Request For Rate Increase Sample Letter

Mug Heat Wraper . (Pvt) Ltd

Attn: Mr.Fradial

January 21, 2024

REQUEST FOR RATE INCREASE

Respected Sir,

We are proud to be a strategic business partner with an esteemed organization like Mug Heat Wraper . (Pvt) Ltd. Good partnership, however, also includes remembering each other at right time whether it may be a matter of providing services or of Increase in Rates. In past we have been periodically requesting you for increase in rate but we could not get any rate increment. Rather on the positive side, we always have a promise from you for increase in rate in near future.

It is obvious that due to gigantic wave of inflation in last three years, the cost of production has shoot up tremendously. Following is a short review of price hike:

            ITEM                                    RATE                               % INCREASE

                                    JULY 2007        DECEMBER 2010

–          PAPER                  Rs.45/kg                  75/kg                                 67%

–          INKS SET               Rs.1,390/-         Rs.2425/Kg.                       74%

–          Electricity Unit (Avg)Rs.6.75            Rs.11.25                         67%

–          USD RATE             RS.60/-             Rs.86/-                                    43%

(The above stated sharp increase in prices is due to increase in price of paper & board in international market, increase in $ rate, continuous load shedding as well as increased rates of electricity & petroleum prices, duties structure change affecting increase in Excise & Sales tax rate, Income tax rate increase on imports, imposition of 15% G.D. duty, 1% RD) plus other allied clearing expenses.

We are making the supply at old rates to you from almost last three years and at present these rates are much below the cost price i.e. on loss. Keeping in view the above mentioned factors, you are requested to kindly increase the rates of following items. These rates will be valid for next one year.

We are sure that you will come forward to help us to face the crisis situation and to save us from loss due to horrendous cost difference. We are hoping for a favourable and sympathetic consideration of our request.

Thanking you in anticipation.

(Chief Executive)