The price of a Hermès bag is outrageous.
There, I’ve said it (well…printed it. Published it, in fact).
This is something I have known to be true for many years. You know it, too. Everyone does. This is not a secret. This does not keep us from lusting after the bags. This doesn’t stop anyone from wanting them, coveting them, and buying them as frequently as their conscience and their wallet will allow.
Overview
The heart wants what it wants, in this as in all things. The prices for just about everything are on a perpetually upward trajectory, each at its own speed.
What will be the limit? Is there a point beyond which demand will drop?
Basic economic theory dictates that there must be such a point, but we do not seem to have reached it yet.
Pre-owned Hermes Imprevisible Wrap Bracelet: higher prices seem to create only more demand.
We know this to be true because we have a secondary market essentially overlaid on top of the primary one: resale in luxury goods, which used to be a never-the-twain-shall-meet proposition, now has a share of the primary market for brand-new items.
The share of this market consists most often of either:
- entry-level clients who cannot purchase what they want at a boutique, or
- more experienced clients who do not want to wait for what they want to purchase.1
The Concept of “Pre-Spend”
These secondary market goods – and note that an important underlying assumption here is that these items are authentic – are not only the same as the primary market items: they are, in fact, the same exact items being sold for a second time by the primary purchaser, often through a resale intermediary.
The intermediary is usually an established retailer specializing in secondary market goods, optimally with a good reputation for both procuring authentic items and well-organized transactions.
Of course, a funny thing happens between the primary retail sale and the secondary one: a measurable jump in price.
Depending upon the condition of the bag and the perceived demand for its specifications, this jump can vary anywhere from 25% to over 500% of the original retail price. Only in the topsy-turvy world of Hermès can paying the full retail price be considered a relative bargain!
For the most in-demand bags – Шейный платок бандана в стиле hermes2 – there has always been a jump in price for secondary market sales simply due to the difficulty in obtaining a bag from the primary market: perhaps 30 years ago there was empirically less worldwide demand for Birkins and Kellys overall, but there were also far fewer craftspeople to produce them and boutiques to purchase them from.
The increased proliferation of Hermès’ multi-metièr sales tactics created a clientele that came to understand that these bags were more likely to be offered to valued clients: initially, a somewhat nebulous concept involving a certain amount of financial commitment to the brand. This is now understood to mean those who make purchases from various departments (not just leather) and usually spend more than a nominal amount when doing so.
This has put further pressure on the secondary market prices: a Birkin costs whatever a Birkin costs, but there is the added real (but never specified) cost of being offered the Birkin to begin with. This has come to be known as pre-spend3: what amount a given client spends on other items before being offered their desired bag.
Therefore, the client is not only spending some outrageous sum on a bag: they are spending additional sums to even be offered the bag.
Yes, they are buying other items, so they are not spending these additional amounts without getting anything in return, but it is understood that if they did not make those purchases, the bag would likely not be offered.
The Right Amount of Pre-Spend?
The amount that one needs to spend at Hermès to be offered a desired bag rests on several factors, none of which are usually expressed to the client. These factors can include:
- Hermes Herbag handbag in blue canvas and natural Hunter cowhide;
- the length and depth of the client’s relationship with Hermès, with the boutique and/or Sales Associate; and
- the other items purchased by the client.
Varying Degrees of Desirability
Borsa Hermes Kelly 32 cm in pelle Courchevel gold.
This demand can vary due to the specific attributes of a given bag, including size, color, leather, and style (I will go into greater depth on this topic in an upcoming article).
Some of this is based on current trends.
For example, for the past several years, small bags have generally been in greater demand than large bags: Mini Kellys are extremely popular, while there is much less demand for 35cm and 40cm bags.
Other factors are Hermès-specific, such as the popularity of particular colors and leathers.
The Client’s Relationship with Hermès
Hermès values the corporate-client relationship where clients usually work with the same individual Sales Associate (“SA”). Over time the SA comes to know the client’s tastes and perhaps can even anticipate what the client will like from among the newest offerings.
