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Saturday, April 25, 2015

Four Negotiation Case Studies.

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(out of 100's of systems, this is my number #1 recommendation ^^)

Four negotiation case studies you can use to earn more money — by negotiating a starting salary, a promotion, or a contract with new clients.

1) Case Study: “Stories from the other side of the negotiating table”

“A couple of stories from the other side of the negotiating table. At my previous job I had a brilliant job applicant right out of school. I offered him a salary, which was a bit low (he was after all, straight out of school). He countered and said “hire me on for 3 months at this low pay as a contractor. At end of the three months you can either fire me or we renegotiate pay”. He was right. Three months later I hired him full time at 10% higher than I initially offered. Lesson learned – part of negotiation is talking about time frames and proving value.”
Second story – This woman was relatively experienced. She came in, said “I want X dollars an hour but I’d be willing to settle for Y dollars”. Y was about 40% lower than X… Really? Never tell me what you’re willing to settle for. Why would I ever offer you anything above that?” – Gal

2) Case Study: “1 phone call, 1 interview, and 3 emails = 28% increase in salary”

“When negotiating a salary I have learned to turn the hiring manager’s best technique (and the question that makes you squirm) against them. In my first conversation with a hiring manager or recruiter I always ask “What salary range have you allocated for hiring someone for this position?”. The results are amazing, and totally turn the tables in your favor. Instead of you awkwardly dancing around the question of “What is your current salary?”, now you have taken control. In my last interview I asked that question up front (when the recruiter said “Do you have any questions before we get started”) and he told me the exact range they had allocated for hiring for the position I was about to interview for. I realized the dollar figure I was looking for was at the lower part of that range, and filed that away. After spilling the beans the recruiter asked “Is that something that would work for you?” and I slow-played saying “We might be able to make that work, do you have any flexibility in that figure?”.
When I got the initial offer from the hiring manager it was the bottom of the range the recruiter had told me about. From there, with the knowledge of what they had already allocated, I was able to negotiate to the upper end of the range, and get my moving expenses paid for by using another negotiating technique. I always like asking for more than you know they can give. In my first counter offer I asked for four additional things (higher salary, signing bonus, no waiting period on 401k matching and an additional 5 vacation days). I knew that the easiest thing for the hiring manager to do was increase the salary and possibly the signing bonus, and I didn’t care about the other two items that much anyway (but he didn’t know that). He came back with a second offer just as I expected “Sorry, we can’t do the 401k and vacation, but we can do an increased salary and moving expenses”. I asked for a final small bump in the salary and the deal was closed. 1 phone call, 1 interview and 3 emails = a 28% increase in salary.” – Ross

3) Case Study: “$5K per week, 6 month contract!”

I landed a $5K per week, 6 month contract with a large construction firm in the Midwest.They proposed 2 months and I said it would not be worth it to quit my regular job for a two month contract. I negotiated for a flat rate contract which pays enough to cover equivalent pay, medical, dental, and vision insurance, 401k, life insurance, travel, accounting and legal costs. I spelled all of that out to my client so they would understand my rate. I am also running a second contract on the side (with the first client’s approval) with two subcontractors doing the work on the contract. I may even sub some of my 1st client’s work out to my subs with my big client’s knowledge and approval. They want to hire me as a regular employee now but they can’t afford me.” – Earn1k grad Joe

4) Case Study: “An automatic $5,000 raise in 6 months”

“Earlier this year, my former boss at an internship I worked at referred me to a small company looking for an accountant. I got a call from the company’s hiring manager to schedule an interview. In that same conversation she asked what I was looking for in terms of salary. I knew from Ramit’s advice, that this was a trap. The recruiter will always try to get you to say a number first, but you are under no obligation to say anything.
So when I responded, I flipped it around as if I was clueless as to what to ask for (which I was) and said “Hmmm… I haven’t given it much thought. What did you have in mind?” At this point, I was preparing for her to strong arm me into saying a number. However, she was nice and gave me a figure; $35,000. My response (as if Ramit was talking to me in the other ear) “I think we’re in the right ballpark and we can work from that number.”
A few days later, I had the interview. The hiring manager wanted me to clarify my salary requirements. Again, I told her that we were in the right “ballpark” with $35K figure that she gave me, but then I asked “how can we get to 40K?” She said that she would give it consideration if I was offered the position.
A few hours later she called to offer me the job. She said they would start me out at $35K and after 6 months I would be given a performance review for an increase to $40K.
But again, my IWTYTBR training kicked in and asked for the 6 month salary review to be in writing. She accepted and my first day on the job I was given a letter with specific terms of the raise and a date to have the performance/compensation review.
Five months of dutiful employment past, it was time for me to prepare for the “compensation discussion.”
I emailed my boss asking her when she would like to schedule the performance review/compensation discussion. Within minutes she wrote back saying it wasn’t necessary for us to meet (unless I had an issue to discuss) and that they were going to go ahead with my raise as planned. My first successful salary negotiation!! “



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