Cutco

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Cutco

Type	Private
Founded	1949
Headquarters	Olean, New York
Industry	Kitchen accessories
Products	Cutlery
Revenue	Over $200 million
Employees	Over 800
Website	www.cutco.com

CUTCO is a brand of cutlery and kitchen accessories directly marketed to customers through in-home consultations with independent sales representatives who are almost exclusively college students.^[1]^[2]^[3] The products cannot be purchased in stores. 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 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 gadgets, utensils and flatware.

1 Product
2 Vector Marketing
3 Recognition
4 Awards
5 Memberships
6 Controversies and criticisms
7 Advancement
8 References
9 External links

[edit] Product

Cutco claims that their cutting edge is sharp. The company also claims to polish and resharpen all Cutco products if they are mailed back to the company. Some features include a special edge Cutco calls a "Double-D" edge and ergonomic handles. Cutco also offers a "forever guarantee" that "Cutco is the last set of knives you will ever have to buy."

The Double-D Edge describes an edge with dual edged points separated by recessed straight segments of blade. The company claims that the recessed edge is protected from dulling caused by the knife hitting the cutting surface by the sharpened points. Cutco is not a serrated knife, and Cutco knives can be mailed back to Cutco for professional resharpening for free and forever.^[4]^[5]

Handles are made of Thermoresin (injection-molded thermoplastic).

The blade of the knives are made of High Carbon Surgical Stainless Steel, grade 440, which are made similar to the scalpels that hospitals use. The reason for the use of this high quality steel is to ensure the strength and sanitation of the knives.

[edit] Vector Marketing

Main article: Vector Marketing

Vector Marketing is a wholly owned subsidiary of the Alcas Corporation and does all of the marketing of the Cutco products.

[edit] Recognition

Vector Marketing offers scholarship opportunities, trophies, bonuses, pins, shirts, awards, free products, conferences (recognizing rep. performance), trips, and even national attention.

[edit] Awards

Winner of 2002 [Union Label & Service Trades Department, AFL-CIO] Labor-Management Award
Winner of 2002 Share Our Strength "Frontier Award" for its contributions fighting hunger

[edit] Memberships

Direct Selling Association (DSA)
Direct Marketing Association (DMA)
Better Business Bureau (BBB)

[edit] Controversies and criticisms

Cutco and its 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 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 pretax. The $143.10 paid for the sample set will be refunded upon the return of the knives.

[edit] 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 claims that every person in the firm went through the training program and advanced through the ranks with everyone starting as a representative.