The Product Recall That Could’ve Ruined Us—And Why It Didn’t

Written By: Brad Pedersen

In 2011, I was running a fast-growing toy company.  We had developed a very successful product line of snow sleds and had been achieving spectacular sales in North America and Northern Europe

Our latest creation, the Snow MX—a hybrid between a snow bike and a scooter—had just hit the market. Retailers were enthusiastic, placing substantial orders, and we backed it with a significant marketing campaign.

However, shortly after the product launch, we began receiving unsettling reports. Customers were experiencing failures with the front ski, leading to accidents and in some cases, injuries. 

We initiated an investigation to figure out why this was happening. In the end we discovered that in order to save costs, our manufacturing partner had substituted materials in order to cut costs. In an effort to improve their bottom line they had arbitrarily decided a lower grade material could be used in the manufacturing process.

The Crossroads of Crisis

There comes a moment in every entrepreneur’s journey when faced with a difficult decision that could harm the enterprise, that fear offers a tempting shortcut. For us, that meant pointing fingers—blaming the manufacturer or downplaying the defect entirely. 

We faced a critical decision: ignore the issue and risk further harm, or take responsibility, initiate a recall and work out a solution.  The financial implications—millions in inventory and huge potential losses—were staggering and could jeopardize the business.  

We knew that while doing the right thing was not the easy thing, it was in the end the only thing we could do to respond. So when faced with the decision to either protect the company, or prove our character; we chose the latter.

Why was such a difficult decision ultimately easy to make?

Because from day one, we built the business on a foundation of core values—not marketing language or motivational posters, but principles meant to shape how our team would lead, act, and respond.  Chief among them: Live with integrity and do the right thing.

It is one thing to say it, another thing to live it and it is during these moments of crisis that your true character is revealed.

When Integrity Gets Expensive

It isn’t just about making the right choice when it’s easy—it’s about standing firm on your beliefs and values when the stakes are high. We knew the recall would be painful—logistically, financially, and relationally. To make matters worse, our factory offered little support. We were on our own.

But instead of backing away, we leaned in.

Guided by our core values, we chose to face the music. We approached our retail partners not with excuses, but with humility. We owned the problem and asked for their partnership—not in blame, but in finding a resolution that could work for everyone. 

We proposed a path forward: no sweeping refunds or returns, but a hands-on rework of every unit in inventory. We’d replace the compromised parts and set up customer support to manage replacements directly with end users.

It wasn’t a perfect solution—and they had every right to demand more. But they recognized that we were taking full ownership and doing everything we could with the resources available.  To their credit, they chose partnership over punishment. They accepted the plan and stood with us as we began putting it into action.

It cost us time. It cost us money. Our team worked tirelessly and it required incredible fortitude and patience to resolve. 

Looking back, it was one of the most challenging moments of my career. However it was also one of the most rewarding. Because it proved something simple but profound: It’s easy to say your core values matter. But it’s only real when you’re willing to live by them.

It’s one thing to aspire to integrity. It’s another to live it when there’s a price to pay. Crisis doesn’t just test your values—it proves whether they ever truly belonged to you.

When Doing the Right Thing Pays Off

What surprised us most wasn’t that the plan worked—it was what it built along the way: trust.

Our partners didn’t just hear about our convictions; they witnessed our commitments. Through every hard conversation and our team's willingness to fix the situation, they saw who we really were. As a result, instead of stepping back, they stepped closer.  

The following year, instead of the business declining, we grew. But that growth wasn’t just measured in revenue. It showed up in stronger relationships, restored reputations and most importantly, a defining story that proved our values mattered.

We had walked through the storm without compromising our values. And in doing so, we didn’t just protect our values—we proved them.  The truth is your real values are not simply statements, it's the decisions you keep making, especially when it costs you something.

It’s easy to write value statements.  It’s harder to live them when there’s something at stake.

But that’s exactly when they matter the most. When the cost is high, when fear creeps in, when no one would blame you for choosing the easier road — that’s the moment your values stop being words and start acting as your compass.

Living by your values doesn’t always lead to immediate wins. However ultimately it leads to lasting ones — the kind that build companies, relationships, and ultimately your legacy.

The Takeaway: Say It, Then Do It

When I look back, I’m proud of how we showed up when faced with such a daunting challenge. Not because we got it perfect — but because we never compromised.

Maybe you have never taken the time to get clear on the core values that will guide how you show up in your business or your life. If you have not I would encourage you to invest time to do so, as without them you are like a rudderless ship tossed in the waves lacking direction and easily blown off course with the prevailing wind of the day.

Perhaps you do have core value and you’re in a hard season right now — maybe a product failed, maybe a deal’s gone sideways, or maybe you’ve let fear steer your choices.

Know this: 

Your values are there to guide your choices.  

The choices you make, ultimately make you. and then the choices make you. 

Decisions led by values are what build something enduring.

So ask yourself:  Are you living by values that are just easy to say or will guide your actions even when it hurts? 

As business leaders, the world doesn’t just need our wins — it needs our witness. It needs leaders who don’t trade truth for comfort, who build not just companies but character.

You can’t build a legacy if you’re not living one.

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