Gauge on Business Gifts October 01, 2008 PPAI sponsored study reveals presents still fulfill a purpose
By Jeanie Casison
As the holiday season fast approaches, the thought of picking out tokens of appreciation for employees, customers and colleagues might start popping up in people's minds. Despite tight budgets this year, findings from a new Promotional Products Association International (PPAI) sponsored survey suggest possibly rethinking the slashing of those business gifts altogether.
"This research confirms the reasons why business gifts are important and why they are effective," says Steve Slagle, PPAI president and CEO. "It also shows the different price points that individuals believe are appropriate and the types of products that are commonly given, which are all helpful tips."
According to the survey, conducted by associates at Louisiana State University and Glenrich Business Studies, nearly 60 percent of sales and marketing executive respondents said that giving business gifts was either "effective" or "very effective." Thanking customers (70 percent) was the top reason for giving business gifts, followed by building goodwill (60 percent), developing business (50 percent) and recognizing employee performance or longevity (50 percent). Other reasons cited include generating referrals, influencing purchase decisions and because customers expect them.
Price point was also a consideration with 29 percent of survey respondents agreeing with the IRS, that a business gift should fall in the $10 to $24.99 range, while 35 percent felt the price of a present should be $25 to $49.99 and more than 20 percent thought the ideal price was $50 or higher.
Slagle foresees more mindfulness when it comes to corporate gifting this year. "I think because of the way the economy is going, people are going to be more conservative and not go overboard," he says. "They will pick appropriate gifts for employees and customers that may not be the most expensive, but have a high perceived value."
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