Why so many Birkins available on the resale market?

[maxroxxherhandbags]

Ok, I get your point. There are 106 Birkins for sale at TRR and 14 of those are 2020s. It does seem like more than I remember when I was looking 18 months ago. Unscientifically, my gut says maybe 30-35 more. What seems like noticeably more is current year models. I don't have any idea why there are more total and more current year. Has to be either more sellers or fewer buyers. But why, I have no clue.

My feeling is that so many people just 'want' a Birkin without actually thinking about size/colour/leather even weight of the bag that if they get an offer they take it even if the bag doesn't capture their heart.
I think they also do it in the knowledge that if they dont wear it or barely reach for it they can always sell on the secondary market.
As someone who can only afford to buy pre-loved bags I am so happy that people do let go of the older bags when they no longer work for them HOWEVER I am dead against the resellers that sell brand new box fresh bags.
Its however the law of supply and demand.
I am happy to own 2nd hand goods but I know other people that would be happy to pay a premium and buy new from a reseller.
Even if I had the income to purchase a new Hermes bag (here I'm talking the £7.000 upwards kind of cost) I'd rather play the waiting game with the wishlist system but sadly many people want it and want it NOW!

 

[Liberté]

I think a just as interesting question is "when are prices going to drop in the resale market?" Birkins aren't perishable goods and can be stored for years and years, even if actual demand fluctuates. So an increase in the number of birkins could imply that it's less popular, but there could also be other reasons. My guess is that less demand would make a dent in auction prices first.

This is the evolution of birkin prices according to the collectorsquare.com birkin analysis report (which you can order for free at the collector square site, so I'm presuming it's ok to repost it here, please remove it if it's against forum rules.)

 

[glendaPLEASE]

My feeling is that so many people just 'want' a Birkin without actually thinking about size/colour/leather even weight of the bag that if they get an offer they take it even if the bag doesn't capture their heart.
I think they also do it in the knowledge that if they dont wear it or barely reach for it they can always sell on the secondary market.
As someone who can only afford to buy pre-loved bags I am so happy that people do let go of the older bags when they no longer work for them HOWEVER I am dead against the resellers that sell brand new box fresh bags.
Its however the law of supply and demand.
I am happy to own 2nd hand goods but I know other people that would be happy to pay a premium and buy new from a reseller.
Even if I had the income to purchase a new Hermes bag (here I'm talking the £7.000 upwards kind of cost) I'd rather play the waiting game with the wishlist system but sadly many people want it and want it NOW!

I agree with the first point made. I think the reason there are a lot of H bags on resale websites is because of Hermes' unique regulations for buying a bag. You need to spend spend spend there in order to even be offered a bag, and the more bag offers you accept, I'll bet, increases your chance of actually getting a combo you love. The problem is that you can't try on beforehand, so you have to kind of hope that whatever you get offered is the right combo for you; which I'm sure happens rarely, so all those beautiful bags that clients buy that aren't 100% perfect for them probably end up on the resale market in order to fund that client's next purchase towards their actual dream bag. Also, I feel like a lot of people, even Hermes lovers, want a birkin, and buy one, only to find that that bag style doesn't work for them (it seems like a difficult bag to use), so they resell and start the process over again. Just my two cents.

 

[Vln]

I'm not sure if this is the case. I've heard from posts on this forum that Hermes knows it sells to resellers and they are secretly fine with it, even though outwardly they may say they don't want their bags to get into resellers. It's not possible to know exactly what they think, but they clearly haven't seemed to do enough tp stop resellers. They are literally all over the internet. Brand new bags from "personal shoppers," they even say "fresh from boutique" or something like that. It's really frustrating as a genuine customer would would never sell my Hermes bags ever, that these resellers are taking up stock that could go to us. This is why I will never buy a handbag from a reseller site or pre-loved.

I agree. I would never buy pre-loved because I cant stand the thought of someone else having worn it already. I also wouldn’t buy a new and unused bag from a Reseller because I think that what they do is wrong: buying up bags that would otherwise be offered to true bag lovers. It’s not like a reseller adds any value to the mix. it reminds me of when I was young and would try to buy concert tickets for rock bands but couldn’t get them because the scalpers had bought up a large chunk of the inventory. I then couldn’t afford to pay the exorbitant scalper price. Resellers are like scalpers.

