I think a lot of people will ration what they will buy in future e.g. one scarf per season instead of two or three. Ultimately, if overall sales start falling and their profit margins start to drop, they may need to re-evaluate their prices [or one can hope at least!!]
Price Increase Update
- Thread starter guccigal07
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^^ I think in regards to the state of the financial market at the moment, H is really taking the **** with all these price hikes.
In all honesty H is going to be well out of my budget soon.
In all honesty H is going to be well out of my budget soon.
I think there will be more people who find that they need to liquidate some of their luxury goods which will help increase the "gently loved" market and give the market more choices.
And I wonder if Hermes is deliberately trying to reduce sales with these increases??
And I wonder if Hermes is deliberately trying to reduce sales with these increases??
OF would there be a benifit to decreased sales?
I hate the idea of 2 price increase! But I still will be thinking of cost per wear like with everything I purchase. If you get the use out of it, does the price make a difference in the long run? As H will continue to raise its prices...
The sad thing is, now I'm feeling like I should try to get one last major thing in before August! And I did the same thing in January and got 2 bags, a scarf, a necklace, a bracelet...sigh....
You know, that's an interesting thought. The fact that there even exists a profitable Hermes reseller business selling marked-up bags shows that people are willing to pay higher prices for Hermes products. And given that a lot of bag sales ARE to resellers, maybe Hermes is trying to reclaim that business or compete away the resellers?
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In that market segment of hermes reduced sales can be beneficial only if you increase prices enough along the way. It can make the brand more desirable to the ones left buying.
The enormeous amount of price increases makes sense to me with H trying to avoid turning into the higher end vuitton with all of these world wide store expansions...
In that market segment of hermes reduced sales can be beneficial only if you increase prices enough along the way. It can make the brand more desirable to the ones left buying.
The enormeous amount of price increases makes sense to me with H trying to avoid turning into the higher end vuitton with all of these world wide store expansions...
VAT even i France is higher than most states in the US, it's not calculated like that. I think Vat more than anything is taken into consideration when determining the price, not simply added onto the price for H or there can be different imnport taxes on silk vs other items or different trading agreements etc etc. VAT is def. not the end of it.
OF would there be a benifit to decreased sales?
I hate the idea of 2 price increase! But I still will be thinking of cost per wear like with everything I purchase. If you get the use out of it, does the price make a difference in the long run? As H will continue to raise its prices...
I would think it helps their competition who is below H pricing. It's a heck of a lot easier to afford BV and Chanel than H. But that's illogical since they don't own other brands. (Is it possible they have relationships that aren't readily known?) Maybe it relieves pressure on the stores who have less inventory than the demand for it? But that doesn't make sense since they are opening 4 new boutiques in the next year in the US West Coast. That seems to me to be a response to demand.
Does the higher pricing make the brand even more coveted, more desireable?
I don't know.
Just throwing it out there. Staring down a 20% increase in one year certainly bothers me. 
Maybe they figure they'll pick up customers in the emerging markets while they lose them in established areas. Those stores suffer, but all is even with corporate in the end. It certainly eliminates the need for Hermes to dramatically expand their manufacturing base (or outsource) as they expand their now global brand.
At the very least they'll be more "exclusive" than ever. Only those willing to pay those prices--regardless of their income--will bother going into the store.
At the very least they'll be more "exclusive" than ever. Only those willing to pay those prices--regardless of their income--will bother going into the store.
I believe that most resellers get the majority of their inventory from people who have bought bags they don't use, for one reason or another, or who have used them and want to move on to something newer. I am sure that some do buy brand new from Hermes boutiques, but ....
The price increases are definitely hard, though this means that the US prices are going to be in line with those in other countries, from the sounds of it, not more than those. Still, they are definitely very high and several increases in a small period of time is no fun for anyone. I would imagine that the rising cost of fuel also plays a significant part in a global business.
I have bought from the boutique and from resellers and am happy to continue giving my dollars to good resellers if the price and the merchandise is right.
The price increases are definitely hard, though this means that the US prices are going to be in line with those in other countries, from the sounds of it, not more than those. Still, they are definitely very high and several increases in a small period of time is no fun for anyone. I would imagine that the rising cost of fuel also plays a significant part in a global business.
I have bought from the boutique and from resellers and am happy to continue giving my dollars to good resellers if the price and the merchandise is right.
Yeaaj..I don't think this will deter people from buying..LV raises their prices twice a year and their customer list is always expanding..I right now cannot afford an hermes bag whether it's 6000 or 10000..But for the people who can what's another $4000..
I've no doubt that the VAT in any given country is taken into consideration (for final price determination), but my friends in Europe are definitely paying more than I am for the same item--even after my sales tax is added on. I feel for them because we Americans have no idea how expensive it is to live in Europe even when the Euro isn't costly.
Liberté;6593163 said:
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I thought birkin and many other bags were still cheaper in Europe? When it comes to non-H items like clothes and food I agree, it's ridiculously cheap in the US for a first world country in some areas.
I think you got some of it right here. Allthough I don't think the already excisting store will have to suffer that much as they are usually in heavy traffic tourist and economic areas.
I thought birkin and many other bags were still cheaper in Europe? When it comes to non-H items like clothes and food I agree, it's ridiculously cheap in the US for a first world country in some areas.
I think you got some of it right here. Allthough I don't think the already excisting store will have to suffer that much as they are usually in heavy traffic tourist and economic areas.