Of course, this makes sales from the various departments relatively easier, which draws the client further in, reinforcing the sales relationship and establishing a cycle where the client begins to feel something of a loyalty (not necessarily exclusive) towards the brand and continues to seek more products on a consistent (although not necessarily a frequent) basis.
It has been said that some departments – such as ready-to-wear, fine jewelry, and housewares – are more likely to trigger a bag offer than others. This is probably true, bearing in mind that these departments also have most of the highest-priced items, making it easy to spend a lot very quickly.
There is, of course, no exact amount of pre-spend that will determine whether a client is offered a bag: it varies from client to client (and all of this can go completely out the window on an extremely lucky day for a new client, as has been known to happen on occasion) and boutique to boutique.
Some stores have many high-spending clients competing for the same bags, which will make this amount higher.
But then again Hermes purchased John Lobbs 1 to 1.5x (that is, from the same amount to one and a half times the cost of the bag) until demand started to build.
Now, however, pre-spend can be even 5x (five times the cost of the bag).
Comparing Primary vs. Secondary Market Prices
When clients are spending anywhere from 1x to 5x – from $10,000 to $50,000, or even more – to be offered a $10,000 bag, the secondary market prices don’t seem quite as disproportionate, do they?
This pre-spend also serves as a test of the market before Hermès conducts a price increase, demonstrating the likelihood that higher prices will still be met with consistent demand.
In terms of actual prices, consider the following current retail (primary market) vs resale secondary prices. We have considered current listings on Fashionphile and recent sales at Christie’s Auctions and The Real Real.
Note in the chart below that the year listed is the year that the bag was produced (and presumably sold on the primary market) and that each secondary market seller has their own methods of determining condition.
Fashionphile uses Giftable, New, Excellent, and Very Good; Angebote für Second Hand Taschen Hermes Silkin Pristine, Excellent, Very Good, Good, and Fair.
Since we are focusing on the price disparity for new items, the relevant listings are of the Brand-New-in-Box variety, which would be hermes pre owned cloud de selle gambade necklace item and possibly Excellent. A few from the Very Good category were included when there was nothing else available, further demonstrating much higher resale values even for used items.
| Bag | Prices 2022 2023 2024 | Fashionphile | Christie’s Auctions | The Real Real |
|---|---|---|---|---|
| Borsa Hermes Kelly 35 cm in pelle Epsom gold | $10,500 $10,900 $11,300 | Giftable 2023, Gris Neve GHW, $28,875 Excellent 2023, Gris Neve GHW, $28,875 | 2022, Hermes Bolide handbag in orange leather taurillon clémence 2021, Framboise GHW, $13,860 | Pristine 2023, Orange Minium PHW, $26,000 Etoupe GHW, $24,000 2022, Preis für Second Hand Taschen Hermes Dalvy Excellent Gold PHW, $21,850 Etain GHW, $23,500 |
