how much should you spend on business

Whether around the Holiday season or during any other time of the year, you may occasionally need to choose gifts for those in your organization or those you do business with regularly. But when it comes to your employees and customers, how much should you spend on business gifts?

Cost of a Gift

How much you should spend depends on your budget and other factors, some of which are business gift giving etiquette. If you’ve decided to spend some money and want to be sure not to spend too much, $25 to $50 per person is a nice average to start from.

However, try to remember that in some cases, when your gift is going to someone at another company, they might have limits to the value they are allowed to receive. So keep this in mind.

Policies in many large corporations and government organizations, for instance, prohibit employees from accepting business gifts valued in excess of  $25 (sometimes less).  For this reason alone, some small business owners limit their gifts to $25 or under.  The thought of having to return refused gifts exceeding allowable amounts is a complication some prefer to avoid altogether.

Gifts for Clients

When giving to clients, look at how much business each client brought to you in the past year. Rank your spending accordingly:

  • For clients that brought you $15,000 in revenues this past year, you might consider spending $100 or more on a quality business gift.
  • For clients netting you $10,000 or more, $100-500 may be more appropriate.
  • For clients netting you $9,999 or less, spending $25-50 could be the way to go.

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