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.
Hermès defies gravity: 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 – back in the day, that was the Birkin and the Kelly2 – 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:
- the desirability of the bag, including how popular its specifications are;
- 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
Not all Hermès bags are difficult to get, and demand varies even within the Birkin and Kelly lines.
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.
During COVID, bags were relatively easy to get, with a pre-spend of 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; The Real Real uses 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 Giftable / New / Pristine 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 |
|---|---|---|---|---|
| Kelly 25 Togo Retourne | $10,500 $10,900 $11,300 | Giftable 2023, Gris Neve GHW, $28,875 Excellent 2023, Gris Neve GHW, $28,875 | 2022, Etain PHW, $20,160 2021, Framboise GHW, $13,860 | Pristine 2023, Orange Minium PHW, $26,000 Etoupe GHW, $24,000 2022, Black GHW, $25,000 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, Gold GHW, $26,000 Gold PHW, $22,800 Mauve Pale PHW, $23,750 |
| Kelly 28 Togo Retourne | $10,600 $11,300 $12,000 | Excellent 2022, Bleu Royal PHW, $22,575 | 2022, Mushroom GHW, $27,720 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, Bleu Brume PHW $27,720 | 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 Etoupe GHW, $28,000 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 Vert Fizz PHW, $27,295 | Pristine – Asking 2023, Vert Fizz PHW, $25,200 Excellent – Asking 2022, Brique PHW, $24,700 | |
| 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 Beige Marfa PHW, $26,455 Gris Neve PHW, $21,250 2022, Black GHW, $28,500 Gold PHW, $30,400 Chai PHW, $24,320 Vert Cypress GHW, $22,995 | 2021, Etain GHW, $22,680 Etoupe GHW, $30,240 2022, Cassis PHW, $15,120 | 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 Gris Neve GHW, $23,000 2022, Black GHW, $21,000 |
| Constance 18 Epsom | $7,950 $8,750 $8,950 | Giftable 2023, Gold GHW, $18,850 Vert Fizz GHW, $12,595 Graphite GHW, $13,645 Excellent 2022, Etain PHW, $17,855 Rouge Venetien GHW, $16,750 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, Menthe PHW, $12,805 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 Orange PHW $16,795 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, Mauve Sylvestre RGHW, $12,600 | 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, Vert Comics PHW, $9,570 Sun PHW, $12,550 Bleu Pale GHW, $12,070 Etoupe GHW, $11,860 | 2022, Lime PHW, $10,080 2021, Rose Shocking PHW, $10,080 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, Black GHW On Hold $8,450 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 Bleu France GHW, $4,410 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.
How I weep! ↩︎ - 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. ↩︎
