Third-Party Prospects

• The personal gift is where someone buys a present for someone else. The person to receive and use the gift might have no knowledge of the purchase when the purchaser makes it.  If the recipient is present, it is likely to be similar to selling to them direct.  You need to work out who will make the decision.  A parent buying for a child, when both are present, may need convincing as much as the child, for example.
• The corporate gift is where someone purchases a service and receives a surprise gift as a thank you and perhaps to encourage them. A corporate gift relevant to the transaction could be a book that will help the client understand the subject area.  Alternatively, they might offer a gift as a thank you.  The gift might be a meal, for example, or else a card and a token such as a box of chocolates.  Gifts personalised in some way are even better.
• Another type of corporate gift is for marketing purposes. We’ve all received pens, pencils, diaries, usually embossed with the name, logo and contact details of the business.  A particular category of this type of gift, is the gift for business associates.  For example, at Christmas a business might give away bottles of wine or spirits to people they work with.  Take care, as some public servants must register gifts in case they are accused of receiving bribes!
• Businesses also purchase gifts for employees, eg a Christmas dinner or a works outing. A training event may be an opportunity to offer a special meal or a drink.
• A third corporate gift is the incentive to sign up for something. So, you might offer a video or a pdf in return for an email address.  The target person opts for this gift if they are interested in it and so may become a prospect later.

An Example

One mistake businesses make is to assume their market is solely their users.  Jewellery and make-up are good examples.  Women usually purchase these for personal use.  However, a jeweller, for example, may find they sell significant amounts to men who are buying a gift for a woman friend or relative.

This business may need to ask: How can you encourage men to purchase from you?  Do they feel comfortable in your shop?  Can you help them decide by asking questions that will help them work out what the recipient might like?

Celebrations

Parties are opportunities to sell large quantities of all sorts of things.  They are opportunities for bulk sales and so it is worth deciding whether you have opportunities to sell in this market.

Obviously there is food and drink but also other possibilities, eg venues, transport, decorations, music, invitations, toys, etc.

Be aware of different types of event.  This will influence the budget, eg a wedding is likely to have a bigger budget than a children’s party.

Some events resemble celebrations, for example a training event might need food, accommodation, equipment, handouts, etc.

Prices

I’m not entirely convinced by the argument that gifts and celebrations are an opportunity to ramp up your prices.  However, there are legitimate reasons why you could charge more:

• Where your services are at a premium. For example, if you organise wedding receptions, you could charge lower prices mid-week.  Most people want to be married at the weekend and so there will be more competition for your services at those times.
• If you sell 100 cupcakes, most people would expect the unit price to be lower than if you sell 10. This is to do with economies of scale.  Most caterers over-provide and there are some good reasons for this.  However, it is worth looking at what you are actually providing.  Is it the cupcakes or convenience, where someone else provides the food so the event organisers have time to concentrate on other things?  The food you provide might be costed at the lower bulk buy rate but you must also charge for service; knowing everything will be there at the agreed time and place.
• If you’re selling a product it may be difficult to ramp up gift sales because you won’t always know who is purchasing a gift. But how about selling a special gift package?  You could bundle a few things together or offer a product with a service, eg come in for a fitting or one-to-one tuition about how to use it.  How can the recipient feel even more special?  If you do this type of thing, you are helping the purchaser plan a quality gift.  What you really must do is show the person who receives the gift will value the additional service.  If they are unhappy, you can guarantee word will circulate with amazing speed.
• If you are marketing a cause, a gift may seem inappropriate. But it is worth considering whether supporters might appreciate relevant information and support.  For example, if someone who makes a donation, might receive updates or a book about the cause.  It’s a way of saying thank you, increasing understanding of the cause and possibly staying in touch.