 

[cravin]

I have received a call from the SM before that they have a bag for the wife but that I had to come and buy it before the boutique closed, If she wanted it. Got to chatting with my SA and she explained the monthly and quarterly numbers that they must report back to corporate so it’s the SM essentially fulfilling their quota for their boutique. All sales count towards that number.

Now I am not a VIP, but if I get these offers, I am sure each boutique has a long list of true VIPs that will buy anything and everything. Said VIP is buffing up their purchase history, the SM is making their quota to corporate. If the VIP doesn’t love a bag, they probably have a direct contact at a reseller to flip the bag over to them at a slight profit and someone that doesn’t have the purchase history at a boutique is able to get their dream B or K. I think the prices resellers charge are insane, but to each their own and if you’re able to spend $10k plus on a bag, then the actual couple thousand more isn’t going to overly sway the decision on their “holy grail”

I think it’s naive to think that Hermes turns a blind eye to the reseller market. They know it’s there and are happy that it thrives. Their general mission is to sell more of their items. If you don’t want to pay the inflated price from a reseller, then you’ll likely go to a boutique and start spending on items that lead to those offers.

I don’t see how folks view this as a black market if you will. It’s just free trade where supply drives demand.

 

[AnnaE]

I have received a call from the SM before that they have a bag for the wife but that I had to come and buy it before the boutique closed, If she wanted it. Got to chatting with my SA and she explained the monthly and quarterly numbers that they must report back to corporate so it’s the SM essentially fulfilling their quota for their boutique. All sales count towards that number.

Now I am not a VIP, but if I get these offers, I am sure each boutique has a long list of true VIPs that will buy anything and everything. Said VIP is buffing up their purchase history, the SM is making their quota to corporate. If the VIP doesn’t love a bag, they probably have a direct contact at a reseller to flip the bag over to them at a slight profit and someone that doesn’t have the purchase history at a boutique is able to get their dream B or K. I think the prices resellers charge are insane, but to each their own and if you’re able to spend $10k plus on a bag, then the actual couple thousand more isn’t going to overly sway the decision on their “holy grail”

I think it’s naive to think that Hermes turns a blind eye to the reseller market. They know it’s there and are happy that it thrives. Their general mission is to sell more of their items. If you don’t want to pay the inflated price from a reseller, then you’ll likely go to a boutique and start spending on items that lead to those offers.

I don’t see how folks view this as a black market if you will. It’s just free trade where supply drives demand.

I am with you on free trade -- it's hard for me to claim it is unethical because it is a matter of supply and demand. Similarly, for the scalper example of concert tickets, it sounds like those tickets were mispriced to begin with. That is extremely frustrating to the buyers, but that is how the market works.

 

[AnnaE]

I think a just as interesting question is "when are prices going to drop in the resale market?" Birkins aren't perishable goods and can be stored for years and years, even if actual demand fluctuates. So an increase in the number of birkins could imply that it's less popular, but there could also be other reasons. My guess is that less demand would make a dent in auction prices first.

This is the evolution of birkin prices according to the collectorsquare.com birkin analysis report (which you can order for free at the collector square site, so I'm presuming it's ok to repost it here, please remove it if it's against forum rules.) View attachment 4935208

Thank you for sharing. The charts lack an overlay of the boutique prices -- the prices have risen over the years. I would want to see the trend in the delta between auction/reseller and boutique prices to truly understand the trends.

 

[Happycantwait]

I agree with the first point made. I think the reason there are a lot of H bags on resale websites is because of Hermes' unique regulations for buying a bag. You need to spend spend spend there in order to even be offered a bag, and the more bag offers you accept, I'll bet, increases your chance of actually getting a combo you love. The problem is that you can't try on beforehand, so you have to kind of hope that whatever you get offered is the right combo for you; which I'm sure happens rarely, so all those beautiful bags that clients buy that aren't 100% perfect for them probably end up on the resale market in order to fund that client's next purchase towards their actual dream bag. Also, I feel like a lot of people, even Hermes lovers, want a birkin, and buy one, only to find that that bag style doesn't work for them (it seems like a difficult bag to use), so they resell and start the process over again. Just my two cents.

100% agree with you. I think many people don’t want to buy the scarves, dishes, belts, etc. that are necessary to be offered a bag. I’m a little different in that the only Hermès item that tugs at my heartstrings is a Birkin. I like the Constance also, but I don’t like big logos. Even if I get a Birkin I know I don’t really like handheld so I’ll probably end up selling it, but I just want one. I want a Birkin but I won’t even consider the new route. I figure by the time I’ve spent enough to be offered a bag that it will probably equal the markup on resale bag and I’ll have a bunch of stuff I don’t want.

