Cutco
| File:Cutco logo.png | |
| Company type | Private |
|---|---|
| Industry | Kitchen accessories |
| Founded | 1949 |
| Headquarters | Olean, New York |
| Products | Cutlery |
| Revenue | Over $200 million |
Number of employees | Over 800 |
| Website | www.cutco.com |
CUTCO is a brand of cutlery and kitchen accessories directly marketed to customers through in-home demonstrations by independent sales representatives who are almost exclusively college students.[1][2][3] The products cannot be purchased in stores. Cutco Cutlery Corp. is owned by CUTCO Corporation and has been in business since 1949. The parent company name was changed from Alcas Corp. to CUTCO Corp. on Jan. 1, 2009, as the company marked its 60th anniversary. All its knives are produced in Olean, New York in the United States, although a few products (such as the ice cream scoop and the metal heads of the flatware) are partially made outside the US.[1] More than 100 kitchen cutlery products are sold under the Cutco name, as well as a variety of kitchen utensils, cookware, sporting and outdoors knives, and flatware.
Product
Cutco claims that their cutting edge is the sharpest available, and uses slogans such as "The World's Finest Cutlery" to promote their product line. The company uses an edge design Cutco calls "Double-D", and ergonomic handles. Cutco offers a "forever guarantee" on their products.
The Double-D Edge design consists of three recessed straight segments separated by pointed edges of blade. The company claims that the recessed edge is protected from dulling caused by the knife hitting the cutting surface via the sharpened points. This is similar to a serrated knife, but the company claims their edge design performs better. The knives can be mailed back to Cutco for resharpening; the customer is required to pay a shipping and handling fee.[4][5]
Cutco knife blades are stamped 440A high-carbon stainless steel with a Rockwell Hardness of 55-57c; the handles are made from a thermo-resin plastic that resists absorption of bacteria and is heat resistant to temperatures of 350 degrees F.
Vector Marketing
Vector Marketing is a wholly owned subsidiary of the Alcas Corporation and does all of the marketing of the Cutco products.
Vector Marketing offers opportunities and bonuses based on representative performance.
Memberships
- Direct Selling Association (DSA)
- Direct Marketing Association (DMA)
- Better Business Bureau (BBB)
Controversies and criticisms
 | It has been suggested that this article be merged into Vector Marketing and Talk:Vector Marketing#Merge proposal. (Discuss) Proposed since July 2008. |
Cutco's marketing arm, Vector Marketing, have been the subject of varied controversy. Vector Marketing's employment tactics have been criticized, specifically for deceptive recruitment practices. Vector was sued by the Arizona Attorney General in 1990, the Australian Competition and Consumer Commission in 1999, and was ordered by the state of Wisconsin not to deceive recruits in 1994. Each time their legal trouble revolved around allegedly fraudulent recruiting tactics, and each time Vector settled and promised not to mislead their recruits anymore.
In the early 2000s, Vector made what they called "transparency" changes to become more upfront about what they offered representatives. Vector asserts that many of the people who were in upper-level positions with Vector 10 to 15 years ago when most of the criticism occurred no longer work with the company. Groups of former Cutco employees or contractors argue that these changes have not altered Cutco's business practices.
The company tells recruits they can make significant profits, but, depending on multiple factors, they may only make a few hundred dollars a month. Like many sales positions, profit depends largely on the effort of sales reps.[6]
Employees can only begin to attempt sales after purchasing or borrowing a sample set of Cutco knives to show customers. Some Vector programs allow representatives to attain a sample set free of charge, while others offer the set at a 70% discounted price or security deposit of $135 plus tax. The deposit for the sample set can be refunded upon the return of the knives or the representatives can choose to keep the knives for their personal use. The representative may also sell his/her sample set for retail price and be afforded the opportunity to make a profit.
In popular culture
The band Ludo mentions selling 147 Cutco knives in their song "Good Will Hunting By Myself".
"Made in America" and "Modern Marvels" have both showcased the manufacture of Cutco knives.
The cutlery brand and its sales tactics were parodied in the episode I Married Marge of The Simpsons where a young Homer tries selling "Slashco" knives. It is also mentioned when Homer is trying to come up with a name for his internet business in the episode Das Bus, claiming he needs a clever name such as Cutco.
In a deleted scene from the television show The Office (US), it is implied that Michael Scott once worked for Vector selling Cutco products. He states that he once sold cutlery and made mention of "shears that could decimate a penny"; which is a demonstration used by Cutco sales representatives when selling to clients.
Advancement
Offices run by the various District Managers and Branch Managers employ assistant managers to assist their offices and promotions based on sales. Vector Marketing asserts that every person in the firm went through the training program and advanced through the ranks with everyone starting as a representative.
Representatives make 10 to 50% of their personal revenue depending on how much they have sold.
References
- ^ Chu, Kathy, College students learn from job of hard knocks: Door-to-door sales draw thousands every summer, retrieved 2007-10-12
- ^ Davis, Jana, What is 'Work For Students' anyway?, retrieved 2007-10-12
- ^ Hardgrove, Caitlin, Sophomore wins award, retrieved 2007-10-12
- ^ Cutco Forever Guarantee
- ^ Cutco Sharpening Policy
- ^ Guardian
