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Thank you etiquette re: business gift

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Erin

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My company has a sister company that makes end-user products. I inquired with their President about purchasing a $200 item for my father for Christmas. This item is on the low end of their product offerings. He was very accommodating and had one shipped from their warehouse to my office in time for the holidays. Now I'm sure he wouldn't make me pay full retail price, but I asked him to give me the amount and inquired who I should give my personal check to.

All he has ever asked is whether or not I received it and then later whether or not my Dad liked it. He has avoided my questioning on payment and I'm thinking he just sort of gave it to me. What should I do as my token of thanks? I don't want to come out and say I know you're not exactly making me pay for this. I have thanked him via email a few times. Is a formal thank you note appropriate or something more along the gesture of home baked cookies brought to his office? I am relatively friendly with him.
 

Hudson_Hawk

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Considering this is more a friendly gesture than "gift" to you, I''d leave it with the emails. Maybe if you run into him thank him in person. I think a formal thank you would be over the top and possibly make him feel uncomfortable with the lack of payment for company property aspect.
 

tlh

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Date: 1/5/2010 10:10:29 AM
Author: Hudson_Hawk
Considering this is more a friendly gesture than 'gift' to you, I'd leave it with the emails. Maybe if you run into him thank him in person. I think a formal thank you would be over the top and possibly make him feel uncomfortable with the lack of payment for company property aspect.
I agree. My company doesn't let me accept anything more than the value of a pen from a vendor, etc. Not sure if your company has that policy in place - or if he's expecting some sort of business favor in the future.. but as long as your company does(n't) have any policy against gifts, I'd just leave it at that.

Plus now that the holidays are over, people tend to be a bit more calorie concious and less ready to dig in on the baked goods.
 

janinegirly

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Hmm, I think it's a bit questionable. My field of course is a lot more regulated and we are not permitted to accept gifts. And if it is an internal situation there is still the question of potential expectation (will he want a favor in return down the road)? None of this may be applicable to the situation, but you can see how it can raise potential scenarios which is why most companies have policies on it. If it were me I would again offer to pay and ask the amount. Sorry if you already did this and I missed it...I guess the point is to make every effort you can and if he continues to decline, well at leat it's all in writing.
 

fieryred33143

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My more important question: is this allowed by your company?

Where I work, any items given to an employee is typically considered a gift to that employee whether or not that employee passes it along to another person and can be used against you in court later if any issues arise between this sister company and the parent company. It is also considered taxable income if it is over $75. I would encourage payment and if not then look up your company''s policy on gifts and make sure it is reported to the appropriate people.
 

Erin

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I sent an email using the rhetoric that Janine suggested. Our company does have a policy on gifts, but I guess that's why I've been so puzzled on how to handle it because we can accept gifts. It is taxable over $100 of fair market value. I understand him maybe wanting it to just go away or let it slide, but there is no guiltless way to do that.
 
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