Don’t let recalls or safety defects erode customer confidence!
These situations can be easily avoided by allowing IMANNA Laboratory to test and certify your products to applicable standards recognized by the U.S. Coast Guard.
The indirect costs stemming from a recall as well as the damage to a company or product’s reputation and loss of sales are significantly large. You can purchase additional insurance and hope you never need it or you can reduce your risk and have IMANNA Laboratory certify your product and have the peace of mind in knowing your product is compliant.
What are the top 5 impacts to your business?
Business interruption or lost profits.
The highest recall costs come from business interruption. Companies (or their suppliers) may have to close plants for short or long periods of time, while the regulatory body conducts its investigation.
Recall execution costs.
Cost drivers may include storing, transporting or destroying products, supplying replacement products, or public relations to manage reputation or brand damage.
Brand protection, Reputation damage or loss of Brand Equity.
The need to protect the brand is heightened when the product and the name of the company are the same. However, damage to the brand or company reputation is difficult to quantify and challenging to recover financially. The importance of brand protection is only outweighed by the health and safety concerns of the consumer. Cost recovery is a secondary concern.
Recalling companies may face potential liability for bodily injury to consumers or property damage to customers. The costs of litigating those claims can equal or even exceed the ultimate liability. These claims also may include claims for customers’ lost profits or business interruption, which can be very costly to litigate
Supplier issues that may make cost recovery difficult include difficulties in tracking supplier contracts or supplier insurance documentation and preservation of supplier business relationships.
You can mitigate your risk today! Contact IMANNA Laboratory and learn how we can help mitigate the negative impacts to your business and protect the reputation that you’ve worked so hard to build.