Do Expiring Budgets Lead to Wasteful Year-End Spending?

Do Expiring Budgets Lead to Wasteful Year-End Spending?

Not Necessarily.

So many companies end the year with spend left in budgets that are set expire. More often than not, departments scramble to find ways to reach a zero balance before the stroke of midnight on 12/31. Unfortunately, the mad dash often results in purchases made without much forethought.  Why not ask yourself, is all this angst really necessary? Well, in part it is because budgets have an expiration date. However, regardless of time constraints, the selection process should remain just that—selective. At the end of the day, why waste the opportunity to use the resource to everyone’s benefit? And why spend the revenue indiscriminately?

The number one bit of advice we can offer is that you NOT let seasonal items dominate the selection process. This renders the leftovers virtually useless—and undoubtedly there will be leftovers! Our suggestion: why not stock up? Or replenish branded merchandise that sustains you throughout the year? AND if some of your wares need rethinking or tweaking, use the windfall to do it.

So in an effort to help our clients and readers not only protect future budgets but further  branding, we’d like to share some of the “best practices” employed by our most savvy clients and Silicon Valley’s most well-respected and recognized companies:

  • One client restocks its Executive Briefing Center with branded merchandise that never gets stale
  • Another reorders, augments or redesigns its branded gift wrap, ribbon, enclosures, tissue, hang tags and gift bags.
  • A 3rd fills in its inventory of branded table cloths, hot and cold cups, napkins, stirrers, coasters and menu covers
  • One more re-outfits its salesforce with fresh uniforms, briefcases, and creative leave-behinds
  • Our list goes on and on.

So, while it seems like this year’s moment may have passed, nothing could be further from the truth. With Trims at the helm, it’s never too late to take full advantage of your expiring budget.

Feature Photo: cc/(Tracy O)