Examples of letters

1. General outline of policy by importer buying cook sieves.

Dear Mr. Smirnov, London,20..

Plastic Rim Cook Sieves¹ 18/25 cm

I should like to refer io Mr. Snyder's letter of the 19^th July, your reply of the 18^th July, and your further letter dated the 1^st August regarding² the above subject.

Your Plastic Rim Sieves were first offered to us last year at the price of 6.6 USD. Trial shipments were made to test the market, and it was found that they were satisfactory at this price. Subsequent repeat orders⁸ were placed with you.

Unfortunately you found it necessary to increase the price by about 15 per cent to 7.6 USD. This, we think you will agree, was a tremendous⁴ increase for us to absorb⁵. Nevertheless, during the meeting with you in Moscow in March, we agreed to take a further quantity at this increased price of 7.6 USD. Then I stated that if it were possible for us to obtain suitable price for the Sieves, we would be willing to pay a little more also for further business.

Since March we have made sales of this article at satisfactory prices, and it is hoped that the association between us can be kept and improved by bigger and more regular business in this line. This, however, is very difficult indeed when each time we place repeat business, we find a considerable increase in price.

Quite a large amount of your first increase from 6.6 USD to 7.6 USD could not be passed on immediately to our customers, because the African is slow to accept⁶ even small increases. It was, therefore, necessary for our company to absorb the majority of your approximately 15 per cent increase. Efforts were made, of course, to obtain better selling prices in West Africa in line with your increase to 7.6 USD. In this respect we were not entirely unsuccessful⁷, hence the reason for placing our more recent order No. 05834 for 1,000 sets for North Nigeria.

You now, however, tell us that you have raised your price to 8.6 USD, a further 13 per cent increase on your last price..On this increase of 1.0 USD per set, FOB, we have to pay 10,per cent duty⁸ on Sieves shipped to Nigeria, which makes your increase more than 1.1 USD per set.

As mentioned earlier in this letter, I would like to see the Plastic Rim Sieves shipped regularly to West Africa, but this can only be done by cooperation from both parties⁹. It is felt here that a fair price for the order in question would be in the region of 7.1 USD per set, but in the hope of long-term business association, 8.2 USD would be accepted by us, even though it means marketing the sieves at the smallest of profit margins. It is possible that at 8.2 USD we may sustain losses¹⁰, but these losses may be regained at some future date when the Plastic Rim Sieves are more firmly established.

Would you please, therefore, look again at your costs and cooperate with us by accepting our order No. 05834 at 8.2 USD per set. You can rest assured that as soon as a satisfactory figure is achieved and maintained, regular orders of a considerable size will follow.

It is possible that I may come to the Moscow Fair on the 1^st September. If this visit materializes¹¹, it will be very pleasant to meet you again and discuss future business. In the mean-time¹², please do everything you can to accept our present order at 8.2 USD per set.

Yours faithfully,

2. Exporter justifying increase of price. Dear Sirs, Moscow, 20..