| Kelly 25 Epsom Sellier | $10,600 $11,300 $11,800 | Giftable 2023, Etoupe GHW, $30,445 2022, Rouge Casaque GHW, $23,620 Excellent 2023, Celeste PHW, $31,495 2022, Rouge Casaque PHW, $26,200 Vert Jade GHW, $26,245 | 2022, Vert Fizz PHW, $25,200 | Pristine 2023, Gris Pale GHW, $27,000 Mauve Pale PHW, $25,650 Gold PHW, $26,000 Excellent 2023, Hermes Other Travel Bag Gold PHW, $22,800 hermes 2019 pre owned herbag handtasche 50cm item |
| Kelly 28 Togo Retourne | $10,600 $11,300 $12,000 | Excellent 2022, Bleu Royal PHW, $22,575 | 2022, hermes 2000s pre owned arceau chrono 43mm item 2021, Gold GHW, $18,900 | Excellent 2023, Gris Perle GHW, $20,700 Sable GHW, $20,900 |
| Kelly 28 Epsom Sellier | $11,200 $11,800 $12,500 | Excellent 2021, Black GHW, $20,995 Black PHW, $23,625 | 2022, Gold GHW, $27,720 2021, Ver la valorización de una referencia de Hermes Passe Passe | Pristine 2023, Gold GHW $23,750 |
| Kelly Mini Epsom | $8,250 $8,700 $9,400 | New 2023, Black GHW $37,795 Excellent 2022, Gold GHW, $28,555 Gold PHW, $28,140 Nata GHW, $25,195 Nata PHW, $29,395 Mauve Pale PHW, $28,345 | 2022, Black GHW, $27,720 Orange PHW, $27,720 2021, 5P Pink PHW, $30,240 | Excellent 2023, Black GHW, $29,500 Gold GHW, $29,500, $29,200 Sac à main Hermes Kelly 35 cm en cuir Fjord gold Gold PHW, $27,500 Vert Fizz PHW, $28,000 |
| Kelly Mini Chevre | $8,550 $9,450 $10,100 | Excellent 2023, Limoncello PHW, $29,395 Etoupe GHW, $30,445 2022, Jaune Bourgeon PHW, $26,035 Hermes Picotin large model handbag in rust-coloured togo leather | Pristine – Asking 2023, Vert Fizz PHW, $25,200 Excellent – Asking 2022, Hermes сумки через плечо | |
| Kelly Mini Alligator | $28,500 $31,500 $36,700 | Giftable 2023, Beton PHW, $79,795 2022, Gris Neve PHW, $67,195 Excellent 2022, Beton GHW, $82,945 | Very Good 2021, Bleu Zellige PHW, $60,000 | |
| Kelly Elan Chevre | N/A $8,900 $9,250* | Giftable 2023 Black PHW, $22,045 Excellent 2023, Black GHW, $27,295 | Excellent – Asking 2023, Black GHW, $22,000 | |
| Birkin 25 Togo | $10,100 $10,400 $11,400 | Giftable 2023, Black GHW $34,645 Gris Neve GHW $30,445 Etoupe GHW $31,495 2021, Etoupe PHW $28,795 Excellent 2023, Vert Comics PHW, $26,245 Gold GHW, $32,290 Gold PHW, $27,875 Etoupe PHW, $31,450 Etoupe GHW, $29,920 Hermes Birkin 25 Nata Swift Silver Hardware Gris Neve PHW, $21,250 2022, Black GHW, $28,500 Gold PHW, $30,400 Chai PHW, $24,320 Vert Cypress GHW, $22,995 | 2021, Hermes Mini Lindy 19cm Grey Ganebet Store quantity Etoupe GHW, $30,240 2022, Большой палантин hermes paris лошадки | Pristine 2023, Gris Pale GHW $29,000 Etoupe GHW $27,500 Black GHW $26,000 Excellent 2023, Chai GHW $25,000 Etoupe GHW $27,000 Etoupe PHW $28,000 Gold GHW $26,000 Gold PHW $25,650 Gris Neve GHW $30,000 2022, Etain GHW $20,900 Very Good Ebene GHW $27,000 |
| Birkin 30 Togo | $11,200 $11,600 $12,500 | Giftable 2023, Gris Neve GHW, $25,885 Gris Neve PHW, $20,120 Vert Yucca PHW, $24,145 2022, Craie GHW, $28,345 New 2023, Gris Meyer GHW, $24,995 Excellent 2023, Craie GHW, $24,100 Etoupe PHW, $23,620 Mushroom GHW, $29,500 2022, Black GHW, $26,245 Gold GHW, $20,475 Gris Meyer PHW, $23,935 | 2022, Nata GHW, $25,200 Gris Meyer GHW, $23,940 2021, Bleu Nuit PHW, $20,160 | Pristine 2023, Mushroom PHW $26,000 Excellent 2023, Etoupe GHW, $25,000 Etoupe PHW, $24,000 Vert Yucca GHW, $23,000 Hermes Bolide 35 cm handbag in etoupe Swift leather 2022, Black GHW, $21,000 |
