State: Alberta (Canada)

You do not want to wasted a companies time, much like they do not want to waste yours. Be upfront and ask what the "average" pay is for a first year worker in this field/in the company. If you are unimpressed with the answer, be honest. You know how much you are worth, do not undersell yourself. Take into account the benefits, commute, the atmosphere. Is it a good stepping stone? will you learn a lot from this company?

Negotiation is key. Companies WILL accept a reasonable upgrade in your pay and benefits if you present the reasons why you are "worth" the investment.