The Promo Coach

Exporting is an extremely effective and valuable way for companies to extend their reach and increase their revenue. It is, however, full of various problems and potential pitfalls, which may be just around the corner for the unprepared or inexperienced exporter. With the relative weakness of the pound, and the downturn in the home market, for companies who understand the business of exporting and do it right, it can pay nice dividends.

Language, of course, is an obvious consideration. But surprisingly, many companies fall short of fully understanding and realizing cultural differences. They often fail to appreciate the subtle (and sometimes most obvious) nuances between different cultures and different ways of doing business. Cross cultural differences are very important in international marketing, and can at times make it or break it for you. That is why companies should put more efforts and focus on this area; they will need to step up to the plate if they want to be successful.

Localization needs to be part of any comprehensive export company – reaching businesses or individuals on a localized level appropriate to their culture can be very powerful and is the holy grail of global online marketing. But beware – mistakes can be costly. What is acceptable in one country maybe not be in another market. There are quite a few infamous advertising campaigns out there, which are simplistic but powerful illustrations of this fact.

In many business cultures, face to face contact is still preferred to more modern 21st century methods, such as email, video conferencing, and online marketing.

Business gifts are an essential part of the courtship of business abroad and can help promote and cement a business relationship. But again, beware of offending with an inappropriate gift (such as giving a letter opener or a clock to a Chinese company– as both have connotations of death)!

Maybe it is better to give than to receive. And when it comes to taxes, it’s definitely better to give business gifts than personal gifts. Business gifts can be deducted against your taxable income. And in some cases, what might be thought of as a gift might even be an ordinary — and fully deductible — business expense. You can deduct up to $25 in business gifts to any one taxpayer per year. There’s no limit on how many people can receive business gifts during the year.

However, for tax purposes, a husband and wife are considered to be one taxpayer, so only $25 in total gifts to the two of them can be deducted.

Oh, and just to complicate things a bit more, that rule also applies to gift givers as well as recipients — you and your spouse also are treated as one taxpayer. So even if you each have your own businesses, the two of you combined can’t take a deduction for more than $25 in gifts to any individual.

Business gift-giving gets more complicated when you give a client something like tickets to a concert or a football game. Sure, it’s a gift . . . but it’s also entertainment. So how do you treat it for tax purposes? The IRS gives you lots of leeway on this. If you go to the event with the person, then it’s probably a business entertainment expense. That means no $25 limit, but you only get to deduct 50% of the total cost. If you give the tickets and don’t go with the client, you can choose whether to treat the expense as a gift or as entertainment. If the value of the item is less than $50, do yourself a favor and treat it as a gift.

The things that businesses often “give” (such as year-end bonuses to employees, awards or trips to outside salespeople, store certificates to clients) are not disinterested gifts. They are often connected to rewarding people for past business, encouraging them to provide future business or promoting current business. The expense might be promotional or advertising-related or marketing or compensation, but if the motive for it is business-related, then it’s probably not a gift, and no gift means no $25 limit on the deduction.

That doesn’t mean the road is clear for handing out big-ticket, year-end “thank yous” and incentives. For one thing, a gift of a meal is still a meal — not a “promotional item.” For another, in an audit you may find yourself having to defend your characterization of these expenses. And you’ll always have to show that the expense was ordinary and necessary in your business!

When in the position of needing to extend thanks, whether it s to special customers or clients, there are many business gifts to look into as a suitable option. You may also need to give something to a person or company that you do business with. Be aware that here are some unwritten rules to follow when you are deciding on what to give who.

The most important thing to remember about business gifts is that you don’t want to make them too personal. Whether you’re giving them to a client or customer, or a business acquaintance - don’t go out and buy warm, fuzzy socks for someone you aren’t even on a first name basis with!

If it seems thickheaded and obvious, you should understand that some folks really just don’t get it. A business relationship should remain in that category when giving gifts. Keep it professional, if you know someone for the type of work they do, then give them something that they will use within those boundaries. Even break room supplies would be good in some cases. Gift credit to a place that they can get things is nice. Tickets to outings are always appreciated by someone in the company. If you go with >promotional items, don’t flood the office with it.

You will probably be fine with giving just a cap or travel mug with your company logo on them. If you overload the place with logo items they will likely become disinterested. They may feel you are trying to bowl them over and then they will want nothing to do with you or your business. That is not what you want to happen.

For the corporate world, you should stick with presents that are in some way related or connected to the realm of business that you are in. Concerts tickets or a spa gift card is always lovely and not too personal. If you spend an excessive amount of money then you won’t look as good – it is similar to giving out too many promotional things with your company info on them – not a good move. So think, plan ahead, and keep it businesslike when you’re gifting in the corporate world.

Companies usually give business gifts to advertise and promote what they offer. However, gifts can also be given to people other than customers and clients. They can be presented in many types of business affairs, such as trade shows, conferences, recognition and award days, anniversaries, and holidays. If you want to thank a colleague who has been a good partner and helped you a lot throughout your career, you can give something to show that you really appreciate it.

This is where personalized gifts really come into action and serve a meaningful purpose. Finding such a unique gift seems difficult, but if you plan, put thought into it, and go about it the right way it can be easier then it first appears.

Personalized gifts can make a one of a kind gift for your colleague. You can find different kinds of ways to personalize and customize various fabrics, leathers, wooden or metal items. Some popular choices you may want to consider personalizing include a leather business card case or holder, or a leather bounded business journal or planner. These business gifts are important and very useful accessories for a business professional.

