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CUTCO Review (MLM or Pyramid Scheme Scam?)

Kitchen knives are a big help to our daily routine in the kitchen. Many of us know that there are brands of knives that we are comfortable with, easy to handle, good cutting performance, robust, blades that are not easily worn off, and one of the best there is is that a company that offers lifetime warranty. CUTCO is a company that has been the talk of the town since the early 80s because of its durable kitchenware and other cutlery products, but are they really worth it?

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CUTCO started first with Alcas (Alcoa and Case Cutlery), a company that mass produced kitchen knives, sporting knives, shears and flatware in 1949. The company boomed when small businesses in the same industry started to become distributors of their product in 1982. The one company that stood out in sales is the Vector Marketing Corp, which then led to the company buying Vector in 1985 and it became the marketing department of CUTCO. 

The cutlery company is now headed by the CEO, Jim Stitt. He still continues the company’s vision, to instill personal growth to their employees and for them to pursue the best version of themselves while, of course, earning money. The only job of CUTCO is to manufacture these cutleries for their distributors to sell. It is Vector Marketing Corp.’s job to seek and employ people who will do the advertising and selling part.

Their sales representatives are mostly those who just finished high school or are in college as of the moment. They’re known to be the largest recruiter of undergraduate students in the US. They’re not a fan of using the internet or ads to promote their product. What they do is they make demonstrations first to their warm market, (e.g. family, friends and even neighbors), and it has been successful throughout the years since they’ve generated sales despite the high price of the products.

Becoming one of their sales reps is not that hard since it is free because how can these students that they hire be able to pay a fee for joining if they’re just students? So yes, no cost for joining Vector and they will also lend you a Cutco sample set for you to use in your demonstrations when meeting up potential customers. And if you decide that this kind of setup is not for you and quit, then you just need to return it to them.

Sales representatives will earn a base pay of $17.25 for each successful demonstration to their potential customer. A pay for demonstration is what sets the students to apply to this company since they’re not required a monthly quota or whatnot, it will just be a pocket/extra/side or whatever you call it, it is still money in the eyes of a student which can support their studies (hopefully) in some way. 

How can they afford such tactics? The company has this conviction in their line of products. They say that anyone who has seen Cutco cutleries will definitely buy something and each successful sale the reps made will earn them 10% commission. But I think the enticing part here is that they offer lifetime warranty and yes, you read that right. This is what makes these customers want to try this product.

This lifetime warranty which they call the Forever Guarantee  is what sets the price of CUTCO’s products a little more expensive than other kitchenwares out there. If you’re not satisfied with the performance of your knife, you can either send them back within 15 days and get a full refund, or if you still wanna try it out, they will replace it immediately. They also offer resharpening of blades and a 50% off for an item replacement if you ever misused or abused the item.

And naturally, these come with consequences. Many people have complained about bad customer service. It’s either the sales representative which they bought the product from ghosted them (didn’t reply anymore) or the customer service itself is not responding to any queries these customers have to ask. You can never tell a good product unless you try it yourself, right? That’s why products like these are best when doing one on one demonstrations with the one who is selling it, but be careful, we are talking about knives here.

CUTCO is neither an MLM nor a pyramid scheme scam. It is a single-level direct sales company in which the Vector Marketing Corp handles all the recruitment of sales representatives. They can never make a downline and make profit in recruiting, they’re just a company that sells kitchen knives/sets, kitchen accessories, sports knives, and now they also offer garden tools and gift sets.

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