Gift-giving in business can be touchy. Some companies have strict rules against employees receiving gifts from suppliers. Other companies encourage it and exploit every opportunity to cash in on “freebies”, the bigger the better.
Either extreme has a downside. Overdoing freebies carries obvious and serious risk for the purchaser. But, companies that categorically exclude gift-giving all the way down to the free lunch overlook the human element that is so important to business relationships. For obvious reasons, upper management does not want its purchasers being swayed by personal interests or divided loyalties. But, in many situations it is the purchaser who can exploit a strong personal relationship with the seller to gain concessions or expedite the resolution of problems.
Having spent many years in sales and purchasing, I’ve always found moderation to be the best course. It helps when buyers and sellers feel some degree of personal bond, especially when difficulties arise. One thing that’s always helpful on the buy-side is reciprocity. If a buyer treats the sales rep to lunch every now and then, the buyer can build a relationship without feeling obligated. It’s that sense of personal obligation that gets buyers and sellers into trouble.
Word Sell … Scrambled Toast
I think that normal business entertaining, such as a drink or a lunch, is acceptable providing that it is not on so lavish or extravagant a scale as to take on the characteristics of a bribe. I guess one way of judging that is to see if you would be happy to reciprocate and pay next time round.
As for gifts, it is an important part of human interaction but it’s in a greyer area. For my part, I like to buy very inexpensive gifts that show a lot of thought. For example, one client told me that she loved making curries so I mailed her some peppercorns that I brought back from my wife’s family in Goa. Cost: nothing. But I think it was appreciated. I’ve bought small, but well-chosen, books on Amazon for people as well. A gift that is friendly, well-timed and costs less than a couple of drinks at Starbucks creates no obligation but lots of goodwill.
However, I’ve been on the receiving end of some very awkward gifts in my time. One plane company flew me to Geneva in their corporate jet and being a travel journalist is a ticket to an endless free holiday. It was one of the things that made me very uncomfortable about being a journalist and one of the reasons why I stopped in the end. I couldn’t afford to test fly the planes or go on the trips my clients wanted me to write about and I couldn’t take the freebies without feeling grubby and compromised. Still, it was a very nice plane.