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Dude, you already agreed to a job with a different company, your negotiating with them is over if you ask me.
As an employer this is what I'd do if you agreed to take a position I was offering and then you came back to me wanting more pay because your former company now wants to keep you.
It would do something like this.
TheCoffeeGuy(TCG): Hey Hoover, it's TCG.
Hoover: What's up TCG, looking forward to you joining the family. What can I help you with?
TCG: Well, my current employer is trying to keep me from leaving. They told me that they will pay be current salary x 1.25 to keep me.
Hoover: What did you tell them?
TCG: Well, I haven't responded yet. I thought I better call you.
Hoover: I thought you were not happy there. Didn't feel appreciated. Wanted a change of scenery?
TCG: Yeah, that's all true, but..
Hoover: But you want the most money you can get?
TCG: Well...
Hoover: So being appreciated, being part of team, being respected means less to you than a few hundred bucks?
TCG: Well...
Hoover: So, lets say you stay there. They pay you your current salary x 1.25 percent. Then what? What happens in a year or two when you feel the same way that brought you to my door.
TCG: Gulp
Hoover: Here's a question you need to ask yourself. Do you want to stay at a company that will only give you a raise when you threaten to leave them, or do you want to work for a company that rewards hard work?
TCG: I want to be respected.
Hoover: Well I would say the choice is pretty clear, but it's yours to make. My offer still stands, but I negotiated with you in good faith, and not against your current employer. So you tell me right now, do you want the job I have offered you or not?
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