Case study: How I Negotiated a 3000 Dollar Raise

If you have followed my site at all, you will know that I teach what is called the CEO model of personal finance.

In order to achieve the dream of being independent of a day job, we need to continually find ways to decrease our expenses and increase our income(s).

Once a quarter I make a list of items that I think I need to check to ether increase my income or decrease my expenses.

That list includes:


  • credit cards
  • insurances
  • cable
  • cell phone
  • and my salary. ( or lack their of depending on if you are a glass have full type)


In this case I was up for my annual review. I have done a exceptional job this past quarter and a half at my day job. So I knew I was getting ready for a increase in pay, I just didn't know how much I was going to get.

Here are the steps I took to get ready for my review:

I tracked my numbers

Since I have taken over my department last year, I had a goal of decreasing our inventory loss per week. Before I took over we were on average  losing upwards of .75 - 1.% a week on goods lost. That number has dropped to .31% since I've taken over. I knew that this was going to be my key to getting the increase in pay I wanted as this has been a problem for the company since inception. I dug back into the numbers to see exactly what they were before I took over,as well as after. This was me gathering the data needed.

I searched the web to see what people made in my position.

I went to Pay-Scale  and saw what people in my field make. I noticed something - I was in the bottom 5% of what people made in my field!

Seeing that punched me in my belly.

However, it was also a blessing because if I've learned anything about negotiations, it was that top earners don't scrape the bottom of the barrel.

If I had chosen the right metric to show my worth, reducing inventory lost, then after my review there would be no way they couldn't see me as a top earner.

Building the pitch

I love scripts, routines or formulas to get things done. I like systematic approaches to things when it comes to negotiations. Why shoot from the hip, when there was been countless people who have done it before you? Why not take what they have done and mold it to what you need it for?

Ramit over at "Ill Teach you to be Rich"  has some of the best scripts I've seen on little negotiations scripts when it comes getting more money or cutting costs on bills.

I must have watched this video 10 - 15 times taking notes and absorbing the underlying intent of what he was trying to teach. I built my pitch on the lessons from that video.

The moment of truth

" Hello, Johnny here is your review"

" And here is the number we think you are worth"

Well geez that's the exact number I was going to ask for!

What a turn of events..

 I spent the better part of a month preparing for this grand negotiation and come to find out I didn't really 'need' to do anything, but hindsight is 20/20 and its better to be prepared than "ass out butt naked in the street" as my mom would say.

Afterward I told my boss that he ruined my negotiations tactics, he asked me to show him what I had prepared - come to find out he is also up for a review and he was going to ask for 10% but didn't know exactly how to approach it. I pulled out my print outs and scripts and I talked him through everything.

I have no doubt he will get what he is asking for.

Goes to show you never know what you can get until you ask.

Granted I didn't get to see the fruits of my labor as they gave me exactly what I felt I was worth ( at the moment) the process is sound and the methodology is based on real life experience.

Remember 75% of people who ask for a raise... gets a raise. So get off your rump and go ask.

Do you have a story you would like to share how how you got a raise? please share at the bottom.

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