How to Price Your Products to Appeal to the Gift Market

by Gail Oliver, Online Marketing Consultant

I often see people offering $20 necklaces for Mother’s Day and I sort of cringe. Now, I would expect a $20 necklace from my 13 year-old son for Mother’s Day, but I’m not going to buy a $20 necklace for my mother, it just feels too cheap. I realize some people are on tight budgets, but gifts take on a life of their own as everyone has a price point they feel is appropriate. If you are positioning an item as a potential gift, you may want to know some stats about the average prices people spend, so you are pricing your products for the correct gift giver.

 

How to price your products for the gift market

Grad Gift Pricing

The National Retail Federation said that college graduation gifts hit a new high last year to an average price of $102.50. Now, this price is a range covering parents, grandparents, aunts, uncles, etc., and you can safely assume that parents will spend the most.

Valentine’s Day Gift Pricing

The National Retail Federation also indicated that the average price spent on a Valentine’s gift in 2015 was $146.84, and that men tend to spend more on the gift than women do.

Wedding Gift Pricing

Again, I often see $25 products being positioned as a wedding gift and I think no way. According to American Express people will spend $179 on a close family member’s wedding gift, $119 on a close friend’s, $114 on a relative’s, $79 on a friend’s, and $66 on a coworker’s for an average of $108.

Anniversary Gift Pricing

Now, what about anniversary gifts? According to research done by the Daily Mail, couples spend on average $170 on the first anniversary, $173 on the 10th anniversary, $242 on the 25th anniversary and $208 on the 40th anniversary. Again, this is couples buying for each other, not children buying for parents. 

Baby Shower Gift Pricing

The consensus at the blog, Baby Center suggests that the average amount spent on a baby shower gift is $20 to $25 for a co-worker or acquaintance, $50 for a close friend, or $100 for a best friend or family member (or a group gift).

Kids Birthday Party Gift Pricing

According to Learnvest, most people spend $10 to $20 on gifts for regular classmates but $20 to $25 for your child’s closest friends (at the elementary school level).

Teacher Gift Pricing

The price spent on a teacher’s gift does vary according to a person’s budgets, but Parenting magazine says the range for teacher’s gifts is $20 to $75.

This why many people avoid trying to target an individual or occasion altogether and will simply have shop categories entitled: Gifts $10 to $25, Gifts $25 to $50, Gifts $50+ and so forth.

A Real World Pricing Example

I wanted to buy a birthstone necklace for my 16 year-old daughter’s birthday and price was one factor I searched on. I wasn’t even considering any necklace under $50 because it didn’t feel special enough for a 16th birthday. I also didn’t want to go too much over $125 because she is only 16. Therefore, this became my search: “birthstone necklaces $50 to $125″. These are things you need to think about this when targeting a specific gift giver.

Trending This Week

  • May 13 – #NationalApplePieDay, #Fridaythe13th
  • May 14 – #SaturdayWellSpent
  • May 15 – #NBAPlayoffs
  • May 16 – #NationalLoveATreeDay, #MondayBlogs
  • May 17 – #TuesdayTip
  • May 18 – #WednesdayAfternoons
  • May 19 – #NationalDevilsFoodCakeDay, #ThursdayThoughts

MORE

Feel free to share this post, and if your business is struggling, check out my very affordable Marketing Services.

© 2016 Gail Oliver. All rights reserved.

Author: Gail Oliver, Online Small Business Consultant

I'm Gail Oliver, an online marketing consultant. Welcome to my blog, chosen one of the Top 10 Small Business Blogs to Follow in 2014 by American Express Open Forum. If you need help with your e-commerce business, be sure to see MY SERVICES, above.