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In fact, Goodwin has noticed that with the increased competition, some manufacturers are price cutting, possibly as a way to service company debt.
He explained that manufacturers typically have to run mailers using carbonizing bond paper, which only two mills produce. "We've checked the prices for them and we are buying from the same people and paying the same amounts for base materials as other manufacturers, but somehow other manufacturers are selling mailers a lot cheaper—sometimes several thousands of dollars below my cost," he said. "They are either buying materials extremely cheap, their labor costs are extremely low or, as I stated before, they are trying to get work to service debt."
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