Vector Marketing
Vector Marketing is the sales arm of Alcas Corporation, the Olean, New York-based company that makes Cutco knives.
Salespeople, most of them college students and recent high school graduates, sell the knives in customers' homes. Vector aggressively recruits students through newspapers, direct marketing and posted advertisements. Their flyers advertising high-paying "student work" are a common sight on many college campuses in the United States and Canada.
Vector's marketing and recruitment techniques have generated much controversy. Some have accused Vector of misrepresenting its base pay rate, typically about $15 per appointment, as an hourly wage. Vector counts its salespeople as independent contractors, much like Amway, Mary Kay and other multi-level marketing organizations. Legal overtime and training pay requirements do not apply to independent contractors. Before beginning work with Vector, new salespeople must purchase a discounted display set of Cutco knives from their own funds. Because of this, students who don't make many sales or quit after a short time may ultimately lose money. A study by the Wisconsin Consumer Protection Department found that out of 940 recruits, almost half either made no money or lost money selling knives for Vector. In addition, Vector's recruitment materials have not always been clear about the nature of the work. Potential salespeople often know little about the type of work they will be doing until training begins.
Vector and its supporters argue that the company gives students valuable real-world business experience and job opportunities that are otherwise scarce for college students. They also point out the prizes and scholarships offered to high-performing salespeople.
