Membership terms
Starting in 2016, DirectBuy began to shift from its store-based model to a focus on e-commerce.[11][10] Also in 2016, the company expanded beyond home products into electronics, sporting goods, and travel.[16] As of February 2017, DirectBuy has approximately 200,000 members in the US.[1][10] As of January 2018, the annual membership rates have been reduced to about $1,000 for the first year and $300 per year after that, although the company must be contacted to provide the exact rates.[14]
Prior to 2016, membership costs varied by franchise location, typically costing between $4,000 and $7,000 for a standard three-year membership and then around $200 per year for ensuing years.[5][10][17][18] Customers were pressured to decide at the time of the open house visit, before leaving the showroom, whether to join DirectBuy after receiving a presentation of services in which they could purchase home furnishings and other household items "at the same prices that the retailers pay."[19] In return for paying the membership fee, members were able to purchase home furnishing items directly from manufacturers or authorized suppliers.[20] In 2013, the company launched a new website, added trial memberships, and began touting a more transparent, customer-friendly style.[5][21] It also began offering travel deals, launching DirectBuy Travel in 2014.[5]
A 2007 review by Consumer Reports stated, "the lack of price transparency makes it hard to evaluate whether you'll save by joining DirectBuy. But even if you were to save 25 percent on purchases after joining, you'd need to spend more than $20,000 just to recoup your membership fee. DirectBuy might save you money if you're furnishing a house from scratch or doing a major renovation" but "since you can't shop around beforehand, you'll be joining blind."[19][22] Consumer Reports also found that prices for items such as electronics were, in some instances, higher than available from online retailers; the "deep discounts" were found on flooring and high-end furniture.[17][18][19] Despite the high fees, DirectBuy reported that 75% of its customers renewed their memberships in 2009.[23]
