DirectBuy Bonds Drop

DirectBuy is a membership buying company which has locations all over the United States and Canada. The company offers manufacturer-direct wholesale prices on products such as home furnishings and home improvements.

DirectBuy bonds have dropped 23% after the company stated to investors that new memberships had fallen and that the Chief Financial Officer had left the company. The bond-price reporting system Trace reported that the $334 million worth of 12% notes due in February 2017 fell 67.5 cents on March 23, 2011.

The concept of buying directly from the supplier is often seen in the transaction of services, and is less common in the exchange for goods. By cutting out the middleman, the company is able to mark up prices and improve its margins. This results in ability for the company to customize its goods to better suit its consumers. The main reason why customization has been proven difficult is due to the fact that a certain company may not have the volume required to spread the fixed costs.

Serviam. “DirectBuy – Please Don’t Sent Out Email to Spammers”. <ttp://iwillserve.wordpress.com/2009/11/28/directbuy-please-dont-send-our-email-addresses-to-spammers/>