How much should you spend on client and employee gifts?

This is the first in a series of articles focused on year-end gifting, where our founder, Kade Kimber, will tackle common questions and concerns, share valuable insights, and highlight the solutions we offer to make gifting effortless and impactful.

Why This Topic

For most of our new clients and those exploring corporate gifting with us, budget is a primary concern. Yet, despite its importance, it’s often the topic people hesitate to bring up. While some worry that we’ll use every dollar of their budget (we won’t!), most of the hesitation comes from uncertainty about what’s typical, concerns about whether their budget aligns with their goals, or sometimes even unnecessary embarrassment over a limited budget.

What We're Covering

With this particular article, my goal is not only to share insights based on data and our experience but also to assure anyone reading this that there's no need to feel self-conscious about their budget. You can give incredible gifts without overspending, and we have plenty of strategies to maximize the impact of every dollar, making it look like you spent a fortune—even when you didn’t.

For those with larger budgets, I’ll also share essential tips to ensure you’re getting the best value and impact from every dollar spent.

Because this is a huge topic, I've broken it down into these key sub-topics:

• Data Considerations/Experience Insights & Spending Recommendations
• Perceived Value & ROI Impact
• Gifting at Lower Price Points
• Determining What to Spend
• Creative Ways to Make Your Budget Work

Baseline Info

A few helpful notes and high-level insights so that we're all on the same page:

• The amounts mentioned here focus solely on the gifts themselves and don’t include variables like sales tax or shipping. As a rule of thumb, you can generally expect shipping costs to run about 10-15% of the total gift cost, unless the gift is exceptionally heavy—in that case, plan for closer to 20%.
• With us, the price you see is truly all-inclusive. Design, labor, products, and all packaging are bundled into the gift box price—no hidden fees or extra charges for the finishing touches.
• Our ready-to-ship gift boxes typically range from $63 to $199, with a standard minimum of $60 per gift. For 2024 year-end gifting, however, we introduced a special $48.95 option (including shipping) to offer even more accessible choices for bulk gifting.
• We work with clients ranging from solopreneurs to large global organizations, and you might be surprised to learn that per-gift budgets don’t actually vary as much as you’d expect based on company size. Some small businesses operate within tight budgets, while others go all-out for select clients. Similarly, large organizations may have limited budgets or, conversely, more flexibility to spend generously. So, the budget ranges we’ll discuss here generally apply across the board, irrespective of company size.
• It’s true that high-volume gifting can lead to preferred pricing and discounts, but in our experience, most price breaks for individual products range from 5-15%. Plus, not every supplier offers these discounts, so they may not apply to every item in a curated gift box with multiple products. In short, if you’re not purchasing in high volumes, rest assured—you’re not paying dramatically more per-box than those ordering hundreds or even thousands of gift boxes.

All of that established, let’s dive right in!

As aforementioned, in this article we're considering both data and experience. (By "experience", I'm referring to what we most commonly experience when working with clients, as well as our experience in working at different price points.) First up, let's hit upon some helpful data.

Data Considerations

We track numerous gifting surveys annually. While I won’t get too deep into the numbers, there are a couple of key points to know. First, and this is consistent almost every year, employees earning $100K or less expect a year-end gift valued around $100-$125. The second point to know is that employers typically report spending around $50 per gift, which is quite a gap. That $50 difference can mean two very different gifting experiences.

Here’s where experience and insight come into play alongside the data—and after over a decade of corporate gifting for some of the world's top brands, I can confidently offer guidance here.

Experience Insights & Spending Recommendations

In my view, one of the most valuable insights for planning a gifting budget is knowing what other companies are spending on client and employee gifts. This knowledge helps you stay competitive, guides you in creating a standout experience if you want to go above and beyond, and ensures you come across as thoughtful and generous rather than overly frugal. If you’re already within the recommended range, take this as reassurance that your budget and approach are on the right track.

Most of our clients choose gifts in the $75-$150 range, with $100-$125 being the most popular price point year-round—holidays included. In 2024, we’ve seen a notable uptick in purchases within the $150-$199 range, partly driven by the popularity of new, truly unique gift options we introduced at $199. Still, $100-$125 remains the top choice for most clients.

In terms of our overall experience, we’ve designed gifts priced from $50 to $2,500, and whenever possible, I recommend aiming to spend around $150 per gift. Why? Because it’s a sweet spot for perceived value—ensuring recipients feel like you spent more than you actually did. From our experience, perceived value tends to peak around $350, then picks up again at $500, but it's really important to emphasize that you don’t have to spend that much to make a lasting impression.

