| BUYING CLUBS
Q. What is a buying club?
A. There are several different types of buying clubs. One of
the more popular kinds is a
compact disc (CD) or music club. It offers five or ten CDs or tapes to
you for an initial
nominal price. You might pay only a nickel or a dollar, plus postage and
handling. In return,
you agree to buy a certain number of CDs or tapes at the "regular
club price" over a period of
time. The "regular club price" is much higher than the initial
price, and is often higher than
normal retail store prices, especially with postage and handling. In fact,
though, the average
price including the introductory deal usually works out to your benefit.
(Remember that there
are costs involved in getting to a store downtown or at the mall, too.)
The problem with these clubs is that they automatically send you a CD
or tape every
month or so. Before shipping the item, the club sends you a notice of
the upcoming shipment.
The only way to prevent the automatic shipment is to return the notice
before the date it
specifies. Book clubs operate on a similar basis. Other clubs, such as
those that sell children's
books or science books, don't send you any notice - they assume you want
the whole "library."
Q. So should I avoid these clubs?
A. Not necessarily. You may want to meet your additional obligation
quickly and then resign
your membership. Also, the clubs do offer many incentives to try to keep
you as a member,
which may be worthwhile to you. But if you forget to return the monthly
notice, you will
receive unwanted CDs or tapes, and you will be obligated to pay for them
or to return them,
sometimes at your own expense.
Q. What about merchandise clubs?
A. The idea behind these is that you pay a fee in order to qualify
for discounts. The club
presumably obtains these discounts because of its volume buying power.
Before joining one
of these, take a good look at what it promises. Will it limit you to certain
manufacturers? Are
catalogs easily accessible? Shady clubs often appear on lists put out
by the offices of state
attorneys general and consumer protection agencies. Check with them first.
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