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January 24th, 2008 at 12:56 pm
I am one of the evil retailers referred to by the Direct Buy organization. I joined the organization to be able to factually and directly compare my operation and prices to theirs. Let me share with all of you the FACTS.
1. Direct Buy does not have and will never have access to some of the better brand name products. Translation-limited selection.
2. Many of the Direct Buy products are of a lower quality than many available on the open market.
3. Direct Buy has all of the same overhead costs as conventional Brick an Mortar stores. Advertising, showrooms, insurance, payroll, taxes etc etc.. For those of you that think that ALL of their operating expenses are paid by your up front fees you are sadly mistaken.
4. Bottom line—-A conventional retailer is fortunate to clear 5 to 10 percent at best after all expeses are paid. Many retailers in these slower times are not even doing that if even profitable at all. These retailers contribute to the tax base of their local economies, they are the ones who contribute to the local school programs, the local charitible organizations. They employ local people who in turn add and contribute to the overall health of the local community and economy.
Now, for any of you who think that Direct Buy is doing this for consumer goodwill and with no thought of their own profitablity you are naive and foolish. I now have the facts to prove it. I know the actual cost of some of the items on my floor and the actual cost through Direct Buy. Factoring in the initial investment I can compete head to head with any of the products that they offer. (exceptions would be with some of the promotional quality products that I choose not to carry.)
5. For those of you that are listening to the “blonde” girl talking and it feels like you are listening to a late night “infommercial”—–let me assure you—-you are!