How does Loupe Pricing work for vendors?

This article will explain how Loupe calculates a supplier's subscription fee based on their aggregate Customer Usage data - in other words, the value the vendor derives from our services.

How is vendor pricing calculated?

You pay in line with the business value that you receive from our platform. We track this value by counting the number of active customer SKUs associated with products in your Showroom.

Here is how it works:

1. Pricing is based on two types of retailers: Enterprise retailers (majors) and all other retailers (independents)
2. We calculate your average selling price across all the products your retailers have applied SKUs to identify your price-point cohort
3. We use your price-point cohort to define which SKU count matrix applies to your company
4. We count the number of active SKUs each retailer type has added to your products, and use the higher of these two measures to define your tier
5. The tier defines your annual license fee

 

Subscription Tiers by Average Selling Price:

There are three different price-points that each carry unique Active SKU thresholds which in turn define your Subscription Tier:

Super Low: Less than $10

Entry: Between $10-100

Regular: More than $100

 

Example A:

• Has an average sell price of $8.92 (super low cohort)
• 65 active SKUs from Enterprise customers (majors)
• 89 active SKUs from all other customers (independents)

Their pricing table would look like this:

Example B:

• Has an average sell price of $68.31 (entry cohort)
• 65 active SKUs from Enterprise customers (majors)
• 89 active SKUs from all other customers (independents)

Their pricing table would look like this:

Example C:

• Has an average sell price of $236.81 (regular cohort)
• 65 active SKUs from Enterprise customers (majors)
• 89 active SKUs from all other customers (independents)

Their pricing table would look like this:

 

How is Average Selling Price Calculated?

Your Average Sell Price across your customer Active SKUs in the previous quarter will define the tier that applies to your company. This is calculated as follows:

• The value is always the vendor selling price to the customer (not the customer retail price)
• The value is always measured using the customer's current metal lock value on the day of measurement
• If the value is not held in USD already, it is converted to USD using the exchange rate on the day of the measurement
• Your Customer Usage Data csv file will always contain all of the above data to enable you to validate our calculus

 

For example, here is a Customer assortment in Loupe with two products from two different vendors:

• The customer Assortment currency is set to USD
• The blue product is:
  • sold by the vendor in USD
  • the buyer has set metal to live (will update daily per LBMA)
  • The current metal lock value in the customer currency is $1791.60
  • We will measure $79.38 @ 1791.60
• The green product:
  • sold by the vendor in EUR
  • the buyer has set metal to locked (will not update daily per LBMA)
  • The current metal lock value in the customer currency is $1875.00
  • The vendor quote could be in labour per gram or labour per piece, so we calculate the total piece cost including metal in the vendor sell currency, at the equivalent customer metal rate using the exchange rate from the day of the measurement
  • We then convert that currency back into USD using the exchange rate from the day of the measurement
  • We will measure $92.08 @ 1875.00
• The average sell price is the mean across the range of sell prices
  • (79.38 + 92.08) / 2 = $85.73 

 

Who is an Enterprise Retailer?

This is a retailer using our system under contract for our Enterprise tier of functionality. Commonly in the jewellery industry, these would be referred to as "majors" in North America or "Blue Chips" in Europe. Typically these companies will have annual revenue at retail in excess of $100m up to $5bn+

Whilst all other retailers may not be "independent" we use this term as a generic description to cover all non-Enterprise retailers.

How are Dropship SKUs counted?

Dropship SKUs receive an 80% discount and are counted as 1/5 of a regular SKU. This means, if you exclusively trade with enterprise retailers, and your company has 93 regular SKUs and 47 drop-ship SKUs, your company's total SKU count will be 102.4 SKUs (83 + 47 x 0.2). With 102.4 SKUs, if the average selling price of your SKUs is greater than $100, your company would have a Tier 4 subscription.

What is an Active SKU?

SKUs are considered active only once a retailer has created & applied a SKU to a product in your showroom. 

1. Active vs Archived SKUs

On the retailer's Linesheet, active SKUs are listed under the "Active" tab. 

 

Once a buyer chooses to archive a SKU from their programme, it will no longer be considered active. There is a direct incentive for the buyer to Archive your SKUs that are no longer in their programme as the main reason for using our software is to provide that buyer with an up to date real-time view of their "shop window" which by definition does not include legacy SKUs that have reached the end of their life cycle.

 

 

2. Purchase Method (Asset and Memo)

SKUs are only counted once, even if the retailer uses different SKUs for asset or memo:  

3. Sets

SKUs are only counted once per set, per supplier:

This means if your retailer is running a set with 4 items from your showroom, we will only count 1 SKU. Alternatively, if the retailer is running a set comprised of items from more than one vendor, then each vendor will only receive a single SKU count.