Negotiating tactics to get what you want

1. Set a price

The biggest mistake I see consultants make is allowing the recruiters to dictate the rates. What I recommend is coming up with three sets of numbers before you actively start your job search. The first number should be a bottom line number or survival number. This rate should allow you to pay all your bills and give you a very small amount to live on. The second rate should be a number that is higher then any rate you have charge in the past, while still being a realistic number. This is your dream rate. Your third rate should fall between these two numbers. This should be your target rate. Anything that you get above this number should be considered a win. Try not to finalize a prize on the first contact. Ask the recruiter if you can think things over and call back with a rate in an hour or so. Since the market is so tough right now don’t haggle too long.

2. Research

Spend some time on the web and find out what other consultants are asking (make sure they are doing exactly what you are qualified to do). Also, don’t be afraid to reach out to people in your network (co-workers, social networking sites, industry leaders) and ask what they are charging. Try to narrow your search down to specific locations so you are not quoting San Francisco rates for Kansas positions.

3. Benefits

Find out what benefits are offered to you. If an agency or employer is going to offer healthcare, holidays or vacation, you need to consider this as compensation. Also, ask if they offer a completion bonus or other types of bonuses. Always get in writing the terms of these benefits, before applying them to your rate.

4. Client/Agency staffing programs

Feel your recruiter out and try to find out how much room they have to negotiate. Some clients don’t allow negotiations and everything is done on the front end. Bigger clients usually have rates already worked out and there is nothing a recruiter can do. Medium to smaller size companies give you the most room to negotiate. If you have a skill set that is in high demand sometimes bigger clients will go out of their pay ranges to accommodate your demands.

5. Agency Mark-ups

Should you concern yourself with what an agency is charging the client? The answer is no, concentrate on your target numbers and hitting those. If you find out the agency is over charging for your services (75 to 100% mark-up) use this information for future negotiations. Remember if they are winning high mark-ups from clients, this means they have a great relationship with the manager. This will work for you because it means they have a greater impact pushing your resume. Once you start the assignment and prove value too the client, you can start pecking away at the rate and get smaller increases as you go. Most agencies don’t want to lose the high profit margin and will give you small raises to keep you on the assignment.