A Letter to Decline Vendor proposal due to Lack of Understanding

Dear (Name of the person),

I really appreciate all the time and effort you have put in to make a proposal for our firm. Unfortunately, despite your best efforts I had to inform you of the heavy heart that we have not chosen your proposal. There are always different people in different areas, the demands and taste of the preferences of the people always vary with the places where they live. In your proposal, we have found high prices with a large number of varieties of the products. This combination can definitely get approved in metro cities but the proposal that we needed this time is for the small towns.

In these areas, people have no interest in a large variety of products and also they are never willing to pay high prices for any product. So, for this market, you have to be very careful while submitting a proposal. Your proposal should always be flexible according to the market and customers.

We have to face so many challenges in choosing the best proposal. Also, we have to see it in every aspect and cannot neglect the needs of the customer. We appreciate that you have a sense of how the market functions but the proposal you suggested is not suitable for this kind of market. 

I hope you will take my suggestion as a positive note and will not mind anything. Thank you for submitting your proposal. I definitely look forward to a better proposal from you.

Regards,

XYZ

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