Chanel

Chanel Price Increase in Europe for August 2022

In order to have price harmonization globally, the increase will happen this week

With the Euro hitting a two-decade low and making it nearly equal to the dollar, many tourists, Americans especially, have been greatly incentivized to shop for designer bags in Europe this summer between the price disparity and receiving the VAT refund. Last week the Euro fell below $1, and while this meant considerably price savings, it was clear that it would most likely mean one thing: price harmonizing.

How High Is the Increase for Europe?

Rumor has it that there will be a 10% price increase of Chanel bags across the board in Europe effective this week. Our forum members whose sales associates broke the news this week confirmed this information. One member shared that her Chanel Sales Associate in Paris said this price increase would become effective Wednesday, August 10th.

The reason for this increase is the growing disparity of prices for a Chanel bag in the US versus in Europe. Chanel, and other major brands, have used the justification of price harmonization across the globe as the reason for the price increases. It makes sense; the brand doesn’t want customers irate over vast differences in prices for the same bags (not all of us spent our summers in Europe with copious amounts of luxury spending money).

Chanel Large Classic Flap Bag

Chanel Price Disparity by the Numbers

For example, let’s look at the popular Chanel Large Classic Flap:

In the US, it retails for $9,500. The average tax rate in Florida is 7%, which would mean $665 in taxes, resulting in a final retail price of $10,165.

In Europe, the same bag retails for 8,900 €. A VAT refund of 12%, or 1,068 €, would mean a final price of 7,832 €.

The overall price difference, with the dollar and euro being nearly equal, would be $2,333. Certainly a hefty difference!

With the European prices increasing by the rumored 10% rate, you would still save if you can retrieve a VAT refund. The effective price on the same bag will end at $8,616 if you get the 12% VAT refund on the newly-priced 9,790 € bag. Even with the fixed duty import tax of 3%, you’ll still save money over a US purchase.

Stay up to date on Chanel price increases and all things Chanel on our forums here!

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Tana
Tana
1 year ago

I’m so done with Chanel for 7 years now. Life is good. Don’t miss them one bit.

mrshoneybunny8
mrshoneybunny8
1 year ago
Reply to  Tana

We could all relate of how their prices are getting out of hand way more than Hermes yet quality issues have become more questionable than ever before!

Eden
Eden
1 year ago
Reply to  Tana

Me too! I’m so happy with my collection! I don’t think I could justify spending that much for a bag. So glad my husband didn’t want me to sell one of my Jumbo’s when my friend wanted to buy it.

Lisa
Lisa
1 year ago
Reply to  Tana

I am right there with you. I am not even purchasing their beauty products anymore. They clearly don’t give a rats a** about their customers or customer service!

Chris
Chris
1 year ago
Reply to  Lisa

OMG….what will chanel think, if they read this ….they will immediately (!!!) reduce he price
Haha

Bee
Bee
1 year ago

They could have lowered US prices instead of increasing European prices. That would still be considered price harmonization! Now when the Euro recovers, which it eventually will, they won’t be lowering prices to account for the new conversion rate. It’s a total scam.

Heather
Heather
1 year ago
Reply to  Bee

You’re correct. When the euro recovers, they’ll probably raise US prices and claim market harmonization again 😂

Peggy Sue
Peggy Sue
1 year ago
Reply to  Bee

I love your idea, but I’ve never heard of a design house lowering prices. The increase in pricing affects secondary markets because it drastically lowers their profit margin. For ex: FP lists bags for $10-12K, but in several Chanel threads ppl report that FP isn’t buying because they can’t move what they have. Maybe, that was Chanel’s grand plan?

Lori
Lori
1 year ago
Reply to  Peggy Sue

I was wondering about the second hand market and their huge influx of bags. How will their overstock affect the bot/resellers who just buy to resell? And if they stop buying bags up won’t that slow down new bag sales for Chanel (and H, and the others)? I think the market has hit it’s peak and it’s going to slide a bit. Will be an interesting year to watch what happens. Another reason H not doing these ridiculous price gouges makes the most sense long term.

Shopatha
Shopatha
1 year ago

I didn’t know about the increase and was going to buy one on the 9th in Europe. Went back the next day and the bag I was looking at increased $500….I walked away!

