Why Are Designer Handbags So Expensive?

Posted In: Collateral Loan , Handbags

For anybody who considers themselves addicted to handbags, it can be a daunting and expensive hobby.

The cost of designer handbags is notoriously high, and collectors definitely pay their prices. That’s because the most coveted brands – Chanel, Louis Vuitton, and Hermès, for example – are works of art and more than just a bag. These brands create masterpieces so beautifully crafted that there’s an entire multi-billion dollar industry of copycats reproducing them for cheaper.

But what really gives with some of the absurdly high prices of luxury handbags? What would make a limited edition Louis Vuitton designer handbag sell for $7,500, and why are people paying these prices?

Let’s take a look at several reasons these bags are so expensive, and how these high-priced bags still rope in consistently high demand.

Craftsmanship of the Luxury Handbag

Even for the layman, carrying a designer handbag from one of the top brands feels like a special occasion.
You can look closely at these pieces and realize that every stitch is perfectly hand-done and the quality is such that the bag lasts a lifetime.

Overwhelmingly often, true luxury handbags are handmade by expert craftsmen, while the look and feel of these pieces are conceived by inspired and in-demand designers. It’s easy to understand that an expert mechanic will cost more per hour than a novice – the same applies with most all goods, especially luxury handbags. You get what you pay for!


Since many luxury handbags are in fact handmade, it is not possible for production to a factory line of mass-produced pieces. Demand for designer handbags has been high since the beginning – Louis Vuitton was created to serve the French Royal Court.

The age-old economic concept of supply and demand factors heavily in skyrocketing prices. Demand is so high in some cases people will stay on waitlists for years, paying the price up front until their handbag is ready for shipment.


How many items can you think of that will increase in value over time?

There aren’t many. Most all cars decrease in value, making one a money-eating investment, except in rare cases. Luxury designer handbags are one of the few exceptions to the rule.

It’s very common to see a classic Hermès Birkin resell for more on the secondary market than it was purchased for years before even. For some collectors, their massive holdings stand as a safety net, or a nest egg even, for retirement years down the road.

It’s easy to understand when you think of vinyl records of Elvis Presley’s music. Original pressings of the Sun Records recordings will sell for literally thousands of dollars, whereas when they were first released, they sold for no more than a couple quarters. People want these records badly enough – and they are rare enough – that you will see exorbitant price increases over time.

In most cases, luxury handbags are in fact a better investment than gold, increasing in value more quickly because of the deep demand for these luxury goods.

Materials of the Designer Handbag

You can hold a true Chanel designer handbag in your hand, and a mass-produced or counterfeit handbag in the other, and feel the difference.

The leather used is often of the finest quality cow skin, or from other, rare exotic animals. The locks, chains, and other metal accents on luxury handbags are also often plated with real gold, palladium, pure silver, and even sometimes diamond-encrusted. Again, more valuable materials means a more valuable product.

In the end, the question of “Why Are Designer Handbags So Expensive?” has an easy answer.

The simple equation involving exquisite craftsmanship, high-quality materials, limited editions and brand history would make any product more expensive. Factor in the less obvious collector’s market and an extremely high, waitlist-worthy demand, and you have a product that more often than not increases in value.

If you have a collection of luxury handbags, it’s important to understand their value and understand their quality. Additionally, if they have increased in value over time, you may well have an investment that justifies the price you paid.

If you have a question about the true value of your handbags, contact Beverly Loan Company today – you may just be sitting on the fuel for your next venture!

Why Are Designer Handbags So Expensive?
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Why Are Designer Handbags So Expensive?
For anybody who considers themselves addicted to handbags, it can be a daunting and expensive hobby. The cost of designer handbags is notoriously high, and collectors definitely pay their prices. Tha