Hermes artisans

[maryg1]

Doing some very rough math:
1700/30=57 euros - the pay that artisan receives daily
Making a bag without shoulder strap like Birkin takes around 5 days, but let’s round it up to 7 because employers gotta cover weekends too
57*7=399 euros
So the labor cost is around 400 euros per bag. I cannot speak for the price of raw materials and hardware, also the shared cost of worker’s training and marketing, but idk if it still makes sense to justify the bag prices with superior craftsmanship as it is traditionally done in luxury community.

This is not tecnically 100% correct. Work week is usually 5 days a week.
1700 € is the net salary I presume, I don’t know tax percentage in France but where I live 1700 € net would translate in 2200 € gross salary.
Then the employer has to pay other taxes, again where I live you have to add about 30% of the gross salary, so 660 €.
The final cost of the artisan for the employer is 2860,00 €.
Again, I’m not in France so the % of the taxes may differ, other TPFer living in France can correct me.

 

[leechiyong]

I look at companies comparable to H who are smaller and less known, like Peter Nitz or Joseph Duclos and even they charge thousands for their bags. I'm not saying the pay is great or that Hermes isn't turning a sizeable profit (€3.4b of €11.6b revenue last year), but there’s more to a company's expenses beyond materials and labor of making it. Things like real estate, tools, maintenance, and administration add to the overhead.