How much should you spend on client gifts.
"How much should I spend on my clients?" Is the number one question that I am asked.
Gifting should be something you actively budget for. If you do not yet have the budget, rely on handwritten note cards. But when you are able to invest money into gifting strategies, what you choose should be comparable to what it would cost for a nice dinner, great tickets to a hockey game, or a round of golf at an upscale club; an amount that typically falls between $250 and $1000. Essentially, your gift budget to retain and maintain clients should always fall between 5 and 10 percent of your net profits of their transaction.
You need to ask yourself, "What's the most I can spend on a gift to my client?"
Since it's not uncommon for us to ask ourselves, "What's the least I can do without looking cheap?" reprogramming your mindset might require some effort.
Let's be honest: How many times have you been invited to a wedding or a high school graduation, and the first thing that comes into your mind is, "Do I really have to spend $250 or can I get away with $150?" Our natural tendency is to cut corners and go with the bare minimum.
It's not necessarily about spending more money. It's about being smarter about spending money.
That is why we highly recommend that you give your clients a painting of their home as a gift. It is around $250, but it is priceless to your clients. A painting of their home is a gift that they will treasure for years to come. So instead of spending $100 on a bottle of wine, be smart with your purchase and give them a gift that they will treasure!