November 23, 2010

Each of our gift certificates is good for one item UP TO the maximum dollar value stated on the certificate, and any unused value is forfeited.  For this reason we encourage our customers to be very careful about the dollar value they select:

During the holidays turkeys are used by supermarkets as "loss leaders", meaning they are put on sale at feature prices often far below what they cost the store.  This helps draw customers into the store where they make up the loss on other items the shopper buys.  Average retail turkey features in November-December are $.69 to $.89/lb, meaning a $15.00 gift certificate could get a turkey 17-22 lbs, which would be sufficient for all but the largest family gatherings.

On the other hand, some of your employees may prefer a more expensive brand or an organic or free range turkey which is more expensive.  Or he might get his turkey after the holidays when they are not on sale.  In these cases a lower value certificate may be insufficient and the employee would need to pay the difference at the cash register.

So the size of certificate you select depends upon your own best judgement about the needs of your organization, your budget, and the preferences of your employees.  Our experience has been that most people will get the lower priced turkeys, and those who want a more expensive brand do not mind paying the difference.  So you may decide the highest value certificates are not appropriate for you.

In some cases it may be better to give two smaller value certificates instead of one large value; for example, two $10 certificates instead of one $20 certificate.

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icon date 03:58:46 | icon author Administrator
October 8, 2010
Our turkey or ham gift certificates offer many advantages vs the Norbest turkey gift certificate program.  First on the list is value for the money, but there are others...

• More value for the money:  For the same price you can get a larger turkey with our program.  This is because the Norbest certificate, instead of having a maximum dollar value like ours, has a maximum weight limit.  So for example, at anticipated average retail turkey feature prices this holiday season between $.69 - $.89/lb, our $15 certificate (costing you $16) could get a 17-22 lb turkey.  In contrast, a comparable price for a Norbest certificate would only get you a 12-14 lb turkey.

• Greater variety and flexibility:  We offer certificates for turkey, ham, and a combo turkey-or-ham certificate good on either.  We also have certificates for beef steaks.  Our turkey and combo certificates are good on turkeys or turkey breasts, while the Norbest certificate is only good on whole turkeys.

• Greater acceptance by supermarkets:  Our maximum dollar value certificates are preferred by retailers, resulting in fewer redemption problems and more willing acceptance.

• More size options:  You can choose any maximum value between $10 and $30, in whole dollar increments, offering more options to fit your needs and budget than Norbest, which offers only seven options (2 lb increments 12-24 lbs).

• Uniform pricing:  Our certificates are priced the same regardless of payment method, while you would pay Norbest 3% more if you paid via credit card.

• Good on any brand:  Ours are always good on any brand at any supermarket.  The Norbest certificate is good on other brands only where Norbest is unavailable.

• Better credit terms:  We offer 30-day credit terms, with no minimum order size.  Norbest offers only 15-day terms with a $1,000 minimum.

• Rapid response:  We always ship within one business day, usually the same day.  Norbest requires payment in hand or approved credit, which often takes 2-3 days.

A full discussion of this topic is found on our website at:

http://www.pfrcorporategifts.com/solution.cfm?level1=homepage&level2=advantages_vs_Norbest

 

Norbest® is a registered trademark of Norbest, Inc.

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icon date 09:10:37 | icon author Administrator
October 6, 2010
Our turkey or ham gift certificates offer many advantages vs. the Butterball® gift check program, including value for the price, convenience, payment options, and tax advantages.

Our Our gift certificate program is far better than Butterball for several reasons:

(1) Our certificates are a better value for the price. For the same amount of money a customer can get a larger turkey with our program.  This is due to the higher retail price of Butterball turkeys, which are among the highest priced of the popular brands.  Striving to get the most competitive feature prices, retailers will usually feature other brands at the lowest sale prices.  The bigger the difference between these sales prices and Butterball prices the greater our value advantage becomes. For example, if the Butterball turkey is sold at $1.29 in the supermarket (a typical price for Butterball), a $15 certificate would only get an 12 lb turkey.  In contrast, our $15 certificate could get a 17-22 lb turkey (at average Nov-Dec feature prices of $.69-$.89/lb).  Even if some of your employees get a Butterball turkey, overall our program will still be a far better buy for your money.