Lorelei
Lorelei
1 year ago

I wish it was as fun to purchase in a Chanel boutique as it is in Hermès. While Hermès requires an appointment with a leather specialist before you can purchase a bag, once you have that appointment you are treated like a true revered guest. You are offered a chair and a beverage. I went to the Chanel boutique on Rue de Cambon in Paris. I was told there was a three hour wait to see a sales associate. I was not allowed to leave my name and come back, nor were there any chairs to sit. The requirement was to stand in line. There were no beverages offered, and no guarantee that the bag you wanted would be in stock. At the very least they could have someone go down the line with an iPad and ask what you are looking for and advise you if they even have it. This is the system they use at Goyard. It is respectful of your time, and allows you to make the choice whether you want to wait or not.

Martyp
Martyp
1 year ago
Reply to  Lorelei

The good old Chanel days are over. The experience is pretty awful now (and it’s been a few years). You wait, they don’t have anything, I haven’t seen an Ipad in store since 2020… SAs seem not to enjoy their day, they always seem exhausted… like if they work on a production line.
To me, in Paris, Goyard is also very bad. Hermès is what it is, with their own system for bags, but once you pass that, and for other items, they’re great. Dior is the utlimate customer-oriented brand to me. They’re always so considerate.

Chaussures74
Chaussures74
1 year ago
Reply to  Lorelei

I bought my first new Chanel in 2014 at Rue Cambon. We were treated like ROYALTY–first-class service, from start to finish. While we waited (about 30-45 mins), we were treated to champagne, coffee, water, soda, etc., pastries, and decadent chocolates. We were also shown Coco’s apartment upstairs. The experience was worth more than the bag, itself. BTW, we’re not “rich” or VIPs. Since so many more people are buying the bags, I believe they reserve that experience for VIPs only, nowadays. There’s nothing special about the buying experience anymore, and you almost feel like you’d rather phone in your order, and have your SA ship it to you, instead. I can’t justify spending that kind of money on a bag, to be treated like I’m shopping at Macy’s. I’ll pass.

spoiledinseattle
spoiledinseattle
1 year ago

I feel like at this point, I would only buy Chanel secondhand just on principle. The pricing has gotten so out of control

Lisa
Lisa
1 year ago

Secondhand is just as bad if not more….

Linda H
Linda H
1 year ago
Reply to  Lisa

I am seeing the second hand prices go up as fast as the price points on a new bag. And to find a 2nd hand with all the documents is getting more difficult. Most do not have the authenticity card, which makes me wonder why so many have gone missing.

Elisha
Elisha
1 year ago
Reply to  Linda H

They no longer do authenticity cards, your purse is microchipped and then linked to your Chanel account.

Linda H
Linda H
1 year ago
Reply to  Elisha

I am speaking of older bags on the secondary market. I do not even look at anything newer than 2010.
When I make a (new) purchase, everything goes into a file. All boxes, bags and packing are put into a bin and that with the file inside goes into my storage area When I sell the buyer will get a unused box, the dust bag, any paperwork, cards etc.
Same with clothing, the tags and extra buttons snaps etc go into a plastic zip bag, when I resell the tags and buttons are sent off with the garment. I guess I am a bit more fussy than some others.

Bex
Bex
1 year ago
Reply to  Linda H

I save everything as well. I’m always surprised when bags are sold even without the dustbag…

Susie
Susie
1 year ago

I loved my Chanel bags, but I’ve had serious quality control issues with all of them. I’ve purchased the tote bag before it was discontinued. The ring attaching the handle to the bag broke off. My reissue’s lock detached from the body of the bag and I had to get it fixed. My boy bag chain broke from the bag and now the lock also detached from the body of the bag. I am gentle with my purses and keep them in dustbags when not in use so I don’t understand why I have to constantly get them fixed. With all the trouble it was barely worth the cost to me then, and now with the rising costs, I doubt I’ll purchase another.

rufiny
rufiny
1 year ago

There is a social experiment going on with Chanel – how much abuse a consumer is willing to absorb by reducing the quality to a giant piece of tissue paper and up the pricing indefinitely.

Eve
Eve
1 year ago

I was going to buy a Chanel for my 40th birthday. Have been saving for a long time and was waiting for the bag to arrive at the store. The price change crushed my heart. I was longing for this and now it feels to far away, yet again. I love and hate Chanel at the same time. I feel sick spending this amount of money. Still it’s my dream bag.

