Business gifts are generally given to promote goodwill, to demonstrate gratitude and appreciation, and to foster good relationships. It can be a challenge to find the perfect business gift for a colleague or client or to even know what the proper protocol is in some circumstances. The right gift can allow a business relationship to blossom, while an inappropriate gift can actually harm a relationship, having exactly the opposite impact than what was intended. Therefore, you will want to follow some general rules of business gift etiquette to make sure you give a gift that is appropriate, appreciated, and leaves a positive impression.

A business gift is always a reflection of you and your business. Therefore, consider gifts that are distinctive, and personalize your business gift whenever possible to maximize impact.

Business Gift Cost Guidelines

According to a recent report published by PPAI in January 2008, 29% of survey respondents thought that a business gift should range in price between $10 - $25, 35% thought a business gift price should range between $25-50, and more than 20% thought the ideal price was $50 or higher. The expectation here tends to be greatly influenced by organization size and specific industry.

In general, gifts should reflect the value you place on the relationship. While there is a hierarchy factor in business gift giving, that is, the higher level the person, the more expensive the gift, this should be modulated. Beware of overspending. A business gift that is too expensive or excessive may shock or embarrass your customer, or may be construed as a bribe. Remember, it is more important to put thought and attention into the gift.

When deciding on what to give your recipient, consider their job, function, location, and outside interests. Give a business gift that is in line with your recipients interests and hobbies. This will be a more meaningful gift to your recipient, and it will show that you have taken the time to understand them and not given them some generic gift.

Because the gift is business related, gifts which can be used in the recipients office or for business purposes are especially appropriate. Customizing or personalizing a gift of this nature will make it more unique and individualized.

Other popular choices are gifts which can be used in the home. These gifts can range from glassware to cutlery to gift baskets. In this case, you will want to keep the gift fairly generic as a persons home is personal, and some gifts could be considered inappropriate.

The more personal the business relationship, the more targeted the business gift should be. This is generally true for gifts intended for higher level management, as well, to maximize the impact of your intent.

Giving a business gift that is wrapped and including a personalized note adds that extra special touch that shows your sincerity. This is the type of effort that can differentiate you from others.

Make sure you understand the company guidelines of your recipients. If there is a no-gift policy, or if there are restrictions on the value of the gifts or the situations in which gifts can be accepted, it is very important to understand these upfront to avoid any embarrassing or difficult situations.

Beware of giving gifts that are too personal or intimate, especially when giving to the opposite sex.

Humorous or gag gifts are also to be avoided in most situations, as humor is a personal thing as well and does not always translate, especially in a business context. Additionally, presumably you are trying to present an image that is not to be looked at as buffoonish! In any case, gift where a sexual connotation is involved must absolutely be avoided.

Gifts of wine or liquor and food are often popular and appreciated business gifts. Again, it is helpful to know as much about your recipient as possible to avoid unintended offenses. For example, if planning to give a gift including liquor, make sure you understand if this will be appreciated by your recipient and will not be considered as offensive if your recipient does not drink. Further, if you are planning to give a food gift basket as a business gift, be aware of any dietary restrictions your recipient might have due to religious, medical, or ethical reasons.

When giving business gifts at the holidays, show respect for all religions and avoid gifts with direct religious affiliations.

When giving business gifts to people in other cultures, make sure to research the cultural customs and norms so as not to make a faux pas. Remember what is customary in one culture, is not necessarily appropriate in another.

Make sure you have the spelling of your recipients name and company correct when sending gifts. This is especially important if you are personalizing the gift with either of these. Nothing is more off putting to someone and detracts from your good intention than getting this information incorrect.

The holidays are the most common time when business gifts are purchased and given. There are other occasions to consider, however.

Make an impression on your boss by sending a gift on a birthday. To avoid competition from co-workers, take donations from the other staff members to be used toward a more memorable gift.

Employees are key business partners. Nurture your relationships with them by giving them gifts for performance recognition or appreciation or motivation.

Promotions or major accomplishments are reasons to celebrate. They also offer a perfect opportunity to send congratulations with a nice business gift.

Differentiate yourself from others by sending your existing customers with gifts of appreciation during the year instead of just at the holidays.

Business gift giving can move beyond a perfunctory, generic expectation and be a meaningful gesture of appreciation with just a little effort, thought, and consideration. The above tips should help to make your business gift giving easier, more enjoyable, and more memorable.