Why Is Hermès So Expensive? Is it really worth the money?

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Have you even wondered why is Hermes so expensive? Well, we have the answers.

Why Is Hermès So Expensive?

If you’ve ever drooled over a Birkin bag, only to cry when you saw the price tag, then you’ve probably asked yourself “why is Hermes so expensive?” Keep reading to discover what makes Hermès one of the priciest luxury brands on the market. 

History of Hermès

Hermès traces its origins back to Paris in 1837. At that time, harness maker Thierry Hermès opened a workshop and began producing durable, award-winning harnesses adapted to the challenges of city living. 

Throughout the late 1800s and early 1900s, Hermès gained a reputation throughout Europe for creating high-quality, made-to-measure harnesses and saddles.

Starting in 1925, the house expanded to other product lines including men’s ready-to-wear, scarves, and ties. 

The iconic Kelly bag came onto the scene in 1935, while Hermès’ Birkin bag arrived in 1984. 

Throughout the early 2000s, the brand opened several international stores in Europe, the United States, and Asia. 

Nowadays, the company continues to open brick-and-mortar stores, while at the same time expanding its e-commerce presence. All of these efforts appear to be working, as Hermès reported revenue of €8.98 billion in 2021. 

Hermès Quality  The top reason why is so pricey?

Ever since Thierry Hermès started creating harnesses in his Parisian workshop, the brand has been synonymous with high-quality craftsmanship and top-of-the-line materials. After all, when you’re charging five (or even six) figures for a bag, the quality has to be flawless. 

Let’s see some of the ways Hermès keeps its quality standards up. 

Unmatched Materials 

Quality products start with quality materials and Hermès has no shortage of either. Indeed, Hermès sources materials from all over the world in order to offer customers the absolute finest leather and animal skins available. 

Not only are these products top-of-the-line, but each one has a unique character that creates a distinctive look. 

Some of the materials Hermès uses in its products include Clemence leather, Chèvre de Coromandel leather, lizard, alligator, and ostrich. 

Highly Skilled Artisans

While exclusive materials are the building blocks of Hermès’ products, they’d be lost without the skilled hands of master leatherworkers. 

To keep its quality standards up, Hermès employs more than 7,500 artisans. To become an artisan, candidates must be recruited from vocational schools and vetted by Hermès’ master trainers (a position that requires 8 years of experience). 

From there, new recruits are put through an 18-month program that involves technical training and practical application under the guidance of a designated tutor. 

Alternatively, students can enter the École Hermès des savoir-faire (the Hermès School of know-how) and earn a national diploma in leatherwork. Throughout the program, students are tested and evaluated by in-house experts. 

Controlled Production 

Hermès’ artisans may be highly trained, but they’re certainly not whipping bags together. On the contrary. In fact, it takes 15 to 20 hours to make a Kelly bag and 48 hours to make a Birkin!

During this time, artisans inspect the leather or skin for imperfections, select the best swath, and invest hours stitching to make sure the bag holds up over time.  

But it’s not just the leather that gets special treatment. The metal on each bag is hand-welded to ensure top quality and is plated with gold or palladium for durability. 

Given the amount of time that goes into producing each and every piece, Hermès is only able to produce about 12,000 bags per year.  All of this attention to detail means that Hermès bags keep looking amazing year after year.  

Resale Value of Hermès Items Why is Hermes so expensive on the preloved market?

As strange as it sounds, some Hermès products, particularly the Birkin bag, are more profitable investments than either stocks or gold. In fact, the average annual return on a Birkin bag is measured at 14.2%, while the S&P averaged 8.7% and gold averaged -1.5% 

That’s certainly impressive, but it’s important to keep in mind that a bag’s resale value is determined by several factors including:

• Size
• Material
• Model
• Color
• Hardware type
• Year of manufacture

Therefore, it’s a good idea to do your research before purchasing a bag. Especially if you hope to make money on it one day. 

Take a look at the resale market to see if you can find an Hermes bargain