Creating a new proposal is a widespread thing in the business world. One of the most challenging parts of a payment plan is how much the company will pay you. Money is always a touchy topic, but it’s also one of the most important issues if you are looking at really doing great work for the company. It’s hard to work a tough job when you are underpaid. You need to make sure that pay negotiation is a top priority when you are making a proposal.
Take a deep breath
People tend to rush the proposal process which is extremely dangerous. Make sure you take your time. A popular suggestion is a 24/hr rule. Submit your offer, and when you receive the counter offer, wait 24 hours before responding. It is always a good idea to inform your client that you are planning on thinking it over for the night. Don’t hesitate to sleep on it.
Seriously! Sleeping on it can be helpful. It takes away the stress of getting everything done. You might not even be thinking clearly when you are formulating the proposal. That’s why it’s good to take a break and go over everything before you submit a proposal or counter-offer.
Know your worth
Research should be your best friend at this point. If you can’t prove what you are worth you are going to have a tough time getting the pay that you desire. Instead, make sure you have accurate, applicable data that will showcase your value to the business.
You should know your strengths and how those strengths bring value to the business. Again you should have quantifiable research that points to your importance. If the company needs your skills, it will be much easier to negotiate your worth.
Strategies for the proposal process
Here are a few negotiation strategies that will help you throughout the process:
- Don’t Give Your Number First
Holding out can be hard, but it’s best to hold off until your client gives the first number. It lets you see what they are thinking and how you can counter-offer. Maybe they are much lower than you thought they would be. Perhaps they are offering more than you would have proposed.
This strategy provides you with leverage and is an excellent plan if you are confident in your worth to the business.
- Consider Asking for More Than You Want
This strategy is dangerous if you aren’t confident in what you can offer, or if you need the job.
There is a possibility the employer will deny your offer and seek out another potential client. You need to make sure you have a good bit of leverage and have provided the necessary data to back up your skills.
Most likely they will counter-offer with your preferred price. Trying a tactic like this is very risky. Make sure you are the preferred client.
- Decline the Offer
Declining the offer straight up is even riskier than the last strategy. It requires extreme confidence, data, and even prior knowledge of the client’s business. You must know that the company has decided on you as their partner. It’s entirely possible that you can politely decline the offer and still get a counter-offer from the client.
Again, you should do this if you are okay with not having the job. You need to be in a place of financial stability. It also helps to know what you offer specifically. If you are the best option for the client, then this strategy might be for you.
- Always Negotiate
Your employer expects this, and they might be offended if you don’t. Negotiations are merely a part of a business. Don’t take it personally and don’t worry about how the employer views your business strategy.
Always be willing to counter. If the employer starts at what you want it’s worth asking for more. If they decline, you have the option to take the prior offer.
In conclusion, negotiations are all about knowing your worth and being able to back it up. It’s essential to know what the base pay for your job is.
Often employees do not think it’s important to try and negotiate pay. Many feel that negotiations are intimidating or unnecessary.
According to smallbiztrends.com “Only 39% of workers negotiated their pay last year.”
This means that 61% of workers left money on the table that they could have pushed for. It is not guaranteed that they would have had their proposals accepted, but at least they could have tried.
Some employers even mentioned that it shows them your abilities in communication and sales negotiation if you can sell yourself to them. Employers described potential clients that have negotiated their contracts as “on top of things” and “hard-working.”
Negotiating your pay throughout a proposal shouldn’t just be a passing idea. It should be the start of all your business dealings.