Why do people buy pre-loved Chanel at such high prices?

star_dust

Chanel in my blood
O.G.
Apr 28, 2008
480
259
Europe
It's crazy how much preloved prices have gone up this year, though not surprising I guess given the retail price hikes. I bought a preloved vintage Chanel Diana bag late last year for around $1500 and now they're going for over $3k on ebay/fashionphile/etc...in less than a year!!
I got mine on ebay for 800 EUR 3 years ago! Feel so lucky!
 
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pinkrose398

MaddyLoves.com
O.G.
Feb 7, 2009
1,277
1,485
Vancouver, BC
www.maddyloves.com
I recently visited a Chanel Boutique, and there was a line of people to get in (social distancing protocol). It really made me wonder how many are there to buy a bag for themselves vs how many are one of those individual resellers just trying to flip for a profit. I know I've seen at least one Ebay seller flipping a brand new bag from this specific boutique (they stated so in the description). So sad. People like me then can't get what I want. The bag I wanted was sold out everywhere. They only get like 2 per boutique of seasonal items. The professional resellers are hoarding them all up to flip for a profit and leaving us with nothing! I will never buy from a reseller.
@classybags4ever, ITA. I dont buy from resellers who flip for profit.
Same with LV. There are a few popular items that no one is ever able to get in store because the resellers buy just to resell. I see SO many posts on Facebook from people selling the mini pochette or key pouch with the caption that they bought it just to sell. Some of them try to convince themselves that they're trying to do a charitable thing by saying something like "I know this piece is hard to get so I bought it to give you the opportunity to own one!" Such a load of BS.

I don't buy from resellers for a profit either. I'd rather not have the item than support their shady business.
 
Apr 13, 2015
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Same with LV. There are a few popular items that no one is ever able to get in store because the resellers buy just to resell. I see SO many posts on Facebook from people selling the mini pochette or key pouch with the caption that they bought it just to sell. Some of them try to convince themselves that they're trying to do a charitable thing by saying something like "I know this piece is hard to get so I bought it to give you the opportunity to own one!" Such a load of BS.

I don't buy from resellers for a profit either. I'd rather not have the item than support their shady business.
I know right? How do so many brand new with tag items get on reseller sites like Ebay, Fashionphile, etc? Clearly, there is a business out there of people buying to sell. I know the bag I'm looking for will show up on a reseller site soon. I wish we would all boycott them. Then, maybe I'd finally be able to buy what I like from the boutique before it sells out.
 

Gabs007

Member
Feb 5, 2018
1,969
2,438
I buy mostly from boutiques, but have also paid premium prices (e.g. close to retail) for pre-loved pieces. I only do this for very specific pieces that have been on my wishlist for years and cannot be 'substituted'. For example, a vintage Diana in caviar, or a mini in midnight blue caviar (a specific blue that is so deep that it can pass off as black in certain lighting).

For more classic pieces (e.g. black classic flaps), I will just buy from the boutiques so that I can be sure that it is authentic. If the price for a pre-loved classic flap is good, there probably is a catch somewhere...
As somebody who has spent a small fortune on bags they fell in love with and then fell out of love, that might be the catch (not saying that there aren't people who sell fakes and try to lure others in with dumping prices) but when I fall out of love, it is terminal, I know that then the bag would just sit around, gather dust and serve as a reminder of how much I spent, so I try to recover part of that money quickly, without panicking that the cat or the dog might wreck havoc on it, and I want it gone, no longer a reminder of another mistake. I won't sell for silly low prices, but a lot less than I paid for. Luxury bags are like cars, the moment you take them out of the shop, poof, half of the value gone
 

peachypink

Member
Mar 12, 2013
16
7
I understand your point about how it can seem irrational, but like others above said it's a personal thing and many that do pay over RRP are looking for limited edition bags or color/combos that are very rare. And of course some just love the feel/look of vintage Chanel :smile: Personally I prefer the vintage Chanel bags over the new season ones for multiple reasons other than price :smile:
 
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Gabs007

Member
Feb 5, 2018
1,969
2,438
I understand your point about how it can seem irrational, but like others above said it's a personal thing and many that do pay over RRP are looking for limited edition bags or color/combos that are very rare. And of course some just love the feel/look of vintage Chanel :smile: Personally I prefer the vintage Chanel bags over the new season ones for multiple reasons other than price :smile:
I have paid over RRP for the odd rare spybag, because I really do love that bag, I can totally see how somebody who wants the caviar flap will pay over, as it isn't made anymore and while it is not a bag for me, it is beautiful
 

ilysukixD

Member
Jan 2, 2014
1,561
514
NYC
Honestly all my Chanel are preloved and I got to say this year the resell price for preloved Chanel bags are insane. Just last year I purchased mini patent flap in excellent condition for $1500 and it currently resell value is $3000, almost doubled. I haven’t seen a mini less than $2.7 lately and last year I could easily find one around 1,8k to 2k. Since the price increase twice every year, the resell price will also increase. I will never purchase a preloved bag if it’s more than 2/3 of the retail price. I’m so glad I purchase my preloved medium flap for $3.8k and now it’s over $7k.
 
