1. Short-term recommendation implementation
Based on our recommendation, the procedure has two steps and both of them should start immediately by Black Diamond. The first implementation is executing the inspection and exchange policy right after the emergency meeting. The second is sending out the cautionary label for the Black Prophet as a super addition to the products.
For this action, the cooperation of the distribution partners is needed. The first of them we need to reach are the independent retailer stores. Since the black prophet has already sent to the retailers, soon those products will appear on the shelves. We need to contact those retail stores to process an immediate inspection on the products. Since most of independent retailers are located in mountain area, store personnel are experts in the special tools and applications for their regions; Black Diamond does not need to send a technician to those retailers to do the inspection. We can fax the inspection material to those retailers and let them do the inspection. This will required a $10 per axe inspection fee paid by Black Diamond to the inspectors. Black Diamond can do the same to its own retailers. As to the mail-order customers, Black Diamond will send them a mail saying that customers could get a whole set of climbing tools, which could be set as the expenses from promotion, provided by Black Diamond for free as long as customers find any defection of Black Prophet. Black Diamond will send three technicians to those wholesalers to do the product inspection.
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