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But even if distributors do manage to diversify or find a niche to exploit, how long can they stay profitable as larger distributors push smaller ones away with lower prices and huge customer service departments? According to Grayson, in the direct mail market, not too long.
"Direct mail, on a profitable basis, is made for larger companies," said Grayson. "But at the same time, super-huge distributorships can only go so low on price. At some point, it comes down to something more than price."
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