Today’s article will be a Cutco Cutlery review and we feel this one is long overdue.
We have seen many Cutco Cutlery reviews online and many of them are negative and this always sends out a red flag.
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Secure Your Future With Us wanted to do our own so we could give our own first-hand opinion on this company. We especially wanted to know why there are so many unhappy people with a company that is 70 years old.
As always when we look at these companies we want to make sure they are putting their customers and distributors first.
Another thing we look at is their business plan.
When doing this we want to make sure the company is looking out for the people who are working their program. We also want to know that it is not a pyramid scheme of any kind.
Another task we will tackle is researching posted Cutco Cutlery reviews online to see what people are saying about this company.
And last but not least we look at their products and make sure they are high quality and not overpriced.
On that note, let’s take a look at how they rate in our eyes!
This private company was founded 70 years ago in 1949 by Alcoa and case Cutlery and was named after its founder Alcoa.
It is currently based in Olean, New York.
Alcoa sold the company and the new owners changed the name to Cutco.
They are currently owned by Ka-Bar, Vector Marketing, and Schilling Forge.
Cutco markets cutting knives through one of its parent companies, Vector Marketing
Cutco is a brand name for an assortment of over 100 knives, kitchen accessories including cookware, utensils and a line of outdoor knives.
They are sold mostly at home demonstrations and their main sales crew consists of college students.
You can also find their products at any of the six company-owned stores located in Novi, Michigan, Edina, Minnesota, Indianapolis, Indiana, Erie, Pennsylvania, St. Louis, Missouri, and Okemos Michigan.
Knives are made from low-grade stainless steel but they are reliable and the warranties are iron clad 100 percent replacement if a product should fail in any way, no questions asked.
MLM business model
Cutco products are marketed through their Vector Marketing division and the program is what is called a single-level direct sales marketing system.
What that means is they recruit students who are looking for work through flyers distributed to colleges and high schools.
They also advertise in newspapers, word of mouth and the use of various internment media and boast a sales force of about 60,000 students.
Recruits are called representatives. They are asked to start selling to family and then expand to friends and anyone they can find who will come to an in-home demonstration.
Each in-home demonstration earns the representatives a $15.00 commissions above any sales.
Starter kits are free to the sellers. They are required to attend free training sessions to learn how to create the demonstrations and make the sales.
Representatives are paid commissions on sales starting at 10% for the first $1000.00 in sales and capping at 25% on sales of $6000.00 to $10.000 and 30% commissions above the $10.000 mark.
- Sales commissions are paid directly from selling the products
- Knife sets can bring $500.00 in total sales for one set
- Good part-time job for students looking for extra cash
- Informative training program
- Quality products
- Excellent warranties
- Solid company with years of experience
- Unpaid training sessions
- Warm sales to friends and family
- Set up times and demonstration are unpaid and up to the representatives.
- Only for those who do not mind warm sales settings
- Several legal issues
- Bad reviews by former representatives
A Class action lawsuit by former representatives was just settled by the company in February.
Former workers claimed they were required to take training sessions without pay. And they actually won a settlement for 6.75 million dollars.
Vector company’s spokesman claimed they settled the suits to move on and focus on business and not a court battle.
They stated that their sales force are independent contractors and not paid employees. Therefore they have no right to be getting paid for attending the training.
Cutco offers all of its training for free and feels that it is an adequate return for their representative’s attendance.
Another class-action lawsuit is pending between independent division managers claiming the same thing as the previous lawsuit.
This was an interesting review. For the simple reason that it is a very old company that has established great training. It has also made a single-level direct sales program not only work and but work well.
While this is not for everyone, those who are comfortable doing warm sales can make some serious extra cash in a part-time setting.
Legal issues do come up for every company in business. That is why we feel that what Cutco is going through is just a normal process of changing times and ideas. And we feel they will get it all sorted out.
Negative reviews from former workers are expected in this kind of business model as warm selling is not for everyone. Therefore this does not raise any red flags with us.
We are convinced this company is not in any way running a pyramid scheme and really is legit.
Cutco Cutlery gets a thumbs up from us as a way for young people to get into the sales force and get their feet wet. And we are sure they will be introducing new ideas in this new online social era!
Thanks for checking out this article and be sure to check out our other reviews on our websites’ reviews tab.
Please be nice to us and share this article on your social media so others can check it out too. And until next time, happy marketing!
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