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DirectBuy Carrying Price-Protected Lines

Merrillville, Ind. – Franchised membership chain DirectBuy has launched a loyalty program that allows it to honor vendor minimum resale pricing policies (MRP) while still offering discounts to customers.

In lieu of discounted pricing, the showroom buying club is providing “My Rewards” points to members who purchase the price-protected products. Customers can then use their points to lower the cost of future purchases including furniture and major appliances.

The approach will allow the retailer to expand its assortment of home products to include price-restricted brands while keeping its low-price promise to members, the company said.

“As a new membership benefit, My Rewards allows us to provide our consumers with an added incentive on price-protected products unlike traditional retailers, while still honoring resale pricing policies,” said merchandising VP Jim O’Keefe. “The program brings a new meaning to the word ‘savings.’”

The controversial business describes itself as a buying club that sells merchandise to members at “confidential dealer prices.” The company, comprised of about 80 franchised showrooms, charges thousands of dollars in membership fees for access to over 1 million products from 700 popular brands, along with services and travel packages.

The chain had been criticized in recent years by retailers, state attorneys general and Consumer Reports for high-pressure sales tactics and deceptive practices, but re-launched itself in 2014 with a new management team and a more transparent, customer-friendly style.

Details on the loyalty rewards program are available at