and Cagey Consumer Highlights
This was originally published at http://www.khou.com/news/local/stories/khou080502_jj_directbuy.bfcb335e.html and is reproduced here without permission under the Fair Use Doctrine of the copyright act. © 2008 KHOU-TV, Inc.
May 3, 2008
By Allison Triarsi / 11 News
Houston -- DirectBuy is a national buyer's club that boasts a billion dollars in sales last year and hundreds of thousands of members.
Many Houstonians have spent $5,000 to join, but they say all they got was sold out.
"I didn't save a penny. It cost us money, a lot of money," said Philip Thompson.
He and his wife, Melinda, wanted to remodel their kitchen.
That was two years ago, now it's still not done.
The couple said that things they bought were not delivered. Sometimes they weren't even ordered.
Their ordeal started when they visited a DirectBuy showroom.
So how does DirectBuy work?
Potential members go to a showroom like the one in southwest Houston and sit through about an hour-long seminar.
After that, they have to decide whether to spend $5,000 to join.
If they do, they're told they can find anything they need for their home in the showroom.
Philip says he felt pressured to join, but he wishes DirectBuy felt a little more pressure to deliver.
For example, the dishwasher he ordered took eight weeks to arrive, and when it did, it was damaged beyond repair.
"It took another 18 weeks to get it replaced," said Philip.
Philip said he also ordered cabinets from DirectBuy.
He says he waited nine weeks, only to find out DirectBuy never ordered them.
"We went elsewhere and bought them cheaper," said Philip.
In fact, Philip says he got the same $5,000 cabinets from Lowe's for $300 less.
He bought a stove through DirectBuy, but says he later found it at about the same price at Home Depot.
That's why he demanded his money back last year.
"I had to go there and literally track them down because they wouldn't return a phone call," he said.
He complained to the Better Business Bureau, but he is still paying off DirectBuy's $5,000 membership fee.
The company refused to return his money.
When 11 News asked DirectBuy's franchise owner, Dan Tidwell, about the 37 complaints filed against one store and 17 at another, he said that no one is perfect.
"We have thousands and thousands of customers. In fact, we have hundred of thousands of customers throughout the national network," he said.
Tidwell welcomed 11 News into his store and handpicked customers to talk.
Scott Moster says he's saved thousands furnishing four condos.
He says he received great service too.
"Every week I'm here. I think they know me by name now because I'm here constantly picking up furniture," he said.
Still, Consumer Reports gave the company a lackluster review in 2007. And complaints are all over the Internet.
Michael Cone, who is retired, also joined the club.
He was unsatisfied, but only asked for half of his money back.
"We haven't gotten a dime rescinded," he said.
Although he's on a fixed income, he continues to make payments on the $6,300 he owes DirectBuy.
Still, the store's owner feels his customers are saving money.
"Oh, I just don't feel like they're saving money, I know they're really saving money because I was a member for 18 years," said Tidwell.
So can you really save money?
11 News took two products and did a price comparison.
DirectBuy's "cost only price" for a Hekman bookcase is $1,875.
Gallery Furniture says its costs just $1,448.
A queen size bed costs $999 at DirectBuy.
Gallery says it costs only $800.
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