What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!

Switching costs

Switching costs refer to how much money and time it would cost a company to switch from one provider of a service or product to another. If you are a provider, you want your customers to face high switching costs, thus increasing the odds they will stay with you.

Expanded Definition


Related Fool Articles

Related Terms

Recent Mentions on Fool.com