| Constance 18 Epsom | $7,950 $8,750 $8,950 | Giftable 2023, Чоботи шкіряні в стилі hermes Vert Fizz GHW, $12,595 Graphite GHW, $13,645 Excellent 2022, Etain PHW, $17,855 Quotations from second hand bags Hermes Constance Gold PHW, $15,745 Nata PHW, $14,170 Etoupe PHW, $18,850 | 2022, Gris Meyer PHW, $12,600 2021, 5P Pink PHW, $13,860 | Excellent 2023, Nata GHW $14,000 Very Good 2023, Etoupe GHW, $13,000 Black GHW, $13,000 |
| Constance 18 Chevre | $9,200 $10,000 $10,400 | Giftable 2023, Jaune Bourgeon PHW, $12,595 Excellent 2023, carre hermes la tenue de venerie Mauve Pale RGHW, $13,950 2022, Bleu Electrique PHW, $13,960 Mauve Pale RGHW, $13,950 Mauve Sylvestre RGHW, $13,950 | 2022, Mauve Sylvestre RGHW, $11,340 2021, Rose Texas PHW, $11,970 | Excellent 2023, Mauve Pale RGHW, $13,050 |
| Constance 24 Epsom | $9,600 $9,900 $10,800 | Excellent 2023, Gold GHW $18,895 Сумка женская кожаная люкс в стиле hermes 2022, Etoupe GHW $15,535 Gold GHW $18,995 Rose Confetti PHW $14,695 Vert Cypress PHW $13,225 | 2022, Mauve Sylvestre RGHW, $17,640 2021, HERMES LS œ ZIP TOP | Excellent – Asking 2023, Vert Fizz PHW, $17,100 2022, Gris Meyer GHW, $18,050 |
| Lindy Mini Clemence | $6,400 $6,650 $7,300 | Giftable 2023, Bleu Pale GHW, $12,280 New 2023, New White GHW, $10,075 Excellent 2023, Hermes edt 2 ml Sun PHW, $12,550 Preis für Second Hand Taschen Hermes Farming Etoupe GHW, $11,860 | 2022, Lime PHW, $10,080 2021, hermes 2015 pre owned evelyne iii pm crossbody bag item Jaune de Naples PHW, $12,600 | Pristine 2022, Trench GHW $9800 Excellent 2023, Black GHW, $9,950 Feu GHW, $10,500 2022, Mauve Sylvestre PHW, $8,500 |
| Lindy Mini Swift | $6,800 $7,100 $7,750 | Excellent 2022, Rose Sakura PHW, $9,445 Nata GHW, $10,495 | 2021, Rose Sakura PHW, $9,450 | Pristine 2022, Trench GHW $12,000 Mauve Sylvestre PHW $8,091 |
| Jypsiere Mini Evercolor | N/A $7,300 $8,100 | Giftable 2023, Vert Comics PHW, $8,360 Beton GHW $10,160 2022, Bleu France PHW, $10,495 | Excellent 2023, reloj hermes medor de plata circa 2022, Beton PHW $9,500 | |
| Evelyne TPM 16 Clemence | $1,900 $2,050 $2,200 | Giftable 2023, New White PHW $4405, $4,195 Biscuit PHW $4,185, $4,060 Excellent 2023, Craie GHW, $4,615 Orange PHW, $4,195 Gris Neve PHW, $3,565 | 2022, Nata GHW, $3,276 Borsa da viaggio Hermes Victoria in pelle taurillon clemence arancione 2021, Black PHW, $3,780 Craie GHW, $4,410 | Pristine 2023, Vermillion PHW, $3,900 Excellent 2023, Black GHW, $4,050 Gold PHW, $3,700 Nata GHW, $3,150 Rose Texas PHW, $3,150 2022, Gold PHW, $3,500 Mauve Sylvestre PHW, $3,200 |
As you can see above, even though Hermès’ prices are high to begin with, the secondary market prices are significantly higher for the most popular sizes and styles.
For example, the 2023 Black Mini Kelly in Epsom, listed on Fashionphile as New, has a current listed price of $37,795 when the primary market retail price for the bag was $8,700: this secondary market listing is more than 4x the retail price!
Even the completed recent sale at The Real Real, in Excellent (not Pristine) condition for $29,500, is still hovering near 3 1/2 times the retail price. Other popular styles yield similar results, including the 25cm Kellys and Birkins in Togo leather, which seem to sell for around 3x retail price (with variations based on color and/or hardware).
