Business gifts: Good practices!

During certain times of the year, many companies spend a budget to offer their employees or customers a gift. Occasionally or periodically, this practice has become almost unavoidable. From a gift to a custom, it is intended to be a profitable investment for companies.

A business gift for what occasion

In fact, the real question that should be asked is: when to give a gift. Companies take advantage of all the opportunities at any time.  The principle is simple: offer them at the right time, to the right people for the right reasons. The task of the communication-marketing department is therefore to choose the best objects (because most of the time they are) to be able to better reach buyers. There are two possible reasons for this occasion that may or may not be interdependent. Very often, companies use this practice for the pleasure of offering pens, key rings,… But for advertising purposes, as a sponsorship, and especially for loyalty, they do not spare their efforts to ensure that the recipients are fully satisfied.  In any case, this gift usually varies according to the target group: a long-term partner is not at the same level as a new employee.

From a gift to a regulated custom

For a few years now, offering a business gift has no longer been just for the pleasure of offering. Regulations have been put in place to limit their scope so as not to take on proportions that are in the direction of corruption. In this case, budgetary restrictions were also adopted. A maximum value is then set and must be respected so that the expenses are deductible from the profit and recorded in the company’s general expenses. Otherwise, it will be included in the income statement.

Sometimes these gifts are considered as benefits in kind. In this case, they are included in social security contributions. Below 5%, they are exempt from taxes.

The fact of offering a gift remains a particular attention whatever the reasons. For the buyer, its scope goes far beyond the end of the collaboration, especially if it is personalized. Indeed, many companies are a little out of the ordinary in order to offer an original gift or one that goes beyond the scope of business as an invitation for a meal, a game, a trip,…

The compromises at stake

For a company, offering a gift guarantees certain things. Indeed, it is particularly relevant to the “interest of the company”. First, it is a way of establishing a harmonious commercial relationship. Indeed, it is small intentions like this that make it sustainable. So it’s not the value that counts, which is why many companies never fail to do it on holidays like Christmas and New Year’s Day to build customer or employee loyalty.

Secondly, these many gifts are true ambassadors: this is a better way to assert yourself in everyday life, to register and to remain in the minds of your employees. For example, by using pens, setting up the calendar on the desk, the key ring for the car keys, etc. In short, it is a way of reminding the partner of the presence of such a company in his life.

Finally, offering a business gift helps to strengthen existing relationships as well as those with suppliers and/or potential partners. In a way, this is the guarantee of a long and fruitful collaboration, while respecting the standards that govern this type of gift.

A practice coupled with a strategy

Giving a gift is a practice that is highly appreciated by both the donor and the buyer. In any case, its foundation is coupled with a strategy that aims to target well in order to reach better. Currently, it has become a “weapon” in the hands of companies. Indeed, in 2018, the French business gift market is worth more than 850 million euros. This figure clearly shows that this is a key point for the future life of these societies. Whether it is a question of building business relationships, rewarding employees, or promoting brand visibility, the choice of these gifts must be made wisely because its impact is powerful. Indeed, it is the vehicle of a message both to forge a link but also and above all to make the recipient understand the interest that the company has in him. The consequences will be felt concretely on the company’s annual turnover. In other words, even if the latter spends a fairly large amount, it earns more: thanks to these gifts, it carries out a long-term advertising campaign.

Conclusion

The business gift has become a strategic practice. This is the best way to build the partner’s loyalty, to become part of his daily life and to advertise. Whatever it is, it must remain within the framework of a gift so as not to claim corruption or bribery.

 

Printed tie clips and cufflinks
Custom gift bags