Evening star., 1960-10-19
YOUR
MONEYS WORTH
Is 'PoyoIo' Cutting Gifts?

publication covering the bust
ness gift market. After the
Sherman Adams scandal, busi-
ness gift giving fell I per cent
and I was sure the new messes
would cut it again. Then came
the statistical reports, and the
only effect ! can see is that
the amount of the increase is
being held down.
Businessmen Unimpressed
"The average businessman
seems singularly unimpressed
by the payoffs which have
rocked the broadcast and ad-
vertising worlds"
Some may maintain the
practice is declining, but we
fail to see it," confirms a
spokesman for Dartnell Corp
which in separate survey of
Christmas holiday practices,
covers gift giving. There are
still a number of firms that
have no limitations on what the
purchasing agent or others can
take in the way of holiday
loot" And the survey disclosed
that only 13 per cent of the
participating executives believe
gift giving should be abolished
only IL per cent want it dis
couraged.
When ! went after this story
I was Sure-along with Mr.
LaVine-that I'd come up witr
some major changes. Yet Of
all the major marketing areas
from coast to coast checked or
business gift trends, only the
San Diego area reported per
ceptible reductions in gift-giv.
ing. In this area, "Payola II
having a marked effect" be-
cause so many Of the companies
hold Government contracts
Also in this area, the economic
downtrend is an influence, for
as one source put it, "Wher
business turns down. one o.
the first things chopped is th'
size of the Christmas gift anC
the size of the list"
Christmas gift- giving b!
companies is big business no
only in dollar terms but alSG
in terms of the industries in
volved. AS an illustration, jus
about every firm in the house
wares field is concerned. ant
items for the home now ac'
count for about so per cent o
all business gifts.
Tax Angle a Factor
The tax angle is of high i'm
portance as well. Companie
deduct the gifts as a busines
expense. At the same time, tn
recipient feels no compunctiol
about reporting the gift II !
is a modest item and clearl,
not compensation" for an "ac
tivity rendered"
Why haven't the payol
scandals and the disappointin
business trends Of 1860 had al
impact?
A first reason is that once tn
practice of gift-giving /
started, it's hard to stop. Com
panies get stuck with lists an,
are afraid to antagonize wha
could be a valuable contact b
eliminating him. A wife
aware Of a gift when it come
to the house and friends ar
impressed by what Joe got.
It's a darn tough practice t
cut out" says Mr.. LaVine IN
matter how much the compan
might wish to-"
A second reason is that sub
stitution of such praiseworth
practices as donations to chari
table organizations in the nam
of the customer may be halle
in public but not in private.
Even if the recipient approve
the idea. he often grumble'
why didn't they ask me whs
charity to send my gift to-"
And incidentally, a "revers
twist" reason this year is eth
fear of stigma if the fir
: doesn't send a gift" explain
= Mr.. LaVine. People on a Ii!
might say hey, we didn't kno
5 you were trying to bribe n
: and that's why you sent a 81
I last year. It's better to sper
d IS or $40 and send a gift tina
s risk that boomerang reaction
= distributed 1860 by The Hall SynC
y y cate, Inc. All Rights Reserved)