Generally speaking there are two kinds of negotiation situations. One is a one-time negotiation, for example, buying a new or used car. All you care about is

Generally speaking there are two kinds of negotiation situations. One is a one-time negotiation, for example, buying a new or used car. All you care about is getting the best price. You don't really care if you're eating into the dealer's margins. Second is a negotiation that is part of a long term relationship. Here you want to exit the negotiation with both sides feeling good about it. You don't want to jeopardize the relationship for the negotiation. You don't want to screw the other side over. A job offer should be a type II situation. If any of the parties approaches it like a type I then they probably shouldn't be working together. The employee should get an idea of what they'll be happy with and the company should pay the employee what they'll be happy with. If the employee is approaching this with the idea of taking advantage of the company then it basically turns into a type I situation and the company should walk away. If a company is approaching the future employee as a type I negotiation the employee should walk away. I was really excited in a previous job where I figured out what I thought I was worth based on my current comp and some research and when I asked for that I got an offer that was somewhat higher. That told me the company cared about making me happy more than they cared about the (negligible) extra $$$'s. That was all the negotiation. Both sides were happy and I was very enthusiastic on my first day. Now in a type I negotiation I would have been able to squeeze them for more money but this is not a type I negotiation. Another situation where a fairly successful small web company offered me less than I was making at the time. When I tried to get some concessions in other areas like extra vacation time or more time working from home I was flat out refused. Their CTO interviewed and liked me, the team liked me, they got the CFO to tell me how they couldn't afford to pay more. They were really surprised when I declined their offer. From my perspective they were treating me as if they were trying to buy my car and that told me that's the way they would keep treating me if I came to work for them. The way I see it if you've done everything right up to this point and if both sides are interested the offer is pretty much a mere formality. Not a starting point for bazar style bargaining.