Published by the Students of Johns Hopkins since 1896
May 2, 2024

Someone's in the kitchen with controversy - Major student employer has received plenty of complaints over the years. What's the real story?

By Jeff Katzenstein | September 4, 2003

It was Willy Loman, the tragic main character of Arthur Miller's Death of a Salesman, who said that "a salesman is someone way up there in the blue, riding on a smile and a shoeshine."

Perhaps Loman was right, or maybe it just depends on for whom you're working.

The irony of Miller's famous play still rings true today, as hundreds of students have become frustrated with both the sales profession in general and more importantly, the sales practices of a certain company.

The company is Vector Marketing, a corporation that handles the sale of Cutco knives and accessories.

Haven't seen Cutco in stores? That's because they're only sold through direct selling, meaning through a sales rep in a one-on-one setting. Vector touts its selling methods as advantageous for the buyer and the seller.

"Historically, direct sales have provided individual entrepreneurs with the opportunity to bring a product to market without having to compete with large companies for shelf space," explains Sarah Baker Andrus, Vector's Director of Academic Programs.

Andrus says that the consumer also benefits from a direct sales setting, since they are able to see the features and benefits of the product through a presentation, and witness how well the product actually works.

As far as money goes, the opportunity for students is immense, as they can make anywhere between 10-50 percent commission from what they sell, depending on how much they've sold throughout their careers. With knife sets that can cost around $1,000, most employees have no problem getting paid by commission.

"Everyone recognizes, to a certain extent, the quality of the product," says Mike Gnade, a junior at Tufts University who worked for Vector over the summer.

Hopkins Junior Emma Saunders, who worked for Vector this past summer, was among the top 15 sellers in the country for the three months that she worked out of Vector's Bergen County, N.J. office.

"I made weekly paychecks that were the equivalent of what I used to make during whole summers," says Saunders.

In addition to her hefty summer cash haul, Saunders earned a $250 scholarship from Vector for selling so much.

However, in addition to the many employees who have made incredible amounts of money for the company, there are also a growing number of former employees who are unhappy with the company's business practices.

How bad is this anti-Vector sentiment among former employees? Only two moths ago, a group of college students founded an internet group they call Students Against Vector Exploitation (SAVE). Although SAVE only has 45 members, their internet petition against Vector has over 1,400 signatures.

The core of SAVE's mission, according to their website, is to spread the word about Vector's "misleading" practices and eventually force the company to change the way it does business.

Vector, which hires mostly college students, initially brings in potential employees for individual preliminary interviews that reveal very little about the company. A select number of them are presented with a group demonstration that can last well over an hour and are then interviewed to gauge their interests.

Employees learn that they will be setting up their own appointments to sell knives, first to family and friends, and later through referrals collected from those people. Although sales reps must call people to schedule appointments and perform demonstrations in the homes of potential customers, Vector claims in many of its ads that the job requires "no telemarketing or door to door" sales, since its phone calls and sales presentations are not with complete strangers, and reps do not sell over the phone.

If hired, employees must attend an unpaid, three-day training period during which they learn more about the company and what they will be doing.

In addition, students are taught how to sell the knives through a step-by-step method to which employees are often encouraged to add their own personal touches. They are taught how to set up appointments, respond to excuses, present the knives and close the sale.

SAVE refers to such group settings as "cattle call interviews," and members have been known to stand in front of offices before the interviews to warn potential employees about the company. Still, Vector remains proud of its interview practices.

"The interview process is one of the most thorough company orientations that's out there," claims Andrus. "We provide extremely detailed information on who we are, what our products are, what the job is and how people will be paid."

"As far as accepting a position, you know what you're doing," says Saunders.

"When you're first starting [to sell], it seems a little shady," says Gnade. "But it's really not a big deal; most people say no if they don't have time for you."

The problems with Vector, according to SAVE, begin from the minute a potential employee spots the ad in the paper that usually only tells of a student employment opportunity that pays $13-$20 per appointment. The way payment works is that sales reps are either paid the minimum per appointment (whether they sell or not) or paid by commission, whichever one is more. Through this payment system, Vector claims that its employees are not driven by commission.

It is partly because of these ads that SAVE claims Vector's practices are misleading. They aren't the only ones to make such claims.

In 1998, the Australian Competition and Consumer Commission found that Vector Australia had violated Australia's Trade Practices Act. Vector was found to have "engaged in conduct ... that was misleading or deceptive or likely to mislead or deceive" through their advertisements and oral representations of the company.

Vector sees it differently.

"An advertisement is never intended to give the whole story," says Andrus. "Anybody who sees a work advertisement and thinks that everything will be disclosed in the ad isn't approaching it the right way."

The list of grievances on SAVE's website goes far beyond the interview and training. SAVE has a problem, for example, with the fact that Vector makes sales reps purchase or rent their demo set of knives. Although the price is deeply discounted, the cost is still over $150. Vector is able to do this because its employees are legally considered independent contractors, not employees.

SAVE believes that Vector encourages reps to "deceive a potential customer over the phone ... so they can get their foot in the door". The group has further concerns with representatives' legal status as independent contractors, because they are treated like employees when encouraged to attend meetings and pay for conferences.

The complaints of former Vector employees have already made waves. In addition to Vector's legal troubles in Australia, they were slapped on the wrist in 1994 for deceiving recruits in Wisconsin.

Despite the growing number of students who feel the company has manipulated them, many employees see a different picture.

"I feel like the people who quit in training were probably expecting something easy, like the company booking appointments and not caring about what they sell," Gnade explains.

Gnade also adds that different offices around the country differ in the way they train and encourage their recruits. Some stress the sale, while others stress the product.

Junior Mike Kong, who worked for Vector during the summer of 2001, agrees. "Unless you're highly motivated and have a lot of self discipline, you won't get anywhere."

"There will always be people who find something wanting, whether it's with Vector or another company," says Andrus. "Sales is not for everyone."

Gnade feels that many of the former employees who complain about Vector simply weren't cut out for the job.

Saunders continues to sing Vector's praises, and not just because of the money she made.

"The basic lesson [Vector teaches] is that you can get whatever you want as long as you work hard enough," says Saunders. "I don't know if there's a better lesson you can teach to college students who are going out in the world and figuring out what they want to do with their lives."

Scam or not, Vector marketing continues to sell over $250 million in knives annually, despite the numerous protests by former employees.

"Over the years, Vector has consistently responded to concerns about our business to the satisfaction of everyone," claims Andrus. "If anyone from SAVE wants to address concerns, we can promise them our complete attention."


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