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If a promise of 50 to 70 percent savings grabs your attention, you'd probably be intrigued by DirectBuy's newspaper advertisements or infomercials. A source of confusion for many, though, is that there are three DirectBuys in the Twin Cities: One is a St. Paul retail store that sells Oriental rugs and discount furniture at everyday low prices. The two other DirectBuy companies are members-only catalog showrooms in Bloomington and Vadnais Heights. They sell items from 750 manufacturers at wholesale prices. Both of these DirectBuys are part of a national franchise with more than 100 locations in the United States and Canada.
Michael Abri, owner of the St. Paul furniture store, says he used the name first and wants to keep it. Having two other stores using the same name confuses his customers, he says, so he has filed a motion to keep the franchise from registering he name as a federal trademark.
The Bloomington and Vadnais Heights DirectBuy franchises were formerly known as United Consumers Club, a.k.a. UCC Total Home. They changed the name to give consumers quicker recognition of what their clubs offered. Still, Abri says, he often receives calls from the buying clubs' customers, asking when their furniture will arrive.
Low profile
It's easy to see why customers are confused. The DirectBuy furniture store in St. Paul is in the phone book. The two DirectBuy clubs aren't.
Their advertisements never mention cost; nor do the reservation agents who invite you into the showroom for a one-hour presentation. Only near the end of the presentation do they disclose a $4,200 fee, plus $99 per year after 18 months.
Darryn Fossand, owner of the Bloomington franchise, says that without a full explanation of the benefits, a person might mistake it for Costco or Sam's Club. Unlike those membership clubs, DirectBuy members buy home furnishings near wholesale cost, such as furniture, cabinetry, window coverings and flooring through catalogs or showroom displays. No merchandise can be purchased in their showrooms.
Anyone considering a visit should do homework beforehand. Check discussion Web sites about DirectBuy for members' experiences around the country. Examples:
Locally, the Better Business Bureau has registered 14 complaints against the Bloomington location and four against the Vadnais heights location in the past three years. The complaints, mostly about selling practices and customer service issues, have been answered by DirectBuy. Call 651-699-1111 or go to http://www.mnd.bbb.org for more information.
High pressure
The most surprising part about the membership fee is not that it's $4,200, but that a prospective customer must decide on the spot whether to join (with three days to cancel). Prospective customers are also told that once they walk out the door, they will not be allowed to join for seven years. Fossand said that attendees are informed of the need to make a decision the same day in the information packet they receive in the mail before the appointment.
One reason that DirectBuy needs people to make a quick decision, Fossand said, is to prevent prospective customers from leaving the showroom with DirectBuy's low prices, and asking local retailers to price match. Traditional retailers frown on being asked to take less profit, based on confidential information from a catalog showroom that charges a $4,200 membership fee. They, in turn, may complain to the manufacturer, and threaten to drop their line.
Still, it's not hard to find happy customers. Tony Jacobson of Eden Prairie estimates that in 10 years he has saved nearly $100,000 by spending $75,000 furnishing two houses. His caveats? The company doesn't sell some items he wants and, if he decides he doesn't like an item, he's stuck with it.
Is DirectBuy for you?
First, figure out which DirectBuy you're talking about. The budget furniture and Oriental rug store in St. Paul has used the name DirectBuy since 2000 and does not charge membership fees. It is at 719 E. Minnehaha Av., St. Paul; call 651-290-9949.
The following information applies only to the two catalog showrooms, formerly UCC Total Home.
Locations: The franchise in Bloomington (952-835-0790) has about 3,500 members. The owner of the Vadnais Heights location (651-287-0050) has about 2,000. The Web site is www.directbuy.com.
Fees: $4,200 plus $99 per year after 18 months.
Payment: Membership fees, as well as items, can now be charged on major credit cards.
Best way to know if you can really save money: Before your appointment, make a list of 10 major purchases by manufacturer and stock number and compare with DirectBuy's wholesale price lists. Remember that DirectBuy also adds a 6 percent handling fee, freight costs and sales tax to the wholesale price. Getting a bid price on window treatments, countertops or cabinets takes more time. That's problematic if you're trying to decide whether a membership would pay off.
Best candidates for membership: Households making a lot of major purchases furnishing a house. People who want to save money but hate to shop around.
Worst candidates for membership: Bargain hunters willing to find their own deals. Anyone expecting a money-back guarantee if not satisfied. Impatient types who hate having to wait two to four weeks for most items.
Buyer's remorse: The contract states that members can terminate the contract in writing within three business days of signing.
Products and name brands: More than 750 manufacturers are represented, including furniture, window coverings, cabinets, bath fixtures, mattresses, jewelry and sporting goods. Brands include KitchenAid, Whirlpool, Clayton Marcus, Panasonic, Seiko, Hunter Douglas, Sony and Kichler.
Return policy: Most items cannot be returned unless the item is inspected in the warehouse and found to be damaged or defective.
Shipping and delivery costs: Nearly all items will incur actual freight costs of about 25 to 41 cents per pound; lighter items are subject to UPS charges. Most merchandise is subject to a 6 percent handling fee, as well as sales tax. Customers must pick up their items at the local warehouse or arrange delivery for an extra fee.
Delivery time: Two to eight weeks for most items.
Alternatives Order furniture directly from North Carolina by using Kimberly Causey's book, "Furniture Factory Outlet Guide" ($25) or call Newport Furniture (763-417-9000) for reasonable prices. Carpet, flooring and big-ticket electronic items: Jack Rubenstein (952-922-4781). For lighting and others, check out "The Bargain Buyer's Guide" ($21) by Elizabeth Cline.
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