MBIOC

P.O. Box 34147

126 Kingsway Garden Mall,

Edmonton, Alberta T5G 3G4

Tel: 780 977 4294

email: info@mbioc.net

DirectBuy: The Worse Allowed Scam?

By Jigster, An ex-employee of DirectBuy

You may have heard their advertisement as “North America's Best kept Secret” but they may be 'The Worse Allowed Scam' to most People. Allowed by the media due to heavy advertisement, allowed by the government due to indifference, and allowed by the retailers and manufacturers due to naivety.

As an ex-employee, as a Customer Service Ordering Staff, I honestly believe DirectBuy is about 10% real savings and 90% perceptional “savings”; likewise, only about 10% of the members truly benefit to enrich 'heartless' owners who daringly castigate retailers. It then become a responsibility for the Media, the Government, and Manufacturers to understand what they owe the average general public and retailers.

Does DirectBuy have the 'right' to place misleading ads, including painting retailers in negative light? And should the Media investigate and sensitize the public to avoid being victims? The contracts and conditions of DirectBuy 'Allowed' by the government seems as double standard against more honest companies. I will give you a perfect example in a bit.

I have always maintain that this is a world of few good men, fewer evil men, and bunch of followers. Imagine the millions struggling to get the best out of life being bombarded with the heavy ads of DirectBuy. It is normal to visit them for possible savings. Unfortunately, if you visit them they will bombard you with a more powerful video ad and ask you to decide the same day or not to come back for years. They make you feel like they are doing you favor, 'one' time opportunity, and seemingly care about the retailers after they already painted negative. The pressure can make you sign a dangerously dotted line that has an unfair special favor of Government? When I worked as a sales person for a Gas and electricity company, we signed people four or five year term contract. Our customers don't pay us a dime to join and we were obliged to tell them and give them a written paper that they can cancel for ANY reason within 24 hours. The Company told us that it is a government regulation that people have the right to cancel any contract within 24 hours. How come those who will pay thousands of dollars to become members of DirectBuy for ten years contract cannot cancel contracts? Should we investigate if the George Bush family have a share at DirectBuy, since the headquarters seems to be in Texas? If the people still have that right with DirectBuy, why can't we make sure their contracts clearly states that?

DirectBuy so much understands that this is a world of bunch of followers that DirectBuy of Edmonton, and perhaps other centers, have a policy that when a sales deal is sealed, the Sales person should shout “Can I get a New Members Pack” and someone should repeat it --- they believe that is enough to influence the contemplating to Join. Those who don't repeat “new member's pack” or say it low like myself are frown at and not call upon.

After paying up to $6000 to become a member depending on the center, you still have to pay annual fee of up to $299 after the Forth year to the tenth year, you still have to pay “center handling fees” on most merchandise and some other funny fees on some vendors. Now you may think they only 'rob' the rich, after the poor person is pressured to decide on the 'spot' as “favor”, they will extend the “favor” to financing the balance, if one deposits a small amount and sign the irretractable dotted lines. If you ever discover the “savings” are not close to what you thought – it becomes a game of cutting your losses or protecting your credit file. Sadly, the center I worked for have a horrible service of endless apologies and presently you can't pay with credit cards for merchandise purchases at many centers. They will accept credit cards for the membership fee but not on merchandise purchases. The excuse, 'we don't make money on purchases' – how about the 8 % center handling fee and renewal fee? Why can't government or members come together to pressure them to be little bit more considerate beyond apologies. Member frustrations and other secrets cannot be revealed now but expect a possible documentary from me on DirectBuy.

Why do I estimate DirectBuy as 90% perceptional “savings”? Some people are foolish enough to calculate the difference in the basic prices of DirectBuy and the suggested retail price as their “savings”. They ignore the often added fees and that virtually no retailer sells at the suggested retail price. They ignore possible frustration of waiting and the many convenience retailers have over DirectBuy. Can you see why I say DirectBuy could be the Worse allowed Scam... Allowed by naïve manufacturers and retailers? Whereas most directBuy members will grow to appreciate retailers who accept credit cards under 8% profit margin –most of the uninformed may continue to hate retailers until they sign the irretractable dotted line of DirectBuy . Then it become a question of cutting losses which may still be perceptional “savings”. A member once ordered through me from a catalog with 3% savings and told me “3% is small but better than nothing...” -- he was so blind to see it was minus 3% plus 8% center handling fee – so he was paying more than retail yet happy through the perceptional “savings”.

Why am I a member when I knew or estimate 10% real savings? I know DirectBuy enough to get the best deals if they continue to exist and if I ever become rich within the next ten years. Secondly I got a super discount which was turned down by some sales people who were selling it five times more and by customer service ordering staff who either believe 10% of real savings don't exist at DirectBuy or they don't think they can ever rise in the precarious limited chances of capitalism where the Government and media will spare a company like DirectBuy for taxes and advertisement money.

By 10% real savings I mean about 10% of their affliates are offering up to 50%+ discount. So the 3% discount discussed is factual but there are better discounts that may benefit 5% of the population and 10% their members who need it least. There are somethings fundamentally wrong in our society. Like no human being is perfect, no company is perfect and may have something to hide. The question is our imperfection within tolerable range? DirectBuy is not doing justice to its average members, staff, retailers, and society. Bribing the media with advertisement and government with taxes is not enough. If you want to know more about DirectBuy or why I am indifferent to their downfall, please visit www.mbioc.net and look-out for my documentary. May God Bless Showlove Trinity: Let's learn, let's work, let's have fun.

