Recall Woes Plague Step-ins
Burton and Emery go the distance
to service customers.
Just days before the Thanksgiving holidaytraditionally
one of the busiest retail sales times of the yearretailers,
resorts, rental shops, and consumers received a bombshell announcement
from binding manufacturer Emery. All SIS step-in 1998/1999 Adult
snowboard bindings, which are sold under the Rossignol, Original
Sin, and Emery trademarks, would have to undergo an immediate quality-control
inspection.
The root of the problem was with the transmission
bar on the bottom of the SIS bindinga part that was subcontracted
out by Emery. On certain affected bindings, and in specific high-vibration
conditions, misalignment of the transmission bar could result in
the rider stepping out of the binding.
A month earlier, on October 30, the much-anticipated
Burton SI system was also recalled when flaws in the automatic engagement
system were discovered. This problem forced some riders to manually
lift the engagement tabs to lock in, instead of having the tabs
automatically engage when the rider stepped into the binding.
How big of a problem were these two recalls?
Burton National Sales Manager Clark Gundlach declined to give an
exact number of SI bindings recalled worldwide. However, industry
estimates says this number is probably around 40,000 to 60,000 unitswith
one estimate as high as 100,000 units.
With the Emery recall, Pascal Joubert des Ouches,
snowboard marketing manager for Rossignol, says 60,000 to 70,000
units were affected: 15,000 pairs for Rossignol U.S., 5,000 for
Rossignol Canada, 5,000 for Original Sin, with the remainder from
international Emery and Rossignol sales and from MLYs U.S.
distributorship of the Emery SIS system.
The total cost of the two recalls could easily
exceed one-million dollars.
Both situations allowed the affected companies
to show customers the lengths they would go to solve the problem
as rapid-response plans were put into place.
Burton Calls Em Back
With the Burton SI recall, retailers and consumers
were instructed to second-day ship the bindings back to Burtons
Burlington, Vermont-based headquarters.
Vice President of Marketing Dave Schriber says
the retro-fit could have been fixed in the field by retailers, but
it was easier to have the bindings sent back immediately (before
too many were sold) to get it taken care of.
"It is totally not a safety issue, its
a convenience issue," he says. "There are two orange indicators
that tell you when youre in. There is no possibility of a
false positive. Sometimes you have to wiggle your foot to get it
to engage, and sometimesno matter how much you wiggletheres
no way its going to engage so youd have to reach down
[to engage it]. To us, thats not a step-in. But weve
got the fix and itll be lightning quick."
There was no good time to catch the problem,
but sources at Burton say only about 35 percent of the step-ins
had been shipped before the recall. "Its still early
enough in the season when not a lot of people are out riding yet,"
Schriber adds.
Burton promised retailers and consumers
that the bindings would be repaired and shipped back by second-day
air within five days of their receipt in Vermont. Although this
goal was not met in some instances, most retailers generally gave
Burton high marks for how it handled the situation.
Repaired Burton SI bindings feature a hologram
sticker on the highback.
The Worst Possible Time
The SIS 1998/1999 adult snowboard bindings
recall couldnt have happened at a worse timefor a number
of reasons. The Thanksgiving weekend represents the launch of both
the busy shopping and snowboarding season, and most product had
already shipped.
Rossignol, MLY, and Emery also placed a lot
of emphasis on the rental market when it came to the SIS binding,
and had negotiated some SIS-exclusive rental deals with some resort.
If these rental shops didnt have product,
each customer turned away would represent a lost rental sale the
SIS-exclusive shops couldve billed the brands forwhich
couldve easily climbed into the tens of thousands of dollars.
"We made it by the skin of our teeth,"
says Marc Bujold, the U.S. snowboard division manager for Rossignol,
referring to keeping these important customers open through Thanksgiving
with product to rent. Bujold says the retrofit was proceeding on
schedule and that 75 percent of the bindings had been fixed by the
first week of December. "We havent received any negative
fallout," he says, "but we really had to jump through
hoops to get it done."
Indeed, Bujold says that when it came right
down to it, Rossignol spent the money necessary to minimize the
impact of the recall.
"We hired a full-time employee to handle
the 1-800 number, we flew in fourteen of our Rossignol reps so they
could see and understand the problem, we worked two shifts on the
Thanksgiving weekend turning screws, we made more than 100 counter-to-counter
courier drops to get the needed equipment to reps so they could
drive to our rental accounts and keep them open."
Bujold says these reps were given carte blanche
to use the necessary resources to make the repairs as quickly as
possible. "I told one rep, You need five guys to make
repairs to the Heavenly Valley rental operation? Hire em!"
says Bujold.
And who will be picking up the tab for these
costs? According to Bujold, a separate budget was formed to keep
track of expenses and when the recall is over, Emery will receive
an invoice for this amount, which Emerys insurance will ultimately
pay. This will also be the case at MLY, according to Sales and Marketing
Manager Mark Miller, who says he was nearly finished with his companys
2,000 retrofits on December 1.
"We arent going out and spending
money like crazy to f*** Emery," says Bujold. "Were
doing this to service our customers and to minimize the impact it
has on their business."
Since Rossignol owns 30 percent of Emery, the
recall renewed speculation that Rossi would endeavor to purchase
the remainder of the company from Owner Robert Emery. Indeed, Joubert
indicated in late November that this purchase might be imminent.
How the recall will affect the asking price is open for speculationbut
a fire sale could be in the cards.
Sean OBrien and Robyn Hakes
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