Why are Chanel handbags so expensive?

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  1. They are considered classic but why so expensive?
     
  2. It's the name and all that the brand stands for throughout these years. However, the quality today does not justify the prices :nogood:
     
  3. I agreed!
     
  4. Really good marketing...
     
  5. The name and, at least with older bags, the quality
     
  6. because they know we will pay their crazy prices
     
  7. Well, why are all luxury brands expensive? In some cases (Chanel, Hermes, etc.), the bags are handmade (either fully or partially) and require hours and hours of labor. You can do a search and find threads on this. Even so, we're just talking about leather, some hardware, and whatever else. Ultimately, labor and materials do not account for several thousand dollars... the markup is astronomical (but there are so many things we can say this about).

    Handbags are so expensive because a. consumers are willing to pay a premium for whatever reason (brand loyalty, perceived better quality, lack of substitutes in their mind, etc.) and b. companies take advantage of this fact by charging the most they can and, at some point, raising their prices. If some consumers get turned off by the high price/a price increase, a large company like Chanel knows they'll be okay... for every person who stops buying or who hits their price limit, there will be several more women out there who aren't so price sensitive/will buy no matter what.

    Also, when you buy a handbag, you buy much more than the actual bag... in a sense, you purchase the brands history, the legacy, etc... and why you as a consumer think that has to do with the very savvy marketing of the company! Basically, we are all being manipulated haha. :P You hope that when you buy a Chanel bag, you are investing in a classic, iconic handbag that will last you for many years... I'm willing to be that's the line of reasoning many women use to justify the cost. :smile:
     
  8. #8 Feb 18, 2010
    Last edited: Feb 18, 2010
    Well, why are all luxury brands expensive? In some cases (Chanel, Hermes, etc.), the bags are handmade (either fully or partially) and require hours and hours of labor. You can do a search and find threads on this. Even so, we're just talking about leather, some hardware, and whatever else. Ultimately, labor and materials do not account for several thousand dollars... the markup is astronomical (but there are so many things we can say that about).

    Handbags are so expensive because a. consumers are willing to pay a premium for whatever reason (brand loyalty, perceived better quality, lack of substitutes in their mind, etc.) and b. companies take advantage of this fact by charging the most they can and, at some point, raising their prices. If some consumers get turned off by the high price/a price increase, a large company like Chanel knows they'll be okay... for every person who stops buying or who hits their price limit, there will be several more women out there who aren't so price sensitive/will buy no matter what.

    Also, when you buy a handbag, you buy much more than the actual bag... in a sense, you purchase the brands history, the legacy, etc... and why you as a consumer think that has to do with the very savvy marketing of the company! Basically, we are all being manipulated haha. :P You hope that when you buy a Chanel bag, you are investing in a classic, iconic handbag that will last you for many years... I'm willing to bet that that's the line of reasoning many women use to justify the high cost. :smile:
     
  9. Well if you think about it, some products require exquisite craftsmanship and big fashion house such as Chanel only use the best quality leather, etc. so it will cost more to produce, breed, maintain, buy, etc. Also, the cost of celebrity endorsements, fashion shows, advertisements, rent, wages, tax, etc. are calculated in the markup so they can still profit!
     

  10. This is so true!!! I'm not sure about the "last you for many years", but having one is like making a fashion statement without a lot of effort.
     
  11. If they weren't....nobody would want them. lol
     
  12. That's my favorite thing about them, love buying a piece of fashion history, the original statement, that's special to me I love fashion
     
  13. They spend millions just for the advertisement. Sigh. And I guess it has a place in history
     
  14. I-T-A!

    ...this is the million dollar question. Apparently, the price tags are market-approved (aka set just right) as everyone still seems to be buying them even as the quality decreases. Not to mention that in our celeb-obsessed society, everyone must wear what our eating disordered, drug-addicted fashion icons (poor girls, sincerely) tell us to :nogood: thus grows demand. And if I learned anything from high school econ, when demand goes up corporations can get away with murdering our pocketbooks! Corny joke, I know :shame:.
     
  15. ^Hmm, maybe for others, but every time I see some anorexic celeb druggie carry a Chanel, it makes me want one less.