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Is DirectBuy worth it?

By Consumer Reports

If you are remodeling your home, you may be tempted by ads for DirectBuy.

The nationwide buying club promises to let you buy directly from some 700 manufacturers and save on retail markups.

Consumer Reports took a look at what it offers.

DirectBuy's commercial is full of testimonials from people who say they've been able to save a bundle. One television commercial testimonial says, "Just on our kitchen alone we saved almost $10,000." Another says, "It adds up to a $30- to $40-thousand dollar savings overall."

Consumer Reports' Chris Fichera checked out DirectBuy and says the sales pitch is intense. He visited two franchises near Consumer Reports' New York headquarters. Fichera explains, "After you sit through an hour and a half pitch, you find out at the end that you have to sign up for a three-year contract, which costs five-thousand dollars."

Fichera continued, "If you don't sign up immediately, you can never come back."

Rob Dotson joined DirectBuy three years ago. He was paying four thousand dollars to the franchise in his area. He was building his dream home in Utah at the time.

"We felt it would probably most likely give us an option to save lots of money," said Dotson.

But as it turned out, everything Dotson checked out at DirectBuy, he says he found cheaper elsewhere. Dotson explained, "We ended up with cabinets that were three or four thousand less."

He says the same was true of all the appliances he researched, as well as the lighting and the flooring, "so we purchased absolutely nothing."

While Consumer Reports did find some people who say they've saved with DirectBuy, as Dotson found you can't compare prices before you pay the membership. So it's impossible to tell if it would be a good deal for you.

Consumer Reports says there are other downsides with DirectBuy. Its contract says you cannot terminate your membership, and you may not be able to cancel orders or return items.

Also be aware that goods are typically shipped to a DirectBuy center, where you have to pick them up or you could face extra charges for delivery.
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