By Jigster, An ex-employee of DirectBuy

It's important to know the only reason the staff were given discount on the membership was due to a competition in the owners' favor. DirectBuy is such a heartless company that I haved worked there over 7 months and I have never been offered even basic health insurance . If A multi-million dollar company that makes millions in profit can be so heartless, why should a poor person like myself give them million dollar opinions?

After the resignation:

I want to know if this is normal police procedure, bribed cops, or vendetta cops? If it is normal procedure, how many times do I have to tell police officers that I am not interested in talking to them?

On october 15, 2008 at 1:22 pm I (Jarga Gigo) received a call from someone who identified herself as Police officer Constable Ms. Buchanan claiming DirectBuy filed a complaint against me that they feel threatened by my words. I told her that I am not threatening anyone .

On october 16, 2008 at 7:31 the police officer called again, we spent over 7 minutes on the over while she tries to lure me to visit her and talk her about the complaint, I repeatedly told her that I am not interested in talking to her or any police officer about well intended words that is claimed as "threat" -- that I am not a threat to anyone and not interested in talking to her.

On october 21, I received Cheque/check # 3581 dated 10/17/2008 from Directbuy of Edmonton trying to refund me the advance for my membership. They are basically trying to expel me from the club which may have to be settled in court. I do not care much about DirectBuy membership but I want to see if DirectBuy can buy the courts as did to the media, which may then open chances for members who paid the full amount and are denied refund on daily bases.

NB: I have decided to cash the cheque because I don't want to contribute to a scam like DirectBuy, Saw better deals through retailers and want to show appreciation to retailers. I am calling on people to boycott DirectBuy, I don't believe there are enough savings at DirectBuy and there is no point to go to court just to proof a point.

On november 2, 2008 at 12:00pm: Two male police officers knocked on my door trying to get me talking... I repeatedly told them that I am not interested in talking to them or any police officer-- That I am by no means threatening anyone.

Based on the above facts, I would like people to understand my choices and if anything happens to me, let all investigations and spirits be set against those who seem to be hunting me.

“If the millions of jobs retailers provide are worthy of saving, what are our leaders doing about it?”

How Governments are failing Retailers

Retail is not only a major symbol of Capitalism but also a yardstick of economic progress. Strong retail generally means strong economy. Unquestionably, retail existed way before Capitalism. However, Capitalism respected retail so much that history taught us communist countries like Cuba used “tearing down of retail signs and advertisement” as assault to capitalism. Now we have something similar or worse allowed in north America where our leaders are ignorant of the consequences.

Governments' bailout to retailers is asking people to “spend, spend, spend” but our leaders are screwing retailers and consumers more than they may realize. Not that spending is bad but the first question should be why people are not spending? It is not only Jobs but perception and beyond.

A simple example is DirectBuy: A multi-billion dollar company I dubbed the worse allowed scam. DirectBuy is a membership club that the Better business Bureau (BBB) lists as a “wholesale company” but seems to be competing retailers more than wholesalers. Which wholesale company advertises as DirectBuy and targets end-users (consumers) with direct assault “advertisement” like “tired of paying retail...?”

As a multi-billion dollar company that values negative advertisement... anyone who visits the Internet or watches TV saw their ads. If DirectBuy is a non-profit club, how can it afford such ads. Most importantly, what are the psychological effects of such negative advertisement? The poor who cannot afford their high membership fees may still suspect retailers of over-pricing and thus spend less.

Contrasting DirectBuy and retailers must include job creation or contribution to society. We know a retail store like Sears, Brick, Homedepot, Walmart etc employ hundreds of people and contribute to social causes. I worked for the number one DirectBuy center and we had less than thirty employees generating hundreds of millions of dollars over most of the listed retailers. Far from efficiency edge, we leaned on retailers beyond I want to cover. DirectBuy's rental space was cheaper and the average employees paid less than retailers. If the millions of jobs retailers provide are worthy of saving, what are our leaders doing about it? Every Market has a limit – more billions to DirectBuy simply means less money to retailers or less jobs.

Obviously, the problems retailers face cannot be blamed on DirectBuy alone or the growing pawns like FHTM – I blame the governments as evident in my title. Governments enact antitrust laws and advertisement acts to protect between retailers... – how about protecting retailers from wholesalers and manufacturers? Too much regulation cannot be as dangerous as lack of regulation. And regulation to generate or save jobs is governments responsibility more than bailouts. History should harshly judge the media and governments that allow scams like DirectBuy. We cannot use “freedom” as excuse. There are many things governments can do to protect retailers from greedy wholesalers and manufacturers.

How many wholesalers demand a retail permit and/or quota to get wholesale prices? As greed drive manufacturers to dealing with the companies like DirectBuy, FHTM etc – Governments must enact laws and taxes geared to generate and protect jobs. We are facing new problems that requires thinkers more than educated leaders.

Thirty minutes per week of necessary information could have conquer DirectBuy's misinformation within months. Advising retailers and/or allowing them to collaborate can crumble DirectBuy. As consumers, we all love to save money but informed consumers can understand the like of DirectBuy as scam and appreciate retailer's contribution.

Simple measures like advising the Post office to partner with retailers by offering free Post office boxes at malls could have drive traffic to retailers and boost spending. Instead, the government is bailing out the post office with tax payers' money and asking consumers to spend... but doing little to those who generate jobs.

We frown at Cuba for attacking retailers and greed has blinded the media on the evils of DirectBuy beyond seeding mistrust. As retail dwindles, jobs and advertisement may dwindle beyond our imagination unless we act. May God bless Showlove Trinity: let's learn, let's work, let's have fun.

By Jigster,

An African Philosopher