Express regret that you couldn't help the customer this time but set the stage for the future. Although you lost this sale, take the opportunity to generate interest in other products. Enclose a brochure, catalogue or flyer highlighting other merchandise.
1234, Main Street
Boston, MA 02123
03/16/05
<Recipient Address Goes Here>
Hello.
We are sorry that <product being returned> is not what you are looking for. <Optional alternatives>
<Refund handling>.
I regret that we couldn't meet your needs this time but look forward to serving you in the future.
Regards,
Jim Karter
encl: <List of enclosed items goes here>
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