As I am holed up in a remote corner of Alaska for the summer, I find myself with lots of idle time on my hands. A couple of days ago, I read the thread about the current price of a birkin in the UK and how there has been at least one 10% price increase every year for the past few years. It seemed like it was just accepted that H corporate HQ would always continue to do this as long as sales remained at least flat.
Being bored, I threw a calculation into excel assuming just one 10% increase every year for the next 20 years, and was a bit surprised to find out that:
-in 5 years, a normal birkin in the UK would be 8800 pounds (about $15,000)
-in 10 years, a normal birkin would be about 14000 pounds, (about $24,000)
-in 15 years, normal birkin would be about 23,000 pounds (about $39,000)
-in 20 years, a normal birkin would be about 37000 pounds (about $62,600)
YIKES! Hopefully the annual 10% increase will not be a permanent part of H strategy because I really can't see myself paying even $20,000 for a regular leather bag!
Being bored, I threw a calculation into excel assuming just one 10% increase every year for the next 20 years, and was a bit surprised to find out that:
-in 5 years, a normal birkin in the UK would be 8800 pounds (about $15,000)
-in 10 years, a normal birkin would be about 14000 pounds, (about $24,000)
-in 15 years, normal birkin would be about 23,000 pounds (about $39,000)
-in 20 years, a normal birkin would be about 37000 pounds (about $62,600)
YIKES! Hopefully the annual 10% increase will not be a permanent part of H strategy because I really can't see myself paying even $20,000 for a regular leather bag!