CHANEL PRICE INCREASE | MAY 2020 | Yoogi’sClosetBlog
Chanel, General
This month, Chanel announced another price increase for some of their classic bags. The prices have increased between 8-12 percent across styles, which is quite significant. In November 2018,we reported that Chanel raised their prices on their classic bags and the latest price increase started on May 22nd and affects the Classic flap, 2.55 Reissue, Boy, Gabrielle, and Chanel 19 bags, as well as some of their small leather goods.
*prices are for Calfskin leather bags
Chanel Small Classic Flap Bag (style #A01113): $5,800
Chanel Medium Classic Flap Bag (style #A01112): $6,500
Chanel Jumbo Classic Flap Bag (style #A58600): $7,100
Chanel Maxi Classic Flap Bag (style #A58601): $7,700
Chanel Classic Rectangle Mini Flap Bag (style #A69900): $3,500
Chanel Classic Square Mini Flap Bag (style #A35200): $3,800
Chanel Classic Wallet-On-Chain (style #A33814): TBD
*prices are for Calfskin leather bags
Chanel Reissue 2.55 224 Bag: $5800
Chanel Reissue 2.55 225 Bag (style #A37586): $6,500
Chanel Reissue 2.55 Large 226 Bag (style #A37587): $6,200
Chanel Reissue 2.55 Maxi 227 Bag (style #A37590): $7,700
*prices are for Calfskin leather bags
Chanel Boy Wallet-On-Chain (style #A92193): $2700
Chanel Small Boy Bag (style #A67085): $4600
Chanel Old Medium Boy Bag (style #A67086): $5000
Chanel New Medium (Large) Boy Bag (style #A67085): $5500
Why does Chanel raise prices?
Chanel bags increase in value over time. The original Chanel 2.55 flap bag sold for $220 in February 1955. If you bought a Chanel Caviar Classic Jumbo Flap bag in 2009 for $2695, the price of the same bag is now $6100 (see chart). When the Chanel Medium Boy Bag was introduced in 2011, the price started at $2500. Today, a Medium Boy bag is $5000.
Inflation and basic economics: more demand means higher prices. Chanel will continue to increase prices as long as the demand is there. The more money people are willing paying for them, the more value Chanel bags have.
Next, the cost of material and labor increase over time. If Chanel is paying a higher price for the lambskin leather, they will compensate the loss with your wallet. The cost of labor has gone up too, a Chanel bag is probably made in France, Italy or Spain by very skilled artisans.
There could be other outside factors that have played in to Chanel’s decision. There is the current global health crisis which has led to a lack of supplies, as well as delays in production that could all be potential reasons for the price increase.
A price increase should drive customers away, but for Chanel and Hermes, it normally works the opposite. Exclusivity makes people want something more. Chanel continues to thrive, despite price increases. It still remains to be seen if this latest price increase will drive sales or not.
Not happy about price increases? Buy pre-loved!
You can buy pre-loved Chanel handbags from Yoogi’s Closet every item comes with an authenticity promise for a fraction of the price. Depending on the year and condition, you can buy a pre-owned Chanel Classic Flap bag for approximately 15-35% off retail prices. If you have your eye on a Chanel bag, you should consider buying pre-owned if a $6k price tag is too much.
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