Why You Should Never Sign a Long-Term Gainshare Agreement for Parcel Spend Management
When most companies look to reduce parcel shipping costs, they turn to the big consulting firms — the ones that promise millions in “savings” and proudly advertise “performance-based” or “gainshare” pricing models.
At first glance, gainshare sounds appealing:
“You only pay when you save.”
But beneath that tagline lies a model that benefits one side far more than the other — and it isn’t the shipper.
🚨 The Truth About Gainshare Agreements
A gainshare contract typically gives the consulting firm a percentage of your shipping savings (often 30–50%) for a period of 36 months. That means every time you save, they get paid — not once, but again and again for years.
Here’s what they don’t tell you:
The real work — analyzing your data, identifying targets, and negotiating — is done in the first few months.
After that, there’s no ongoing optimization that justifies the recurring payments.
By Year 2, you’re essentially paying for the work you already funded.
By Year 3, you’re paying for inertia.
The result? A firm collecting checks while you wonder what exactly you’re getting for the money.
💰 The “Value Cliff” — Where Savings Stop and Fees Keep Going
Let’s say your company ships $5 million annually. A typical gainshare deal might save you 10% ($500,000) in Year 1 — great. But under a 40% gainshare contract, you’ll pay $200,000 of that back to your consultant.
Then Year 2 comes.
Your rates are already optimized. There’s nothing left to “negotiate.”
Yet you still owe another $200,000.
Same in Year 3.
That’s $600,000 in total fees — for a service that effectively ended after the first round of negotiation.
This is the dirty little secret of the parcel consulting world: the value curve drops fast, but the billing never does.
⚙️ Why the Model Persists
Simple: it’s lucrative.
Long-term gainshare deals guarantee firms recurring revenue, even if your company’s shipping profile doesn’t change.
It’s also why you’ll never find pricing on their websites — only “Book a Demo” buttons. The less you know upfront, the easier it is to sell “shared savings” as collaboration rather than dependency.
🧭 The Transparent Alternative
At Transparent Parcel, we believe shippers deserve better.
Our model removes the leash entirely:
✅ One-time fee.
✅ Full negotiation playbook.
✅ No percentage of your savings. Ever.
We don’t keep you paying — we teach you how to negotiate like the consultants themselves. You get benchmark analysis, line-item target discounts, messaging flow, proposal analysis, and final agreement review.
The result? You own the relationship with your carriers and keep 100% of the savings — forever.
📈 Real Value Doesn’t Compound Fees — It Compounds Savings
Year 1: You learn how to negotiate better rates.
Year 2 and 3: You apply that knowledge again and again — with zero recurring cost.
That’s how real value works.
The old gainshare model thrives on dependency. Transparent Parcel thrives on empowerment.
💬 The Bottom Line
If you’re under a long-term gainshare contract right now, ask one simple question:
“What are you doing for me this year — that I haven’t already paid for?”
If they can’t answer that clearly, you already know the truth.
Stop paying for past work.
Start owning your future savings.