Avoid Round Numbers During Salary Negotiations

June 4, 2013 in Daily Bulletin

Lauren Weber reported on some research that may help out the next time you’re engaged in a salary negotiation:

  • When most people go into a negotiation they throw out a round number – say $60,000 – when discussing their expected salary.
  • Instead candidates should go in with a more specific number – such as $62,500 – as this indicates that the candidate has done extensive research on the amount that is par for the field.
  • Research indicates that this will ultimately lead to a higher salary.
  • This principle doesn’t just apply to salary negotiations – when making offers for used cars, buyers who go in with a specific number rather than a round one get a better deal.

Read more about the study and its methodology over here.

Source: The Wall Street Journal

Via: Marginal Revolution