In business, a strategic approach is the difference between success and failure. How to budget corporate gifts is no exception. To get the most from any corporate gifting campaign, whether for clients or employees, it's important to get this right. Companies that use gifting successfully know that the best approach is to establish an annual gift budget.
Planning a Corporate Gift Budget
Every business will have different financial needs and resources. Creating a budget line item for gifts with what you have available to spend is the first step. Having a hard time finding available funds for corporate gifts? Read on to learn how to build this into your monthly budget.
When it comes to sorting out how much you may want to plan for monthly, there are some factors to consider:
How many people?
Sure, employee gifts might be a given but don’t forget to include outside vendors, partners, freelancers, service providers, or potential new clients. Learn why potential clients are just as important here.
What are the gifts for?
Are holiday gifts the only time you plan to give? That’s a start, but it’s worthwhile to consider giving gifts for special occasions as well. Think onboarding, birthdays, promotions, work anniversaries, life events, or monthly connection rituals.
Always plan for extra
A good rule of thumb is to add 15% to your budget in case of unexpected costs. It never hurts to have more than not enough because once the benefits of a gift campaign start to show themselves, the recipient lists tend to grow.
How To Budget Per Person
Once you’ve considered all of the important factors and maximum budget, it’s time to break out the calculator! One approach is to avoid showing favoritism by planning to spend the same amount per person. This is especially important if you are giving gifts to employees who may share their reactions to the gifts. It doesn’t always mean the gifts have to be the same, although this choice will be best and most appropriate so Joan in accounting doesn't get jealous of John in sales. For client gifts, create a sliding scale for gifts depending on their relationship and importance to your business.
If you are new to building a corporate gift strategy and it seems difficult to find the resources, then try to keep it simple. It’s better to start with one meaningful gift rather than trying to give five sub-par gifts throughout the year. According to this Forbes article, more than half of surveyed respondents said that “gifts can impact their opinion of a business partner both positively and negatively.”
Stretching Your Budget by Choosing the Right Gift Partner
Don’t feel the need to buy all gifts at once. Spreading out your gifts throughout the year can mean your gifts will have a more of an impact. The key is budgeting for gifts so the expense is accounted for when it does come time to send them. At Batch, we can assist with strategic planning for the corporate gift experience to manage expenses, time, and even delivery windows.
Lastly, in some cases, it’s even tax-deductible! Knowing the tax implications may help justify your corporate gifts and recoup some of the cost in the new year. Learn more here.Gifts can communicate how much you value employees, clients, and partners. By showing appreciation with a thoughtful gift, you are signaling the importance of the relationship. We are happy to work with budgets of all sizes. Don’t hesitate to reach out to us here.