Top salespeople can always buy a laptop, but they're not always going to have a week in Greece just waiting for them. Part of this second-best attitude is based on cost differences. It's difficult for participants to gauge exactly how much a trip costs, but they have no trouble comparison-shopping merchandise awards. If you're always placing travel as the top award, merchandise of course will come in second. But if you start offering some high-end merchandise items as grand prizes, the perception of merchandise overall should improve.
Administrative issues can also kill a promising merchandise program.
Planners must constantly introduce new products into tiered merchandise incentives so participants don't get bored. Product delivery is another hassle. The longer it takes for participants to receive their award, the lower the item's trophy value. You want your people to remember the thrill of receiving the award, not the hassle getting it. Simply put, cash is an effective reward because everybody wants it.