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How to budget for corporate gifts annually

6-step guide · merch.am

  1. Step 1: Calculate baseline merch budget (10 minutes)

    Industry benchmark: 0.5% of payroll for medium companies. Custom for your context (more if marketing-led, less if cost-led).

  2. Step 2: Allocate across 7 categories (30 minutes)

    HR onboarding 10-20%, Service jubilee 5-15%, Year-end appreciation 10-25%, Quarterly client loyalty 30-40%, Trade shows 10-20%, Executive board 5-10%, Investor relations 5-10%.

  3. Step 3: Per-recipient budget per category (Variable)

    HR onboarding: $100-300/hire. Jubilee: $200-400/employee. Year-end: $30-80/employee. Loyalty top-tier: $200-600/year. Trade show: $5-50/attendee.

  4. Step 4: Multi-year planning (Variable)

    Year 1: launch program. Year 2-3: refine based on data. Year 4+: scale. Build incremental budget — don't pivot annually.

  5. Step 5: Set 10% contingency reserve (Variable)

    For rush orders, last-minute requirements, opportunity-driven gifts. Keep separate from baseline.

  6. Step 6: Track actual vs budget quarterly (10 minutes/quarter)

    Compare quarterly actual spend vs allocated. Adjust mid-year if categories diverge significantly.