Big Ticket Item

AAA

DEFINITION of 'Big Ticket Item'

Big ticket items are high-value items, such as houses and cars, as well as expensive products such as appliances, home theater systems and furniture. In the context of retail stores, they may also refer to products with selling price and profit margins that are significantly higher than those of other items in the stores. In economics, big ticket items can also sometimes be called durable goods, which is a good that lasts a relatively long time and provides utility to the user.

INVESTOPEDIA EXPLAINS 'Big Ticket Item'

There is no accepted dollar threshold level that defines a big ticket item. As well, a big ticket item need not necessarily be a luxury product or one purchased with discretionary income, since many products that typically fall within this category - for example, refrigerators and washing machines - are considered necessities rather than luxury items. Looking at the level of sales of big ticket items or durable goods can be an indicator of the performance of the economy and consumer confidence.

RELATED TERMS
  1. Consumer Discretionary

    A sector of the economy that consists of businesses that sell ...
  2. Monopoly

    A situation in which a single company or group owns all or nearly ...
  3. Discretionary Income

    The amount of an individual's income that is left for spending, ...
  4. Consumer Cyclicals

    A category of stocks that rely heavily on the business cycle ...
  5. Retail Sales

    An aggregated measure of the sales of retail goods over a stated ...
  6. Chain Store Sales

    An indicator that provides information on the monthly sales volumes ...
Related Articles
  1. Consumer Spending As A Market Indicator
    Markets

    Consumer Spending As A Market Indicator

  2. The Uptick Rule Debate
    Active Trading Fundamentals

    The Uptick Rule Debate

  3. A Clear Look At EBITDA
    Markets

    A Clear Look At EBITDA

  4. The 3 Moral Types Managing Your Money
    Investing Basics

    The 3 Moral Types Managing Your Money

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center