June 3,
2007 Dear Sir or Madam: I enclose our new price list, which
will come into effect, from the end of this month. You will see that we have
increased our prices on most models. We have, however, refrained from doing so
on some models of which we hold large stocks. We feel we should explain why we
have in creased our prices. We are paying 10% more for our raw materials than we
were paying last year. Some of our subcontractors have raised their prices by as
much as 15%. As you know, we take great pride in our machines and are jealous of
the reputation for quality and dependability which we have achieved over the
last 40 years. We will not compromise that reputation because of rising costs.
We, therefore, decided to raise the price of some of our machines. We hope you
will understand our position and look forward to your orders.
Faithfully yours,
John Smith
Sales Manager What does the company produce