Pricing Structure Adjustment

Business Letter

Dear …

RE: Pricing Adjustment

Over the last __(# years)__, we have managed to keep the prices of our __(type)__ products down for our __(distributors/dealers/etc.)__ through various means, including discount incentives. Even though we, ourselves, have experienced increased manufacturing expenses over time, adjustments were made internally in our organization to offset those rising costs. We have been aware, however, that if the trend of increased manufacturing costs continued, we would inevitably have to make some changes to our product pricing.

Regrettably, we have now reached the stage were the rising costs of manufacturing has left us with no alternative but to implement a pricing adjustment to our products. Please be informed that effective __(date/immediately)__, __(Name of organization)__ __(will/is)__ __(no longer be offering a –type– of discount/be implementing a __% increase on our –type– products/etc.)__. With __(this marginal increase/deletion of this discount)__, we’re pleased to report that __(our products still remain highly competitive/we were able to avoid an overall product increase/etc.)__.

Price changes are not often well received but, occasionally, economics dictate the necessity. We thank you for understanding our position in this matter and look forward to your continued business.

Yours truly,