The Shrinking Margins Game: Adam's Notes

A recently released statement from Amazon DSP program leadership has been lingering in my mind for weeks. It felt less like a gesture of support and more like an attempt to redefine success—and maybe quietly rewrite a bit of history. The message didn’t quite offer the kind of constructive direction the network has been hoping for. Honestly, it brought tears to my eyes—or maybe that was just the exhaust fumes from idling under the awning for an hour waiting for my drivers’ routes to be ready. 

A few sentiments stood out: 

• Profit potential is inclusive of incentives - This one stings. There is no programmatic obligation for incentives to be offered, they can be manipulated at any time, and were 'not to be spoken of' during DSP training courses in Seattle. A blatant contradiction of what was formerly communicated, followed by a subsequent announcement that they should be available only for the most exceptional operators within the program.
  

• More than half of DSPs exceeded the top end of the projected profit range - Reports share fewer than 20% of DSPs are participating in Financial Reviews, it’s a stretch to claim this represents the broader network. Supporting many DSPs across the country, I can confidently say this stat doesn't scale as broadly as implied.

• Profits are a function of the decisions I make as an independent business owner -  I’d love to know which decisions are truly still in my control. The word "independent" seems to be getting a fresh interpretation these days.

• A concept of profit dollars - The concept of static profit dollars is a miscalculated approach to measuring financial health. This concept is no different than an employee being promoted, taking on more direct reports, a broader scope of oversight, and pointing back to their 6-year-old salary stating "you were hired at $__k per year." Profit expectations from 2018 have gone unadjusted for 6 years while inflation has tracked at nearly 4% YoY. The same $300k profit expectation from 2018 is approximately $385k today, and that's before competing costs to operate have risen.  

There are an array of well-thought-out responses within the 100+ comments and many with great suggestions or self-controllable solutions. And instead of fanning the flames on how imbalanced the relationship seems to be trending, I wanted to take a moment to highlight some areas DSPs can control - that perhaps the program is not highlighting.

5 Tips for Survival in the "Prime" Life

1. Capture Accurate Revenue

The average DSP is missing 1.6% of 'annual earned revenue'. Meaning they have executed the work, incurred the labor and vehicle costs, but for one reason or another, it did not land on the Amazon-tallied "invoice." In Q1 2025 alone, the Go HQ Invoice Reconciliation team recovered a staggering $$3,890,376 in missed billings for its base of customers.  It could be $0.10 for a single missing package—or $53,000 for an overlooked fixed monthly adjustment for a DSP who had operated under the assumption they were paid accurately for the last three years.  

Work summary tool needs to be audited daily for accuracy, invoices monitored weekly to ensure WST adjustments flowed through, and fixed monthly invoices the first week of each month to ensure all FAS adjustments and supplementary vehicles are accounted for. Admittedly, it's not a difficult task - but a grueling one to keep up with in the midst of all the other fires. At this point, we’re all unwilling contestants in a game of "Where’s My Money?"

2. Reduce Sunk Administrative Wages

A full-time Safety Director, Claims Manager, or even Payroll Admin can be expensive luxuries in this business. Depending on your geography, those all-in costs can run $50-95k/yr each off your bottom line. Factor in the seasonality of the business and the inability to flex their paid hours based on need, it gets even more impactful. I understand firsthand this is too much to do alone; some support is needed.  

Leveraging technology resources like Hera Solutions or DSPworkplace can capture and automate some functions. For the areas they can't - look to fractional support roles that can be turned on/off as your business needs demand, like Go HQ. They offer expert DSP services, built by DSPs with real-world tested processes to ensure you're only paying for what you need.

3. Challenge Data Integrity

Your audit of Amazon data should not end with your invoices. For better or worse, DSPs today must morph into IRS-level auditors of all metrics related to their entity. Challenge Reliability Capacity reports, often incorrect not only on a station-by-station level but occasionally across the entire network - they are the largest driving factor in volume growth within your station. Monitor your Marsh (or other auto carrier) premiums to ensure only active VINs are charged. Audit your LeasePlan and Element invoices, dispute toll and maintenance charges that no longer align with program policies, as they chip away at profitability.  

Lastly - Scorecard data. Ironically, I was the last one to believe scorecard data could be corrupt, and boy was I wrong. We have disputed a majority of them YTD and were able to upgrade weekly incentives due simply to incorrect data reporting. This is why Go HQ is launching a new 'Performance Reconciliation' service in Q2—to help DSPs validate their performance data and recover lost revenue. When it comes to numbers, it’s not how many reports you get—it’s how many you question. 

 4. Audit DA Timecards

Labor is the single biggest expense in a DSP operation. With dozens of employees, a few extra minutes per shift quickly snowball into thousands of dollars. 

Timecards should absolutely be reviewed and approved daily, with close attention to legal and program-compliant working hours. Go HQ’s Payroll Service recently added a reconciliation process comparing Cortex login/logout times with ADP punches. It’s not a cure-all, but it’s a big step toward limiting time theft. Time is money—but unchecked discrepancies are slow-motion robbery. 

 5. Timely and Robust Financials

Auditing all these functions of your business are certainly the first steps, namely because they are time-bound with expirations on dispute windows. The next step is ensuring you have accurate and granular breakouts of your key financial metrics to monitor your wins (or losses) more easily.  

Are you separating Driver Wages from Admin Wages? Route Revenue from Fixed Monthly Payments? If not, how are you measuring labor as a percentage of revenue, or calculating your fleet breakeven? 

Trying to steer a DSP business without this data is like driving a van blindfolded. Sure, you might reach your destination—but it’s going to be a terrifying (and expensive) ride. 

In Summary 

Operating in today’s DSP environment requires more than just grit—it takes precision. The five survival strategies above are a great starting point for improving the profitability and sustainability of your DSP. 

Each of these areas requires expertise and dedication that can be difficult to maintain in-house. Doing so while juggling the roles of dispatcher, mechanic, HR manager, professional exhaust-fume inhaler, and chief fire-putter-outer, is difficult if not unrealistic 

That’s where specialized partners like Go HQ come in. Created by DSPs who’ve walked the same path, their services are tailored to this unique and evolving model. Whether it’s recovering revenue, providing fractional support for administrative functions, or or validating metrics, Go HQ's suite of services can help turn the impossible into manageable—and maybe even profitable. 

In a world where every package, every minute, and every penny counts, having a partner in your corner isn’t just helpful—it’s critical. 

With remaining (but somewhat fleeting) entrepreneurial optimism,

—Adam Angell