As I always say, a memorable gift isn’t about the dollar amount alone. Here’s a personal example: one of my all-time favorite personal gifts came on my 21st birthday when I was far from home. Knowing my love for Chips Ahoy and milk, my sister sent me a package of cookies with $5 to buy milk. Nearly 23 years later, it’s still a standout gift. Thoughtfulness often matters more than price.

Let’s be realistic—when it comes to corporate gifting, a box of cookies and $5 for milk is hardly the way to express deep appreciation for someone’s contributions to your business. But you don’t need to spend $350, either. We recommend aiming for around $150 per gift if you’re seeking a balance of quality, product options, and strong perceived value.

Perceived Value & ROI Impact

While we follow a specific formula in designing each gift box, perceived value is an essential overarching element that should never be overlooked, so let's look at that a bit more for just a second.

As I mentioned earlier, the goal is for recipients to feel like you spent more on the gift than you actually did. This approach allows you to achieve a high-impact experience without overspending, and it can even generate extra buzz for your gift—and your brand—when recipients are genuinely wowed by the perceived generosity.

At the $150 price point, the range of options for products and personalization expands, giving you more opportunities to maximize perceived value. To illustrate, let’s build a theoretical $150 gift box with a mocktail/cocktail theme.

This box might include items like:

• A set of cocktail glasses that are monogrammed for a personal touch
• A set of high-quality leather, stone, or wooden coasters
• Gourmet truffles or candy
• A premium mocktail/cocktail mix
• A stylish metal bar spoon for mixing drinks

With these particular products and the thoughtful touches (especially the monogramming on the glassware), the gift feels luxurious and memorable, leaving recipients with the impression of a much higher value. This particular box would need to utilize our largest gift box, which is 10" x 13" x 5" D, which also adds to the generous feel to it all.

Given all of that, it's a safe assumption that recipients would likely assume you spent $200-$250 on this $150 gift. Plus, you realize even further returns in the form of brand exposure. With your branding kept to the packaging, the recipient is not only more likely to use the gift (rather than shove it in that cupboard we all have where unwanted things go to die), but they're going to talk about it. And, they're going to mention your brand each time they do, as everyone remembers who gave them a great gift. This is especially impactful on social media, where memorable gifts often get shared.

We’ve seen the impact of this added exposure for our clients time and time again, but recently, we experienced it firsthand—and I can confirm, it makes a difference. Here’s what happened: one of our clients sent one of our on-demand gift boxes, which is branded with their logo on the gift tag and notecard, to one of their customers. Coincidentally, that customer turned out to be a neighbor of mine—someone I don’t know well, and who didn’t realize Oak City Gifts is my company.

The connection came to light when she shared an unboxing video on Instagram, tagging us in her story. As she started the unboxing, she noticed our logo on the box lid and mentioned not knowing Oak City Gifts but was excited to learn more. Before that, she spoke highly of the company that had sent her the gift (also tagged in the post), even recommending them to her followers. And it turns out she has around 30,000 followers, as she has an interior design company.

Our client was thrilled with the unexpected exposure and even began gaining new customers as a result; meanwhile, we saw an increase in followers. Although we don’t typically see direct returns from our clients’ gifting efforts, this experience was a powerful reminder of just how impactful a single gift can be. And in this case, our client had sent one of our $99 gift boxes—a relatively modest investment with impressive results.

So, while we recommend aiming for $150 to take advantage of additional options, you don’t have to spend that much to achieve outstanding results. Let’s walk through how that might look by modifying our example gift box to fit lower price points, while still maintaining impact and quality.

Gifting at Lower Price Points

There are plenty of situations where spending $150 per gift isn’t feasible or practical—for example, when it represents an uncomfortably large percentage of revenue or expected revenue from the recipient. In these cases, adjusting the budget makes sense while still aiming for a thoughtful, impactful gift.

Using our mocktail/cocktail themed gift box example, let's look at that theme at three lower price points: $125, $100, and $75.

• At $125: The gift box contents would remain largely the same, including the glassware, but without personalization on the glassware. This keeps the perceived value high, likely around $150-$175.
  
