Let's Talk About the Price of Bags Across the Board, Are they Crazy or am I?

[lovingmybags]

I obviously bought into the hype and branding of Chanel. Shame on me. I was totally down with the idea that a contemporary bag wasn't an "investment." Well, if you love and use your bags to death, why do you need to get good resell out of it? And if these bags are so spectacular, why are they always on the pre-loved market?

Now, I carry brands like Longchamp and MZWallace. And I'm just as happy and just as awesome as I would be with Hermes.

Agreed; all my premier bags (except for two Mulberry one LV) were all purchased unused from the secondary market. Good thing about being able to self-authenticate, is to be privy to great discounts! Love the contemporary bags; many have quality that really comes close (if not exceed) their premier counterparts! When I placed my LV and Kate Spade madison ave tote side by side, the latter just feels more substantial; had I not know about the brands, I'd totally think it's the more expensive one.

Of course, the LV is canvas and KS leather, so it's sort of comparing apples and oranges, but at the price point...nope. As much as I like the shape of that LV, nothing about it (to me at least) really justifies being more than 4x the price as the Kate Spade. The KS madison ave bag is apparently made in Spain; makes it feel more lux I suppose, yet there are lots of LV MIF that don't live up to expectations. Guess the customer does have to be smart in purchasing decisions, and do the homework to decide his/her comfort zone.

 

[Sparkletastic]

Part of the reason people feel bags are investments is because media and retailers tout them as such.

Perfect example - I just checked my email and Fashionphile sent this with links to the 5 styles they’ve chosen. (Hermes Birkin, Chanel Flap, Chanel GST, LV Speedy and LV Neverful).
Yes, some bags definitely have better resale value than others. But, the “save you money” is built on the premise that bags will necessarily be sold. Do they / should they always be??? Can we become more content with our bags long term? I know this is a primary goal of mine.

Having sold over 150 bags from sub contemporary to premier as I redid my collection over the past 6ish years, I can unequivocally say that bags aren’t investments. And, the selling process itself is a pain in the rump - especially when you are trying to maximize receipts (maximize the so called return on your investment) by selling on your own.

But, until the market realizes this, prices will continue to inflate as people unwittingly think they can pay the exorbitant price, wear it a bit and then just flip it with no pain and all gain.

 

[Chachalouve]

I feel like luxury goods are a bit of a vortex. Once you get away, it's like standing in the sun and fresh air again. You're like, "$5000 for a BAG?!!!! What on earth was I thinking?"

I stopped looking into any luxury goods about 2 years ago. I barely went to the mall, I didn't go to websites. In fact, I no longer know what companies like Chanel or Hermes are charging, and I don't care. One of the reasons for my transformation was the price increases and the forced exclusivity. I'd hit my ridiculous level. The industry better watch out, because maybe my threshold is lower, but everyone has a line in the sand. I guarantee a lot of people in this thread will not be buying lux in 10 years unless something changes.

These companies want ever increasing profits while selling their goods to an increasingly small group of people. It's madness. I went into LV the other day, and there wasn't a canvas bag on display in the entire store. Now you need to shell out 3K for one of their (imo substandard) leather bags to be a worthy customer. Because people like me who are actually willing to spend 1K on plastic coated canvas (hey, that stuff is durable and lightweight!) aren't good enough?

I'm actually looking to sell my Chanel GST because when I carry those interlocking Cs I feel like it might as well have the word SUCKER! written all over it. I can't remember what I paid, so taking that hit will be ignorant bliss for me. LOL. I'm keeping the LV canvas, though, because I love it, and that's the real mark of a bag worth buying and keeping. I obviously bought into the hype and branding of Chanel. Shame on me. I was totally down with the idea that a contemporary bag wasn't an "investment." Well, if you love and use your bags to death, why do you need to get good resell out of it? And if these bags are so spectacular, why are they always on the pre-loved market?

We don't have to accept price increases. I don't know of any other industry that raises prices twice a year on schedule. I don't get a call from my SA at Walmart about the price of eggs going up. If they go up, it's usually for a reason like egg shortage or gas tax hike or something tangible. Not because they want to exclude all the riff-raff who shop for eggs at Dollar General.

Now, I carry brands like Longchamp and MZWallace. And I'm just as happy and just as awesome as I would be with Hermes.

