Strategies for holiday business gifts
Here’s a quick quiz to test your savvy about giving holiday business gifts.
1) Which of the following is generally a bad idea for a business gift?
(a) A good bottle of wine
(b) A cashmere scarf
(c) A charitable donation in the recipient’s name
(d) All of the above
Surprisingly, the answer is (d). Most etiquette experts recommend avoiding gifts of alcohol, personal items such as clothing and even charitable donations.
Alcohol may not be appreciated for religious or health reasons and anything that touches the skin generally is considered too personal for the workplace. Charitable contributions are risky unless you are certain the recipient supports the charity’s goals.
“It’s just a foolish, foolish mistake,” said Peter Post, a director of Emily Post Institute Inc. and the great-grandson of the etiquette expert. “You don’t need to go there because there are so many wonderful coffee-table books, posters, picture frames and plants that would be a nice gift.”
Gag gifts are also usually off-limits. There’s no guarantee the recipient will share your sense of humor. Why take a chance on offending a client or vendor?
2) When it comes to a gift for the boss, the pricier it is, the better. True or false?
False. Individual gifts to the boss, especially expensive ones, can be seen as currying favor. Workers are not expected to give gifts to their bosses, Post said. If they do, a group gift is a better idea. If the boss is a friend, give a gift outside of the workplace.
Post and other experts recommend that a small business have a written gift policy in place that addresses these issues. Employees should be reminded of the policies before the holiday season begins.
3) A gift with your company logo delivers more bang for the buck. True or false?
False, if the logo is obvious. Resist the temptation to get rid of that box of company-branded plastic pens or mugs. Promotional items are usually not appropriate holiday gifts. A discreet logo on a calendar, paperweight or even a quality pen is usually fine, experts say.
4) Prospective clients should always be given a holiday gift. True or false?
False, unless you have a long and personal relationship with the recipient. Otherwise, a business gift, which is meant to serve as a thank you, can look too much like a bribe.
5) Your biggest clients should get your biggest gifts. True or false?
False, if the gift exceeds the limits set by many large companies and most government agencies. Check the policies of your clients and vendors. Many do not allow employees to accept gifts valued at more than $25 or $30.
Items that exceed the limits typically will be returned or donated -- not the fate the giver wants.
Small-business owners will spend an average of $1,065 this season on holiday gifts for customers, according to a survey released last week by American Express.
Although that amount has not grown since last year, it is still a considerable sum for many small-business owners. Learning the basics of gift-giving etiquette can help ensure that an owner’s efforts to spread holiday cheer don’t backfire.
Here are several other recommendations from Post:
* Set a budget. Before you make your gift list, decide how much money you will spend in total on holiday business gifts.
“Recognize that you want to do something for clients and suppliers that isn’t going to put you in debt,” said Post, co-author of “The Etiquette Advantage in Business,” published last year.
His company, for example, sent cards and calendars to most clients last year. His biggest customers got boxes of chocolates.
Don’t feel like you have to spend a lot of money on each gift. It really is the thought that counts. Even a handwritten note thanking a client for doing business with you can have an effect amid a sea of impersonal fruit baskets. Just be sure to treat the note like any other business literature by having at least two other people check it for spelling and grammatical errors before sending it to clients.
* Make a list. After you have set your budget, decide to whom your company will send gifts. Clients and vendors are obvious recipients but don’t overlook business associates who may have referred business to you.
* Be thoughtful. Business gifts should be an integrated part of your overall marketing plan. Give as much thought to your gift strategy as you would to any other business endeavor. Whether you decide to give a holiday card (nonreligious, of course) or send an engraved silver key chain, giving a business gift should further your company’s business goals, including protecting your bottom line.
The good news is, with a little forethought, it’s not hard to do so in a way that reflects well on you and your company.
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Percentage of small businesses giving these holiday gifts
Cards and calendars: 48%
Gift certificates: 29%
Company branded or monogrammed items: 24%
Food baskets: 22%
Charitable donations: 19%
Flowers or plants: 7%
Wine or liquor: 7%
Note: Some businesses give from more than one category.
Source: American Express
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