How Much Should Companies Spend on Employee & Client Gifts?

Let’s start with the question everyone asks in relation to swag: “How much are we supposed to spend on this stuff?”

By “stuff,” we of course mean company swag: (employee gifts, client gifts, holiday gifting, appreciation kits, and even the “please don’t quit” hoodie.

And the honest answer? It depends.

Annoying. We know.

But before you roll your eyes and Google a random number, let’s talk about what you’re actually paying for when you invest in company swag. Because it’s not just a tote bag, it’s perception.

First: Stop Thinking in Terms of “Cost”

Most companies approach gifting backwards.

They start with: “We have $X. What can we get?” Instead, start with: “What reaction do we want?”

Do you want employees to feel appreciated? Do you want clients to feel prioritized? Do you want prospects to remember you?

Because those outcomes have very different price tags, and company swag isn’t about objects; it’s about signaling value. And the second you treat it like a clearance rack problem, it shows.

So… What’s Normal?

Let’s talk real numbers. Not influencer fantasy budgets, but real, mid-sized company math.

For Employees

If you’re sending a quick recognition gift or adding something to a welcome kit, most companies fall in the $15–$30 range per employee.

That’s enough to feel intentional, but not enough to feel extravagant.

For annual holiday gifting or company-wide appreciation? The sweet spot tends to land between $75–$125 per employee.

This is where your company swag stops being “free merch” and starts feeling like an actual thank-you.

Go lower than that and it can feel obligatory. Go higher and you better make sure it aligns with your culture. And yes, people absolutely compare notes.

For Clients

Client gifting is different. Employees expect appreciation. Clients evaluate it.

If you’re working with high-value accounts generating serious revenue, companies typically spend $100–$300+ per client annually.

Why? Because if someone brings in $500,000 in revenue, a $200 curated gift is not excessive. It’s relationship insurance.

Mid-tier accounts? Usually $50–$100. Prospecting campaigns? Often $20–$40, depending on scale.

The point is segmentation. Sending the same $30 gift to your biggest client and your cold lead from three webinars ago? That’s not strategy, it's convenience, and convenience rarely drives loyalty.

The Real Risk Isn’t Overspending, It’s Underspending

Let’s be honest: most companies don’t overspend on company swag, they underinvest.

They:

• Rush decisions in Q4
• Buy what’s on sale
• Skip personalization
• Treat gifting like a line item instead of a strategy

Then they wonder why the impact feels… underwhelming.  Cheap swag doesn’t make you look efficient, it makes you look forgettable. And in competitive industries, forgettable is expensive.

But Can You Overspend?

Of course! If you’re sending luxury gift boxes to low-engagement prospects, that’s wasteful. If you’re buying premium items without a brand story behind them, that’s just fancy clutter. If you’re not aligning gifting with revenue tiers, retention goals, or marketing strategy, you’re guessing.

Smart company swag budgets are intentional, not emotional.

Here’s the Budget Framework We Actually Recommend

Instead of asking “How much should we spend overall?” ask:

• What is the lifetime value of this relationship?
• What outcome are we trying to drive?
• Is this retention, acquisition, or culture building?
• Does this gift reflect our brand positioning?

Then build your budget around that, and yes, this should be mapped out in January, not when someone panics in November.

If you haven’t read our breakdown on building your annual swag budget, start there. Planning beats scrambling every time.

Why Company Swag Is a Brand Decision

Here’s what most teams forget, every piece of company swag reinforces one of three things:

1. “We’re premium.”
2. “We’re practical.”
3. “We didn’t think this through.”

There is no neutral. The materials you choose, the packaging, the personalization, the usefulness: all of it communicates something.

So when companies ask how much they should spend, what they’re really asking is: “How do we want to be perceived?”

Because gifting is marketing, it just happens to arrive in a box.

The Short Answer (If You Just Skimmed)

If you need quick benchmarks:

Employees
• Small recognition: $15–$30
• Annual gifting: $75–$125
• Incentives: $150+

Clients
• Top-tier accounts: $100–$300+
• Growth accounts: $50–$100
• Prospecting campaigns: $20–$40

But numbers are the starting point. The real magic happens when your company swag:

• Feels curated
• Reflects your brand
• Matches the relationship value
• Is something people actually want

Spend Enough to Matter

The goal isn’t to impress people with price tags, it’s to create a moment.

A moment where an employee thinks, “Okay… that’s actually nice.”  Or a client thinks, “They didn’t have to do this. But they did.”

That’s what smart gifting budgets buy you.

Not stuff.

Impact.