Interestingly, 18cm Constance yields about 1 1/2 – 2 x if the bag is in Epsom; Chevre bags don’t do quite as well (closer to 1 1/4 – 1 1/2 x), and a surprise winner is the adorable Evelyne TPM, which can yield more than 2x for a brand new bag, especially in light colors such as New White and Craie.
- This article does not even contemplate the market for used Hermès items, which is itself substantial. ↩︎
- The Constance didn’t really have any resale traction until about 10-15 years ago.
I recall 17 or 18 years ago, my sister-in-law’s elegant mother having some difficulty letting go of a mint-conditioned Black Crocodile Constance (Porosus) for essentially the current retail price of an Epsom Constance.
Orologio Hermes e oro giallo Circa 2000! ↩︎ - I suppose the term pre-spend is really a very factual and unromantic way to look at the entire purveyor-client relationship, as though the pre-spend purchases are mere prologue to what really matters, which is the acquisition of the bag; I don’t know what proportion of Hermès’ clients feel that way, although I’m sure plenty do.
I see the relationship a bit more like a dance, with each partner having their steps to take in relation to the other, but then again, my problem has never been meeting any sort of “pre-spend” amount, whatever it may be (I personally have no idea, and I may be one of the very few clients who has never bothered to calculate their pre-spend), because I’m a sucker for so many things, from scarves to shoes to ready-to-wear. ↩︎
Anyone else feels like they no longer enjoy wearing their Hermès Birkin? I was so thrilled to buy my first B in Paris in 2000. Today, with all the “Real” housewives and other Kim Ks of the world, it’s become a nouveau riche staple. Very much like the Cartier Love bracelet… Maybe I have just outgrown these styles?
It’s sad that you let *others* influence what *you* love to wear! I can’t imagine you care about what others think of you 😉 (Or I’m wrong!!!) I’ll keep wearing my Hermès Kelly until the day I die!
Your screen names says it all.
Agree. There are more and more quiet luxury bags like Moreau, Faure Le Page, Moynat, the Row, Celine, Gabriella Hearst. So beautifully crafted using wonderful leathers and style. And after my last experience in an Hermes boutique where an SA handed me a pair of dirty cotton gloves to don prior to touching a purse….I’m not so quick to bride back there even to peruse the scarves.
ABSOLUTELY. Social media flexers and tacky celebs have driven the brand into the ground. I don’t want to sell, but I rarely carry a Birkin anymore. It’s also not safe to carry.
If wearing your Birkin is dependent on how exclusive you feel, then perhaps its worth trying to reflect on why that is vs blaming external sources…?
I think you’re missing my point entirely. It’s quite the reverse. In my humble opinion, Birkins have completely lost what some may describe as “quiet luxury” nowadays. In the 1990s, this bag used to be somewhat under the radar but now with social media and reality tv, it’s everywhere all the time. People give you looks when you walk around with a Birkin—and I don’t enjoy that feeling at all. I don’t need to ever feel “exclusive” by the way. I’m a very secured and happy person who’s enjoying her last few years on this blue planet. 🙂
Could not agree more. I started my collection in the 1980s, when you could easily get whatever you wanted, or place a special order. You didn’t have to grovel or even get to know a salesperson . It’s a bad joke now. It’s the FRENZY and overexposure surrounding the bags now,,not the bags themselves. It’s a HUGE turn off to me.
I don’t feel this way about my bags. I don’t play attention to what “celebrities” carrying or even if the bag is oversaturated in the market. I carry what I love and wear it wherever & whenever. Yes, some people notice what I carry and I’ve been stopped and asked “Oh, is that a Birkin, Kelly, L.V., Dior, etc.”, but I don’t like to talk about my bags because to me it’s just a bag, no matter the Designer or bag. I buy only because I like quality bags and carry them for that reason alone. It has nothing to do with any perceived status, etc. and I know some people think that, but it’s not, and never has been, like that for me. It’s interesting to me how or why people think that way about bags or the person wearing them. I don’t understand it.
I do pay attention because I detest what celebrity culture has become, and I do not want to be associated with it or the attention that a B bag gets. If that makes me a snob or perceived as “insecure”, so be it. Birkin culture is veering dangerously close to tackiness. The bag is also unsafe to carry in large cities. Why? because every Jill and Joe Six Pack now knows what it is.
