I find myself in quite an odd position, as I am usually used to dishing advice out around here, instead of asking for it. Now I am asking for it. As few of you know, I own my own auto consulting firm here in Houston for the past 7 years. I have been blessed to be able to provide a nice living for myself, and more importantly, my family. My wife has had the luxury of staying home to raise our child (she works part time as a realtor). We've always been able to take vacations we want, etc. The industry I am in started to change in the last year. As with most businesses, I am nothing without my clients. Due to things beyond my control (again, industry changes), my portfolio has clients is slowly diminishing, to the point where I have had to let 2 of my best employees go in the past year (other business owners know, that absolutely nothing sucks more than this ...NOTHING) 6 weeks ago, two important things happened. 1) A competitor offered to buy my company from me. Of course, IMO, I feel my company is worth more than what was offered, but I am biased, and am factoring in things of value which you can't put a $ figure on. In the end though, with the way the industry has changed, I'd be crazy not to take it. 2) A very major insurance company (I dont want to name them, but they are the most profitable insurer in the US) called on me to run their auto claims department here in Houston. I interviewed last week, and as I expected, I was offered the position immediately. Here is the dilemma: I received a salary offer that was much lower than what I was expecting, (they originally gave me a range, and felt, that if was paid towards the upper part of the range, I would be happy). Unfortunately, they offered me the lower scale salary. I have worked for myself for the last 7 years, and can say, without a doubt, that nothing beats being your own boss, even having to assume all the liability and responsibility that comes with ownership. However, this company is the one company I would be willing to give that all up for. Literally, I have told everyone I know that this is the only company I would ever, EVER, work for besides my own. So this is a tough pill to swallow. Its like getting your dream job, the job you've always wanted, only to be punched in the stomach by something you didn't expect. So my question my friends, is this ............have any of you had experience with initial offers being a "low ball" offer? Are most major companies open to negotiation as far as compensation? Do companies get easily offended if you ask for more? What is the most you were able to negotiate upwards? Would you be willing to accept, literally, $2,000 thousand of dollars a month less (it would still be enough to "pay my bills", but would leave much less wiggle room for savings, retirement, rainy days, etc.) for the security if knowing you will always make the same amount, no matter how "slow" things may be, with better benefits? Or would you tough it out, keep your own company, and hope for the best, knowing if you maintained the status quo, you would be able maintain your lifestyle, and retire early? Keep in mind, beyond my control, my company could be gone in a year, and instead of receiving a handsome offer to sell, I could end up with zilch, and the prospects of having to work for someone who would be much less of a company that I could work for now. Any advice or answers would be greatly appreciated..................
There is ALWAYS room to negotiate. When I negotiate contracts, I never hear anything lower than the high number that they give me. NEVER. EVER. EVER. More often than not, I go for more than that high number and pretty frequently, I get more. I'd negotiate both deals for more money. If you are looking to be out of business, you need to do something. Either sell now or refigure your business plan. Why did you lose those customers? How can you get them back? How can you get even more? My advice would be to negotiate the deals to get the most money possible an in the mean time, put all of my effort into seeing what I can do to turn my business around. At that point evaluate your options and decide what you feel is best for you.
Well basically, I've lost clients because a few new startups have grossly undercut my contract bids (hey, its capitalism, so I have no probs here). I still have a solid stable of clients who are willing to pay me more than they would these startups because of my experience and "excellent customer service". We've never lost a client cause we ****ed up, only when they decided we were too expensive. However, all it takes is a bad quarterly reports for them to change their tune and decide no amount of excellent experience and customer service is worth what they are paying. To reconfigure my business plan would mean to either strip my company down to, well, basically, myself and a part time secretary, or, compete with the startups and take a huge cut in revenue (which is why I am considering working for someone else, since I could (if the salary was right) make about the same I would if I went this route with my company, but with more security and less liability).
The auto market looks hella unstable at this point with sky rocketing fuel prices. There's always room to negotiate.
What do you want to be doing in 5 years, job wise? If you see yourself as running your own company, you might rethink working for someone else or maybe taking that job as a "rest stop" between your next business venture. If you keep your company, would you gow your business in other areas? Would it be possible to compete in the short term and make less money, while developing other business with a higher profit margin?
