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Why Merchandise Rewards work Better than Cash

How often have you heard that “Cash is King”? Not so in the world of rewards, recognition and sales promotions.

Cash is often confused with compensation because even the program managers confuse it with compensation! When cash rewards are added to your pay check or commission check, it’s easy to confuse it with your regular salary or wage. Recipients also tend to spend it like cash: It will pay for groceries or gas and your recipient won’t even remember how they spent it.

Although many employees say they want cash rewards, studies show that they’ll work harder for merchandise or travel rewards. Read on to learn how to make the most of your promotion budget!

Cash rewards are often confused with compensation and offer no residual value to the company.

The Benefits of Merchandise Rewards

Trophy Value

Recipients will talk about merchandise they’ve won, and will talk about how they won them.

Residual Value

Your recipient will remember you and how they won the merchandise reward every time they use it.

Brand Reinforcement

When the merchandise reward is consistent with your brand, it’s a great match!

Marketing Reinforcement

Use your key marketing messages in the name or theme of your promotion and they will be remembered!

Tax Advantages

There are tax advantages to using merchandise rewards for both you and the recipient. Contact a tax professional for details*.

Budget Flexibility

Because the cost of merchandise is not as obvious as cash, you can adjust your budget as necessary.

*This information is intended for reference only and should not be considered to be tax advice.  Please reference IRS Guidelines or consult your tax professional for more detailed information prior to structuring a promotion, or taking deductions on tax returns. 

Experience and studies prove that, while recipients say they want cash, they work harder for merchandise rewards. We’ve got a customizable online catalog filled with merchandise rewards that will motivate your audience. Contact a Diablo Promotions Professional today to get started planning YOUR successful campaign!