There are certain causes of terminating a business relationship. First, when a manufacturing business is no longer satisfied with the way his supplier delivers his orders.

An example is when there are delays in the delivery of his orders or error in shipping out the raw materials. Second, the price of the raw materials is too high for the buyer.

Naturally, the buyer will look for suppliers who will give them lower price quotations. The present economic situation is not good because of the fact that recession affects the entire United States and even countries in Europe.

Here is an example of a letter on how to terminate a business relationship.

SAMPLE

November 01, 2010

John Smith, Business Manager
Alpha-Omega Corporation
1234 Narrow Road
Rainbow, PA 10987

Anthony Grier
2345 Antioch Drive
Queens, NY 02345

Dear Mr. Grier,

In view of the losses our business incurred these past months, I am constrained to ask your kind understanding and consideration to terminate our business relationship. I am encountering strong business rivals because the price of their product are cheaper and delivered on time to the satisfaction of their customers. I am right now scouting for business establishment that can provide stocks which are cheaper and with a more reliable delivery service so as to compete with my rival. I can easily compete with them as long as my needs are met on time.

I know that you are aware of my previous complaints about the delayed delivery of my orders. I have sent three letters to your office regarding the delays. The delay happened not only once but four times in a month. All the stocks I ordered were not delivered on time. I have been a long time customer of your company. Your records will show that I always pay on time and I do not ask for any extension for me to pay the balance.

Business nowadays is really very competitive. My customers are also very demanding. If I deliver the goods at a later date, they will no longer order from me. Of course I cherished my business dealings with your establishment and if only you could provide my business needs in these changing times then I am willing to start anew with you and your establishment.

John Smith
Business Manager