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However, due to high levels of increased competition, gross margins have been deteriorating. Distribution is limited, as most of it is done by Sorzal itself in the form of firm-sponsored showings, and some specialty shops and exclusive department stores. Sorzal acts as a middle man, insofar as it imports from suppliers and distributes to dealers. Dealers are beginning to alter their purchasing strategy and have begun buying directly from suppliers, removing Sorzal from the process. Sorzal has been offered a contract by a mass-merchandise department store that obligates Sorzal to triple replica production, but would result in add an estimated $1 million in sales...
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