 

[Liberté]

Thank you for sharing. The charts lack an overlay of the boutique prices -- the prices have risen over the years. I would want to see the trend in the delta between auction/reseller and boutique prices to truly understand the trends.

I couldn't find a chart for that, but price information over time is actually available in different threads on tpf. A 35 birkin in togo was 5,900 in Paris in 2010 and this year it's €7,750.

You could compare averages, but price in the reseller market is not determined in the same was as in store. Color has a great impact on the final price in the secondary market, but no impact in store. Unless an SA would have you buy more items up front to get a popular color. The most popular color families are blue and pink, but I don't think that's a surprise to anyone on here.

 

[ce_1992]

I am with you on free trade -- it's hard for me to claim it is unethical because it is a matter of supply and demand. Similarly, for the scalper example of concert tickets, it sounds like those tickets were mispriced to begin with. That is extremely frustrating to the buyers, but that is how the market works.

Honestly, if Hermès cared at all about the reseller market and wanted to squash it, they’d just sell a Birkin to everyone who wants one and not make people jump through hoops to get it. Like someone else said, not everyone wants to buy “across the brand” just to get the bag. I personally also think it’s ridiculous, and I go back and forth on whether I’d rather spend on stuff I don’t *really* want, to have the *chance* of being offered A Birkin, not necessarily the one I really want, or just spend the same amount on my exact dream bag from a reseller.

And considering what a jerk (to put it nicely) my assigned SA has been, I have no interest in playing the H “game” right now.

If I could walk into a store, tell the SA that I want a Birkin with XYZ specs, and they delivered it at cost I wouldn’t even dream of buying from a reseller. There are others who feel the same.

I have no problem flipping bags but asking for over twice retail for some is what makes me scratch my head a bit.

 

[Etriers]

I have received a call from the SM before that they have a bag for the wife but that I had to come and buy it before the boutique closed, If she wanted it. Got to chatting with my SA and she explained the monthly and quarterly numbers that they must report back to corporate so it’s the SM essentially fulfilling their quota for their boutique. All sales count towards that number.

Now I am not a VIP, but if I get these offers, I am sure each boutique has a long list of true VIPs that will buy anything and everything. Said VIP is buffing up their purchase history, the SM is making their quota to corporate. If the VIP doesn’t love a bag, they probably have a direct contact at a reseller to flip the bag over to them at a slight profit and someone that doesn’t have the purchase history at a boutique is able to get their dream B or K. I think the prices resellers charge are insane, but to each their own and if you’re able to spend $10k plus on a bag, then the actual couple thousand more isn’t going to overly sway the decision on their “holy grail”

I think it’s naive to think that Hermes turns a blind eye to the reseller market. They know it’s there and are happy that it thrives. Their general mission is to sell more of their items. If you don’t want to pay the inflated price from a reseller, then you’ll likely go to a boutique and start spending on items that lead to those offers.

I don’t see how folks view this as a black market if you will. It’s just free trade where supply drives demand.

I completely agree with you and I really don’t get reseller bashing. Why would H care if people are marking up their bags and reselling them? And why in heavens would there be legislation against it? They aren’t doing anything illegal and I am thrilled that should I ever need or want to sell my boutique-bought H bags to fund new H bags (Or a car. Or a house ) that there‘s a reliable channel for that.

There are some terrific resellers which I’ve used to sell all sorts of designer goods, some even in new or like new condition. So what? Yay! Money for things I no longer want, and resellers make it easy and convenient. I love shopping in the boutique for many reasons and I love my SA. I would think, especially for those who don’t want to buy a bunch of H “stuff they don’t want” or who don’t want to “play games,” that buying a B/K/C, if that’s all one wants, from a reseller in one’s exact specs would be extremely appealing.

 

[Etriers]

Profiteering is when people jack up pricing on essentials (e.g., N95 masks, sanitizing wipes during a pandemic). Re-selling luxury goods at a price the market can bear is very far from that.

Lol! A Birkin could be considered an essential during a crisis.