TheHauteHedonist
TheHauteHedonist
1 year ago
Reply to  Eve

YOU WORKED HARD FOR IT !!! You earned it !!! The Price of Everything is going up ! This was the first Chanel bag and sunglasses I brought , years ago , I’m in my 40s and yes I was lucky cause it wasn’t so high , but you know how much this bag is worth Now ?? Thousands to others and PRICELESS to Me 💎 AND I would never sell them ⭐️I love pocketbooks , I love feeling feminine, and it opened up the Fashion World to Me . Chanel was my Expensive bag that made Me feel , like all my hard work was worth it ! And I would do it all over again ! What makes you happy , makes YOU happy ! I went on and brought other bags , but I will never forget my first 💝.. This is your Life , Your Birthday , Do YOU✨✨✨

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LSie
LSie
1 year ago

Nope. At some point the consumers are just being used. I appreciate my sense of self worth much more than a bag. They aren’t even that great anymore and are becoming outdated.

Lorelei
Lorelei
1 year ago
Reply to  Eve

Eve, go for it! If it’s your dream bag and it’s your 40th birthday, it is going to be difficult to part with that much money for a bag no matter what! If you are spending over $5000 for a bag, $500 more shouldn’t be a factor in deciding if you do it or not. I’m the girlfriend your husband wishes you didn’t have, LOL!

Lsie
Lsie
1 year ago
Reply to  Lorelei

Don’t buy into this. You (and your money) are being used,

Caroline
Caroline
1 year ago

Good. They should raise the prices as much as possible. The demand is strong so it’s smart business.

Lsie
Lsie
1 year ago
Reply to  Caroline

You are talking nonsense.

Caroline
Caroline
1 year ago
Reply to  Caroline

Hey Caroline, how about no.

Peggy Sue
Peggy Sue
1 year ago

I’m curious with the increase in prices if the market has gone up or down? I mean, I quit buying, but that’s like a grain of sand, on the beach, for Chanel. It’s inconsequential to their profit margin.

Hallo
Hallo
1 year ago

I agree , they definitely need to lower US prices , for Chanel and provide more color options . NY has more color options it seem

psny15
psny15
1 year ago

I don’t understand chanel price increases – and their quality has gone significantly down!

Chaussures74
Chaussures74
1 year ago

It appears, with the price increases and the quality decreases, people are still buying Chanel. The store near me, in Dallas ALWAYS has a line outside, and the shelves are sparsely stocked. With that said, I have to ask, why should Chanel do anything different? They just made their biggest profits ever, in the last year, and may be on track to surpass that this year. Apparently, enough people aren’t deterred by the declining customer service.

Fabuleux
Fabuleux
1 year ago
Reply to  Chaussures74

Exactly! They are a business designed to make money and that’s precisely what they are doing.

Personally, I haven’t experienced declining customer service—quite the contrary actually. The comment section of this blog is always filled with Hermès and Chanel haters. I can’t help but wonder how many of them are just jealous and bitter because they’ve been priced out.

Sophon
Sophon
1 year ago

Think about Hermes, at least you can buy the bags you like at Chanel. At Hermes you have to buy tons of junks before they even show you the Birkin.

Martyp
Martyp
1 year ago

I just checked the price of a Jumbo I bought in 2012… 3110 €, it’s now 8500 €. More than 170% up! I hope Chanel will continue this way, in 5 years, it’ll be 15000 €………………………………………………………

Chaussures74
Chaussures74
1 year ago
Reply to  Martyp

Bought a medium flap in 2014, and it was around $2800 after the VAT refund. These prices are astronomical.

Lisa L.
Lisa L.
1 year ago
Reply to  Martyp

It’ll only be worth that if some nitwit would pay that amount.

Martyp
Martyp
1 year ago
Reply to  Lisa L.

It’ll never be worth 15k…. not even 8k.

Bela
Bela
1 year ago

I wonder if Louis Vuitton, Dior, GUCCI and Fendi will increase the price in coming months. 

seattleminimalist
seattleminimalist
1 year ago

LOL– their pricing doesn’t really justify the decrease in quality.

Queenie
Queenie
1 year ago

So basically they’ll increase prices in the US when the Euro goes up. It’s giving scam.

mrshoneybunny8
mrshoneybunny8
1 year ago

1:1 Euro conversion less VAT is always great when shopping overseas! However, the prices are getting outrageous each time there’s a price hike unfortunately.