One technique that salespeople use to bargain and eventually arrive at fair prices with potential customers is “sticker shock,” also known as “reality check.” This involves the salesperson deliberately suggesting a price that is too high in order to back the customer down to a more realistic number.
Recently, I used the “sticker shock” principle to negotiate for an hourly wage. I have been working in a remote position part-time while at school, which requires me to create instructional and marketing videos demonstrating a startup’s digital product. Back in February, I negotiated my hourly wage with a hiring manager. When she asked me what wage I thought would be fair, I threw out a number I knew was too high for a startup to pay an intern: $30 an hour. As I expected, she was shocked and rejected my suggestion instantly, commenting that the company was paying other interns half that rate.
The principle of “sticker shock” instructs salespeople to ask questions like, “What if I were to tell you that sometimes this can cost…?” I found this method to be useful in my negotiations with the hiring manager. I said (truthfully), “I think you should be aware that at my previous internship, my company was paying several hundred dollars to another company for every minute of completed video.” The manager was stunned once again. Finally, she offered me $20 an hour. I accepted.
By proposing a number that I knew was unreasonable, I was able to negotiate a wage that is $5 an hour greater than what the company’s other interns (unbeknownst to them) are earning for doing the same work.
“Sticker shock” and “reality check” helped me to secure the highest hourly wage I have ever earned. More importantly, I was able to do so while being completely truthful.
BoweryJE22
Wow! When we learned about this tactic in class, I honestly did not think I would ever be able to use it. This story shows just how powerful it can be! It’s amazing that you were able to negotiate your wage this way!