(2) Our program offers the recipient of the certificate more flexibility and convenience. He can get the turkey he wants (any brand) at the time and place that’s most convenient for him (any supermarket), whereas the Butterball certificate must be redeemed only for a Butterball and only at a store that carries Butterball.  Furthermore, with our turkey-or-ham certificate your employee can choose which item he prefers, either a turkey or a ham.

(3) We offer better customer service and far more rapid turn-around time. We offer one business day turn-around time on orders, while Butterball requires up to 10 business days (one week for rush orders).  Furthermore, they will not ship until they receive the check in the mail, potentially adding days of incoming mail time to their turn-around.  In contrast, we could receive an order in the morning and ship the same afternoon.  On a rush order our customer could have his certificates less than 24 hours after placing the order.

(4) We offer more flexible payment options. Butterball does not offer credit and does not accept credit cards. They will only accept company checks.  We accept credit cards (Visa, Mastercard, Discover, and American Express), personal or company checks, and we offer 30-day credit terms.

(5) Our certificates may qualify for the IRS de minimis exclusion, while the Butterball certificates do not. Gifts (like ours) that meet de minimis requirements do not have to be claimed by the recipient as taxable income, do not have to be processed through Payroll, and may be claimed by the employer as a business expense. On the other hand, the Butterball certificate, which is actually a check voucher that the retailer sends through the bank, is a cash equivalent, does have a cash redemption value, and may be used to pay for any merchandise.  This effectively disqualifies it from the de minimis exclusion and you must run it through Payroll.

 For more discussion on this topic visit our website at:

http://www.pfrcorporategifts.com/solution.cfm?level1=homepage&level2=advantages_vs_Butterball

 

Butterball® is a registered trademark of Butterball, LLC

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icon date 08:26:26 | icon author Administrator
October 4, 2010
Our turkey or ham gift certificates used as holiday employee gifts may qualify for the IRS de minimis exclusion, meaning the employee doesn't need to claim them as income, they don't need to be run through Payroll, and the employer may claim them as a business expense.  The IRS confirmed this in a recent post on their website.

Their post, located at http://www.irs.gov/govt/fslg/article/0,,id=184791,00.html and dated June 10, 2010, states:

"A certificate that allows an employee to receive a specific item of personal property that is minimal in value, provided infrequently, and is administratively impractical to account for, may be excludable as a de minimis benefit, depending on facts and circumstances."

Our certificates qualify for all of these requirements.  Retailer gift cards and many other gift certificates, on the other hand, do not qualify.  Here's another quote from the same IRS document:  "Cash or cash equivalent items provided by the employer are never excludable from income...Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable."

A full discussion of this issue is found on our website at:

http://www.pfrcorporategifts.com/topic.cfm?level1=tax_benefits_of_turkey_gift_certificates

Of course we are not tax attorneys.  It would always be wise to consult with your tax accountant or attorney to see how the de minimis rule may apply in your particular circumstances.

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icon date 03:31:18 | icon author Administrator
October 1, 2010
It looks like you may find some pretty good deals when turkeys and hams go on sale this holiday season.  That means our turkey and ham gift certificates will have exceptional value.  For example, our $15 gift certificate could get a turkey 17 to 22 pounds, big enough for all but the largest family gatherings.

Trends:  Despite the fact that wholesale market prices for turkeys are averaging as much as 14% higher than the same period last year, retail turkey feature prices are about 4% lower on average.  Supermarkets are still feeling the crunch of the economic downturn, and will be aggressive to get more holiday traffic.  So we expect average retail holiday turkey feature prices will be in the $.69 to $.89/lb range, similar to last year.

