What to Buy the HNW Client for the Holidays

Do you give clients gifts during the holidays? Plenty of rules govern what you can (and cannot) do. You know the threshold is a $100 value. Your HNW clientele has everything or can afford to buy anything. What can you give that will be treasured, not trashed?

1. Holiday cards: The gift for every client. You might assume sending cards at Christmas went out of style in the 1950s. According to Yahoo Finance, 73% of Americans sent them in 2021. Eighty-nine percent said they like getting them. This can easily be done across your entire client base. We receive a card from our advisor and team annually, signed by everybody.
2. The client who is behind the technology. This might be an older client, the person who reached their technology threshold when they embraced email. Consider introducing them to the Amazon Echo Dot, better known as Alexa. They often go on sale around Black Friday. You might add in a couple of Alexa-compatible light bulbs. Tell them about a few of the things Alexa can do to make their life easier.
3. The client who loves a bargain. Consider warehouse club membership. Costco might have 123 million members in the U.S. but not everyone is a member. Some people might prefer Sam’s Club, which has 47 million members. BJ’s has 6.8 million members. Costco attracts affluent consumers. Their gas prices are usually the cheapest around.
4. The client with the sweet tooth. Our advisor sends chocolates every year. These are not mass-market sweets, they come from an artesian maker with name recognition. They get eaten. If they entertain, they are put out at parties.
5. The client who travels overseas. How about giving them a passport case? Coach is a recognized brand. Their version retails for $95. You can probably find other cases in leather that sell for less because they do not have brand recognition. Passport cases eventually wear out. If your client is new to international travel, they might not have one yet.
6. The client who follows your advice. How about buying them a book? The Warren Buffet Book of Investing Wisdom is inexpensive. A book explaining how trusts work might be good for the client considering estate planning. The book will likely reinforce your suggestions.
7. The client who displays family photos. People like photos that present them favorably. They like photos reminding them of good times. Can you think of a client who has plenty of photos in their office or around their living room? Have they attended your client events? Do you have a good picture? Get it printed as an 8x10, buy a frame, wrap it and gift it. The photo will likely go on display immediately.
8. The client who enjoys wine. Champagne is an ideal gift. The major champagne houses spend a fortune positioning their product as an essential part of the holidays and important celebrations. Major brands like Moët & Chandon sell for about $50/bottle.
9. For the client with a Christmas tree. Buy an ornament they can put on the tree immediately, bringing it out again year after year. The possibilities are endless. If they have a pet, the ornament might be a miniature version. It might be a small frame with a picture of their children. If they are wine fans, it might be a small bottle or wine glass. If they went to Paris this year, it might be an Eiffel Tower figurine. The gift shows you take time to understand what is important to them. The ornament has staying power.
10. For the client living in a large house. They have many doors. This means they have plenty of places to display holiday wreaths. These are not limited to traditional evergreen versions. You can find ones made of dried fruits, straw, flowers and any other themes. Stores like Marshalls/HomeGoods usually have plenty at good prices. Wreaths can be displayed on either side of a door. They can be hung over picture windows. They are stored and displayed the next year.

Gifts to avoid

Gift giving is not limited to the holidays. Here are a few common sense pieces of advice about what not to do.

1. Do not give alcohol without knowing if they drink. Giving a bottle of wine to a teetotaler or reformed alcoholic can send the wrong message.
2. Do not drop off liquor if they work at a school. Your client is a teacher or works in school administration. You are giving clients bottles of wine for the holidays. You go to their place of work and drop it off because they are busy elsewhere. They could get into trouble! State laws often prohibit alcohol on school premises. This includes possession!
3. Do not give unwrapped presents. You are visiting someone’s house for a holiday party. You pick something up on the drive over and simply hand it over. It conveys the message you did not put in much effort.
4. Be careful about regifting. This has happened to me. I received a bottle of liquor in a gift box. I regifted it. They later mentioned to me the box included a gift card (at the bottom) from the person who gave it to me. Fortunately, the person to whom I recycled the gift was a family member!
5. Do not give previously used items. There is an exception: Collectors of antiques. In all other situations, you might be the greatest bargain hunter at thrift stores, but we tend to overlook wear and tear or slightly battered boxes. The recipient won’t.
6. Do not give perishable food items without adequate instruction. You give a client a fresh wheel of cheese. You box and wrap the gift. You provide no explanation. They put the package on a table. A week later, they open it. Either the cheese is spoiled and moldy or they eat a piece and get sick. Both are bad outcomes.
7. Do not give an obvious promotional item. Logoed umbrellas, hats and windbreakers are good items, but they are often a giveaway connected to an event. Giving a windbreaker from last year’s gold outing (complete with date) looks like you grabbed anything so you did not arrive empty handed.
8. Do not buy flowers from the gas station or convenience store. Flowers are a nice gift, but presentation and packaging makes a big impact. The wrapping on flowers from these two places tends to be minimal. The condition of the flowers might not be good. Shop at someplace that carries fresh flowers and will wrap them for you.

The holidays will be here before you know it. Start thinking about client gifts, if you haven’t already started.