If you’re a retail shopper and thinking about purchasing a high-end handbag, you may wonder, “Why are designer handbags so expensive?” when looking at the costly price tags.
This article will discuss why they sell at such high prices. You will also learn to save money on your next purchase by searching for suitable bargains.
Common Factors of Expensive Designer Handbag Prices
Handbags are essential because they’re versatile and attractive. They have a history as long-time staples in the fashion industry and often sell at record-breaking numbers. They’re also bought mainly by individuals who want to add a chic accessory to their closets.
So, what unique qualities do designer bags have compared to lesser-known brands charging lower prices? Why are customers quick to run to the store or rely on an online retailer to purchase expensive, newly released totes? Read on for several typical reasons why handbag markups are incredibly high.
Leather, suede, and snakeskin are three popular materials used to make designer handbags. Customers who want items made with natural fabric choose long-lasting products. They’re also willing to pay extra fees to get a trendy bag.
On the other hand, many fake duplications flood the market but often fail to compete with the original merchandise. Loyal luxury bag buyers can spot a poor copy by assessing the texture, strength, and quality. They’re likely to choose authentic goods, contributing to the high sales of popular brand items.
Major brands with a large following can get away with charging high prices for their purses. They’re aware that merchants and customers are willing to pay the expenses to obtain the latest trendy products to own or resell. A brand’s wealthy customers usually have high-end taste, but they’re also influential among poor individuals who buy their handbags.
World-famous fashion companies place a high value on their products. They also profit consistently due to their status. Additionally, they use their established backgrounds to succeed against merchants who use cheap materials to imitate their purses.
Raw materials and manual labor can influence the final price of specific products. Overhead is also important because it determines how much a brand must charge for merchandise. Therefore, making and producing bags is a long process that may last a few or several years.
Several production cost types are relevant to luxury handbag manufacturing:
- Average – Average costs are divided by the total amount of purchased items.
- Variable – Variable costs can increase or decrease due to the time and energy needed to produce goods.
- Total – Total costs are a combination of fixed and variable costs useful for tracking profits over time.
- Fixed – Fixed costs (also known as overhead) are expenses that remain the same, despite the number of goods sold or services provided.
- Marginal – Marginal cost is the calculation of sales that can vary and influences the cost.
Production costs also affect handbag supply, meaning the total on retail shelves. You’ve probably seen only several bags on one shelf and wondered why the workers wouldn’t increase the stock. One important reason is to control how many items sell over a specific period.
Marketing and Advertising Expenses
Brands rely on television commercials, radio announcements, and print advertising to spread the word about their merchandise. As a result, they pay money for the consistent display of their goods in rotation. The goal is to receive a large return on what they spend, often two or three times their investment.
High Demand and Desirability
One factor is as relevant as it is accurate: the more popular the item, the higher the demand for similar goods.
Handbags are more than stylish merchandise purchased to flaunt around town. They have a valuable quality that allows individuals to carry daily necessities such as cosmetics, cash, and mobile phones. The quality of a bag can contribute to high sales and requests for a new supply.
Superior Pricing Strategy
Many brands use strategic price planning to gain an advantage over competitors who charge similar costs. The method commonly relates to luxury handbags due to their worth and monthly revenue. It suggests that a markup increase is necessary to match or go over the higher prices.
Many clutch bags are handmade and crafted using methods that include cutting and bonding materials. The average time to prepare a small number of purses is 4-5 years. Therefore, mass-producing bag collections are impossible due to the work, energy, and strength needed to create a particular amount.
3 Ways to Get Deals on Designer Handbags
It’s possible to pay less than the original retail price for an expensive handbag. Some customers know how to strike deals by convincing a salesperson to give them a high discount percentage. You can receive the same bargain if you shop at the right store or communicate with a direct seller.
1. Shop at Middle-End Department Stores
Coupons and promotional codes come in handy if you want a bag for an affordable cost. However, you have to know where to find retailers who sell discontinued handbags. Many department stores have a wide bag section where you can find a few affordable designer pieces on the shelves.
2. Search for Clearance Sales
Brand stores such as Hermes or Gucci rarely offer sales to their customers. Some low-end boutiques sell bags at discounted prices because they want to make room for new items. They also want to eliminate leftover merchandise by using clearances to attract customers.
3. Find Used Bags
Following the constant shift of trends can be difficult, but it can also drain your money if you aren’t careful. Fortunately, pre-owned handbags in good condition sell as quickly as unused bags. You can find them at smaller merchant stores, garage sales, or marketplaces like eBay or Craigslist.
Now that you know why designer bags are so expensive, you can decide whether a product is worth buying. You must know what you can afford and target authentic bags within your budget.