buy, the savings would be astronomical to be a member of Direct Buy... But most households do not replace furniture on an annual basis.
Direct Buy does sell everything from many many manufacturers at wholesale prices... And below. I can see how this would help the real estate investor that is constantly updating homes and properties... And that's about it.
Rich finally stooped to such a low level and told us a trailer park story of how this family had nothing and then they met Direct Buy and changed their lives forever with new furniture. Whatever... Not true. If the family was living like that, there was a reason why they were living in a trailer and now with the additional monthly charge of $136 a month (or $592 a month for 10 years), just another burden.
One word of wisdom... For those with active ebay accounts, I could see this as a gold mine because the gems are reasonably priced and a 100% markup would be great to sell on ebay. They tell you that you can't sell on ebay... But you can because I know two people that are Direct Buy members (they referred me to Direct Biu) and that is all they do is buy from Direct Buy and immediately resell on ebay.
The entire Direct Buy is "toll booth scamming" as once you pay the $4,590 membership fee for three years, you are entitled to enter the property and shop.
Jamescincinnati, Ohio
U.S.A.
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