Who knew a fruit basket could be sour grapes?/ Companies adopt

They don't give Sony PlayStations, diamond earrings or a new pair of skis.

Their holiday gifts are more likely to be fruit baskets, restaurant gift certificates or a wreath.

No, they're not cheapskate husbands, someone on a budget or a family member who waited until the last minute to shop. They are businesses that give holiday gifts to key clients, customers, suppliers, vendors or other business-to-business contacts. It's a bottom-line spirit that comes more from the head than the heart - a gesture to help cement an important relationship. And in some industries, it's a gesture to be avoided.

"It's a thank-you," said Gary Hollenbeck, president of Palmer McAllister Co. Inc., a Springs-based commercial real estate brokerage firm. "It's just a bottom-line thank-you. We appreciate your business, and we appreciate your friendship."

Few Springs businesses give gifts priced at more than $50, according to an informal Gazette survey of about a dozen local firms in various sectors. Gift-giving budgets at local businesses range from a few hundred to a few thousand dollars, depending on the type and size of the firm.

And not all local businesses give holiday gifts. Some host parties for clients, others make donations to charities in the customer's or client's name. Still others make no holiday acknowledgment at all - either because the would-be recipients aren't allowed to receive gifts or the list of recipients would be too large to be cost-effective.

On the receiving end, different businesses have different policies. The Gazette, most banks, high-technology firms and local government agencies either limit or prohibit such gifts. Others forward gifts they receive to charities.

Palmer McAllister sticks to the basics when it gives holiday gifts: poinsettias, fruit baskets and candy from Michelle's, a local downtown merchant. The company's affiliated brokers, property managers and others have the option of which gift to send, Hollenbeck said.

Hollenbeck said he doesn't set a budget on such gift-giving because the company has numerous clients and customers it wants to recognize. But, he added, individual gifts range from $15 to $50.

The company hasn't changed its gift-giving practices over the past few years. And, it has no restrictions on the acceptance of gifts.

Big and small

Land developer The Schuck Corp. doesn't bother with individual gifts, said chairman Steve Schuck.

Instead, the company spends several thousands of dollars - Schuck declined to say how much - on donations to non-profits in the name of customers and business associates. This year, Schuck is making scholarships available to disadvantaged students in Colorado Springs School District 11.

"I'd like to encourage others to do the same, to bag the fruitcakes and bottles of wine that go to people who have more than enough of these things, and find some worthwhile cause," Schuck said.

On the smaller end, Michael Schiller can't afford a big holiday giving budget for her firm. She runs a one-woman office called Incorporating Services Inc., which helps companies through the state's incorporation process. Nonetheless, Schiller wants to send some holiday good will to the certified public accountants who send her clients.

With a budget ranging from $200-$350, Schiller buys $22 Christmas wreaths from her local Optimist Club and sends them to her business contacts. The Optimists use the money to help kids in need at Holmes Middle School.

Real estate network

The giving budget is not as limited at Classic, Colorado Springs' top-selling home builder. Classic Chairman Jeff Smith said he'll spend a total of about $5,000 on fruit baskets and other gifts for sub-contractors, consultants and others.

"It's pretty much what we've always done," Smith said. "It's just to show that we care about the people that make us successful at the holidays, that we're thinking about them."

But don't bother sending gifts to Smith. While individual employees are permitted to accept gifts, Smith said he'd prefer that his business associates spend their money in other ways.

"I'd rather for them to give a donation to the YMCA or United Way," he said. "I don't need a trinket or a gift basket. The money's better spent elsewhere."

Dale Stamp, president of Grubb & Ellis/Quantum Commercial Group, another Springs real estate brokerage, said the company doesn't give gifts - although individual brokers might send some.

Instead, the company hosts a holiday party for clients. This year's get together took place last week at the El Paso Club downtown.

Stamp said the thinking is that a party allows all of the company's customers and clients to mingle, while saving the time and effort of sending out gifts.

"It's a good opportunity not only to say thanks to our clients, but it's also an opportunity for networking for a lot of people," he said.

Service and practicalities

Praco Ltd. no longer gives gifts to clients. Lisa Bachman, director of public relations at Praco, the city's largest advertising agency, said the firm makes a donation in the name of its clients to the Ecumenical Social Ministries.

Through the nonprofit group, Praco officials act as volunteers to about 10 families. They purchase groceries, toys and clothes for the families, in addition to giving the families gift baskets.

"We just decided to do something we think is more valuable to the community," Bachman said.

Should any employees receive holiday gifts at Praco, they must be shared with other employees.

