Negotiating a Contract Job Fee

How to negotiate for what you need

To help explain the intricacies of effectively negotiating a contract fee, I interviewed my friend Olivia Jaras, negotiations expert and founder of SalaryCoaching.com.

Omer: Olivia, thanks for spending some time giving us a few pointers on how to approach a negotiation. First things first — how do you prepare for a negotiation?

Olivia: First step is to know what you’re worth or, if you’re a client, what you want to pay. You always want to gauge what the other party thinks, so don’t give a number first. When I was negotiating recently with a contractor, I was asked what I wanted to pay but didn’t want to give the first number. I didn’t antagonize the contractor or throw it back at them like “how much do you charge?” Instead, I replied in a way that was asking for their help. For example, I’d say “That’s a really good question. I’ve been doing some market research, talking to a few candidates, and want to know how you price yourself compared to others.”

Omer: How do you figure out your own budget or price?

Olivia: There’s a technique which works well for figuring out a ballpark. Let’s say you need a designer and you could just outsource to a marketplace. Check the average pricing and experience and use that as your midpoint. Then consider if the person you’re negotiating with has more experience and will deliver a better product or if they’re just getting their footing and will need more hand holding.