• CUTCO has done studies to determine whether website sales hinder direct marketing. It has been established that online sales do not impact direct sales opportunities.
• In 2011, CUTCO received 56,000 orders from internet transactions, using an operating margin of 9%.
Catalogs.
• Vector uses catalogs to offer direct sales customers the ability to place orders during the whole year, rather than during only the summer months.
• When an existing client submits a catalog order, that client's original sales representative still collects a commission.
• In 2011, CUTCO had 120,000 orders from catalog sales, using an operating margin of 9%. .
Retail Stores.
• In 2006, CUTCO opened its pilot store with three main objectives: to test the market for retail sales, to determine the effect of retail sales on direct sales, and to find out whether the customer demographic would be alike or differ from present customers. .
• The opening cost of the pilot store was in the region of $150,000 and was anticipated to earn annual revenues of $250,000 to $300,000.
International Sales .
• CUTCO initiated international expansion in 1990 by crossing into Canada. .
• Sales in Canada now account for about 6% of total revenues.
• CUTCO International has achieved marketing endeavors in Korea, Australia, Germany, Costa Rica, and the United Kingdom.
• In 1999, CUTCO's operations in Germany were changed to independent distributorships due to losses.
• In 2001, the Australian operation was canceled due to losses.
• On average, the cost to enter a country is approximately $15 million.
• The operating margin for CUTCO International is approximately 2.5%.
Additional Marketing Channels.
• Vector Marketing has operated sales booths at county fairs with great success.
• Vector Marketing has also enjoyed moderate success offering its products to real estate agents to give as gifts to home buyers or other potential customers.