We will end up holding your goods for apprximately one year due to the color pallet not being appropriate for the US consumer market after the middle of September. The interest we will pay for financing this additional inventory for one year will be approximately $1400.00.

I propose that ABC(our company) split that amount with XYZ(vendor) and we deduct $700.00 when we make the final payment. I realize this is not an insignificant amount to XYZ. However, ABC cannot absorb every additional expense due to late delivery of product from our groups.