In today’s modern world, people have business cards and need a card case holder so that their cards stay neat and organized in a briefcase or purse. These can be stainless steel or leather and can be customized and engraved with your colleague’s initials on the front. Engraving, customizing, and personalizing a gift really adds a special touch and makes it more unique and meaningful.

In business, technology may reign supreme, but there’s always room for the elegance of actually writing! Giving a personalized black leather journal to friends who have innovative and intelligent ideas enables them to conveniently write down and preserve their spur of the moment thoughts. This is a sophisticated gift that can make a perfect solution to scratch paper. Exquisitely embossed with a name or initials, this personalized journal can be a truly memorable gift of your appreciation.

Other unique gifts you may consider are personalized bags, magnetic money clips, personalized photo albums, and monogrammed desk accessories. Personalizing your gift is a great and effective way to show how special the person is to you. So make the smart choice to personalize your gift, whether it is for colleagues, friends, or relatives!

Finally the day arrives when you open the doors of your neighborhood fitness center. You’re ready for the customers to pour in and mount those treadmills and stationary bikes, and to start using those workout machines. However, soon reality will hit; there are bills to pay like rent, electricity, insurance, maintenance, accounting fees and employee salaries. Fitness is no different then any other business. You need to maintain membership, grow the numbers and prosper. Marketing can play an important role in this goal. Most neighborhood gyms have a few hundred paid members so retention of memberships is quite crucial.

One strategy to seriously consider is offering a gift for members to renew. The most common enticement is a discount upon renewal, and people love to save money, especially with the renewed trend towards frugality. However, this represents a fixed amount of lost revenue where the value is non-negotiable. Using personal business gifts allows you to control the amount of revenue expended without necessarily revealing the amount.

You can e-mail members whose contracts are soon to be up and offer a free gift if they renew now. Videos are a sound choice for business gifts. There are fitness, aerobics, diet, and dance videos ranging in price but fairly inexpensive. Make up a little gift bag and put in a video of speed jump rope and some nice athletic socks, which altogether won’t cost too much. Portable fat analyzers are now available as well at an affordable price. This might be a touchy subject so you want to be careful with this item. Try and have your gym logo and phone number imprinted on these gifts.

Even though you may be a small local gym, think like a big business and show your members you appreciate their business and you’re not afraid to give a little back. A good promotion will have you muscling your way to bigger profits!

The corporate birthday question is always a tricky one. How much celebrating is appropriate? What to do about the coworker who always goes overboard with your gift when you really don’t want to reciprocate? Should you draw names? Bake cakes? Forget it altogether?
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It has been proven that satisfied and content employees who feel appreciated most often translate into a higher level of productivity and growth within a company. Business owners and supervisors stand to gain a great deal when they provide rewards and incentives for their employees, which serves as encouragement and most importantly – a sense of belonging to a team.

Rewarding employees is detrimental to business development.  Over the years, numerous companies have benefited from rewarding their employees for a job well done.

This practice has been seen in the Employee of the Month parking space to the gold watch given to employees who have delivered impressive years of service and loyalty. Morale increases throughout the work place environment when employers acknowledge and show interest in their employees. The staff then knows that the higher ups are paying attention to the hard work they accomplish. When employees feel like an asset to the company, their enthusiasm shows through in the work they produce. In the end, many businesses that reward their employees stand to profit in the long run, as it boosts overall company pride. 

Companies show their gratitude in their employees in many different ways. As mentioned before, some companies select an Employee of the Month and often reward an advantageous parking space accompanied by other highlighted achievements. One of the most common ways to showcase the diligent work ethic of an employee is to award a plaque or framed certificate.

Sometimes, a bulletin board may honor various employees throughout the year for the entire office to take notice. Announcements regarding excellence within a company are also broadcasted over a PA system, shared during group meetings, or sent to all workers by way of email.

At times, personalized corporate gifts are honored. The depth, meaning, motive, and results of awarding employees depend on the company, as some businesses rely on incentives to increase productivity and spark added interest in employees. For instance, employees who sell the most products or land the most lucrative clients may receive a bonus or other perks as a reward. This may include use of the company car, free membership to the gym, access to the country club or exclusive golf course, or complimentary airline tickets. The possibilities are truly endless and don’t always have to push the limits of luxury – a simple assortment of doughnuts in the conference room to say “thank you” is also effective.

The work environment of a company is a good indicator of when and how to reward. Some employees enjoy monthly reminders, while others strive to receive acknowledgment as soon as a particular project, assignment, or task has been successfully completed. Usually, the importance of the reward is heightened when all or most of their co-workers are in the office to share in their achievement. The presence of executives or partners (when applicable) also enhances the moment. Sometimes, employees look forward to a formal get-together, such as a banquet or awards ceremony in order to bask in their glory.

If you are looking for a unique corporate gift to pass to clients, employees or partners, have you taken stadium blankets into consideration? Stadium blankets make great gifts because they are universal and versatile. This is a gift that bears no gender. Male and female clients alike would enjoy this gift and make great uses of it. Also, you don’t have to be a sports fan.

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Top 3 Business Gifts for 2007

After completing our daunting year end reviews, we make it a practice to highlight the best sellers of the previous year to get an idea of what professionals and corporations are looking for.  We look for the top three items and study the similarities and differences in each item.  This year, we found that the only thing similar in our top 3 best sellers is that they are all corporate gifts.  Take a look at what sold the most:

Grand Admiral World Time Clock

 2007 was a great year.  We’ve experienced growth and we continue to work in bringing you unprecedented customer service and unique gifts.