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
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