Spend threshold for B/K/C

[smoothsailor]

That is actually not the case, at least in my own experience. Nov-December are the peak holiday sales seasons. Last year, when I did my holiday shopping around thanksgiving, my store was well stocked with shoes, scarfs and home goods. And though competitive, I managed to get a quota bag.

Good for u.

I didn’t encounter well stocked store last year end. And for the Hawaii store, they already started to shorten store opening hours since June when they don’t have stock to sell.

 

[carlinha]

My SA told me something similar, but more on the store level than an individual customer level. He said that corporate has a guideline that only a % of revenue from the store can come from leather. That’s why sometimes they have bags in the back, but they are not allowed to sell them because that would bring them over the leather threshold.

This has already happened to several stores this year, where the store reached their leather max quota for the month, hence SAs were not allowed to sell any leather goods for the rest of the month until it resets the following 1st of the month. This happened at Madison (for one) I think in January and again this past March.

 

[supermommy101]

This has already happened to several stores this year, where they reached their leather max quota for the month, hence SAs were not allowed to sell any leather goods for the rest of the month until it resets the following 1st of the month. This happened at Madison (for one) I think in January and again this past March.

OMG. Quota for a month…I thought it was quota for a year/quarter

 

[Fixxi]

It makes me wonder... Does this mean a) bags have a lower profit margin, b) regardless of the profit margin for the bag, H wants to viewed as a leader of luxury goods in all things they sell (rather than just leather), or c) both?

 

[carlinha]

OMG. Quota for a month…I thought it was quota for a year/quarter

Sorry let me clarify, the store monthly leather quota, not the individual. I have several friends who had bag offers towards the end of the month but they were not allowed to purchase them until the 1st of the following month.

 

[supermommy101]

Sorry let me clarify, the store monthly leather quota, not the individual. I have several friends who had bag offers towards the end of the month but they were not allowed to purchase them until the 1st of the following month.

got it

 

[smoothsailor]

It makes me wonder... Does this mean a) bags have a lower profit margin, b) regardless of the profit margin for the bag, H wants to viewed as a leader of luxury goods in all things they sell (rather than just leather), or c) both?

I think they just wanna make people buy their non leather stuff to be eligible for leather stuff.

If leather goods are available in abundance, then where is the exclusivity.

 

[Tasha1]

I have several friends who had bag offers towards the end of the month but they were not allowed to purchase them until the 1st of the following month.

I was friendly asked to postpone my payment and do it next month.

 

[Bdbunny]

This has already happened to several stores this year, where they reached their leather max quota for the month, hence SAs were not allowed to sell any leather goods for the rest of the month until it resets the following 1st of the month. This happened at Madison (for one) I think in January and again this past March.

Yes this happened in December at one of the stores I shop at as well. My SA offered me a non quota bag in January and told me it actually came In December but he wasn’t allowed to sell it to me until January.

Agree with @smoothsailor. They have something that everyone wants (B/K)…what an ingenious way to get everyone who wants it to pay $5000 for a blanket or $20,000 for a bracelet… the “game” is how their stock has doubled in the last 52 weeks!!

If you could just walk in the store and buy a Birkin for $10,000, how many people would still go and spend $8000 on a coat? Or $4500 for a “trash can”?? (Like I did lol!)

 

[1CC]

Interesting. It makes me wonder if leather is a loss leader for Hermes.

IMO H is using leather to manipulate sales on other categories to further overall sales growth

 

[carlinha]

IMO H is using leather to manipulate sales on other categories to further overall sales growth

Exactly this I think

 

[1CC]

I remember reading a post about 2021, the year US business and tourism started to be "back to normal" from COVID. The post says that by the end of September (3rd quarter), both stores in Hawaii reached their annual sales goal. So they started limiting sales (including bag sales) in October until end of that year--their top clients could of course shop "as usual", but this practice mostly affected other clients

Same at my store, they made their yearly target by Q3 and my SA said if I’m in no rush to spend, wait until Jan.

 

[1CC]

I was friendly asked to postpone my payment and do it next month.

This sales tactic is used my many businesses. Not the same but ultimately is a numbers game. Last time we got a car, it was the first week of the month. The dealer mgr dated the sales date to the previous month, likely to hit sales numbers

 

[1CC]

A final note, the whole leather inventory control due to monthly %, blown target numbers, etc, likely explains bags with stamps from years past

 

[carlinha]

A final note, the whole leather inventory control due to monthly %, blown target numbers, etc, likely explains bags with stamps from years past

This makes total sense