Many younger commenters here may not remember a time when Hermès was a brand that was virtually unknown in the US. We old school Hermès wristwatch remember very well, and we are are moving on from the brand.
Yes, you may be moving on, but there are many other new wristwatch that will eagerly take your place. In fact, according to my Hermes S.A. that is their target market. I’ve been an Hermes customer for over 20 years & don’t notice or give a shit what these so called celebrities carry? I couldn’t tell you who is or isn’t a celebrity because I don’t care or pay attention. Why should I or anyone else? It’s all so superficial and silly to try and emulate someone else.
I am perfectly aware that Hermès must target a younger clientele. Good for them, and good for me, as I am a stockholder in the company but still won’t be buying any more bags.
You are a stockholder in Hermes? I put my money in high tech companies, but maybe I should explore Hermes, too. If their stock is doing well I’m in. Thx for the tip!
Wouldn’t buy it now. It’s way overvalued at the moment.
…And for me, that makes over 40 years as a H customer. Now, THAT’s old school.
Some people are easily triggered. Totally get what you mean, I feel this way about a lot of the items I own. On the lookout for new and unique designs or less popular ones from the leading brands. Watched Expats on Prime the other day and Nicole Kidman’s Loewe Flamenco tote looked really nice.
I am loving Valextra and Peter Nitz in Zurich.
FWIW, no matter what Hermès call you, we are Hermès wristwatch, not clients. Companies who have clients have a very specific fiduciary and legal responsibility towards those they represent, i.e. attorneys, real estate agents, or tax accountants. “Client” just sounds loftier, so luxury brands like to use it.
I just got offered from an Hermes store a mini Kelly tricolor which was produced in 2022 (u stamp). How can that be? Does this mean nobody wanted this one? So it’s a left over? Have you experienced that or heard anything like that before? Thx
I’ve been on the waiting list for this for a long time. Maybe it was oflate purchased and is a store return? That’s happened with me before. If you want this bag you should grab it. Or, if you change your mind you can sell it for a huge profit on FP. It’s in very high demand.
Thank you for such an informative article.
The resale price of H in Japan is exuberant, although the Yen is currently quite weak.
The term ‘pre-spend’ makes sense, and many of my friend jokingly uses the term ‘tag-alongs’!
Fashionphile buys Hermes for pennies, always well below retail, and then marks up the bags ridiculously high.
Interesting that there is a pre-spend in the US, I find it rather money grabbing and vulgar to be honest. This is definitely not the case in every country H is located in.
I personally would not feel comfortable wearing one out at this price point, way to scared of someone trying to steal it.
This is their business model and it is definitely working. Look at their stocks, they are valued at more than 200B.
It is very much vulgar, but I’d be interested to see how money-grabbing it really is. Would they make more money if they supplied the demand, rather than creating more demand by offering little supply? I know they’ve driven away my business more than a few times because their practices were just too shady.
Everyone (influencers) has one or two or five. Hermes is going to crash and burn with the over saturation of these handbags.
Hermès most recent move (that was easy to see coming) is to send 35 cm Birkins roaring down the runway for their latest collection. YES! They’re Baaaaack. Butm, let’s spend a few years convincing women that Barbie bags are worth WAY more than bigger bags. SMH.
What really irks me is when Hermes dramatically gasps and pearl-clutches over theses “secondary-retail markets.” Don’t get mad over something you created. You aren’t allowed to so stupid as to not realized this was going to happen, so stop faking moral outrage over it.
If they would just accept peoples’ money without insisting wristwatch jump through hoops just to buy an item, it would take up a lot less energy on both sides, and they wouldn’t have this issue.
If I want an item badly enough, I’m willing to spend 5x to someone who isn’t going to insist I go through years of a song and dance first. I have a lot more money than I do energy for that sort of crap.
I understand the fatigue around the Birkin or Kelly but why should that stop anyone from liking the pieces from the brand? It’s your style at the end of the day and Hermès makes other items that are very much under the radar (the non-Avalon blanket home textiles for example).