Measuring the ROI of Negotiation Training

By RED BEAR March 21, 2024 | 6 min read

Whether your sales team is closing a high-stakes deal or your procurement team is securing favorable purchasing terms, the ability to negotiate can make or break your organization’s bottom line. Negotiation training can equip your team with the right tools, strategies, and techniques to gain a competitive advantage during customer deals. 

ROI is a common metric used to evaluate the efficiency of an investment or project. In the context of training programs, it helps organizations determine if the costs associated with the training are justified by the resulting benefits. Calculating ROI involves quantifying the tangible and intangible benefits and comparing them to the time and expenses incurred.

But how do you measure the return on investment (ROI) of negotiation training? This question puzzles executives and decision-makers because investing in employee development is a significant commitment, and stakeholders need to ensure their investment pays off.

Negotiation training is worth the investment. Here’s why.

On average, RED BEAR customers see an average return of $54 for every dollar they invest in our training programs.

The Need for Negotiation Training

Sales and procurement teams face many challenges throughout the negotiation process. Effective negotiation skills are essential to achieving favorable business outcomes, from navigating complex deal structures to managing conflicting interests. However, most professionals lack the necessary training and techniques to excel in high-stakes situations. 

Ineffective negotiation can lead to missed opportunities, lost revenue, and less-than-optimal procurement terms. On the other hand, well-trained negotiators can drive business value by securing better deals, reducing costs, and strengthening relationships with clients and suppliers.

Common Negotiation Misconceptions

Common misconceptions about negotiation and training often keep organizations from investing in these critical skills. Some people assume negotiation skills are innate, while others view it as a zero-sum game where one party’s gain is another’s loss. 

Effective negotiation training debunks these myths and teaches negotiators strategies for creating mutually beneficial outcomes.


Measurable Metrics for ROI

To accurately measure the ROI of sales and procurement negotiation training, organizations should define and track both tangible and intangible benefits.

Quantitative metrics, such as an increase in revenue, cost savings, working capital improvements, cost avoidance, negotiation deal speed, and deal closure rates, provide a clear picture of the financial impact of improved negotiation skills. Qualitative metrics, like improved customer and supplier satisfaction, increased confidence, better negotiation planning, enhanced team morale, and better collaboration, can also contribute to long-term business success.

Setting benchmarks and goals for these metrics before and after a training program is the best practice for measuring ROI. Benchmarks allow companies to compare performance directly and quantify the impact of the training.

At RED BEAR, our negotiation workshops include a third-party, independent, comprehensive ROI study so you can track immediate bottom-line results. And one step further, at the end of any session, if the trainee doesn’t believe their new skills will drive 10X returns, we do not invoice for that person.

How can we make such aggressive promises about the ROI of RED BEAR training? Let’s take a look at just one example of success.


RED Bear Negotiation Success Case Study 

One compelling example of the ROI of sales negotiation training comes from a major player in the packaging and container industry. This Fortune 1000 global leader was facing pressure from declining prices, increasing competition, and savvy customer negotiators on a mission to cut costs. 

The company sought effective strategies from RED BEAR to build market share and profitability.

After implementing a rigorous planning discipline and negotiation training from RED BEAR, the organization saw a remarkable $37.699 million increase in projected annual revenue, resulting in a 46.7 to 1 ratio of return on their investment. By equipping their sales teams with the right negotiation skills, they were able to boost profitability and reduce margin erosion.

How are ROIs like this calculated?


Calculating ROI: Methods and Tools

Several ROI calculation formulas and methodologies apply to sales and procurement negotiation training.

Many analytics tools are available to accurately track and measure ROI. These tools capture data from various sources, like CRM systems, financial reports, and employee feedback surveys, and integrate them into a comprehensive ROI analysis.

You can’t stop at just gathering the numbers, though. Effective analysis and interpretation of ROI data is crucial — identifying trends, outliers, and potential areas for improvement within your negotiation training and processes are all part of the ROI process.

RED BEAR uses various metrics to provide ROI, so when you choose us for training, you know exactly what you paid for and how to share it with your executive stakeholders.


Communicating ROI to Stakeholders

Once the ROI of negotiation training has been calculated, the results need to be communicated to various stakeholders and executives. RED BEAR helps you craft a compelling narrative that highlights the training's tangible and intangible benefits and showcases how it contributes to the organization’s overall success.

Tailoring communication strategies for different audiences is also important. Executives may only be interested in the financial impact and strategic advantages, while leaders and team members may focus more on practical applications and skills development.

Presenting ROI data effectively is key to gaining buy-in and support for future training initiatives. This involves creating visually appealing reports, conducting presentations, and providing opportunities for open discussion and feedback.

Gain Unmatched ROI with RED BEAR

The importance of measuring the ROI of negotiation training cannot be overstated. By quantifying the impact of your training program, you can make informed decisions about your investment and continually optimize your training efforts.

With RED BEAR negotiation training, you receive a 10X ROI guarantee. On average, RED BEAR customers see an average return of $54 for every dollar they invest in our training programs. 

Ready to see the same results in your organization? Get in touch today to find your team’s competitive advantage.

Fill out our contact form and we will be back to you in no later than one business day.



Successful negotiations are rarely the result of chance or innate talent. They are, more often than not, the product of meticulous preparation and strategic planning.
As the summer heats up, don’t let your sales and procurement negotiation training melt away. Now is the perfect time to sharpen your skills with some insightful summer reads.

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