  

• At $100: The coasters and bar spoon might be omitted, and the remaining items would fit into a slightly smaller gift box, still making it feel substantial. The box would still include glassware, truffles or gourmet candy, and a cocktail/mocktail mix. To create an even greater sense of abundance, we could opt for slightly less expensive truffles or candy, freeing up budget to add lower-cost items like stir sticks or cocktail umbrellas. The result? A gift that feels full and thoughtful, with the perceived value likely around $125-$150.
  
  

• At $75: The glassware would be omitted, and we could swap the gourmet candy for multiple budget-friendly options that still match the theme. This approach keeps the gift box visually appealing and substantial, delivering a cohesive brand experience. The perceived value would likely be around $100.

As you can see, spending at lower price points doesn’t mean sacrificing impact or results. You’re still delivering high-quality gifts with perceived values that go beyond the actual cost, making a memorable impression without overspending.

Determining What to Spend

While I’ve outlined general expectations and typical spending patterns, it’s helpful to know how to determine your ideal budget, especially if your anticipated budget differs from the averages.

For client and prospect gifting, a good approach is to consider the net revenue generated (or anticipated) from the recipient’s use of your services. This ensures the gift aligns with the dollar value of the relationship.

For employee gifting, you could base the budget on their annual salary or, if available, their estimated annual contribution to your bottom line. This approach is particularly straightforward for sales teams, as their revenue generation is often tracked. However, it may be less clear-cut for operations roles, where contributions are indirect.

In both cases, a good rule of thumb is to spend 1-3% of that dollar value. A key caveat, though: apply logic and consider industry norms. For instance, at the 3% mark, a $3,000 gift for an employee with a $100,000 salary might not be practical or typical in your field. Adjust accordingly to keep your gifting impactful, situation-appropriate, and aligned with industry standards.

Another way to determine your per-recipient spend is to reverse engineer your total gifting budget. Here's how:

1. Set Your Overall Gifting Budget
• For this example, let’s assume your budget is $10,000.
2. List Your Recipients or Recipient Groups
• Make a list of everyone you need to gift or the groups they belong to (e.g., HR, IT, Accounting, a client or prospect company). If you’re using groups, tally the number of individuals in each. For this example, let’s say your list totals 125 individuals.
3. Calculate Per-Person Spend
• Divide your overall budget by the total number of recipients. In our example, that’s $10,000 divided by 125, which equals $80 per individual.
4. Assess If This Amount Feels Right
• Consider if this amount aligns with what recipients might expect or value. If possible, you could discreetly ask trusted individuals on the list for their thoughts on a gift at this price point. This isn't a perfect science, but it's an important step nonetheless.
5. Adjust If Necessary

• If the per-person amount feels off (too low or too high), consider adjusting the overall budget or recipient list, or tiering or grouping gifts based on the recipient’s role or relationship (see the next section for how to do this)

Creative Ways to Make Your Budget Work

When adjusting the overall budget isn't an option, nor is adjusting the recipient list to reduce the number of people to whom you're gifting, you just need to get a little creative. The two most effective ways to do that are through tiering your gifts or grouping your gifts. Here's how that looks:

Tiering Gifts

Assign gifts at different price points to individuals based on their roles or relationship with your organization (e.g., $75, $100, and $125 tiers). Calculate the total for each tier and move individuals around as needed to fit your budget.

Grouping Gifts

Grouping gifts allows you to give a shared gift to a team or company rather than individual gifts, which works well for clients or prospects. For internal employees, we generally advise against this approach, as it’s essential for each team member to feel recognized and valued as an individual contributor. Here’s an example of how that looks for a client:

For your client, Acme, Inc., you have five recipients. With a budget of $400 (at $80 per person), you could instead:

• Allocate $200 for a team gift shared among four support contacts.
• Set aside $150 for a personalized gift for your key contact.

This leaves $50 in your budget, which you can use to enhance the team or key contact gift, or reallocate elsewhere.

This approach maximizes perceived value and keeps you within budget, providing memorable gifts that still feel meaningful.

Summary

I realize that's a lot of information to take in, but I hope it’s helped simplify the complexities of corporate gifting and provided clarity on budgeting for employee and client gifts. Keep an eye out for upcoming articles addressing common challenges in developing and executing an effective gifting strategy. And remember, no matter your budget, thoughtful gifting is always within reach!

Need advice, additional insights, or solutions for your corporate gifting needs? Our team offers complimentary consultations. Visit our contact page to get in touch or to schedule a consultation with a gifting expert.