It’s an all too familiar scenario. Your ideal business and market is ready for the taking, but everything else about it seems to be about as clear as mud. And it starts with the most basic question. Do you want low, medium or high-ticket items on your shelves (or virtual shelves)?

First off, let’s look at what the three different categories are. Knowing the differences between them is crucial as they have their equal amount of pros and cons. Low-ticket products are cheaper in cost to make than the other two categories and represent much of the impulse purchasing eCommerce is famous for. Medium-ticket products are middle tier in costs but are still typically affordable enough that they are widely purchased. Then there’s high-ticket products which are your most expensive and often largest in size.

Choosing from low, medium or high-ticket products is therefore dependent on what products you make and the amount of revenue you want to generate and are capable of generating.

Why go high-ticket at all?

The answer to this is simple. These items generate the most revenue and many eCommerce experts will tell you it’s the best way to build a scalable online business. Your profit margin is likely to be highest with high-ticket items. But of course, there’s a greater initial cost outlay on your end.

The fact is though, that when your business has scaled up because of the revenue generated from your high-ticket item focus it will be like an avalanche incapable of stopping. It will only escalate as you corner that particular market of high-ticket items.

The same amount of revenue can be generated with low-ticket items, but with more effort on your end. Plus, a low-ticket market is likely more competitive.

So, why do sellers bother with low and medium ticket products?

Put simply, there’s always demand for low and medium ticket products no matter what field you are in. Plus, not all sellers are capable of manufacturing high-ticket items. Most online sellers on eCommerce sites like eBay and Etsy are solely concerned with these types of items, and they are highly successful by simply staying in this field!

But low and medium ticket items also act as a gateway to growth. These items build loyalty and deepen the connection between a business and customer. With growth and any potential transition by a business into high-ticket items, these customers are more likely to also make that transition with their purchases.

A great example of this might be in something like BBQ or grilling utensils. If outdoor cooking lovers enjoyed a company’s aprons, grilling utensils and handheld thermostats, they are more likely than not to also purchase a new outdoor grill from that company should they make that transition into higher-ticket items. The low to medium ticket items therefore create a solid

foundation for which a business can then move into high-ticket items. It lowers the financial risks significantly and can even ensure continual profits come in, should a high ticket item fail to sell or take its time to generate consistent revenue.

What about lead generation between low, medium and high-ticket products?

Lead acquisition is often just as expensive when it comes to either of the tickets. But if you factor in the revenue generated per lead, high-ticket items pay off far quicker for those leads you paid good money for. So there’s also this to consider.

In Summary

Comparing high, medium and low-ticket items, largely centers on the profit margins each provides and a business’ capabilities. Certainly, high-ticket items generate the most revenue, but medium and low-ticket items provide the gateway to reaching that ideal profit space you want to eventually be in.