Explanation of single purchase
We would like to further explain how Single Image Purchase worked for supplier that was discussed earlier. As there was an allegation where the supplier says that we sold images for higher prices without permission. The misunderstanding comes from the Single Image Purchase setup that we’ve agreed on with the supplier.
The Single Purchase price included an extra transaction fee. The reason is to cover the direct costs we have with each transaction such as payment gateway, affiliate, local manager, accounting. Some of those costs are based on percentage but some are fixed and some are combined.
This modified price in case of the Single Image Purchase was offered to the supplier. Due to technical reasons, the supplier was not able to implement that to their API (our current microstock suppliers implemented that already). Pixmac therefore came with a temporarily workaround where the price difference was balanced by offering free credits for further purchase in the value of the price change. The customer was able to get the Single Purchase fee back with the next purchase of credits. And could spend the credits on other images. That was agreed with the supplier.
The truth is that a re-seller such as Pixmac can easily be tested by doing a test purchase anytime. And therefore it’s easy to discover any issues. We were always very quick and responsible in correcting things which might have gone in a wrong direction because Pixmac is a young and starting company. Mistakes can occur everywhere and anytime and we tried to fix them as soon as possible! Obviously the re-seller doesn’t have access to any hi-res files unless the image is purchased.
As for the other agency, the reason why the agreement was terminated is that both companies are competitors in a certain country. And after we acquired the photographer pool from a closing company the situation got difficult. The rest was a domino effect.