Have any of you used DirectBuy to do your rehabs? Was it worth the price of membership? What type of furnishings, materials did you buy from DirectBuy?
There was an expose on the news here about how much of a rip it was for most folks. If you rehab and want higher-end stuff, after you spend about $30k there, you may start to save.
I took a closer look at their claims, I think it’s just about average. They claimed that one contractor told them it was 10k to redo a bathroom and they got it done for 3k. My experience with my clients and other landlords is that it’s typically around $3-4k normally to redo a bathroom. A friend of mine redid his and it was about $1500 in parts just from home depot, and he did the work himself. So the savings do sound a bit exaggerated.
And I’ve been seeing all those ads lately so you wonder how much they can be saving you if they have to advertise that much.
I actually went into the DirectBUy in ft Lauderdale, Fl to see what it is about. You have to get registered which is free but they claim if you do not commit that day you can never come back and join (sure they will turn down a member…LOL)
They are very expensive. I think it was around $3500 for the 1st 3yrs and then $500 or so each yr thereafter but you can freeze your membership for a small fee I think it was. (I was there about 2yrs ago)
Since I work in retail furniture I decided to check pricing for things I know about more. They had good prices for furniture. The electronics was better than retail as well…
But you do not get the merchandise fast. It is all ordered and shipped to there warehouse. You then need to get it or have it shipped to you. Paing S&H will eat most of the savings plus if your doing a rehab time is important and many things can take 3-6weeks to get. Way to much time.
If your planning on redoing your home completed, maybe worth it. Otherwise pass…if you have tons of rentals and you want to update them as tennats leave, you can probably save some money since you have time to order the stuff… but for a fix and flip…do not bother
The local news here also did a report on them. The joining fee for this area was $5000 and that was supposed to be a one time fee. I guess it’s a franchise system so maybe each franchise has different rates. They don’t keep any inventory so you have to order it and of course picking it up or shipping charges cut into your savings.
They also mentioned that if you didn’t join that day, you can’t join for another 7 years. Sounds like a standard high pressure sales tactic that they’re using as a cornerstone of their franchise. Not a good sign. If they were any good, you’d be able to join anytime. It’s a standard trick that car dealers do. They need to get you to sign on the dotted line before you leave or there’s a 90% chance that you won’t come back.
As for the price on electronics, you can get them cheaper online. Most items at retail are usually at least 10-20% cheaper mail order. As for home improvement items, there’s a few discount home improvement chains around here. They’re smaller than Home Depot or Lowes so the selection isn’t as good.
I wanted to take the tour to check out the place and the deals. I let it slip that I was married and then they said that we both had to come together in order to enter. This was a sure tip to me that there was going to be strong sales push when we got. They also told me over the phone that we would have to make a decision that day. That’s when I decided I wasn’t interested. I was already skeptical from their commercials. The people they highlighted were saving $20k on their kitchen! If you’re saving 20k, then your spending 100k! Now we’re talking the value of my whole house! Plus, the host on their commercial annoyed me…
Also, I’ve been told at Home Depot that you can usually negotiate a 12 month no interest no payment line of credit anytime, so for a bigger rehab or flip that seems like a much better option.
LOL, it’s hard to spend $20k on a kitchen let alone save $20k.
Maybe you have to enroll in NR to be a member…?
Keith
My wife and I were looking into it, but found only bad things that came up when we did a name search.
I do have a good real life example of what a rip off direct buy is, One of the places in my area that I go to for flooring offers 50% off to all builders that shop there, then you can send you customers there and let the sales people show them carpet and as a builder you might offer them 30% off everything, which would make you 20% as a builder.
The cost to join is $25, well direct buy sends all of there customers there, excepet instead of giving them the full 50% discount that they would recieve if they had paid $25 to join, the best buy customers who paid $3500+for there membership recieve a 20% discount, which makes direct buy a 30% commission on everysale, for there members.
So essentially you could get 50% if you paid a $25 fee to join, or you could go the direct buy route and save 20% and pay $3500+ for that right.
So essentially you could get 50% if you paid a $25 fee to join, or you could go the direct buy route and save 20% and pay $3500+ for that right
Wow! What a deal. Where do I sign?
:deal