Consumers are not the only ones that are in the middle of the holiday shopping season. This year 35 percent of small business owners will be making purchases, too, according to a recent American Express Small Business Services poll of the buying habits of 500 entrepreneurs.
Savvy business owners know that spending as little as $25 can significantly enhance a business relationship. Nearly half of the survey respondents said that they spend less than $50 per item, and that they view purchasing holiday gifts as part of their firms marketing budget.
The survey reports that firms in business six years or more were more likely to buy gifts, believing that the purchases reinforce the firms commitment to current customers and sends a sales reminder to prospective clients.
Among the key findings of the Small Business Services survey are:
–35% of small business owners will buy gifts this year, with 70% of those for clients.
–The way to a clients heart may be through their stomach. Nearly half of client gifts will be food, only 7% will be in the office supply category, and 5% will be related to the recipients hobbies. Tickets to a special event will constitute 5% of holiday gifts.
–39% of business owners will begin shopping in November, 28% in October and 16% wait until December. Only 7% begin as early as September.
–40% of firms with revenue of $250K – $1M buy corporate gifts.
–52% of firms will spent $50 or more per gift, with 22% spending $50-99 for each gift and 30% spending more than $100.
–94% said they will spend as much or more this holiday season as they did last year.
–70% reported that they will select the gifts themselves, while 19% will leave the choice up to an associate.
Entrepreneurs who are interested in further information can call 212-640-4868 for a complete set of survey results, or can visit the Web site of the American Express Small Business Exchange at www.americanexpress.com/small business.