Cutco
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| Cutco | |
 |
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| Type | Private |
|---|---|
| Founded | 1949 |
| Headquarters | Olean, New York |
| Industry | Kitchen accessories |
| Products | Cutlery |
| Revenue | $144 million |
| Employees | over 800 |
| Slogan | The World's Finest Cutlery |
| Website | www.cutco.com |
CUTCO is the name of a brand of cutlery and kitchen accessories directly marketed to customers through in-home consultations with sales representatives who are usually college-aged. The products can be purchased with a local representative, at the Visitors center & store in Erie, P.A. or by calling 1-800-633-8323. Cutco is owned by Alcas and has been in business since 1949. All its knives are produced in Olean, New York in the United States, although a few products (such as the ice cream scoop and some flatware) are partially made outside the US.[1] Some features include what Cutco calls a "Double-D" recessed edge, ergonomic handles, and a "forever guarantee" that promises that "Cutco is the last set of knives you will ever have to buy." While the blades are made of a harder material than most high-end kitchen knives, and hence less prone to dulling, the brand is generally not used by professional chefs.
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[edit] Facts and figures
- In 2005 sales of Cutco were over $144 million.
- More than 100 kitchen cutlery products are sold under the Cutco name, as well as a variety of kitchen gadgets, utensils and flatware. The company also carries a line of cookware, sporting and pocket knives and garden tools.
- Cutco has been purchased by more than 14 million customers.
- Over 700 manufacturing and administrative people are employed at the Alcas/Cutco/Vector headquarters in Olean, New York.
- With the exception of certain accessories, all Cutco cutlery products are manufactured in the United States, using a production process done largely by hand.
[edit] Controversies and criticisms
Cutco and its marketing arm, Vector Marketing, have been the subject of varied controversy:
- The arguable quality (stamped blades instead of forged) and high price of Cutco products.
- Vector's employment tactics, specifically allegedly deceptive recruitment tactics.[1] Vector was sued by the Arizona Attorney General in 1990, ordered by the state of Wisconsin not to deceive recruits in 1994 and sued by the Australian Competition and Consumer Commission in 1999. Each time their legal trouble revolved around allegedly fraudulent recruiting tactics, and each time Vector settled and promised not to mislead their recruits anymore, though misleading still goes on. The company will tell recruits they can make thousands, but they are more likely to make a few hundred a month. [2] Vector has recruited and trained applicants without incident since 1999.
[edit] Materials
- The blade is a high carbon stainless steel, type 440A instead of 154CM or ATS-34. Despite Cutco's claims, 440A can rust and stain, since the term 'stainless' means that it is stain resistant, not impervious to stains. However, all stained, rusted or pitted knives will be replaced by Cutco, a part of their Forever Performance Guarantee.
- The Double-D Edge refers in part to the fact that the edge has an angular serration with three segments. The recessed edge is protected from dulling caused by cutting on an unsuitable surface such as a plate because the points are the only thing that touches a hard surface such as a cutting board while the blades do the actual cutting. This design allows for maintained slicing performance with a very dull blade by sawing through the food.
- Handles are made of Celcon (r), an acetal copolymer injection-molded thermoplastic and are fastened to the blades using Nickel-Silver rivets which expand and contract less than the standard brass rivets used in most knives.
[edit] Corporate Culture
Most Cutco sales representatives are college students. Sales personnel set their own schedules while also attending the mandatory unpaid weekly meetings. They are paid weekly through a two-tiered pay scale. First, an employee's base pay is calculated by multiplying the number of presentations they performed during that pay period by a standard presentation fee. Then, the commission from that week's sales is calculated; the employee is paid whichever amount is greater. A representative's commission increases as their career sales increase. For example, a new employee (called a "trainee") will earn a 10% commission on sales. Once they have sold $1,000 of merchandise, their commission is increased to 15% and they become a full-fledged sales representative. It is possible for experienced salespeople to make as much as 50% commission. After being hired a Cutco sales representative is required to undergo a 15-20 hour unpaid training procedure and place a deposit of $100-$150 on their sample kit which is neccesary to do their work.
[edit] Trivia
- 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.
- Zig Ziglar started out in business by selling Cutco.
- Neil Armstrong sold Cutco while in college.
