We have acknowledgement of your letter of June 10 offering us 3000 dozen of the captioned goods at US $35.00 per piece CFR Vancouver on the usual terms.
In reply, we very much regret to state that our end-users here find your price too high and out of line with the prevailing market level. Information indicates that the price of your products is 20% higher than that of the Indian origin.
We know clearly that the quality of Chinese products is slightly better but the difference in price should not be so big .Such being the case, it is impossible for us to persuade our end-users to accept your price as material of similar quality is easily obtained at a much lower figure.
To step up the trade , on behalf of our end-users, we counteroffer as follows, subject to your confirmation reaching us before the end of this month.
At$26.00 per piece CFRC2% Vancouver, other terms as per your letter of June 10.
It is in view of our long-standing business relationship that we make you such a counter-offer. As the market is declining, we hope you will consider our counter-offer most favourable and fax us acceptance at your earliest convenience.