Cutco: Difference between revisions
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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.<ref>[http://www.theguardianonline.com/home/index.cfm?event=displayArticle&istory_id=507448 Guardian<!-- Bot generated title -->]</ref> Recruits are also told that they will be free to determine their own schedules, while in reality, they are coerced into scheduling appointments every day as daily phone reports into the office are mandatory.{{Citation needed|date=June 2009}} |
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.<ref>[http://www.theguardianonline.com/home/index.cfm?event=displayArticle&istory_id=507448 Guardian<!-- Bot generated title -->]</ref> Recruits are also told that they will be free to determine their own schedules, while in reality, they are coerced into scheduling appointments every day as daily phone reports into the office are mandatory.{{Citation needed|date=June 2009}} |
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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 $150. 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. However, training sessions are unpaid. |
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 $150. 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. However, training sessions are unpaid. |
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Vector has also been accused of funding drug cartels in Mexico. |
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==References== |
==References== |
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Revision as of 02:59, 26 September 2009
| File:Cutco logo.png | |
| Company type | Private |
|---|---|
| Industry | Kitchen accessories |
| Founded | 1949 |
| Headquarters | Olean, New York, U.S. |
| Products | Cutlery |
| Revenue | Over $250 million |
Number of employees | Over 800[citation needed] |
| 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] 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's kitchen knives use a full-tang, triple rivet construction, and the company claims that their cutting edges are the sharpest available. The knife blades are stamped 440A high-carbon stainless steel that undergo a three step heat tempering process, and have a Rockwell Hardness of 55-57c. They use both straight edges and an edge design Cutco calls the Double-D or double durable. The Double-D Edge consists of three recessed straight blade segments separated by pointed edges. 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, and unlike a serrated knife, Double-D Edge knives can be mailed back to the company for resharpening. Cutco also uses ergonomic handles designed by Thomas Lamb. The handles are made from a thermo-resin plastic that resists absorption of bacteria and is heat resistant to temperatures of 350 degrees F. Cutco offers a highly touted "forever guarantee" on their products.
The "Forever Guarantee" policy states that if any of the knives are unsatisfactory in any way, then Cutco will correct the problem or replace the product. It states that when the knives eventually do need sharpening, they will be sharpened and polished for free with the customer providing a $6.00 return shipping and handling fee for 1-3 items, and $9.00 for 4 or more items. It states that if any of the knives are found to have been damaged through misuse, the company may ask for half the current retail price for repair or replacement, and finally, it includes a 15-day unconditional money back guarantee.[3][4]
Vector Marketing
Vector Marketing is a wholly owned subsidiary of the Cutco Corporation and does all of the marketing of the Cutco products.
Vector Marketing offers opportunities and bonuses based on representative performance.
Controversies and criticisms
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.[5] Recruits are also told that they will be free to determine their own schedules, while in reality, they are coerced into scheduling appointments every day as daily phone reports into the office are mandatory.[citation needed] 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 $150. 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. However, training sessions are unpaid.
Vector has also been accused of funding drug cartels in Mexico.
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?
- ^ Cutco Forever Guarantee
- ^ Cutco Sharpening Policy
- ^ Guardian
