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Pesci-Jones and Ghelerter both agreed that those who engage in price cutting to increase profits are headed for trouble.
"As a to-the-trade-only manufacturer, we have competition from printers who sell both direct and to the trade," Pesci-Jones explained. "When the economy slows down, Stylecraft doesn't have the direct sales and the higher margins on those orders to fall back on. Some distributors buy only on price, often not realizing that the printer they're buying from has a direct sales force or that when business picks up, that printer will no longer sell at cost just to keep the presses busy."
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