Barb Hendrickson knew the incentive/corporate gifts market was a potential gold mine the day she received a $30,000 commission on a trip she arranged for clients to celebrate a pro bowl with a big “watch” party in Hawaii.

“Do not discount travel,” said Hendrickson, president of Visible Communication, and a charter member of the Incentive Marketing Association (IMA) during her class, “Corporate Gifts 101,” on Education Day at the ASI Show Chicago. Her class was presented in partnership with IMA, a nonprofit trade association for the corporate gift and incentive industry.

Barb Hendrickson

“Seventy percent of your clients will do some kind of travel in 2019,” she told the 40 people in her class. “If you’re not selling them a trip, what about selling a room gift? There’s a big opportunity for gifting.”

The number one reason to add corporate gifts to a distributor’s line is simple, Hendrickson said: “Make more money.”

Unfortunately, she said, too few distributors know enough about corporate gifts, thinking the industry is too complicated, with low margins. Over the course of her class, Hendrickson did her best to bust the myths and reveal potential upsides.

For instance, she said brand-name merchandise is often a known entity with a high perceived retail value that’s easily customized, personalized and/or beautifully packaged, making it attractive to potential clients.

“If you’re selling to Cadillac, you’re not going to sell the cheapest brand,” she said.

Corporate gifts run the gamut, from name-brand merchandise used to thank employees to items used for new product launches. The gifts can be aimed at doing everything from enticing the press to celebrating big corporate wins and rewarding top company earners.

“Corporate gifts make employees feel appreciated – a huge issue with companies right now,” said Hendrickson. “Statistics have shown that most employees leave because they don’t feel appreciated.”

Plus, she added, 68% of employees prefer gifts to holiday parties. Such gifts, she said, can also add value to client relationships and help distributors expand business with their current customers.

Another source of potential income: Selling gift cards. They’re often used for trade show giveaways, team celebrations or loyalty programs. And, 61% of large companies buy gift cards, with larger firms spending more than $1 million annually.

“They may not be a higher profit business, but gift cards do have a place in corporate giving,” Hendrickson said, suggesting distributors offer them as an additional option. “Companies need something on hand to reward someone on the spot.”