“Buyers will spend more, but they need to feel confident they’re buying results,” Bhat says. “It’s not random. They are likely to lean even more heavily toward what they value once they have surpassed their budget because of the risk it symbolizes.” Budgets Can Go In The Other Direction As Well While this study proves that budgets are elastic rather than concrete, that does not mean that circumstances will always allow buyers to operate with flexible spending habits. Affected by any number of external factors, end buyers sometimes have to constrict their budgets. How they move forward under those conditions is an important point for promo firms to consider. Below are real responses that end buyers gave about what they do when their budgets get tight. Each is representative of a common sentiment in the study: • “Used digital ads instead of ordering new promo items.” • “We reused leftover inventory from last year.” • “We cut quantity from 1,000 to 250 just to make the numbers work.” • “Switched to more budget-friendly tote bags and water bottles instead of high-end gifts.” • “We went with an off-brand polo design to save money.” • “We had to split one large order into multiple small ones to fit different budgets.” • “We postponed the whole campaign until funds were available again.” • “We chose a slower supplier just to stay within cost.” “Under these conditions, promo firms need to be sensitive to buyers’ constraints while trying to maintain pricing power by offering a clear reason to stick with promo in whatever capacity is possible,” Bhat says. Auping is senior news editor at PPAI. PPAI • JULY 2025 • 47 2025 Consumer Study | Must Read
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