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  1. #1
    Totally Purse Obsessed Alicia's Avatar
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    Default Handbag Prices Affected by the Economy

    Thought this would be a good topic to chat about...

    With our economy being weak and the dollar decreasing in value, the prices of designer handbags have been frequently increasing. Since everything else is only going up in price (food, gas, etc.) and the rate of pay raise from employers doesn't nearly cover these increasing living expenses, its going to be much more difficult putting money aside for designer bags, especially for those on a budget like myself.

    The day I finally got to pick out a new bag from Louis Vuitton was the day they decided to debut their new prices. And they had just increased retail costs a few months ago. On average, LVs' bags have gone up about 5% during each increase, which is about $50 per every thousand. So some have gone up over a $100 within less than a year.

    Chanel is even worse. If you think 50 bucks per every thousand is bad, try $200-$300 plus per increase About 2 years ago, the classic flap bag was around $1500. Now, it has reached an outrageoulsy higher price of around $2500 for like a med size. You guys probably remember how I wanted a flap so badly. Well, that's not happening anytime soon...

    So what does everyone think about this? I understand how prices will inevitably go up...but there have been so many recently. Also, I read somewhere that the reason behind these price increases is to achieve more exclusivity and to appeal to a wealthier crowd. I disagree with this for the most part and believe that it has more to do with the dollar being weak. But has anyone else noticed any other designers increasing their prices? Will anyone else be affected by these increases like myself? Thoughts???
    Last edited by Alicia; April 23rd, 2008 at 02:15 AM.
    Wishlist: * LV Vernis Alma PM or Brea MM * LV Mono Speedy 35 * Medium YSL Y-Mail Tote *

  2. #2
    Rising Bag Star loveguinness's Avatar
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    Default Re: Handbag Prices Affected by the Economy

    LV had to go up 10% in about 4 months (most recently a 5% last week) because the price of the US dollar has fallen and they have to make a minimum profit and have to keep up with the other countries that they sell.

    i think this was acutally press released, i read about it somewhere

  3. #3
    bagaholic
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    Default Re: Handbag Prices Affected by the Economy

    Quote Originally Posted by loveguinness View Post
    LV had to go up 10% in about 4 months (most recently a 5% last week) because the price of the US dollar has fallen and they have to make a minimum profit and have to keep up with the other countries that they sell.

    i think this was acutally press released, i read about it somewhere
    That is not true. LV go up 10 % in all European countries. I have bought now multicolore Beverly mm for increased price.

  4. #4
    Official Bagista daniC23's Avatar
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    Default Re: Handbag Prices Affected by the Economy

    It sucks for us. I have been saving up for a LV for some time, whenever I have close to enough money I tend to have to lay out $200 - $300 for a school project, then add in gas and trying to restrict impulse buys so I can get a purse, but on a part-time (and crappy) income, and being a college student I don't think ill ever pull together the money. Even with the birthday money I got and my paycheck coming this week I STILL will need more to afford a Neverfull, then I'd be broke, so its not worth it by that point. I would really love to buy an olympe nimbus, but that's way out of my league. The bag I've really had my eyes on lately is the damier griet, if I kept saving until my cruise in July I could most likely get the money when school ends and I'm working full time, but if there was another price increase (which with the state of economy seems likely between now and then) I may need to rethink the purchase, and my family would be sick over it I'm sure, my mom still thinks purses that much are such a waste of money.

  5. #5
    Italian bags supporter Morphea's Avatar
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    Default Re: Handbag Prices Affected by the Economy

    I am not a genius when it comes to understand the market laws of economics, but from what I read it seems that in the US there is an economic crisis going on and for sure the dollar has lost a lot of value. So I just wonder ... how comes that bags prices increase? Shouldn't the producers try to keep them down to attract the customers? I mean if the situation gets really tough, the first things one will do without are luxury goods (paying the rent or buying a designer bag? Maybe a difficult choice but if you don't want to sleep under a bridge you have only one way to go).
    OK, maybe this post is just plain silly, but I just don't understand how it works...

  6. #6
    bagaholic
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    Default Re: Handbag Prices Affected by the Economy

    Quote Originally Posted by Morphea View Post
    I am not a genius when it comes to understand the market laws of economics, but from what I read it seems that in the US there is an economic crisis going on and for sure the dollar has lost a lot of value. So I just wonder ... how comes that bags prices increase? Shouldn't the producers try to keep them down to attract the customers? I mean if the situation gets really tough, the first things one will do without are luxury goods (paying the rent or buying a designer bag? Maybe a difficult choice but if you don't want to sleep under a bridge you have only one way to go).
    OK, maybe this post is just plain silly, but I just don't understand how it works...
    LV bags prices increase in all countries( Europe,Asia.. ) not just in USA..and they will increase again like Chanel.

  7. #7
    Official Bagista
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    Default Re: Handbag Prices Affected by the Economy

    As the economy shifts, you see the rich getting richer and the poor getting poorer. Take for instance someone with moderate wealth. He/she can take advantage of the subpar economy and purchase houses that have been foreclosing, rent them out thus increasing their monthly income.

    Take someone who is living paycheck to paycheck. THey can no longer afford the increasing costs of homeownership and thus, must succumb to foreclosure or a shortsale. They must now leave their home, which is an equity-bearing asset, and rent a place to live. Renting the place to live handsomely lines the pockets of the wealthy even more, and takes money out of their pockets that they will never see again - unlike a house payment that can be somewhat recouperated via sale of the home.

    Historically, the US has been primarily middle class, with small percentage of population wealthly and a small percent povern stricken. Now, the middle class gap is closing in and soon there will be rich or poor.

    In my opinion, prices of luxury goods will continue to rise becuase the income of wealthy people will continue to rise, thus they will be willing (and able!) to pay the increased price.

    I think I have a good subject for my MBA capstone project...

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