Creating a budget for corporate gift giving is important to ensure you get the best return on your investment while not breaking the bank. While you need to set an amount that you can afford, also keep in mind that giving poor quality gifts is a big mistake. For example, in a recent survey* of more than 1,000 CEOs, when asked about the worst corporate gifts they’ve ever received, the #1 answer was, “cheap things with company logos” (such as t-shirts and mugs). As such, you’d be wise not to skimp too much on your budget to ensure your recipients feel valued and your gift is a true expression of your relationship.
Begin by determining an overall target amount that you would like to spend – then take the following three steps to help complete your corporate gifting plan and fine-tune the budget.
1) Create Your Recipients List
Think about all the people who have helped your business succeed when making your list. This can include your top clients, prospective new clients, vendors and suppliers, your own employees and anyone else who is important to your business.
2) Categorize Your List
If you plan on giving different gifts to various people based on your business relationship or other factors, it’s a good idea to break your list into categories or segments. This is an effective way to identify those recipients who should receive a higher-end gift and those for which a less costly gift is appropriate. One of the most popular ways to do this is to use three simple categories – low, medium and high price points. However, you can create as many categories as you think will be needed to differentiate between your recipients.
3) Create Budget Ranges for Each Category
Next, create a range of costs for each category, such as $25 – $50, $50 – $100, $100+ or more. After you’ve put all of your recipients into the proper categories, it’s time to add everything up and compare the total to your overall target budget.
At this point, it’s likely that you will either be over or under your target budget. You can edit as needed by moving recipients to different categories, or you can add or subtract recipients until the final cost meets your target. Just remember that 77% of CEOs surveyed* say that business gifts make them feel appreciated – so corporate gifts, when well-planned, can really play an important role in strengthening your business relationships.