Codell, There is nothing wrong with saying " I really appreciate the opportunity and the job sounds very enticing, but the compensation is a bit low. If we can up the compensation to something commesurate with what I am currently making, we have a deal." And please give them a number that you are comfortable with..... And, sell your company, I did it, and am trying to start something new to sell as well. Also, if the number is low, ask for more, or ask for a percentage of ongoing profits.... I wish you all the luck in the world..... DD
In 5 years, I just want to be financially stable. Working for someone else, Ill still have alot of freedom and perks. My business is maxed as far as growth. We are very diverse. In fact, alot of the startups don't offer the scope of our services. And although they might in the future, one thing that gives me the advantage is my expertise as far as litigation goes. Insurance companies are cheap, but theyll never skimp when it comes to paying for expert testimony. My track record is on the winning side most of the time, and my reputation is unequaled in Texas (the Attorney General of the State of Texas used my company to bust several shops that were ripping off Allision victims back in 2001). So, although im worried about going out of business, in reality, ill probably always be able to maintain that aspect of my business (which happens to be the area I can charge the most for).
thats the thing....i havent applied for a job in 13 years, so I don't know how this works ......i.e. ....how to approach the negotiation (if there even is any negotiation) is asking them to increase their offer by 35% unreasonable?
What Dada said. Nothing wrong with asking for more. Be clear on what you're looking for and work with the company to find a way to get it...profit sharing? commission? bonus? etc. Or consider selling the business that's become more competitive and freelance at the part where your expertise is most valued. Good luck.
No, IMO. It sounds like they want you, just phrase your request in terms of your previous income level/history.
C, bro, Im the last person to offer advice on something like this....so all Im gonna do is wish you the very best of luck adn assure you that from what I know about you....you will make the right decision for you and your family.
1) No, there's nothing wrong with asking for more, but be able to explain why you think you want more. Or at least have something more to add to the discussion than "me want more money". 2) This varies among companies, but if they gave you a range, the high end of that range is something they're more than willing to give you, so negotiate up from that. 3) You need confidence in your abilities. You need to understand why it is you're asking for a 35% bump from what they're offering. Don't go in there and say "just 'cause". What do other people in your position or that do the work you do with the experience you have in your industry make? 4) Are you the type of person that says "only money is money" or are you the type of person that says "time (off) is money". What I'm saying is maybe they can make up a bunch of that salary gap by offering you perks in other ways. Maybe more vacation time for example. 5) These sound like mutually exclusive decisions. You already admitted that you'd be nuts not to take the offer for your company (whether it be the stated offer or for more). So that sounds like a pretty much done deal. I'd still ask for more money - no matter what anyone offers you, it's rarely the max they can offer you. Good luck.
Oh yeah, and if you're still going to be driving from Mars or wherever it is you live now, to head to work, you may want to let them know the drive is a beast and have them take that into consideration.
wow, codell. tough stuff. i know exactly what you mean. it would be VERY hard for me to leave my firm to get a job somewhere else, even if it meant more money or more stability. my thought is you absolutely ask for more. just be honest with them in a very real way. this is how much i made...this is what i am expecting...i'm open to any offer you throw my way. [shameless plug]in the event you sell your business, you might need a lawyer[/shameless plug]
Just tell them "it's not about the money..." on that note, yall rich beeshes loan me some money. I need $1200 bucks by next week. If I don't get it, then my fingers will be broken, and I will no longer be able to post. For some folks, But a lot of people here. Remember, it's not about the money. It's you being the ****. You tell them. Yo, I'm Codell, I am the M F ing MAN. Now give me my money, playa.
Why is it your competitor is in a position to buy your company while you are facing the end of your business? Is it at all possible to change something - clearly you have been successful in the past - and perhaps turn the company around? You just have to ask yourself what would make you happiest. The other job will still 'pay the bills', as you said...so the question then becomes, is the position worth the income change? And no, there's nothing wrong with negotiating.
Most people are right on renegotiating your salary. I always respond to the first offer as "I truly enjoy your company and would love to become a part of it, but unfortunately your offer isn't enough for me to maintain my current living expenses." They'll ask you what that would take. Then you tell them. Just don't get too greedy. You should easily be able to get them to up it 15-20%. 35% might be high, unless they really want you as their employee. To me, however, you have a backup plan. Your current business. Go to them with an offer that would be satisfactory to you to sell your business. If they accept, take it and sell. If they decline, keep your business running. And remember: in Japan they use the same word for crisis as they do for opportunity: Crisitunity!
