How to negotiate for a higher salary?

[EngineerDave]

Company A offered me X
Company B offered me X-$6,000

Company B has an outstanding reputation but is in an area with a 20% higher cost of living than Company A. So the equation shifts to something like (X-6,000)*0.8

I want to ask Company B to make up the $6,000 difference that the other job offered, but under no circumstances do I want to jeapordize the offer at Company B.

How do I word my response when I call them?

 

[buzzp]

Offer letters are generally not contracts and are not enforceable (to my knowledge).
I had an offer from a company with the usual mention of holidays, pension plans, profit sharing etc. Problem was, they failed to mention they pay no holiday pay while on probation (1 year for new hires). I took the job in November and gave up two bonus checks to go to this new company. Of course, they paid no profit sharing during my employment. They did, however, give me a $200 bonus. What a slap in the face. (I kicked butt for this company and put them on the map with no pat on the backs except an atta boy from the manager with promises to 'reward my forward thinking'). All empty promises based on the offer letter.
I feel for you having to decide on two offers. This has happened to me twice and it is always difficult. Sometimes I wish they would let me work for them a week or so, unpaid. Then the decision would be much easier. Good luck.

 

[EngineerDave]

This whole thing has been a bit crazy for me, because I started out by sending my resumes everywhere. When I sent it to Company B, I didn't even expect to hear from them.

I was honored to interview there, and working there should really help my career out.

The bad side is I know not one person in this town, it is over 800 miles away from home and very expensive to live there. Many people assure me it is a great town though (I've only been in that area twice and both for very short stays)

Part of me thinks that if I waited out I could find something equivalent (but not as prestigious) closer to home, but that's a chance or risk I'm not sure about taking.

In the end these decisions are very difficult.

My family is extremely supportive (as in parents and brothers, since I'm single), and they honestly think I'd be crazy to pass this up. Which I agree with.

Thanks for all the advice. It would have been great to get more money but this was still alot more than I have ever made before.

 

[TrevorP]

EngineerDave,
I can empathise with your fear about relocating to an area several hundred miles away, having done it professionally several times myself. However, I can honestly say I've never regretted it. Although each time it's been tough at first, I soon found that I made new friends in the areas I moved to. I also had new experiences that I would never have had, if I had stayed in my home town (most of them good!). If you don't like it, you can always move again, but you would be well advised NOT to stay at home and hope something comes up. You're far more likely to be able to find something you want to do back home after your first few years experience. If nothing else, think of it as a two to three year working holiday!

As for the salary situation, in my experience, the annual salary increases are larger in large companies than in small ones, as you become more valuable to them. This is especially true with your first job in a new field. The larger companies often have other candidates who they believe will be almost as good, and this might be the reason why they haven't upped their offer. This is especially true if they're taking on several people at your level.

Once you prove how good you are, a good company will compensate for that - whether it be with salary or other benefits. If they don't, there's nothing to stop you looking elsewhere later on.

One last thing - negotiation doesn't start and stop with salary. They may not be flexible on this, but you might be able to get somewhere on other items, such as vacations, health insurance, pension, relocation assistance etc. etc. For example, you say it's a more expensive area to move to, so can they help you with rent/house purchase etc.? Your book should help you with this.

 

[EngineerDave]

Everybody thanks for your replies on this. This really helped me a few weeks back.

Trevor this whole moving thing is kind of a big deal to me. I appreciate your response, it was very nice.