What is a big ticket item?
A big ticket item, also called a high ticket item, is an expensive item that is usually considered an investment for the purchaser.
Big ticket items often refer to unnecessary purchases – as in, purchases not required to live and function in modern society – made with discretionary income. However, a number of items that qualify as “big ticket” are considered necessities.
Due to their retail and production cost, selling big ticket items in any industry requires handling many elements at once. Some businesses use drop shipping software to keep up with sales, without having to store inventory in a factory.
Examples of big ticket items
What constitutes a big ticket item depends on the person purchasing the item and their income. For some, a big ticket item could be a few hundred dollars; for others, it could be hundreds of thousands of dollars. Some items that are universally considered big ticket items are:
- Houses
- Cars
- House furniture, like sectional couches and dining tables
- House decor, like grand pianos or chandeliers
- Appliances, like chef-level stove tops or wine refrigerators
- Vacation homes or timeshares
- Mattresses
- Tailored clothing
- Personal trainers and home gym equipment
- Custom desktops or laptops
Benefits of selling big ticket items
For businesses and individual sellers, big ticket items come with an obvious appeal and numerous benefits. Some include:
- Providing customers with payment options. They can pay all at once, or the business can offer different financing options.
- Less risk, more reward. Cheap merchandise means businesses need to sell thousands of a single product to make a profit, whereas they only need to sell a handful of big ticket items to make money.
- Opportunities to build trust between the business and customers. Because big ticket items are such an investment, customers look for businesses with brand equity that they can trust and revisit for future purchases.
- Better working environment. Selling fewer, more expensive products reduces strain on a company’s customer support and fulfillment teams.
Things to consider before buying big ticket items
Purchasing a big ticket item is not something to consider lightly or with little thought. Often, big ticket items use up a very large part of someone’s budget, and it takes time to save money. Customers want to be sure they’re making the right decision. Before buying a big ticket item, customers should ask:
- Does this purchase need to be made now, or can it wait?
- Are their seasonal sales to take advantage of?
- What impact will this purchase have on future investments or bills?
- If the purchase will be made on a credit card, which one has the most benefits or least interest?
- Has sales tax been taken into account?
- Have shipping fees been taken into account?
Big ticket item vs. small ticket item
A big ticket item is any item considered to be expensive to the purchaser. There’s no official minimum for a big ticket item, although purchases that cost thousands of dollars typically qualify. Big ticket items are also called high ticket items.
A small ticket item is a relatively inexpensive item. These items sell more often and at larger qualities. Some examples include children’s toys, small kitchen appliances like toasters and blenders, fast-fashion clothing, and so on. Small ticket items are also called low ticket items.
Learn how to streamline the day-to-day operation of a retail store or chain with retail management software.
Whitney Rudeseal Peet
Whitney Rudeseal Peet is a former freelance writer for G2 and a story- and customer-centered writer, marketer, and strategist. She fully leans into the gig-based world, also working as a voice over artist and book editor. Before going freelance full-time, Whitney worked in content and email marketing for Calendly, Salesforce, and Litmus, among others. When she's not at her desk, you can find her reading a good book, listening to Elton John and Linkin Park, enjoying some craft beer, or planning her next trip to London.
