Corporate gift spending expected to rise a bit this year

Fewer companies are planning to give clients gifts this season, but spending per gift will be up slightly, a national survey found.

The percentage of companies that said they're giving gifts to clients declined to 37 percent, from 42 percent in 2014. But they expect to boost their average spending per customer or prospect by $4 over last year, to $48 per gift, according to a 2015 Advertising Specialty Institute report.

Showing appreciation. To be sure, corporate gifting budgets still aren't back to pre-recession levels. But many companies remain committed to showing appreciation to top customers, prospects and employees.

Gifting is "holding its own in this uncertain economy," says Nate Kucsma, director of market research for Trevose, Pennsylvania-based ASI, a trade organization serving the $21.5 billion promotional-products industry. It's a good sign that the "average spend" is up, he notes.

On the employee side, spending on gifts for them is rising to $44, from $38 in 2014, according to the survey.

Cards, bonuses. Leading employee gifts this year are gift cards and cash bonuses, followed by food and beverages, apparel and electronics, Kucsma says.

When it comes to bonuses, half of small-business owners indicate their employees can expect something equivalent to "a small stocking stuffer" (less than 5 percent of annual salary), according to a separate American Express OPEN survey.

Technology's hot. In terms of client gifts, technology-related items are hot this season, says Lisa Chalker, president of Family Affair Distributing in Massapequa, which specializes in imprinted promotional gifts and gourmet gift baskets.

Power banks -- used to charge smartphones and other devices -- are particularly popular, she notes, adding that she feels corporate spending locally might be a bit down this season.

One client already scaled back gifts this year by a third.

"At best I'll see the same as last year," Chalker says.

Cautious spending. Some other local industry experts expect spending to be up, but not significantly.

"I think it's going to be slightly up, but not dramatically," says Evan Bloom, co-owner of the Westbury, Hauppauge and Melville franchises of Sir Speedy, a national printing and marketing services company. He anticipates a 1 percent to 3 percent increase in gifting orders this season, a far cry from the 5 percent to 10 percent increases seen before the recession.

"There's a mind shift in how people are ordering anything nowadays," Bloom says. "They're not willing to spend the same way they did before the recession."

Andrew Janosick, a partner at Proforma Executive Business Services, a St. James graphic communications and promotional products firm, notes most clients are spending about the same if not slightly more.

Anthony Capogna, a funeral director at Gutterman's in Woodbury, who's working with Chalker, says they'll be spending about the same this year as last on gifts to more than a dozen professional contacts, including attorneys, social workers and geriatric care managers. They'll be giving out a holiday food basket.

Popular items. Food gifts are always a top gift, Chalker says, noting the most common baskets being purchased are $50 and $150. Other popular client gifts are calendars, desk accessories, writing instruments and apparel, Kucsma says.

Logos prevalent. Most gift items are being logoed, Janosick says. "I don't know anyone that doesn't brand it," he says.

Nearly half of all companies report that all of the gifts they give this season to both employees and customers/prospects will bear their company logo, according to ASI.

"It's just another extension of marketing your company," Kucsma says.