Cutco Review – Is Cutco a Scam? Can You Make Money with Cutco?
Welcome to our Cutco Review!
Before you invest in any form of business, it is important to conduct thorough planning and research. Having your own business is not a walk in the park and needs a lot of patience and business acumen. Is Cutco a Scam for you not to invest in this company?
For others, earning on their own terms is dream come true. It should never be a nightmare to anyone. This Cutco Review will give you an impartial insight into the company. Is Cutco a scam or a legitimate company?
We will learn the company background as well as the product line of Cutco. Income potential will also be discussed. Reading through this article, you will learn, is Cutco a scam?
Global Wealth Trade Review Summary
Product Name: Cutco Cutlery Corporation
Owner: Jim Stitt, Sr.
Industry: Direct Marketing
Products: Cutlery, Knives, Shears
Headquarters: Headquarters in Olean, New York
What is Cutco Company?
Cutco is the United States-based cutlery and kitchen accessories brand that promotes their product through direct selling. They are also recognized as a manufacturer of hunting, pocket and sporting knives.
Cutco has its own retail stores which can be found in Edina, Minnesota; Erie, Pennsylvania; Indianapolis, Indiana and Novi, Michigan. It can also be found in places such as Okemos, Michigan and St. Louis, Missouri.
Although their knives are manufactured in Olean, New York, additional products are made and imported from China and Mexico. Cutco was established in 1949 at Olean, New York in partnership between Alcoa and Case Cutlery.
The company became known as Alcas Corporation when Alcoa purchased Case’s share in the company in 1972. In the year 1985, the management bought the Vector Marketing Corporation.
It was in 2009 when Alcas altered its name to Cutco and became the brand of the primary product. Cutco took pride in having satisfied customers of about 16 million households. This is made possible with their aggressive sales and marketing efforts.
This allegation was denied by Cutco since they are following single-level direct marketing and not a multi-level-marketing. Is Cutco a scam to follow a single-level direct marketing approach?
During 1981-1984, Cutco was composed of independent, small, direct-sellers. Vector Marketing was established in the year 1985, the marketing arm of Cutco. Compared with earlier independent sellers, it was effective and instantly was successful in selling more.
Cutco normally sends its independent sales representatives in the field to conduct in-home presentations. They utilize college students to demonstrate their products through the house to house selling.
In fact, part of their promotion “student work” is distributed in high schools and colleges across the United States and Canada. Is Cutco a scam for using these students for the promotion of their product?
These students are hired primarily to sell Cutco products to their family and friends. Then through word of mouth, they will be referred to other prospects.
Whenever you are recruited for a job providing customers with Cutco products and watched an advertisement from them, it is not from Cutco. They acquire services from Vector Marketing to assist them in the promotion of the product.
Is Cutco a Scam?
There is no question about the robustness and quality of Cutco products. In fact, their product, a pair of kitchen scissors can cut in half a penny. Its knives can even cut through pure leather and rope. This is proof that their cutlery products are really tough and used high-grade materials.
If that is the case then why there are people questioning the reputation of Cutco? With all this information at hand, do you still consider Cutco a fly-by-night business? Is Cutco a scam?
Cutco is widely known to produce high-quality and sturdy cutlery. To promote their products on a large scale market they acquired a new business called Vector Marketing.
Though they have been in the industry for quite some time, new competitors are increasing. Thus, Cutco needs to boost its marketing campaign to continue and expand their business.
There are particular customers who believed that the operational part of Cutco, as well as their marketing division, is legitimate. While for some, they question the company because of its method of recruitment and sales practices.
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The Different Approach in Marketing
Vector Marketing’s strategy is to recruit a sales representative for Cutco. This will be done with the help of a receptionist. First, they will try to get your attention and confidence by asking you probing questions. Once they gain your confidence that’s the time they will persuade you in a deceiving manner.
Part of the recruitment is an interview from their telemarketers. Once you are hired, the applicant will be considered as a receptionist with various levels such as receptionist, VIP receptionist or Elite receptionist.
Gaining the confidence of the customer is the priority of the receptionist. A canned pitch will then be used to encourage you to join the business. This is commonly done in sales where they use a script to lead the prospects to a close.
If you encounter an experienced receptionist, they will ask you particular questions and will find a topic that is something in common for both of you. Most of the independent sales representatives may also pass your call to their immediate sales manager to ask you about financial matters.
They will assume that you are really interested in the product and have a sense of coming to a final decision. Also, sales representatives are trained to ask you some queries in the form of leading questions that is answerable by a yes to close the sale in favor of the company.
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Cutco Recruitment and Membership
Cutco means business with its recruitment. It is part of a well-planned process to keep their sales and marketing up and running. The more recruits the better since there are a number of employees quit. So there will be a pool of leads and recruits to occupy the positions once they need it.
If they are lucky enough to find a recruit with a lot of networks, then the better too for the company. These networks are critical to market the product and finally convert them to sales. For some people, they will think of this as multi-level-marketing and leads to a question… Is Cutco a scam?
There are recruits that really excel in sales and thus, Cutco will provide you the art of presenting the product to prospects. They will learn the basics from opening, presenting, handling objections as well as closing the sale. Having in mind the scripts provided and the opening spiels and canned pitch will come in handy.