I love what you say: getting away from luxury is like standing in the sun and fresh air again.
It’s exactly how I feel these days!!
Experience made I know I will no longer spend so much for bags..
I love mines and will keep my collection as it is. No regrets. But will never pay full price again for a bag, this I am sure because they are just getting too expensive. I have the same feeling as many others here.
And that you always find that same bag you love for a better price on the secondhand market after a while..
I love both my newly and secondhand purchased bags equally.
Sometimes those I got for a good deal a little more
Instead, I will prefer buying jewelry when it comes to spend a big amount for myself again.
Or just go on a very nice vacation

 

[Cogmarks]

Out of interest, as I've been ordering my food online for over a decade, I went back to around the period I purchased the first of these Cartier pieces. I'm a creature of habit and still order basically the same things. I couldn't find a single product that had increased in a similar way, most things were either exactly the same price, and some are actually cheaper now.

The prices on some luxury watches have gone down as luxury watch sales have been in a slump for several years. In April, Rolex is going to have their first price increase since 2012.

 

[Coconuts40]

When I look at the term 'investment' now in regards to handbags, I don't look at it in terms of resale value, but the long-term wear of the bag. By purchasing a bag that in my standards is timeless (I guess fashion standards also), that means it can be a bag I see wearing and using indefinitely which then turns into my investment. I agree with everyone here, the resale market is becoming saturated and I have lost money selling bags I thought would get a premium. I also feel very comfortable in my skin and don't care if I use the same bag forever, it becomes my signature piece and style.

 

[bernz84]

I never understood the whole mentality behind luxury handbags being an "investment". Unless you are a consignor or reseller (whether you're a professional or do it as a hobby), no one really makes money off handbags. Those ordinary people who do make a sizable profit either were passed down the bag from a family member or held on to the bag for a very, very long time while keeping it in decent condition. And even then, there are no guarantees that the bag you hold on to will be in demand years from now.

Personally I find that this fixation on resale value takes away the joy of buying something unique and well-made. Not to mention, by adopting the whole "resale value" mentality, you give into the mindset of buying things without thinking whether this handbag will fit you or hold up long-term. I mean, flipping might work for some people, but for me I just found it super stressful and aggravating.

 

[2cello]

Personally I find that this fixation on resale value takes away the joy of buying something unique and well-made. Not to mention, by adopting the whole "resale value" mentality, you give into the mindset of buying things without thinking whether this handbag will fit you or hold up long-term. I mean, flipping might work for some people, but for me I just found it super stressful and aggravating.

I think buying and reselling is a hobby onto itself and can have enjoyment value - but it is a hobby somewhat separate from enjoying handbags.

For me, I want to buy my desired bag at the lowest price possible and wear it until it dies.

 

[Emily1830]

When I look at the term 'investment' now in regards to handbags, I don't look at it in terms of resale value, but the long-term wear of the bag. By purchasing a bag that in my standards is timeless (I guess fashion standards also), that means it can be a bag I see wearing and using indefinitely which then turns into my investment. I agree with everyone here, the resale market is becoming saturated and I have lost money selling bags I thought would get a premium. I also feel very comfortable in my skin and don't care if I use the same bag forever, it becomes my signature piece and style.

^^This. I agree completely. I don't buy with resale in mind. I buy with the intent to use it for as long as possible.

 

[pianolize]

I think buying and reselling is a hobby onto itself and can have enjoyment value - but it is a hobby somewhat separate from enjoying handbags.

For me, I want to buy my desired bag at the lowest price possible and wear it until it dies.

^^This. I agree completely. I don't buy with resale in mind. I buy with the intent to use it for as long as possible.

That is totally my thinking!!! Though if you're thinking more than 10-15 yrs, ask me again in that many! Though possibly, my bag needs may change. (Unfortunately?) I still ADORE my bags from back then, and have figured out (I think!) what to avoid, craftsmanship-wise...

I do think the flipping is a separate thing altogether. I always think I'm excellent at finding amazing deals on perfectly great items, but may find it stressful to flip actively. Plus, who knows what the market is.

 

[Spellwriter]

She might well have been living with the kind of roommate where you literally share a room. I agree that otherwise, that figure for SoHo is impossible. Heck, it was impossible when *I* lived there back in the early 2000s!

Right?! I paid 1500/m for a 2br in Harlem in 2003!

 

[EmilyM111]

Rather than that the Instagrammers have well-paying jobs, I suspect some just come from affluent families. Or, some return the merchandise after their shoots, else sell them like you say. My brother lives an hour away from San Fran; he has a masters from the #1 engineering school in the US, and started out earning right above six figures. Ten years since, and his salary doesn't quite match 200K. Not to mention lots of programmers from Stanford are all stressed/nervous about holding their jobs; earning 200K with a high school diploma is rather an extreme scenario that's far from the norm.

