Here is a corrected version of your email, followed by a simple explanation of the changes.
Dear Anita,
Thank you for your proposal. However, due to a significant increase in your price and our tighter budget this year, we have decided to accept the building services provided by the fair organizers. Consequently, we will not require your services at this time.
We appreciate your understanding and hope we can work together in the future.
Kind regards,
[Your Name]
Step-by-step explanation (simple):
- Start politely: I added "Thank you for your proposal." It makes the email friendly and professional.
- Clear reason: I changed "considerable increase in your price offer combined with our more constrained circumstances" to "a significant increase in your price and our tighter budget this year." This is shorter and easier to understand.
- Formal wording: "We have decided to accept" is more formal and clear than "we decided to go with." Using "have decided" sounds polite and complete.
- Softer refusal: "We will not require your services at this time" sounds less harsh than saying you won’t need them at all. It leaves the door open for future work.
- Polite closing: "We appreciate your understanding and hope we can work together in the future" keeps the relationship positive.
- Signature: Add your name (and job title or contact details if needed) after "Kind regards," so Anita knows who sent the message.
If you want an even shorter version, you can remove the first sentence and start with "Due to a significant increase in your price and our tighter budget this year, we have decided to accept the building services provided by the fair organizers." But keeping the polite opening is usually better in business emails.