Small Business Owners Plan to Be More Generous This Holiday Season, According to OPEN from American Express(SM) Survey

 

Gift Budgets for Clients and Customers Increase 15% on Average This Year; More

Employees Can Expect Year-End Raises

 

NEW YORK, Nov. 15 /PRNewswire/ -- Business owners are planning to open

their wallets a little wider this holiday season. According to the OPEN from

American Express(SM) 2005 Semi-Annual Small Business Monitor, holiday budgets

for client and customer gifts rose 15% to $1,064 -- up from an average of $923

in 2004. The news is even better for some employees: One-third (33%) of

business owners plan to give raises as the year closes, up from 26% in fall of

2004, 18% in the fall of 2003 and 23% in fall of 2002.

The percentage of business owners with holiday gift giving plans for

clients and customers rose to 71% in 2005, up from 61% last fall and 41% in

the fall of 2003 and 2002. The gift or gesture of choice for business owners

to their clients and customers remains sending cards or calendars (49%),

followed by gift certificates for retail or restaurants (26%), unique company

branded or monogrammed items (23%), a fruit or food basket or donation to a

charity on their client's behalf (both 18%) and flowers/plants and

wine/liquor, tied at 10%. The least likely gift is either clothing/personal

accessories or baked goods/candy and nuts, all tied at 2%.

Businesses in the North East are most likely to have holiday plans for

clients or customers (78%) followed by the South and the West (both 71%) and

the North Central states (66%).

"Many business owners see the end of the year as a time to thank customers

for their business and acknowledge the hard work of their employees," said

Susan Sobbott, president, OPEN from American Express. "Despite an overall

increase in budgets for gifts, it is important to recognize that there are

many creative ways to say 'Thanks for a wonderful year' without breaking the

bank."

According to the OPEN survey, holiday parties top the list of business

owners' year-end plans for employees. In all, 57% of business owners are

planning holiday fetes. In addition, 54% plan to give end-of-year bonuses,

50% plan to give gifts and 47% plan to give time off to reward hard-working

staff. Sixteen percent plan to take part in a volunteer activity as a group.

Businesses in the West are most likely to have holiday plans for employees

(80%), followed by the South (78%) and the North East and North Central states

(both 75%).

Sobbott suggests the following tips for holiday gift giving and year-end

bonuses for small business owners:

 

* Tie bonuses to goals. Bonuses should be non-subjective, measurable, and

performance-oriented. So clearly align bonuses with company or staff

goals. If you did not set goals with staff this year but still want to

give bonuses, consider tying employee performance to recognized company

goals.

 

* Acknowledge all staff. When allocating bonuses, don't forget the

behind-the-scenes people who have helped craft the successful client

presentations and made the travel arrangements possible. Try to include

them in your bonus-giving plans.

 

* Give the gift of time. If you can't afford to give bonuses this year,

give the next best thing -- time. Extra time off during the holidays,

or an opportunity to come in late one day a week, for example,

demonstrate your appreciation of your staff.

 

* When giving gifts, promote products from other small businesses.

Support the small business community by purchasing gifts from small

businesses. New and emerging companies often offer unique gifts at

affordable prices.

 

* One size doesn't fit all. It's easy to purchase gifts in bulk. But

consider rewarding your best customers with special gifts such as dinner

for two at an exclusive restaurant, or tickets to the theater or a

sporting event.

 

* Consider charitable contributions. If your customer is involved in a

specific cause or group, consider giving to that charity. Making

donations on behalf of the people on your list can be a meaningful way

to say thank you.

 

Survey Methodology

The OPEN from American Express Semi-Annual Monitor, released each spring

and fall, is based on a nationally representative sample of 626 small business

owners/managers of companies with fewer than 100 employees. The survey was

conducted via telephone by International Communications Research (ICR) from

August 8-August 19, 2005. The poll has a margin of error of +3.9%.

 

About OPEN from American Express

OPEN is the American Express team dedicated exclusively to the success of

small business owners and their companies. The OPEN Team supports business

owners with unparalleled service and delivers purchasing power, flexibility,

control and rewards to help customers run their business. Specifically,

business owner customers can leverage an enhanced set of products, tools,

services and savings, including charge and credit cards, convenient access to

working capital, robust online account management capabilities and savings on

business services from an expanded lineup of partners. To obtain more

information about OPEN, visit http://www.OPEN.com, or call 1-800-NOW-OPEN to apply

for a card or loan. Terms and conditions apply.

American Express Company (http://www.americanexpress.com) is a diversified

worldwide travel, financial and network services company founded in 1850. It

is a world leader in charge and credit cards, Travelers Cheques, travel,

business services and international banking.

 

 

SOURCE OPEN from American Express
Web Site: http://www.americanexpress.com http://www.OPEN.com