Vista Bank restricts gift-giving to its employees, said bank president Larry Libis. Small gifts and food items, like fruit baskets and popcorn cans from clients, are allowed and end up in the employee lounge.

Employees who receive a gift valued at more than $50 must report the gift to senior management. Libis said bank officials want to ensure the giver is not trying to influence employees to make a loan or reduce the interest rate the bank charges. Likewise, the bank spends no more than $35 on gifts for important clients.

Gift-giving is impractical for the 2,500-member Colorado Springs Chamber of Commerce, according to spokeswoman Lynn Pelz. The Chamber simply includes a holiday greeting on the cover of its December newsletter.

"We knew we were going to leave someone out, so we tried to make the greeting as universal as possible," Pelz said.

Cook Communications Ministries, developers of Bible-related books and merchandise, doesn't give gifts to customers. It's not that the company is ignoring the holiday, but it's just not practical, says Cook Vice President and Publisher Randy Scott.

Cook's clients include thousands of small churches and retailers. The list is simply too long.

"We also do business with some chain retailers such as Wal- Mart," Scott said. "But their home office has a policy that precludes sending gifts to their buyers. So we just don't do anything."

High-tech wariness

The holiday gift-giving tradition is generally not practiced among technology firms, where gift-giving could be interpreted as bribery.

Intel Corp., which will open a computer-chip manufacturing plant in the Springs next year, prohibits employees from both giving and receiving gifts.

Instead, Intel encourages its employees to become involved in holiday-related philanthropy.

The company participates in holiday gift-giving programs through Silver Key and has placed several boxes at its site where employees can drop off toys for children of low-income families.

"Corporate gift-giving to our customers and suppliers is not part of Intel's holiday tradition," said Diana Daggett, a Springs-based spokeswoman for Intel. "We don't allow employees to receive gifts either, and we let our suppliers know that from the very beginning."

Optika Inc., a locally-based software developer, sends electronic cards to its clients and vendors during the holiday season but discourages its employees from giving gifts to suppliers.

"We don't make a habit of giving gifts because we don't want it to be seen as 'buying' the client," said Kelly Kaminski, a spokeswoman for Optika.

Agilent Technologies Inc., which employs 1,900 locally, also doesn't allow its employees to give gifts and bars them from accepting gifts that cost more than a couple of dollars, said Bill Smith, a spokesman for Agilent.

"It can be construed as bribery, and we don't even want to do anything that suggests bribery," he said.

- Rich Laden, Sara Nesbitt, Steven Saint and Chris Walsh contributed to this report.

Edited by David Fondler. Headline by Alicia Hocrath

Do's and don'ts for holiday business gift-giving

Perrin Cunningham, co-author of "Business Etiquette for Dummies" (IDG Worldwide) recommends a few guidelines when giving gifts to clients and customers:

DO:

Select a "gift captain" in your department to coordinate and keep track of holiday giving.

Know the receiver. Have knowledgeable people, such as the account executives, in each department review gift choices in advance. Sending natural free-range turkeys to your tofu dog account is probably inappropriate. Research and common sense can save much embarrassment here.

Know your firm's and the other firm's gift policy. Broncos tickets may be out of bounds.

Send gifts that can be shared or enjoyed by the entire office. Perishable gifts, such as food, are appropriate for the holidays. Save permanent gifts, like desk clocks, to commemorate a significant project or event.

Enclose personalized cards. If possible, have the gift cards handwritten. Address the gift to the department or team leader, but include all members on the card.

Confirm delivery of the gifts you order.

Keep track of the gifts your department has received and send thank-you cards.

DON'T:

Use overtly religious messages, unless they are your core business.

Generally, "Season's Greetings" or "Happy Holidays" is preferred.

Scrimp on presentation. Be sure gifts are professionally wrapped and that all details are correct: names are spelled correctly, titles and addresses are right.

Use the holiday season to dump left-over promotional materials. Donate those "XZY.com rocks!" backpacks to a youth group instead.

Take home a basket intended for the entire department. As the season dictates: Share!

GIFTS TO GIVE:

Gourmet or regional foods including fruit, cheese, wine, baked goods, crackers, snacks, nuts, chilies and sauces; potted plants or flower arrangements (exclude roses, which are reserved for romance); donations to charities the receiving company already supports.

GIFTS TO AVOID:

Anything excessively ostentatious or "humorous," samples of your product, hard liquor.

- Source: Perrin Cunningham, co-founder and chief executive of Ethologie, a multi-media cultural education company. She can be reached at 884-7314 or perrin@ethologieinc.com

Copyright 2000
Provided by ProQuest Information and Learning Company. All rights Reserved.