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How Much to Spend on Promotional Gifts by Perkal

Promotional gifts come in all shapes and sizes. They also come with all sorts of price tags attached. Although you don't want to break the budget with the money you spend on promotional gifts, it is also extremely important to keep in mind that your promotional gifts are important and that you do have to fork over some cash for them. How do you determine how much to spend on promotional gifts? Here are a few things to keep in mind when you're setting that budget:

How large is your company? The larger your company, the more you'll have to spend on promotional gifts, especially if the goal of the promotional gifts is to help your company grow. Of course, your budget overall will be much larger with a larger company than with a mom-and-pop shop. In general, think in terms of percentage of the overall budget instead of in terms of dollar amounts.

Who will receive the promotional products? Promotion gifts that you give away at a state fair will be much less expensive than promotional gifts you give to your top clients as appreciation gifts for opening large accounts. Imagine how you would feel if you won the lottery and decided to open a new account to keep your savings in a bank...and all they gave you for that was a pencil that said "We appreciate your business." Of course, it's your prerogative to give gifts at all, but when you do so, make sure they aren't insulting.

How often do you give away promotional gifts? If you and your business attend a large number of conventions every year, you'll of course need more promotional gifts. "More" often means more money as well, although it really depends on the types of gifts you buy.

What kind of impression do you want to give your clients or potential customers? Your promotional gifts are strong marketing tools, and branding is very important. Cheap promotional gifts don't necessarily mean that your products or services aren't high quality, but in the business world, sometimes the first impression is all you get. Spending a bit more money on certain promotional gifts is definitely something to think about.

What purpose do your promotional gifts serve? This goes hand in hand with who will be receiving your promotional items. If your promotional gifts are simply to get the word out about your business, cutting costs is fine in exchange for quality. On the other hand, if your gifts are meant to show appreciation, quality (and higher prices that go with that quality) is important.

How large will the items be? When you're ordering from a catalogue or online, it is important to actually take out a ruler and get a real-life understand of the size. Remember, if you want larger items, you'll usually have to be willing to pay for them!

Budgeting for promotional gifts is simply important. Too many companies forget this crucial step in the budgeting process and, as a result, have no money left over for promotional products. Do yourself and your business a favor and save for promotional gifts!

This article was published on Monday 01 September, 2014.

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