I work with programmers and credit risk analysts (maths/physics/stats graduates) and while they earn good salaries (maybe not 200k as we're in the UK), they have completely different mindsets and invest into housing or travel a lot. None of my colleagues including the CEO (multimillionaire) and CMO have interest in designer bags. I'd expect this to be a bit different if I worked in a different industry. I follow some (apparently very wealthy) instagrammers from my country of origin who owns multiple designer bags including Hermes and they didn't even stand near IT/programming/data science etc. I assume it's parents wealth or super fakes (though unlikely as you can also see them on luxury hols all the time)

 

[lovingmybags]

I work with programmers and credit risk analysts (maths/physics/stats graduates) and while they earn good salaries (maybe not 200k as we're in the UK), they have completely different mindsets and invest into housing or travel a lot. None of my colleagues including the CEO (multimillionaire) and CMO have interest in designer bags. I'd expect this to be a bit different if I worked in a different industry. I follow some (apparently very wealthy) instagrammers from my country of origin who owns multiple designer bags including Hermes and they didn't even stand near IT/programming/data science etc. I assume it's parents wealth or super fakes (though unlikely as you can also see them on luxury hols all the time)

Agree; programmers I know either don't give a fig about luxury items, or really don't have the time to build an online presence like the Instagrammers do. My brother worked 10+ years (actually 12 now that I think about it), and still doesn't come that close to 200K in the US. Growing up in a family of software engineers, I would have followed the vocation myself if it's really that stress-free and cushy lol

 

[Spellwriter]

Agree; programmers I know either don't give a fig about luxury items, or really don't have the time to build an online presence like the Instagrammers do. My brother worked 10+ years (actually 12 now that I think about it), and still doesn't come that close to 200K in the US. Growing up in a family of software engineers, I would have followed the vocation myself if it's really that stress-free and cushy lol

I’m in IT (software designer) and I definitely do not think any of my coworkers would know goyard from givenchy . But my husband is a film and tv producer, so designer bags are quite common in our friend circle. Basically my job provides me with the shopping budget to fit in with the crowd - though I don’t need to work financially, I really enjoy my purchases more when I feel like I’ve worked for them. It’s totally a guilt thing for me; I don’t think there’s anything wrong with spending a spouse’s money if that’s the arrangement, but for me personally I felt a lot better paying for my own luxury items vs using the joint account. (Although now and then we do get to write off stuff we buy for parties/premieres as a business expense, which isn’t too shabby at all!)


The one semi negative is that my husband prefers to not know how much things cost (his request, not mine) so when we go out and someone comments on something I am wearing he tries not to hear it, but over the years he’s gotten to where he recognizes certain labels and I know he wishes he didn’t!

 

[EmilyM111]

Agree; programmers I know either don't give a fig about luxury items, or really don't have the time to build an online presence like the Instagrammers do. My brother worked 10+ years (actually 12 now that I think about it), and still doesn't come that close to 200K in the US. Growing up in a family of software engineers, I would have followed the vocation myself if it's really that stress-free and cushy lol

Having said all of that though - I’m a strategy manager/former data science and bag gourmet. Well still not IT but work with software engineers a lot

 

[EmilyM111]

I’m in IT (software designer) and I definitely do not think any of my coworkers would know goyard from givenchy . But my husband is a film and tv producer, so designer bags are quite common in our friend circle. Basically my job provides me with the shopping budget to fit in with the crowd - though I don’t need to work financially, I really enjoy my purchases more when I feel like I’ve worked for them. It’s totally a guilt thing for me; I don’t think there’s anything wrong with spending a spouse’s money if that’s the arrangement, but for me personally I felt a lot better paying for my own luxury items vs using the joint account. (Although now and then we do get to write off stuff we buy for parties/premieres as a business expense, which isn’t too shabby at all!)


The one semi negative is that my husband prefers to not know how much things cost (his request, not mine) so when we go out and someone comments on something I am wearing he tries not to hear it, but over the years he’s gotten to where he recognizes certain labels and I know he wishes he didn’t!

Same here. Hubz would pay for a chanel bag without saying anything but I know he would feel taken advantage of somehow (I only mean our marriage not other couples). He’s so nice and kind and old fashioned and so it feels right to pay for luxury from my money.
But he also started recognising brands and sometimes is poking me - oh look LV, oh Chanel similarly he wishes he didn’t know (price wise as well)