Salespeople may consider it the best training ground for them, however, for some customers, it is a form of aggressive selling. The sales process is real. We experienced it in the convenience store or in the mall when we are shopping for a product. All of them use the script to build rapport and finally closing a sale.
For others, Cutco’s recruitment and sales may be too aggressive but that does not mean that it is fraudulent. Perhaps, there are some members that give false hopes and promises. Well, it’s up to you to decide. If it’s too good to be true, then you would think twice.
How Do You Earn from Cutco
The compensation structure of Cutco is sweet and simple. Cutco provides a wage guaranteed of around $12.50 to $17.50 per hour of demo or presentation. Take note that this amount does not convert to an hourly wage.
Representations are important for you as an independent sales representative. These include gas to drive the car, perhaps a cup of coffee or props for the prospects demonstration. These may be considered minor factors to close the sales but can help you with your expenses.
Below is an approximation of your guaranteed wage and also your earning commissions on your sales.
$0 - $1,000 (sales) = 10% (commission)
$1,001 - $4,000 = 15%
$4,001 - $7,500 = 20%
$7,501 - $12,000 = 25%
$12,000 - $24,000 = 30%
$24,000 plus = 30% + (the “+” is unspecified)
For monitoring purposes, you are required to submit a finished qualified presentation report on a weekly basis for you to get your income. Do not forget to pay the down payment security deposit of $200 for the demo knives. Also, sign the standard Sales Representative Agreement form to complete the process.
Generating More Income from Cutco
A company like Cutco who relies on sales normally has a high employee turnover rate. In fact, many people are reluctant to apply in a sales job perhaps because of its challenging nature. They do not want to offer products to people they do not know. In the same manner, they also do not want to sell to their family and friends.
To encourage the sales representative, recruiters challenges them to meet targets. People love achieving targets and thus they look forward and dream of having financial freedom. They also discuss the possible earning potential to get them excited. However, when the going gets tough, most of these representatives lose their interest.
If you are looking for an easy job, then being a Cutco independent sales representative is not for you. A person with initiative, patience and a knack in handling objections are required to survive in sales. A representative of Cutco must always be ready to answer objections in the form of a question like – Is Cutco a scam?
Reasons to Consider Cutco
If you breathe sales, then Cutco is for you. You are paid your guaranteed wage based on your appointment. This amount is higher than what you will get from other direct selling companies in the industry. Not bad to pay for your expenses.
The product will sell for its self because of its established reputation. A high-quality brand that lasts for a lifetime. The price is without value if the product satisfies the customers and ensures that it meets the quality standard.
Optimize your training in selling. There’s no question about it, Cutco top of the line sales training will help you succeed in any career you may go through. You may not be successful marketing Cutco, but undergoing the sales training will put you in the first advantage such as presenting your idea to your boss. Negotiating your plans to your parents and what that.
Reasons NOT to Consider Cutco
Forced selling through deceptive recruitment and aggressive tactics. Vector Marketing is known for this marketing strategy. As a sales representative, you have to keep up with the sales quota and hit targets.
Cutco offers a temporary opportunity for most people. There is a high rate of turnover in terms of hiring people. And thus, when you are not hitting the target you should be watching your back.
No reimbursements for representations such as phone calls, food allowance, car fuel and parking fees. If you are lucky enough you may be qualified for tax deductions.
Costly product. Who needs an expensive shear? Cutco products may be offered to collectors of items that last for years. However, not everyone needs knives just to cut something. There are many cutlery competitors that solve the same problem. Do you really need high-quality knives for your daily use?
Can You Make Money with MLM?
Can you really make the big money? The short answer is yes. However, most people don't.
Anybody can become an MLM consultant and start selling regardless of whether or not they have sales experience. As long as you can afford the starter kit — which typically cost $50 to $200 - you own a business.
However, according to an Inc.com article on direct sales, the median income for an MLM rep is about $2,400 per year.
The statistic has also shown that the loss rate for all these MLMs ranged from 99.05% to 99.99%, with an average of 99.71% of participants losing money in an MLM.
Many people who are trying to recruit you tend to advertise a glamorous life full of flexibility, passive income, fire your own boss and be your own boss. What they don’t say is that the chances of making a six-figure salary or even a full-time income at all are extremely low.
MLM Vs Affiliate Marketing
As you can see, I wouldn't recommend network marketing/MLM because it's a lot harder to get the results you want and achieve success as compared to affiliate marketing.
Let me give you a quick comparison between MLM & affiliate marketing:
Recommendations and Verdict
Cutco products are not your normal cutlery, hunting and sporting goods. A lot of presentations, home visits, cold calls and lead generations are needed to earn your decent money. You need to have a lot of patience and business acumen to succeed in this company.
The majority of consumers do not need a pricy set of scissors or a knife that lasts for a lifetime. However, for others, they are necessary especially for specific purposes like if they have a minor disability and even item collectors of high-quality products.
The biggest selling point of Cutco is the guaranteed satisfaction that the customer gets. It is also beneficial for a sales representative with a big network. If you are looking for a product that you will take pride in selling, then this product is for you.
Sales are not easy jobs. At the end of the day, you will always choose the passive way of making money online. I would rather go into Affiliate Marketing than sell their products that are not affordable to most people.
How I Make a Living Online?
I have created a 4-Figure monthly passive income stream in 6 months time without knowing any programming and coding. I had no idea how to create a website from scratch and knew nothing about affiliate marketing.
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