The Gift Model
The Gift Model compares a gift’s cost with how much the recipient values it. Its authors offer two rules of thumb: be generous and favor experiences over material gifts.
THE IDEA
THE GIFT MODEL
HOW MUCH TO SPEND ON PRESENTS
Gift-giving is something of a minefield. A cheap or impersonal gift can make the recipient feel undervalued, and create an awkward situation for both giver and receiver. Our highly unscientific little model has two axes:
• How expensive is the gift?
• How valued is it?
TWO RULES OF THUMB
Being generous beats being miserly (don’t be misled by the sentence “That really wasn’t necessary”).
The gift of an experience beats a material gift.
I have the simplest tastes. I am always satisfied with the best. Oscar Wilde
When to use it
Choosing a birthday present for a close friend or family member.
Selecting a holiday gift for a colleague where you want to be appropriate but not overly personal.
Planning a wedding gift that balances budget and the couple's preferences.
Deciding on a host/hostess gift for a dinner party or social gathering.
FROM THEORY TO EVERYDAY LIFE
In practice
Expensive vs. Valued Gift
A person might spend a lot on a designer handbag, but if the recipient already has one or prefers minimalism, the perceived value is low. Conversely, a handmade card costing little but showing effort can be highly valued.
Experience vs. Material
For a friend who loves live music, concert tickets offer an experience you can share. Their value depends on the friend’s interests, not just the price.
A MOMENT TO REFLECT
Put it to work.
Think of a recent gift you received. How did its cost and the perceived value compare? Was the giver generous or miserly?
Consider a gift you gave recently. Would an experience have suited the recipient better? Why or why not?
How might the Gift Model apply differently in cultures with strong gift-giving traditions or expectations?
CONTINUE THE CONVERSATION
Source texts
- The Decision Book Fifty Models for Strategic Thinking