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12 January, 2012
Dear Sirs,
We have received your letter of January 10th, this year, in which you ask us to grant you a discount of 25% off the price offered by us in our draft contract for the delivery of equipment and materials for the extension of the poultry farm. In doing so, you refer to our Contract No 4 for the delivery of equipment and materials for the construction of the farm.
1_______ that we cannot meet your request because of the following reason:
You consider that the prices of this kind of equipment have gone up by 20% since the time of signing our contract, i.e. for 6 years. According to the price indexes put out in USA and UK, however, the average annual rise in prices of machines and equipment makes 8-10%, i.e., 48-60% for 6 years, which corresponds to the 60% price rise accepted by us.
Meanwhile 2_______ to the fact that the equipment intended for delivery meets modern requirements and its level of automation is considerably higher than that of the equipment supplied before.
With this we are sending you our calculation of prices of the equipment and materials ask you to consider the materials which, we are sure, will help you to accept our proposal. 3_______
Yours faithfully,
4_______