Cost in making a Birkin or Kelly - Discuss!

Hed Kandi

O.G.
Sep 7, 2007
1,844
5
Hello All,

I've been wondering what is the actual cost of making Birkin and a Kelly? Aside from renting and running retail stores, the marketing, comms, etc. Maybe it's just me who is curious....

For simplicity let's take a 35 cm Birkin and a 32 Kelly in either Clemence and Togo. What would be Hermes' cost to in producing one? And I do appreciate craftsmen need the appropriate training.

Thoughts?
 
Sep 12, 2008
791
4
Well they also need the time to cut out and hand stitch each individual piece. This is a lengthy process done by one person from start to finish, and as they say... "time is money."
 

Luvquality

Artisanal rules!
Nov 19, 2011
612
194
Not to mention acquiring the finest skins; elegant dying; cutting and stitching; and NOT doing it in China, nor doing it in the volume (economies of scale) as do all the rest! I would guess their cost would have to be at least 3times the cost of the other high end designers and maybe more.
 
Apr 15, 2007
63,997
9,340
there are many steps to making a birkin/kelly handbag... they have trained
these artisans for many years.. its for the most part all done by hand..
and time is money... labor intensive & that is what we are paying for...the
leathers, silks, cashmeres & exotics are the finest quality... top notch...
that is why they have the success they do....and most important, these
items are not made overseas they are done in highly trained workrooms...
 

GirlieShoppe

HermesNewbie
O.G.
Jun 2, 2008
8,111
278
If I remember correctly, the author of Deluxe: How Luxury Lost Its Luster wrote that handbags are marked up at least 10 times the cost. For example, a bag that costs $5K actually only costs about $500 to make. I agree with India, anytime you buy something at retail (no matter what the item is or what brand), the markup is huge.
 

cewek

O.G.
Mar 11, 2008
423
4
rAdelaide
If I remember correctly, the author of Deluxe: How Luxury Lost Its Luster wrote that handbags are marked up at least 10 times the cost. For example, a bag that costs $5K actually only costs about $500 to make. I agree with India, anytime you buy something at retail (no matter what the item is or what brand), the markup is huge.
I really need to add this book in my Amazon wish list! It'd be an informative read!
 

Luvquality

Artisanal rules!
Nov 19, 2011
612
194
Cewek, it's a great read! It's where I learned of the genuine craftsmanship and quality that goes into a Hermes product.
 
Apr 15, 2007
63,997
9,340
have read this book.. and still believe that Hermes has the best quality &

craftsman in the world and when you have a Hermes bag it can be passed

on for many many years.... have been fortunate to have many vintage Hermes

exotic skin bags & box calf bags that have a patina that is so beyond and the

bags look like they are brand new...one is paying a high price for skins,

labor etc.. IMO Hermes is worth every penny & then some....its like having a

Patek watch.. forever & ever & ever.....passed on to the next generation that's

how extraordinary these items are...
 

Valmont

Member
Oct 2, 2011
445
12
New York, NY
Well, another way of looking at it is not to look at the cost of the materials but the value of the finished product. A value that is given by our society and culture.

The cost of the materials used to create some of the art masterpieces in the world (think of La Gioconda by da Vinci, for example) is irrelevant -- it amounts to pennies.
 

lady786

Member
Sep 15, 2011
1,549
50
If I remember correctly, the author of Deluxe: How Luxury Lost Its Luster wrote that handbags are marked up at least 10 times the cost. For example, a bag that costs $5K actually only costs about $500 to make. I agree with India, anytime you buy something at retail (no matter what the item is or what brand), the markup is huge.
I agree and mostly we are paying for brand but i believe labour is the most expensive and i am sure hermes dont make their bags in thirld world countries:smile:
 

GirlieShoppe

HermesNewbie
O.G.
Jun 2, 2008
8,111
278
I agree and mostly we are paying for brand but i believe labour is the most expensive and i am sure hermes dont make their bags in thirld world countries:smile:
Hi lady786,

Good points! I definitely don't think that Hermes makes their bags in Third World countries. I was just mentioning what the author of the book said about the markup of handbags in general. I don't think she was specifically speaking about any one brand. I only mentioned what she said because I found it interesting. I agree that Hermes bags cost more due to the labor involved. Hermes handbags are worth the price, IMO.
 

lady786

Member
Sep 15, 2011
1,549
50
Hi lady786,

Good points! I definitely don't think that Hermes makes their bags in Third World countries. I was just mentioning what the author of the book said about the markup of handbags in general. I don't think she was specifically speaking about any one brand. I only mentioned what she said because I found it interesting. I agree that Hermes bags cost more due to the labor involved. Hermes handbags are worth the price, IMO.
oh totally agree and i was reading some where that if you talk about investment bags it comes on the top of the list.
 

GirlieShoppe

HermesNewbie
O.G.
Jun 2, 2008
8,111
278
oh totally agree and i was reading some where that if you talk about investment bags it comes on the top of the list.
Now if I could only convince my DH that buying Hermes counts as making investments I'd have it made! :lol: