Markup on Hermes items?
- Thread starter LeeMiller
- Start date
It is exactly for these reasons why I fell in love with Hermes. Before, I just set my sights on LV, Prada and Gucci, since they are more affordable - then came this book that was referenced at the start of this thread. It is an interesting book and may open one's eyes to the products that we are buying.
One of the things that disgusted me big time is the fact that some of the luxury brands that we buy into are not made in Italy but have the "Made in Italy" tag inside. That for me is just unethical, to mislead your clientele like that. Although one can never be sure if these products are indeed outsourced to China, it got me to thinking that if I'm going to spend money, might as well spend it on Hermes. Why spend 3K on something that's going to look ridiculous after one season when you can spend 7K on a Birkin. That's like a bag for the price of "it" bags for 2 seasons, and it's going to look chic and going to last FOREVER!
For those interested on Dana Thomas' thoughts on the luxury industry, listen to the show with this link:
http://www.onpointradio.org/shows/2007/08/20070827_b_main.asp
One of the things that disgusted me big time is the fact that some of the luxury brands that we buy into are not made in Italy but have the "Made in Italy" tag inside. That for me is just unethical, to mislead your clientele like that. Although one can never be sure if these products are indeed outsourced to China, it got me to thinking that if I'm going to spend money, might as well spend it on Hermes. Why spend 3K on something that's going to look ridiculous after one season when you can spend 7K on a Birkin. That's like a bag for the price of "it" bags for 2 seasons, and it's going to look chic and going to last FOREVER!
For those interested on Dana Thomas' thoughts on the luxury industry, listen to the show with this link:
http://www.onpointradio.org/shows/2007/08/20070827_b_main.asp
There is a book, if you ever get to look at it, that shows how much the store paid wholesale for each item.
It is such an interesting book. I haven't gotten very far in it yet though.
I'm a very visual and tacile person, I studied art history & some fine arts and have always loved fashion. That being said I'm now an attorney who can afford to splurge a bit on the things I've coveted.
For Hermes items I have a CDC cuff, a medor watch, and some china all of which I enjoy. At first I somewhat regreted my minimal use of the cuff, but the design has been around for decades and stumbling across the CDC lovers thread on this forum was inspirational.
Then again I also don't regret some of my other trendier designer purchases, such as a Prada tote that I love and several other designer bags, a classic leather Gucci horsebit, etc. I'm not an IT bag person, then again I'm not concerned if a design eventually bores me or looks 'vintage, ' I'm fine with a few seasons use.
Having bought designer goods now I'm sort of shifting and mixing things up, for instance I bought a ridiculously gorgeous jacket at H&M last night, if I have it hemmed up about an inch by a tailor it will be perfection. The materials and the craftsmanship were on par with what I see at Saks for the most part, in my opinion.
I'm not disagreeing that Hermes employees skilled craftspeople, I've just begun to start wondering how much am I really paying as a markup? Across the board.
I'm also recently engaged and we're starting to look at furniture. When we look I find that antiques aren't that much more then contemporary pieces, I've seen Art Deco pieces that make me swoon for maybe 2x or 3x the amount I'd spend anyway at a regular retailer such as Restoration Hardware. (Some pieces are much, much more of course.) I'm part Persian and I'm lucky enough to have some handmade rugs and silver, along with metal-worked objects. I'm sure I'd be embarrassed to know what my family paid compared for those handmade objects d'art.
These are just my randomn thoughts on this subject, as someone who has bought Hermes and may splurge in a bag at some point.
Good to know about the leather goods!
Well there is a large markup on the $10 tee but then again considering what Prada might charge for a nylon top that may or may not have actually been produced entirely in Italy and the amount of time each item will last, I'd rather have the H&M tee. TSE or Loro Piana cashmere, now that's a different story in my humble opinion.
Another hidden cost of handmade goods is the fact that it is very hard on the craftspeople and their bodies. I work in workers compensation insurance and we insure a shoe company that won't upgrade their machinery and they pay among the highest rates of insurance for their workers because it is so taxing on them. They sustain a lot of injuries making those handmade shoes.
I have no idea how things work like that in Europe, but it is something worth factoring in. I hope that Hermes is not placing an unreasonable quota on their workers to produce our beautiful bags. We certainly do wait for them!!
I have no idea how things work like that in Europe, but it is something worth factoring in. I hope that Hermes is not placing an unreasonable quota on their workers to produce our beautiful bags. We certainly do wait for them!!
Glad you liked the link. I know what you mean. Even though Vuitton is supposed to mark up 13X what their products cost to produce, I'm still eyeing a Viktor. It's beautiful, and can go from work to play.
She did say that she's not saying that Vuitton products aren't good. They are good products, good quality, but it's not a dream product unlike Hermes. (I guess the same doesn't go for Prada, she HATES that brand (with the pants falling apart on first wearing because of cheap thread)!
)Another hidden cost of handmade goods is the fact that it is very hard on the craftspeople and their bodies. I work in workers compensation insurance and we insure a shoe company that won't upgrade their machinery and they pay among the highest rates of insurance for their workers because it is so taxing on them. They sustain a lot of injuries making those handmade shoes.
I have no idea how things work like that in Europe, but it is something worth factoring in. I hope that Hermes is not placing an unreasonable quota on their workers to produce our beautiful bags. We certainly do wait for them!!
This is just sad. You'd think that they'd be properly taken cared for so as to avoid exhaustion and injuries. It's like they are sacrificing for their art, and this should not even happen in this day and age.
Anyway, as for the "unreasonable quota" on Hermes workers, i think they have it relatively easy. According to French Labor laws, overtime is taxed heavily and they only have 35 working hours in a week. That's how a socialist government works. They can do overtime, and the company has to pay a tax for this, but this overtime has to be compensated by vacation time of the same length, so it's kinda useless, unless you are rushing something.
To give you an idea as per output, each atelier only produces 5 birkin bags a week, and there are 12 ateliers in France. I don't have figures for other bags, but they don't seem to be in a rush.
Anyway, another link. A must for every Hermes fan (the Vanity Fair article):
http://www.vanityfair.com/culture/features/2007/09/hermes200709
Congrats on getting engaged, Lee! I see you're looking for furniture at the moment...may I suggest you DON'T look at Hermes Pippa range? It's TOO gorgeous, but TOO expensive....ahhhh.....I adore it!!!!!!!! It's all handmade in Italy by two men in a little room.....these guys are just experts, and everything is done by them.....*sigh*....
If this is the range you're referring to:
No matter how many santa-like men who were involved in making it I would not get it. Unless I was up for a deep africa safari maybe.
Anyways, seems like the design was a family related project, maybe they'd be in more luck if JPG did the furniture design also.
from http://www.iht.com/articles/2003/03/07/rhermes_ed3_.php
credits @ lady.tom.com
No matter how many santa-like men who were involved in making it I would not get it. Unless I was up for a deep africa safari maybe.
Anyways, seems like the design was a family related project, maybe they'd be in more luck if JPG did the furniture design also.
from http://www.iht.com/articles/2003/03/07/rhermes_ed3_.php
Lee, it's not that steep when you think of the process involved. It depends on how you feel about paying for time and workmanship.
For instance, they farm the animals (Hermes owns a lot of the farms that they get their hides from, or has exclusivity with other ones), have people employed to check and reject hides/skins (up to 90% are rejected, I'm told) - these people are worth their weight in gold - imagine stitching an entire bag together only to find a flaw? Then the treat (press or roll) and dye the hides (this is expensive, time-consuming, and requires the skins to go through many "hands", skins go to an expert cutter, on to a craftsperson, hours of stitching by hand...onto the pearler for the hardware.....QC checks the entire way...polished...packed in a box that is upholstered in paper pillows that soemone is specially employed to make...
I mean....there is so much work and care and love involved, and just looking at an Hermes piece, you can understand why (I speak for myself!), whereas I stare at other Houses pieces throught the windows, and can't justify it.
Lee, if you love the bags, you can justify the price, because you can appreciate everything that has gone into it, and all that has gone before! I bet you'll be justifying in no time!!
Ahh, just reading this makes me want to buy something H. 