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I assume that you mean the distributor sells more of the competitor's products

In "1)' above, I assume that you mean the distributor sells more of the competitor's products.  

Do you have a relationship with someone in the distributor's firm with whom you could discuss the problem, al least as a hypothetical?

Do you eliminate the distributor? posted by STM
I assume that you mean the distributor sells more of the competitor's products posted by CarolineWhitbeck