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FLEX ECONOMICS

Know what qualifies. Keep support bounded.

Base support follows the trial’s saved markdown formula without another purchase. Optional enhanced renewal also needs qualified purchase value, as this example shows.

Work the case
At-risk recoveryEligible contribution$960
Historical ceiling$960Current decision$480Qualified value$480
Illustrative USD case. Support remains pending.

An illustrative enhanced renewal, from saved terms to reconciliation

Purchase-time agreementSource OrderRenewal decisionFresh wholesale OrderFinal reconciliation
$960Historical normal ceiling

Conservative same-brand baseline

$480Current no-Oplut decision

Frozen before renewal results

$480Qualified purchase value

At-risk recovery method

PENDINGPayable Flex

All commercial limits still apply

“The calculation can show what qualifies. It cannot prove Oplut caused the Order.”
QUALIFICATION IS NOT CAUSATIONSee the calculation
QUALIFIED VALUE + BOUNDED SUPPORT

One economic system. Two different numbers.

In an enhanced renewal, qualified value tests the later purchase. Support then follows the saved share, old-position formula, participation, capacity, and caps. Base markdown support uses its own formula without this purchase test.

Illustrative enhanced renewal: qualified purchase value and payable support
The economic recordQualified purchase valuePayable support
What it answersHow much fresh purchase value qualifies under the saved method?How much old-stock support remains after every limit?
Starting recordHistorical normal plus the current no-Oplut decisionQualified value plus the justified old position
What reduces itHistorical ceiling and the minimum materiality hurdleParticipation, retained contribution, old-position formula, cap, and reconciliation
Calculation status$480 qualifies under at-risk recoveryPending. Required inputs must be reconciled.
What it does not proveThat Oplut caused the wholesale OrderThat Flex is accepted, profitable, paid for, or repeatable
01Protect eligible trials

Protection follows first-purchase eligibility. It does not require a hypothetical original basket.

02Use one saved method

The agreement selects above-normal contribution or documented at-risk recovery before results.

03Exclude new protection

A newly protected line contributes no purchase value toward support for older stock.

04Keep the whole record

Payment, fulfillment, Returns, credit, overlap, displacement, and final cost stay connected.

PURCHASE-VALUE TEST

Test the changed wholesale decision first.

Select one method before results. Above-normal contribution measures value over the historical ceiling. At-risk recovery needs dated evidence of a reduced or withheld purchase. This illustrative case assumes eligible contribution, evidence, and displacement checks pass.

  • Historical normal never defaults to zero
  • The current no-Oplut decision is separately frozen
  • These amounts and the hurdle are illustrative, not defaults
Review the saved record
Historical ceiling
$960
Current no-Oplut decision
− $480
Qualified purchase valueMeets the $300 hurdle$480

Eligible contribution $960Method fixed before a real attempt

Folded trial knitwear with a blank product tag
Saved exposure cap$120Maximum, not a payout
Payable supportPending reconciliation
COMMERCIAL LIMITS

Qualified value is not the support amount.

A passing purchase-value result opens the enhanced-renewal calculation. Support still preserves retailer participation and the brand’s minimum contribution, and stays within the old-position formula and cap.

Base resolution follows its own saved formula, without requiring another wholesale purchase.

THE SAVED CONDITIONS

Every limit still applies.

Retailer participation
The retailer keeps the saved first loss or participation.
Brand-retained contribution
The brand keeps its agreed minimum contribution.
Old-position formula + cap
Support cannot exceed the justified old position, remaining trial capacity, or exposure cap.
Final reconciliation
Payment, fulfillment, Returns, credit, overlap, and costs must reconcile.

These are agreed conditions, not a second discretionary commercial approval.

Review saved terms
FINAL ECONOMICS

Keep every source and cost attached.

Payment, fulfillment, Returns, credit, Order splitting, overlap, displacement, prior accommodation, and incremental cost must reconcile before settlement.

  • Brand-store commerce stays authoritative
  • Retailer facts stay attributed evidence
  • Unreliable evidence blocks the favorable result
Review the saved record
An open wholesale carton with folded blue shirts and a packing slip
Renewal Cycle 01Reconciliation pending
Brand ShopifySource OrderAuthoritativeSaved agreementRenewal decisionBefore resultsRetailer evidenceDemand + old stockAttributed
Folded denim and a mustard canvas cap
Established lines$1,000Outside protection
Protect only eligible trials

Established products stay unprotected. Eligibility follows source history and saved trial scope, not a claim that Flex changed the basket.

Folded plum cotton crewneck
Current purchase decision6Units recorded before demand
No-Oplut renewal6 unitsFrozen before results
Test the actual decision

The current counterfactual cannot be rewritten after paid demand or the fresh Order is known.

Qualified purchase value$480
Saved exposure cap$120
Support still depends on every saved limit.
Agreement boundaryLiability stops here.The cap is not earned value
Cap the old position

The cap bounds liability. It is never the amount automatically earned or paid.

FLEX ECONOMICS FAQ

Everything the case must answer

Does base support require another purchase?

No. After the saved minimum selling period, an eligible slow trial can use its agreed markdown plan. The retailer sets its own prices. Qualifying net sales, the saved support reference, retailer first loss, remaining capacity, and caps determine base Flex. A return fallback is available only if saved before purchase and reached after the markdown attempt.

Is the $480 support payable to the retailer?

No. It is qualified purchase value. Participation, retained contribution, the old-position formula, the absolute cap, and final reconciliation still determine payable support.

Does a passing value test prove Oplut caused the Order?

No. Qualification applies the saved agreement method. It does not establish causality.

Why keep historical normal and the current no-Oplut decision?

They answer different questions: what this account normally buys and what this retailer would buy in this exact renewal without Flex.

Can missing evidence default to zero?

No. A missing or unreliable baseline, counterfactual, cost, or retailer submission blocks the favorable result or routes it for review.

What if an enhanced renewal fails?

A failed, blocked, abandoned, expired, or zero-value enhanced attempt does not erase independently valid base protection. Both paths share one source capacity; the same value or support cannot be used twice.

How are whole-program economics measured?

Track trial adoption, initial order contribution, base-resolution cost, later ordinary reorders, enhanced-renewal economics, and total program cost separately. More trial products or a passing purchase test alone do not establish profitable growth.

What remains unknown?

Build 0 is still under review. Evidence standards, operating burden, viable commercial terms, operator acceptance, and repeatable economics remain to be established. The amounts here are illustrative, not Oplut defaults or merchant results.

ONE COMMERCIAL RECORD

Connect the promise, decision, Order, and outcome.

Purchase-time termsImmutable agreement
Enhanced renewal example
Historical normal$960
Current decision$480
Qualified value$480
Final cycle recordSupport pending
Explore the full transaction

Continue the Flex walkthrough

01How Flex works

From purchase-time terms to final reconciliation.

02Flex economics

Qualified value, limits, and final settlement.

Test one real wholesale decision.

Start with an eligible product trial and its saved base terms. Assess any optional renewal separately, then count support and operating costs across the whole program.

Private product walkthrough

Review the mechanism and decide whether the transaction is worth testing with operators.

Book a conversationReview the transaction first
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