Promotional products have a greater return on investment than nearly any other type of advertising. They are absolutely worth the money, and you only have to look at the hundreds of statistics out there to confirm this.
However, it is difficult to know how much to budget for promotional products. The British Promotional Merchandise Association (BPMA) has revealed that over 10% of companies are spending more than £50,000 per year on promotional gifts, but not all companies can afford this which we understand. A more typical spend per unit is generally between £1-£5 however, this price can increase if you’re looking for smaller quantities of luxury goods.
What To Consider When Budgeting For Promotional Merchandise:
1. Quantity Vs Quality
There are two main options to consider:
- Higher cost luxury items, lower quantity
- Lower cost budget items, higher quantity
Whilst the quality of our products is always high, you can choose from a range of products to suit your budget. You may find a happy medium between the two options, just ensure that the product or products that you choose are relevant to your brand and convey your message effectively so that you are guaranteed that return on investment.
A great example of a luxury promotional item that you might want to gift to your most loyal customers.
Pens are the ideal low-budget giveaway times that are sure to maximise brand exposure.
2. What Would Your Audience Want?
We recommend thinking about the last time you bought promotional merchandise to help determine your budget – did they go like hotcakes or was the giveaway not as popular as you thought it might have been? From this, you can determine whether your spending for the next event should be increased or decreased. Also, consider the product - if it wasn’t popular then perhaps it wasn’t the right product to give away for promoting your brand, so try to be creative and think outside the box for the next event.
Take a look into how much your competitors are spending on promotional merchandise, and consider whether it would be a good idea for your company to mirror these spending habits if they are feasible to you. Or, just consider how much promotional merchandise is affordable for your company in its given economic state.
4. What Is Your Goal?
Finally, another way to decide your budget is to consider your goal – are you looking to spread your brand name or are wanting to increase brand loyalty? For instance, is the campaign for 1000 people to know your brand's name? If so, then order 1000 units of promotional merchandise for a giveaway to increase your brand awareness.
There are many ways to decide how your budget should be allocated, just ensure that you choose a budget and a product that is right for your company.