Devoted to women of color in business

United States consumers, always on the lookout for plastic, cheaper prices, and 99-cent value, have created a system where big-box retailers succeed (to the tune of $315 billion in 2006 revenues last year for Wal-mart). Next time you walk through a drugstore or clothing company, take a look at a some of the tags: you'll find, like I did, that the vast majority of products on every shelf are manufactured in China. With all of these bulk items flooding US markets, there's bound to be accidents, shoddy craftsmanship, or outright hazards, which brings me to today's topic of product recalls. This week's recall of 200,000 Thomas & Friends toys (RCRC)  (http://recalls.rc2.com/recalls_Wood_0907.html) and 425,000 Kolcraft playpens  comes on the heels of last month's recall of more than 20 million Mattel (MAT) toys around the world due to lead paint and other safety problems.

As women business owners, we're always attempting to "buy low and sell high." It's a fact of selling and it's the difference between business success and failure, between profit and insolvency. However, how do we achieve supreme confidence that our products, which have our or our company's name on them, are high quality and more importantly, safe? How do we avoid embarrassing apologies that erode our customers' confidence in us? How do we avoid PR that says our product contributed to the death of a 10-month-old child (U.S. Consumer Product Safety Commission info page on the Kolcraft playpen recall http://www.cpsc.gov/cpscpub/prerel/prhtml07/07315.html)? You definitely don't want to be the face in an apology video like the Mattel CEO here: http://www.mattel.com/safety/us/  You most definitely don't want to be in the paper, the internet, or on YouTube defending damaging information about your company's lax standards. And you definitely don't want to be on the other end of a class-action lawsuit.

Does your company have to be responsible for your product's safety? Common sense would say yes. If our name is on it, and if we want to maintain a stellar reputation and to continue to have consumers flocking to us, this means that we stand behind every single product or service we offer. This means we are proud of what we do, and we feel comfortable using and recommending our products in our own homes and with our own children. This means we do install product safety checks at every step of the way. This means we do *not* find the cheapest bidder and turn a blind eye when there are irregularities, problems, design flaws, or work condition violations. This means we do *not* pretend we don't know what's happening in hopes that we can cash out before the public finds out. This means we do *not* taint the food or use harmful, poisonous chemicals, or dispose of hazardous waste improperly, even unknowingly. This means we take Responsibility with a capital "R".

There are a number of methods to insure product safety, including product checks, auditing, site visits for physical plants, lab tests as needed, third-party inspections as needed, and switching suppliers as needed. I also think customer service surveys, comment boxes, thorough employee training, and a general company culture of quality, safety, and pride will go a long way to increasing the quality and value of our products. Consumers cannot always count on the U.S. Consumer Product Safety Commission for protection, so they also seek out external references and recommendations on particular products.

I encourage women CEOs to consider how our overall trends of outsourcing and manufacturing abroad are impacting our local markets. It might cost up to 80% or 90% less to make your product elsewhere and sell it here for more. However, add in shipping costs, gas, and the loss of training and support for a domestic alternative, and if you outsource it, you're contributing to our current society, where each and every one of us in the United States is in debt by $29,679 and counting http://www.brillig.com/debt_clock/. Our internal manufacturing base is eroding, we are holding "bad" paper money without any precious metals to back it, and we are in debt. This is not sustainable.

If the President of the United States was CFO of a corporation, he would be fired (no stock options, do not pass go, do not collect $200). Any of the people in positions of responsibility at these product recalls are also, in the long run, responsible for losses that their companies sustain "under their watch."

Customers will always choose alternatives that benefit them. Current market trends predict a consumer demand for more organic products and packaging, and more locally-grown, sustainable, green, and eco-friendly alternatives. For example, organic food growth rates in North America are in the double digits, compared to 2-4% growth rate for the entire retail food market. This is predominantly due to health reasons, not for any particular love for organic food in it of itself.

Demand for "buying local," "shopping green," and making choices based on "the greater good" will always be a part of a small segment (~10-20%) of the US population who cares, but the mainstream markets (the other 80%) will most definitely buy products according to self-interest (and what could be more damaging to self-interest than a toy that is harmful to your child, or potentially kills them?)

If a recall is necessary in your product lineup, it's time for you to take a good look at the situations that brought you to this point and to make some changes. For the rest of us, now is also a good time for you to take a look at your inventory and find out ways to improve it, and your brand's image, by moving towards safety, health, quality, and worksmanship.