Tech Company Achieves $37 Million ROI with Negotiation Coaching
In just one year, expert negotiation coaching creates millions in value
for a global technology manufacturer
Technology Solution Manufacturer
- More than 3,000 employees worldwide
- Manufacturing operations in more than 10 countries
- Annual revenue greater than $750 Million
- Publically traded on the NASDAQ Stock Market
Business Benefits Realized
- Created more than $37 million in value during FY 2009 alone.
- Achieved an ROI of greater than 1,000-percent.
- Brought about successful outcomes for more than a dozen high-level negotiations.
- Enabled employees to apply coached negotiation skills on their own with successful results.
- Contributed to the company stock price trading at an all-time high.
It was another business trip the VP of Sales for a major technology company was dreading. She was on her way to Asia in hopes of closing some major deals, but the companies she was about to do business with drove a hard bargain. Time after time they were pounding her for discounts, and she was striking compromises that were severely eating away at the net profit each sale would bring. She believed all negotiations should be win-win – but someone was clearly losing. And that someone was her.
A Lucky Find
While browsing the airport bookstore, she came across Start With No by global negotiation expert Jim Camp. The concept was intriguing, and she didn’t have much to lose. She purchased the book and read it cover-to-cover on the plane ride. When she landed, she applied a few of the principles she had learned to a big-time negotiation. The strategy helped her turn the deal around and create an important win for her company.
When she returned to the company headquarters, she received accolades from her CEO for her success on her trip. She immediately mentioned the book and gave him her copy to read. The CEO was equally impressed by the message and the results it had achieved, and the two worked together to fly the book’s author to the company headquarters so he could discuss his strategy with the team.
Turning Things Around
After Camp’s visit, the company realized the corporate negotiation services he provided to major companies like theirs could be the key to turning things to their advantage. They hired Camp on retainer; now they had a renowned expert on call 24/7 to coach anyone at the company through real-life negotiations using his proven Camp Negotiation System.
Camp immediately began to work with company executives – along with others in sales, engineering and purchasing – by coaching them through actual negotiations. He taught them to let go of the idea that negotiations had to be win-win. Using a systematic approach and tools like checklists, logs and detailed tracking, he showed them the right way to conduct a negotiation from start to finish. Before long, they began to see big results.
Tracking the Benefit
After three years of negotiation coaching, the leadership of the technology company had become believers. They had seen deals they initially thought they had no hope of winning turn into multi million-dollar homeruns. And, they saw how even small victories were cumulatively having a major impact on their bottom line. But, they wanted a hard number. So in fiscal year 2009, they began tracking the net benefit of each deal coached by Camp, along with other deals completed using the Camp Negotiation System without active coaching by Camp.
The results were stunning. Over the course of a single year, more than 30 negotiations were conducted using the Camp Negotiation System. Thirteen negotiations were actively coached by Camp, and the remaining negotiations were led by company employees who had previously been coached by Camp using Camp’s system. Results for the actively coached negotiations included:
- Negotiating a position of not participating in blind bids led to an $850,000 per month revenue boost and added $10 million to the bottom line in one negotiation alone.
- Pulling back an offer of a $10 million discount and renegotiating, saving the company $4 million.
- Negotiating a compliance contract for $300,000 in bi-weekly savings.
- Negotiating a 60% increase in a major contract, turning a $40 million contract into a $65 million contract.
All told, the company calculated that from the actively coached negotiations alone, they had realized a value of $37 million over the course of one year – an ROI of greater than 1,000-percent. In addition, negotiations led by Camp’s coaching students resulted in more than $5 million of gains. These positive financial numbers played a large role in pushing the value of the company’s stock to an all-time high. Today the company remains a loyal client, and they continue to achieve tremendous ongoing success using the Camp Coaching System.