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The wholesale distributor then begins promoting this new electronic mp3 player by contacting their retailers and offering them deals, specials or whatever it takes to get the new product onto the retail market. They sell these new items to the retailers for an increased price to allow the wholesale distributor to make a profit. However, they attempt to keep the price low enough to be competitive and to enable the retailer to purchase the product at a fair enough price to allow them to be profitable as well.