When you no longer need the services of a vendor, follow the terms of your original contract or agreement in canceling services. If you have a contract that stipulates a certain amount of notice, typically 30 days, honor that as well.
Format Your Letter
Format your letter on company letterhead and address it to the owner of the company or the sales representative who serves as your point of contact. Reference your account number, attach a copy of your original agreement and state your request at the beginning of the letter. For example, “Per the terms of our original contractual agreement (attached), I'm providing 30 days notice to terminate our vendor agreement (customer #11111). Services will no longer be required after June 1, 2015.”
Explain Your Rationale
Explain why you’re canceling your service. For example, “We’ve decided to take our marketing services in-house and will no longer require the services of a consulting company.”
If you’re canceling because you had a bad experience with the company, and you opt to bring the issue to their attention, do so professionally. For example, “Unfortunately, during the course of our working relationship, deliveries were consistently late and your service unreliable.”
If you’re cancelling because of poor service or cost, make at least one attempt to voice your concerns and allow the vendor to rectify the problem or offer a new price point before you sever ties.
Wrap Things Up
Request a final invoice or include a final payment in your cancellation letter. If there’s equipment to be returned or loose ends to wrap up, note them in your correspondence. For example, “The copy machine we rented from your company will be available for pick up any time after June 1.”
Part on Good Terms
If you had a good relationship with your vendor, conclude on good terms. For example, “We appreciate your consistent on-time service during the last several years and will be happy to serve as a reference for future clients.”
If your working relationship was less than ideal, a professional signoff is all that’s necessary. “Thank you for your prompt attention to this cancellation agreement. I look forward to receiving final paperwork finalizing our professional relationship.”
Consider making a personal phone call prior to issuing a written letter of cancellation. This allows you to part amicably and leaves the door open to a good future relationship if you need the vendor’s services again.