DirectBuy is a “club” geared towards people looking to save money on home improvement, remodeling projects, and frequent purchases of furnishings. Club members are allowed to buy their goods directly from manufacturers and authorized suppliers at confidential insider prices . Depending on the item, savings have been reportedly up to 50% or more off retail price. In order to join DirectBuy, there is an initial cost plus yearly “maintenance” fees.
The Cost to Join DirectBuy
DirectBuy is a franchise, meaning membership costs vary per location. Memberships typically involve two to three year terms with the option to renew each year beyond the initial term for the current renewal fee. In 2007, Consumer Reports stated that memberships at certain DirectBuy locations in the New York region ranged from $4,600 to $4,990 for a three-year membership with $190 renewal fees per year for the next seven years. In 2009, the Star Tribune cited enrollment fees were $4,700, and then $99 per year after 30 months . Others have reported an initial fee of $6000 for two years, and $300 per year for the next eight years.
After joining DirectBuy, additional fees are attached to each purchase, including:
- 6% handling fee
- 8% shipping fee (sometimes higher on heavy items)
- sales tax