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This article is reproduced here without permission under the Fair Use Doctrine. It was originally published at http://www.startribune.com/dynamic/story.php?template=print_a&story=4780642 and is © Copyright 2005 Star Tribune.

-- This article first appeared on July 12, 2001.

-- The cost of the program was updated on June 23, 2004

The full-page advertisement in the newspaper in May from UCC Total Home sounded like every shopper's dream come true. "Buy at cost," it said. "No markup, no middlemen, no hidden costs, no kidding."

Consumers who had never heard of United Consumers Club may have been intrigued. But while wholesale prices quoted in the UCC sales presentation could save some consumers a lot of money, it's essential to do your homework to find out if you fit into that category.

UCC is a national franchise with more than 90 locations in the United States and Canada. A Bloomington office was opened in 1993 and a Vadnais Heights location opened a year ago. Together, they have more than 3,500 members.

Despite what the ad copy says, membership is not free. After being "prequalified" by phone, potential members come to one of the two local UCC offices for an hourlong sales presentation. At its conclusion, consumers learn that the membership fee is $3,500, plus $99 a year after 30 months.

UCC co-owner Darryn Fossand of the Bloomington franchise said the membership fee is never disclosed on the phone or at the beginning of the sales presentation. Salespeople, he said, want to explain the product first, without having customers get hung up on price. "People assume we're the same as Sam's Club and think it's a ripoff compared to Sam's $35 annual fee. But we're different."

One big difference is that no items are on display in the showroom. The thousands of items sold by more than 750 manufacturers are only in catalogs. Items are ordered from the catalog and shipped to UCC's warehouse or, in some cases, directly to the customer. A few items, such as furniture upholstery, fabric samples, window treatments, carpeting and countertop materials, are on display and available by special order.

Another difference is that Sam's and Costco don't put prospective members in what some might call a high-pressure situation. When Mary Ann Novak of Maple Grove called UCC in Bloomington, she learned that company policy requires couples to bring their spouse or partner to the appointment. "I wasn't sure my husband could make it, and they told me I couldn't attend without him. That upset me." The scheduler also asked what items she was interested in purchasing and if she would be ready to make the purchase the day of her appointment. Novak said "no," and was asked to explain. At that point, Novak decided not to pursue a membership.

But once you make it to your appointment, here's the clincher. Prospective members are told they must make their decision to join, and pay the $3,500 fee, before leaving the UCC office that day. If they walk away, they cannot be invited back, ever, according to company policy. It's the manufacturers that stipulate the "one-time-only" offer, said Fossand, although one manufacturer we contacted was unaware of the policy.

A key question is whether you can save enough money to recoup the membership fee and annual dues. Mark Hemmesch of Savage, a member for more than four years, estimated that he's saved close to $1,700 on purchases made so far, mostly on a Lexington bedroom set.

But if members don't make purchases at UCC, because the club doesn't carry brands they want or they don't want to spend the money, there are no refunds, and UCC won't cancel their memberships. Consumers may also want to consider cheaper, less restrictive ways to save money listed below.

Is UCC for you?

Fossand said that ideal candidates for membership are couples in their 30s who may be starting a family and furnishing or remodeling a home. Anyone who plans to make major purchases such as furniture, window treatments, flooring or items associated with kitchen remodeling may be able to save more than the membership fees.

But UCC claims to be about more than home furnishings. In the sales presentation, the retail prices of 30 items, such as a grill, treadmill, wristwatch, briefcase, shoes, luggage, golf clubs and small appliances are compared with UCC's prices. The savings amounted to $5,900, according to UCC.

Don't assume that your savings will be as much as that without doing your own research. It's important for prospective members to come in with a list of items they'd like to buy, including manufacturer's names, model numbers and retail prices. If many items from your list are unavailable from UCC, a couple may ask about other manufacturers, or decide that UCC is not for them.

Generally, prospective members are not allowed to view the catalogs and price sheets without a list. Fossand said this is to discourage prospective members from going back to retailers with knowledge of their wholesale prices.

Those who are not expecting to make a lot of major purchases may not benefit much. People older than 50 may be poor candidates, Fossand said, if they have no plans to make many purchases.

As for the $3,500 fee, clever shoppers may already be plotting to beat the system by gathering, say, 10 interested parties, designating one family to be the member who collects $250 from each family, and letting that person do the ordering. A good idea, but it's against UCC's membership policies. Only the member's immediate family (spouse or partner and children under age 18) is included in the membership, although they are allowed to buy gifts for anyone. Those found in violation of the rule stand to lose their privileges, although co-owner Dana Fossand says she hasn't had to do that yet.

Less costly options

Consumers can save similar amounts from the sources below, with minimal or no membership fees.

• Jack Rubenstein wholesalers. Owner Joel Grossman has excellent deals on flooring, appliances, electronics, fireplaces, jewelry and new cars. Call 952-922-4781 or check http://www.jlrwholesaleco.com. Grossman works with local retailers and wholesalers and charges no fees. He gets a commission from the seller.
• Sam's Club or Costco. Membership fees are $35 to $40 a year. You may cancel your membership after a year if dissatisfied.
• Local furniture stores that match North Carolina's prices. Furniture is one of the most popular purchases at UCC, but you can get closer to wholesale prices by calling North Carolina stores, where prices are lower. Find what you want locally, then call the Hickory Furniture Mart at 1-800-462-6278 and ask for the phone number of stores in the Mart that sell the brand you want. Then call and get a price quote, including shipping. Write down the salesperson's name and phone number, the price and the shipping costs. Then shop locally at stores that will match North Carolina's prices after verification, such as Slumberland and Gabberts.
• John Ewoldt can be contacted by calling 612-673-7633, sending a fax to 612-673-4359 or at user jewoldt at domain startribune.com.

UCC membership at a glance

• Fees: $3,500 for 2 1/2 years, plus $99 a year after that. Payments may be financed at 17 percent annual percentage rate ($490 down and $83 a month for 2 1/2 years or in a lump sum).
• Payment: Only the initial membership fee can be paid by credit card. All other purchases must be paid with cash, check or credit card convenience checks.
• Money-back guarantees: Members may cancel memberships within three days by giving written notice that must be delivered before midnight of the third business day after the contract is signed. Consumer advocates recommend sending the letter by registered mail. After the three days, members have found it very difficult to terminate contracts, according to a complaint Web site about UCC at http://www.thecomplaintstation.com/u/unitedconsumersclub_toc.htm. Members wishing to cancel after three days can stop the $99 annual fees, but the $2,500 is nonrefundable.
• Name brands: More than 750 manufacturers are represented, including furniture, kitchen cabinets and fixtures, bath fixtures, mattresses, jewelry and sporting goods. Brands include KitchenAid, Zero Halliburton, Nichols and Stone, Montblanc, Sherrill, Sony and Rosenthal. Some manufacturer's specialty lines may not be available through UCC, such as Sony's ES line.
• Return policy: Most items cannot be returned unless the item is inspected in the warehouse and found to be damaged or defective.
• Shipping: Nearly all items will incur freight costs of approximately 41 cents per pound. Most items are subject to a 6 percent handling fee and applicable sales tax. Customers usuallymust pick up their items at the local warehouse, but delivery can be arranged for an extra fee.
• Locations and contacts: The Twin Cities franchises in Bloomington (952-835-0790) and Vadnais Heights (651-287-0050) have about 3,500 members. Their Web site is http://www.ucctotalhome.com.

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