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DirectBuy / Scam and cheating

1 United States Review updated:
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I worked for DirectBuy for 8 years (and still do) and find that this company has helped far more people than it has hurt. However, it all depends on the owners of the franchise. Owners Michael Ricketts and Karen Hansen run their business with absolutely no business ethics are moral values.

They do not pay their bills in a timely manner which makes me question whether or not their members are getting their orders in a timely manner. They treat their employees with complete disrespect. Michael Ricketts and my company parted ways and it has been over a month now and he is still refusing to pay my last invoice.

He proclaims that he is not signing enough members which is why he is having money issues. He then places blame on the finance company. Again this leads me to wonder about the member orders and whether or not they are being ordered in a timely manner.

I would strongly suggest that you do not trust these owners and would recommend you move your business to the DirectBuy in NW Phoenix. DirectBuy is a great concept and WILL save you a ton of money. I just wouldnt suggest you trust these owners because your money isn't safe with dishonest people!

If you are a member make sure they are placing your order the day that you put it in and not 10 days out. If they cannot ensure this then I would contact corporate regarding this matter. Do not let these owners scam you as they have me!

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  • Va
      22nd of Oct, 2008
    0 Votes

    My husband and I attended a presentation in Feb 08. We were in a good financial situation at the time and were getting ready to purchase our first home. So we took the opportunity to join because we knew we were going to have a lot of work to do on the property we were buying. Well the seller stalled and the bank that had agreed to a short sale rescinded their acceptance because the seller was stalling. We lost the house to auction. Within a month the house we were renting was sold our from under us as well because the landlord defaulted on the mortgage. Now we were truly homeless. We had to move to another area some distance from work and our children's' school which left us with a hefty commute. On top of everything else the company my husband worked for cut his hours in half. We immediately contacted our center and informed them of the financial hardship we were currently having. After much negotiation they agreed to freeze our membership. Sounds fair right? Well according to the finance company that collects the monthly installments on the membership just because they froze our membership doesn't mean we stop paying for the membership. Now they are calling my house 3 to 6 times a day demanding money from us, money we simply don't have. When I asked the representative if they wanted me to pay them instead of feeding my children and keep them warm they told me "You signed a contract to pay and you shouldn't have if you couldn't afford it". Funny when we joined we could afford it, if I could see into the future then I could still afford it because I would know what the winning loto number are too.

  • Ed
      2nd of Dec, 2008
    0 Votes

    Remember that great scene in Miracle On 34th Street where William Frawley tells the judge what will happen if he proclaims that there is no Santa? Think of that as you read this.

    Let us put their sales tactics and fine print to the side and think about some bottom line. As memory serves the DirectBuy pitch eludes to the fact that their operational expenses are pain by the membership fee. In this area it is $5, 000 to join. Even with that figure perhaps it might fun to do a little basic arithmetic.

    First, you get to pay the prices that the stores pay. Maybe so, but many manufacturers use different price structures that they use based on a stores volume.

    The DirectBuy showrooms are in well appointed and decorated facilities, They can house several room displays, product samples, shelving for the many catalogs, meeting room, children's area, customer service area, kitchen design area, offices for the owners and membership directors, a telephone sales room and a break room. Ever wonder what the rent might be?

    There is the cost of the basic utilities and technology such as the computers and telephone systems. Oh, and let us not forget the cleaning service.

    Salaried, commission or hourly all of the people who work there get paid.

    And, the executives and employees on the corporate side... They get paid too.

    Advertising: It is likely that your local "club" pays into that pool.

    Infomercials: Writing, Production and post production costs, royalties and residuals
    (if any), and the simple fact that they don't get on television for free.
    That goes for airtime on radio too.

    Print: Newspapers, magazines... Costs for writing copy and layout. The price for
    individual publications and ad size and distribution will vary but it is
    a needed expense and DirectBuy does allot of it. Even the printed
    material and your free visitors pass isn't really free. OOops I almost
    forgot the postage.

    Computer Ads: While less expensive than more traditional forms it still costs.
    So do the web designers. Then there is a matter of the proliferation of all those new websites that are declaring the great benefits of joining
    DirectBuy. All so positive... Real or not someone maintains them.

    Had enough logistics? OK so here is the mythical math question to consider and think about. How many new "memberships" does it take to maintain all of the above just on the local level.

  • Di
      19th of May, 2009
    0 Votes

    Every time I hear about another person (people) joining DirectBuy, I cringe. It sounds great in theory, however, when you're able to do the price comparisons, DirectBuy can't beat the prices we either got through Lowes, Home Depot, local retailers or off of the internet. Plus we didn't have to pay tax for out of state retailers. If you want to get your money back:
    Help spread the word...DirectBuy is a nightmare & scam.
    A Federal Class Action lawsuit against DirectBuy has been filed by Izard Nobel LLP. Contact information is as follows
    Lead Attorney - Jeff Nobel
    email -
    toll free phone# - (800) 797-5499
    Please contact them so justice may prevail & we can get our hard earned money aka "membership fees" back.

  • Fi
      2nd of Jan, 2010
    0 Votes

    You are so RIGHT! DirectBuy is a scam! WHY do they have to spend MILLION$ on advertising? Did you ever seen an ad for Costco (though not the cheapest everytime)?
    Their YOU MUST SIGN NOW or NEVER AGAIN approach sounds like hard up used car salesmen on a bad month.
    You gave me an idea! When I have some time to waste I'll give them my MagicJack phone number (another scam) and show up with about 6 of my buddies! I can wait until they call the police!

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