 

[Etriers]

I’m assuming they are referring to the looting that happened in the USA this summer, specifically the Chicago store’s back room was completely emptied by looters. However, I can not in any way see that accounting for more than a dozen or so quota bags in existence, let alone at big name resellers all at the same current time.

I think people just only need a certain number of handbags (different for each person) and eventually cast off the ones that overwhelm the collection and many of these end up with resellers. Meanwhile the thrill of the new bag offer from the store still tugs at them so they might accept an offer they don’t even want, knowing they can immediately flip it for a few extra bucks. It checks all the boxes; the dopamine hit from receiving the “honor of being offered by the SA”, showing it off on social media, and then flipping it for a small profit.

What will be interesting is when some legitimate person unwittingly buys one of these looted bags from a legitimate reseller and then tries to have the bag serviced at H. Every bag has a unique code and H knows exactly which codes were stolen from the Chicago store.

 

[Notorious Pink]

Oh I see.

So I actually tried to figure out the profit to be made (you know, in case I want to flip the Kelly sitting under my Christmas tree )). Let's say the resale price is $20k. The Kelly (28 in Epsom) was around $12k with tax I think (my husband paid since it was a gift). When I google TRR's consignment policy, I can't find the actual percentages sellers get, but it says 'keep up to 70%,' so let's go with 70%.

So we have:

1. The bag sells at $20k
2. The seller keeps 70% = $14k
3. Profit = $14k - $12k = $2k.

Plus, the seller needs to pay tax on that $2k come tax season. I am not sure how that is taxed, but let's say at the regular income tax rate, which for people in the higher tax bracket can be, say, 40% all-in (probably more). That leaves our hypothetical seller with $1,200. Hardly a major profit, is it? Of course, if that same seller goes through other channels, that profits could be higher.

This makes me think that enjoying the bag offer, getting it, and then realizing one doesn't need more bags, especially during the pandemic, and then selling it is probably a likely explanation of this phenomenon.

I am so surprised with your calculation.
From my perspective (in Europe), a Birkin 25, which costs in "standard" version (depending on leather of course) around 7.000,00 EUR in the shop, is currently being sold on one of the biggest reseller sites (VC in this case) for 15-20.000,00 EUR. And there are a lot of the 25 Birkins offered at the moment, all in this price range! VC is taking approximately 1.500,00 EUR commission for this sale (this can easily be verified on their site). This leaves reseller with many thousands of EUROS. I guess this explains why bags are being bought in the shop and immediately offered on the resale market, without being used or tried out.

The actual sold prices are much lower.

I absolutely agree with @acrowcounted - you will see lots of these bags for these prices, but very few actually sell for anywhere near that much. Thats why on some sites you will see these bags linger for quite a while. If you want a better idea of actual resale prices, Ann's Fabulous Finds is a more realistic gage as far as resale websites go (and a lot of bags still linger there, too).

 

[Notorious Pink]

I think a just as interesting question is "when are prices going to drop in the resale market?" Birkins aren't perishable goods and can be stored for years and years, even if actual demand fluctuates. So an increase in the number of birkins could imply that it's less popular, but there could also be other reasons. My guess is that less demand would make a dent in auction prices first.

This is the evolution of birkin prices according to the collectorsquare.com birkin analysis report (which you can order for free at the collector square site, so I'm presuming it's ok to repost it here, please remove it if it's against forum rules.) View attachment 4935208

I couldn't find a chart for that, but price information over time is actually available in different threads on tpf. A 35 birkin in togo was 5,900 in Paris in 2010 and this year it's €7,750.

You could compare averages, but price in the reseller market is not determined in the same was as in store. Color has a great impact on the final price in the secondary market, but no impact in store. Unless an SA would have you buy more items up front to get a popular color. The most popular color families are blue and pink, but I don't think that's a surprise to anyone on here. View attachment 4935300

Consistent price increases are one of the reasons why the market isn't necessarily going to drop as much as vary. The prices continually rise. A given bag will have more or less value depending on desirability, which (as I've written) is dependent on a bunch of variables. A bag bought in, say, 2005 will increase in value with each price rise, but it may be just that much harder to find a buyer who wants a that bag at that increased value because it's now 15 years old.

Might help the conversation, might not:

Is Your Hermès Birkin or Kelly Truly an Investment? - PurseBlog

As fans of fashion and lovers of accessories, we plan, plot and splurge on things that give us aesthetic joy and enhance the way we present ourselves to the world. To justify what may be over-the-top…

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