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Jun 23, 2019
37
155
Sydney Australia
@captaincustard, I give away or consign bags, but this forum is filled with TPFers experienced with direct selling their bags. If you wish to sell your bags yourself, you might want to check out the authenticate this thread in the relevant sub forum for the types of pictures needed to authenticate and how a listing is worded. https://forum.purseblog.com/threads/authenticate-this-chanel.937412/page-1884
i believe that some successful individual sellers also obtain an authentication certificate from a paid service. TPFers recommended etinceler https://forum.purseblog.com/threads/is-etinceler-reputable.1028222/ In the US, fashionphile, Ann’s fabulous finds and Yoogis closet are popular consignors. Japanese resellers were also considered relatively safe bc of strict laws against counterfeits.
good luck! Pls keep us posted!

FWIW here are the two bags. I know they are both genuine - I bought them from the Chanel shop in Sydney in 2001 or maybe 2002. The things we do to impress a girl.

After a brief conversation it seems I can’t sell them anyway ☹

1EDFA585-7FD8-468C-BCAC-65513555C026.jpeg
 
Jun 23, 2019
37
155
Sydney Australia
My thoughts re “flipping”:

We are talking about Veblen goods, like Chanel bags, Monte Blanc pens and Rolex watches.

They attract high prices because of its exclusive nature and appeal as a status symbol. To be a Veblen good the supply curve has to be exceeded by the demand curve DURING PRODUCTION. (Post production distortion occurs because supply is via the used market. This distortion results in high prices for mundane 1960s saloon cars that have managed to survive rust attacks and accidents.)

Rolex started restricting production around 2016, forcing the demand curve above the supply curve. More people want the item than there are items in existence. Buyers are now forced to pay a premium. This rarity and increased price has served to further reinforce the Veblen goods status.

Normally the substitution curve kicks in when demand exceeds supply. No Fords in the dealers, you buy a Toyota.

But with Veblen goods you are limited in substitution. The alternatives are usually more expensive - in the case of Rolex watches you are looking at alternatives like a Patek Phillipe or Audemars Piguet. Watches that are AUD50-150,000.

So price elasticity on the substitution curve stretches up to that 50K point. In effect some people would pay up to $50k for that Rolex. Above that price they will say forget it and buy a PP or an AP.

Where does this leave us? If you can get to the top of the Rolex Authorised Dealers list and get a new Submariner watch, paying the retail price of around AUD10,300, you can walk over the road to a second hand dealer and sell it for +/- AUD20,000. An instant almost doubling of your investment.

How are Rolex attempting to preventing flippers? They make it hard to get on the list (“Do you already own a Rolex Sir, have you ever purchased one from us?”), and when you take delivery they insist on taking off the wrapping, removing any stickers, and if possible they keep the warranty card for at least a year.
 

lalame

Member
Apr 30, 2011
1,051
5,567
Bay Area, SF
I love buying pre-loved bags when you can get them for a great price, like a seller who just “needs” to make room for new bags ASAP. It’s crazy to me how low some are willing to sell very, very expensive items just because they’re tired of them.

When the discount isn’t so great, I can only imagine it’s because the item is discontinued, rare, sold out, etc. or there isn’t an easy way to buy it from the boutique. For example I really hate the idea of buying Goyard when you don’t have one local to you so you can try it on and just get it when you want it. I could imagine myself buying preowned in that case if I was in a consignment store and could buy immediately.
 
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Dec 17, 2019
42
15
I prefer vintage Chanel bags with 24k gold hardware over today's newer bags. The quality of lambskin and caviar in my opinion is better than today's bag. I prefer the shape of the 24k gilded gold hardware over the newer CC logos. It is harder to find great condition vintage Chanel every year. I have some new Chanel bags (2016 and up) but I prefer the vintage bags way more.
It takes me a long time to find a vintage bag in excellent condition in the price I am willing to pay for so I can only add a small number to my collection every year.