Gift Giving Etiquette , continued, Page 2 of 2

Entrepreneur Magazine Business Gifts
Show your appreciation while promoting your business.
By Kylo-Patrick Hart

Another important decision involves whether or not to personalize gifts with your company's name. Some gifts lend themselves to personalization more naturally than others. For example, if you're planning to give a gift that the recipient will use daily--such as a mug, a mousepad or a pen--it's a missed opportunity not to personalize it with your business's name and telephone number. This saves your customers from having to search through their phone books or Rolodexes to contact you in the future, plus it reminds them of your generosity every time they use the gift. Similarly, the engraving of your business's name on more expensive gifts--such as gold pens and crystal clocks--extends feelings of goodwill throughout the year.

A great alternative to personalizing gifts is to include a free sample of your product with your gift. If you manufacture and sell decorative magnets, for example, you could include one inside a gift basket of holiday treats. If yours is a service-based rather than a product-based business, a customer-appreciation voucher for a free appointment can serve the same function. This is an effective way to link your holiday generosity with perceptions of your business in the minds of your customers.

Naturally, you may not be able to afford giving gifts to all your customers and vendors, even though you value them highly. You also may not want to give the same gift to each of them. So when you're compiling your gift list, keep the "80-20 rule" in mind--that in most cases, 80 percent of your business comes from 20 percent of your customers, and the majority of your vital supplies are generally provided by only a handful of suppliers. Consider buying gifts only for your best customers and your most accommodating suppliers. If you can afford to purchase a small gift for almost all your customers and suppliers, the rule suggests that you should give about one-fifth of these people a more special or more generous gift than all the rest.