Why are Birkin Bags So Expensive? Top 3 Reasons
The Birkin bag is one of the most elusive and sought-after handbags in the world. So, it’s no surprise that as soon as people spot a convincing dupe, they snap it up. Today, however, we aren’t going to discuss the viral “Wirkin” from Walmart, rather than the reasons for why the actual Birkin bag is so expensive – yep, there are actually quite a few reasons for the Birkin’s sky-high price tag! And no, it isn’t as simple as, “a luxury product comes with a luxury price tag”. In fact, to fully understand the logic behind the premium price tag of the Birkin bag we will need to explore not just the basic principles of supply and demand, but also the business practices of brand producing it (which in our case is Hermès). So, let’s do it together, while uncovering the true reasons for why Birkin bags are so expensive.
1. Limited Supply
According to the theory of supply and demand, the price of a product will adjust to balance the quantity supplied by producers and the quantity demanded by consumers. Put simply: whenever the demand for a specific product exceeds the supply, the prices are going to surge, and whenever the opposite happens (supply exceeds demand), prices would fall.
Hermès purposely keeps the production of Birkin bags limited, creating a so-called sense of scarcity, which helps the brand not only maintain the exclusiveness of the handbag but also raises the demand for it. Basically, the more exclusive the handbag, the more people want it. Hence, astronomically-high prices for the Birkin bag on the resale market. Not to mention that Hermès does not disclose the exact number of Birkins produced annually, which only adds to the mystique surrounding the brand.
2. Difficulty to buy the bag in person
If you’re into designer handbags, you probably know that getting a Birkin isn’t as simple as walking into an Hermès boutique and taking one off the shelf. This process is notoriously elusive and often requires establishing a relationship with the brand. Prospective buyers will often be required to buy other Hermès merchandise several times, such as scarves, belts, or jewelry, to prove their loyalty before one is offered a chance to purchase a Birkin. But even then, the offer is by no means guaranteed. Furthermore, when the customer is finally offered a Birkin, they cannot choose from large stocks, meaning they may settle for colors they do not even like.
This is also why many people refer directly to resellers because they can most likely get the bag in the specification they want. That doesn’t, however, come without its premium, stemming from the difficulty of obtaining Birkins directly from Hermès. In fact, resale prices for Birkin bags can go far beyond the original retail value, depending on the rarity of the bag, color, and condition, which is actually also why a lot of people consider them excellent investments.
3. Unmatched Crafsmanship
One of the most compelling reasons behind the Birkin’s steep price is the unparalleled craftsmanship that goes into producing each of these bags. From the cutting of the leather to stitching and assembling the bag by the skilled artisans in Hermès’s ateliers in France, every step is done by hand using traditional techniques that have been perfected over generations.
Allegedly, one Birkin bag takes around 24 hours to produce. The process is also carried out by the same artisan from start to finish, making each bag unique and special. This level of detail and commitment to excellence also warrants the bag’s high retail price, which at the time of writing this post, starts at about $10,500 (with the latest retail prices of the Birkin bag here).
I hope this blog post was helpful!
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