Cost in making a Birkin or Kelly - Discuss!

H

Hed Kandi

O.G.
Sep 7, 2007
1,845
7
#1
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?
 
#3
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.
 
#5
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...
 
#6
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.
 
#7
HermesNewbie said:
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.
Click to expand...

I really need to add this book in my Amazon wish list! It'd be an informative read!
 
#10
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...
 
#11
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.
 
#12
HermesNewbie said:
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.
Click to expand...
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:
 
#13
lady786 said:
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:
Click to expand...

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.
 
#14
HermesNewbie said:
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.
Click to expand...
oh totally agree and i was reading some where that if you talk about investment bags it comes on the top of the list.
 
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