Cutco

Last updated

Cutco
Company typePrivate
IndustryKitchen accessories
Founded1949;75 years ago (1949)
Headquarters Olean, New York, United States
Products Cutlery
Kitchen knives
Pocket knives
Garden tools
Scissors
Website www.cutco.com OOjs UI icon edit-ltr-progressive.svg

Cutco Corporation, formerly Alcas Corporation, is an American company that sells cutlery, predominantly through multi-level marketing. It is the parent company of CUTCO Cutlery Corp., Vector Marketing, Ka-Bar Knives, and Schilling Forge.

Contents

The company has been the subject of criticism and lawsuits for its business practices, and has been accused of being a multi-level marketing company. The Los Angeles Times claims that Vector meets the Federal Trade Commission (FTC) definition of a multi-level marketing company which is "businesses that involve selling products to family and friends and recruiting other people to do the same" because they sell their product through person-to-person sales. Salespeople are generally young and recruited from high school or college. Students are hired to sell Cutco products (mainly kitchen knives) to customers, starting with their friends and family. Vector's recruitment tactics have been described as deceptive, and they have faced numerous lawsuits over their pay structure and treatment of its salespeople, who are mostly independent contractors instead of employees. Vector claims they are a single-level direct selling marketing company, not a multi-level marketing company or a pyramid scheme as its detractors claim.

The company was founded in 1949 by Alcoa and Case Cutlery (hence "Al-cas") to manufacture stainless steel knives for Alcoa's WearEver Cookware division. Alcoa purchased Case's share in the company in 1972, and Alcas became a separate private company in 1982 after a management buyout. [1] In 1985, the company acquired Vector Marketing Corporation. [2]

In early 2009, Alcas changed its name to Cutco, the name of the primary product. [3]

Products

Cutco is a brand of cutlery and kitchen accessories directly marketed to customers through in-home demonstrations by independent sales representatives who are mostly college students. [4] [5] More than 100 kitchen cutlery products are sold under the Cutco name, as well as a variety of kitchen utensils, cookware, sporting, and outdoor knives.

Although the products are not typically purchased in retail stores, Cutco has opened six of its own retail stores: Indianapolis, Indiana; Okemos, Michigan; St. Louis, Missouri; Novi, Michigan; Edina, Minnesota; and Erie, Pennsylvania. [6] All of the company's knives and most of their other products are produced in Olean, New York, while other products are made in Mexico and China. [7]

Vector Marketing

A few Cutco knives and a pair of super shears Cutco knives and shears.jpg
A few Cutco knives and a pair of super shears

Vector Marketing is Cutco's direct selling subsidiary that builds its sales force through advertising via newspapers, direct marketing, word-of-mouth, posted advertisements, letters, and various media on the internet. [8] [9] [10] [11] The company has been the subject of criticism and lawsuits for its deceptive recruiting and business practices, and has been accused of being a multi-level marketing company. [12] Their fliers advertising "student work" are distributed in many high schools and college campuses across the United States and Canada. Students are hired to sell Cutco products (mainly kitchen knives) to customers, starting with their friends and family, then branching out through recommendations, all through one-on-one demonstrations. While Vector required a deposit on the sample kit representatives were issued in the past, this was changed in 2011, and deposits are no longer required from representatives. [13] [14] [15] [16]

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References

  1. ↑ "CUTCO Cutlery: History". www.cutco.com. Retrieved 15 April 2018.[ permanent dead link ]
  2. ↑ Cutco Company History [ permanent dead link ]
  3. ↑ Shaw, Jeff (2008-12-08). "Alcas changing its name to CUTCO". Olean Times Herald. Olean, New York. Retrieved 2020-12-06.
  4. ↑ Chu, Kathy. "College students learn from job of hard knocks: Door-to-door sales draw thousands every summer". USA Today . Retrieved 2007-10-12.
  5. ↑ Davis, Jana. "What is 'Work For Students' anyway?". Archived from the original on 2007-10-30. Retrieved 2007-10-12.
  6. ↑ Schouten, Cory (2011-03-28). "Roundup: Cutco, Marshalls, Performance Bicycle, Sensu". Indianapolis Business Journal . Archived from the original on 25 August 2011. Retrieved 28 March 2011.
  7. ↑ Made in America, Cutco.com
  8. ↑ Moret, Darrin (September 6, 2013). "Did I Participate In A Pyramid Scheme?". Popular Science . Retrieved May 31, 2017.
  9. ↑ Kellman, Beth Robinson (April 2, 2010). "Better Business Bureau offers advice on multilevel marketing". The Oakland Press . Oakland County, Michigan. Archived from the original on 2012-08-25. Retrieved 2019-10-12.
  10. ↑ Deal, A. Matthew (September 26, 2006). "High wages for student work – but beware". Campus News. The Carolinian. p. 1. Archived from the original on June 18, 2008. Retrieved June 5, 2008.
  11. ↑ Gunn, Eileen (August 5, 2008). "Summer Job: Nice Pay, if You Can Cut It". The Wall Street Journal . p. D4. Retrieved April 21, 2011.
  12. ↑ David Lazarus (2020-06-23). "Column: Beware of this 'important opportunity' for job-seeking students". Los Angeles Times. Retrieved 2020-08-08.
  13. ↑ Episode 10. Street Cents, January 14, 2002
  14. ↑ "Blue-Eyed Devil: Don't get scammed looking for work while in college". lsureveille.com. Archived from the original on September 7, 2012. Retrieved April 8, 2012.
  15. ↑ Lucchesi, Nick (February 4, 2004). "Vector Marketing targets unaware college students". News. The Journal. p. 2. Archived from the original on April 27, 2011. Retrieved June 5, 2008.
  16. ↑ da Costa, Polyana (August 21, 2004). "Firm misled sales recruits to sell knives, students say". Salem Statesman-Journal . Archived from the original on July 4, 2008.
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