This is a question that often causes anxiety and even heated debate between the different departments of the company. Without question, branded gifts have value beyond their actual price and are a great way to get your brand noticed. But how much should you spend to achieve this goal?
It’s not easy to give a clear answer about how much to spend on branded gifts. This is because every company has a different budget size in mind and even a different take on what constitutes value for money.
Certain branded gifts, such as logoed mugs, are often cost-effective solutions because you don’t have to spend large amounts of your marketing budget to get a positive return on your investment. To provide some clarity on the topic, here are some key points to consider.
Understand why you are spending the money
A good place to start would be to figure out why you’re spending money on branded gifts and what you want to achieve with your investment in this proven marketing tool.
Ultimately, you want to try to build strong relationships with your customers and keep your name top of mind when making purchasing decisions. Corporate gifts are a great way to achieve these goals because they help foster a sense of loyalty and appreciation.
When you give someone a branded gift, it helps them feel appreciated. Even a relatively small outlay on something like logoed mugs or pens can really help strengthen that bond. How do you quantify this type of response to your gift?
Instead of focusing on the pure cost of a branded gift you want to use to promote your business, it is advisable to also consider the benefits it brings.
Find the right balance
The line between too much and too little money for company gifts is often very narrow. Neither scenario is good for many reasons.
If you cut corners and end up with something that looks too cheap, it will send the wrong message about your company and the recipient won’t feel as valued either. On the other hand, if your gift is too extravagant, it may lead someone to think that you are making too much money from it that you can afford to spend so much money.
As you can see, it’s a delicate balancing act to get everything right. A good approach would be to look for branded gifts that are good quality but also serve a useful or practical purpose, increasing the likelihood that they will be well received.
A good example of this would be if you gave someone a high quality branded coffee mug. You probably use it regularly, so it creates a positive brand association and it doesn’t burn a huge hole in your overall marketing budget.
All in all, when deciding how much to spend, don’t just focus on price, but also think about how well your branded gift will be received by the person you’re giving it to.
