Alright, I need some advice on negotiating a salary at my "real job." Immediately after my graduation in June '05 I was hired on as a component engineer for Panasonic. I was hired as a contractor (which is their policy for new grads). The pay isn't all that great, but I did it for the experience more than anything else. Well, last week I was told that they would be pleased to have me as a direct employee. This means great benefits, 401k matching, more vacation time, but most importantly...a raise

So, here is my dilemma. I was talking with a couple other recent grads who have gone through the conversion process...so I have a VERY good idea of what the offer will be. The only difference between myself and the others is that I have a masters degree. This alone should count for something...even though its an engineering position, and my masters is in economics. I dont think it will be a problem showing how my econ background can benefit the company, as a lot of the work I've been doing over the past year has been forecast related.

My question is this, what is the best way to ask for more money? When I'm presented with the offer, what's the best way to kindly ask for more? I've been there for over a year and I know the ropes, so I have a distinct advantage over anyone off the street.

If anyone has had a similar experience I'd love to hear from you.