Loss leaders:  Grocery stores traditionally compete for the biggest food holidays of the year (Thanksgiving and Christmas) by offering turkeys as "loss leaders".  This means they will put the turkeys on deep feature prices, often much lower than their cost, in order to draw more people into the store and to get higher revenue on other food items.  For example, last year Wal-Mart offered turkeys in some markets for $.44/lb even though they might have paid twice that much for them.

Hams come in far more varieties at different price levels, but feature prices in the $1.29 to $1.59/lb range should be common in November-December 2010.  Hams are more expensive per pound than turkeys , but feed more people per pound, so the values almost balance out.

Gift certificates - an unusually good deal:  All of this means that our turkey or ham gift certificates are of exceptional value this year.  A $10 certificate could get a turkey 11 to 14 lbs, and a $15 certificate could get a turkey 17 to 22 lbs, or even larger on deep retail feature prices.  So our $15 certificate (which costs you $16) could get a turkey large enough for most family gatherings, and a $20 certificate would be seen as very generous.  (Of course you can get certificates with maximum dollar values anywhere between $10 and $30, in whole dollar increments.)  This gives us a substantial advantage over many other options.

If your employees want a turkey that costs more than the maximum dollar value of the gift certificate they can still get it by paying the difference at the cash register.  On the other hand, we wouldn't advise getting a certificate with a maximum value too high, since any unused amount is forfeited.

Our crystal ball:  Of course, no one can predict holiday feature prices reliably.  Our projections are just our opinion based on trends reported by the USDA, coupled with our experience watching the turkey market for over two decades.  Don't hold our feet to the fire if unforseen factors produce unexpected results.  (But we think we'll be pretty close.)

Call us now:  We hope this information helps you decide what size of gift certificates to buy as holiday gifts for your employees.  Place your order now online at www.pfrcorporategifts.com or give us a call at 801-569-2381.

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icon date 06:39:38 | icon author Administrator

Are employers misguided when they buy retailer gift cards as holiday gifts for their employees?  Here's a better option:  Gift certificates for turkeys or hams.  These are more personal, more emotionally impactful, they are good at ANY supermarket, and they are not taxable as income to the employee.

Our turkey or ham gift certificates have some very important, meaningful advantages over retailer gift cards as holiday corporate gifts:

More personal and emotionally impactful:  They are perceived as a turkey or a ham rather than just cash.  They are personalized with the company's name as the giver, and if you wish they can be personalized with the recipient's name (optional, no charge).  Isn't this better than the retailer gift card, which is just seen as extra cash?

Good at any grocery store in the USA:  Our turkey or ham gift certificates can be redeemed at any conventional supermarket in the U.S., not just at the store that issues a retailer gift card.  Isn't this far more convenient?

Good on any brand:  Our certificates are good on any brand and any variety the employee chooses.  He's not limited to just what a particular retailer offers.

Not taxable to the recipient:  Finally, our turkey or ham gift certificates, contrary to retailer gift cards, qualify for the IRS de minimis exclusion, meaning they are not taxable to the employee as income, do not need to be run through Payroll, and may be deducted as a business expense by the employer.  Retailer gift cards never qualify for the de minimis exclusion and must be declared as income.

More convenient for the employer:  We can ship with one day's lead time and offer 30-day credit terms.  Credit cards are OK too.  Just call us (801-569-2381) or go online (www.pfrcorporategifts.com) to place your order. 

So let the decision makers in your company know.  We're sure with all these advantages they will be quick to offer our turkey or ham gift certificates as corporate Christmas gifts this year.

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icon date 06:03:53 | icon author Administrator
September 30, 2010

Many employers buy actual turkeys or hams as holiday employee gifts.  What a hassle!!  With our turkey or ham gift certificates the employees are happier and your life is far easier.

www.pfrcorporategifts.com

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icon date 09:20:00 | icon author Administrator
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