Shipping contracts are filled with fine print, and one of the most impactful — but often misunderstood — components is the revenue tier structure. In our latest YouTube video, Jack McCrum, Reveel’s Director of Analytics and Optimization, demystifies this critical element and shares how Reveel is helping shippers turn complexity into clarity.
What Are Revenue Tiers?
Revenue tiers are built into carrier agreements as incentive structures. The more you spend with a carrier, the more favorable your rates or discounts may become. But there’s a catch — these tiers often tie your pricing to total annual spend, and changing carriers or reducing volume can lead to sudden and costly penalties.
Jack explains that many shippers don’t have clear visibility into where they sit within their carrier’s tier structure or how close they are to a threshold. That lack of visibility can lead to risky decisions —like moving volume to a second carrier and unintentionally triggering higher rates or losing key discounts.
How Reveel Provides Clarity
Reveel’s platform is designed to bring transparency to these complex contract terms. Jack highlights how the platform allows shippers to see exactly where they stand within their revenue tier and forecast the financial impact of potential changes. For example, if a shipper is considering shifting volume to a regional carrier, they can simulate how that would affect their current tier and overall cost structure.
This level of insight isn’t just helpful — it’s empowering. It allows shippers to enter negotiations with confidence, knowing exactly what they’re giving up or gaining. More importantly, it helps them avoid financial surprises that can arise when contract terms are misunderstood or overlooked.
Making Smarter Carrier Decisions
As the parcel shipping landscape becomes more expensive and complex, many shippers are looking to diversify their carrier mix. But without a clear view into how revenue tiers function, adding or changing carriers can backfire. Jack points out that both shippers and carriers walk into contract negotiations fully aware of their leverage — but too often, only one side has the data to back it up.
Reveel levels that playing field. By making contract terms and cost implications transparent, the platform helps shippers align their operational goals with financial strategy.
The Bottom Line
Understanding revenue tiers isn't optional — it’s essential. With carrier rates and surcharges continuing to climb, shippers must be able to model the impact of every decision they make. Reveel gives them that ability, turning complex agreements into actionable insights.
Watch the full video to learn how your business can avoid common pitfalls and take control of your shipping spend.
With shipping volumes down due to tariffs, understanding your revenue tier status is critical to protecting margins. In this video, Reveel’s Jack McCrum breaks down how revenue tiers impact carrier contracts and how shippers can leverage data to evaluate options, model outcomes, and make smarter decisions. Learn how leading brands use Reveel’s platform to gain transparency, strengthen their negotiation position, and avoid costly surprises when adjusting carrier strategies. Don’t navigate today’s shipping challenges blind — watch now and take control.
