Why is Hermes so Expensive? The Real Cost of Luxury (2026)
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Hermès is one of the oldest luxury brands and has the most recognizable handbag: The Birkin.
But the so-called “Hermes Games” is often known to be that customers must have a purchase history before being able to buy a Birkin or Kelly. That begs the question: why is Hermès so expensive?
In this guide, we'll explore the main reasons why Hermès is so expensive and why its most iconic bags continue to be highly sought after.
1. Hermès is made by skilled artisans.
Hermès, the brand, has heavily invested in training its artisans for them to produce a Hermès leather good up to their standard of quality.
It has been said that it can take a single Hermès artisan 15 to 40 hours to make a Birkin or Kelly. Plus, training these artisans can take between 205 years before they are even allowed to make their signature items.
Not using an automated machine severely limits their production capacity, contributing to Hermès’s expensive pricing.
2. Hermès has exceptional craftsmanship
One of the biggest reasons Hermès is expensive is their craftmanship for all the products.
Their reputation for traditional craftsmanship and attention to detail by a highly trained artisan results in a bag in 15 to 40 hours, depending on the model.
Specifically, they use a saddle stitch, which is now famously known as the Hermès Saddle Stitch, where two needles are used to pass thread through a hole in an opposite direction. If a thread becomes undone, it doesn’t unravel the whole stitch, unlike a sewing machine.
3. Hermès uses high-quality materials
Hermès used a wide range of luxury leathers including Togo, Clemence, Epsom, Swift, and Box Calf. Each has their own texture, appearance, and durability.
Additionally, Hermès also produces leather in exotic materials such as alligators and crocodiles, resulting in prices dramatically increasing.
4. Limited supply creates exclusivity
Hermès killed artisans with their craftmanship skills and high-quality material, all combines creates a limited supply of their inventory.
With limited supply, they create exclusivity.
Thus, there is the “Hermès Buying Game,” where it’s been said that you need a long purchase history before being offered to buy their Kelly or Birkin.
Altogether, Hermès created an exclusivity for their customers.
5. Hermès is a heritage brand
While Hermès didn’t have its official brand logo till 1922, everyone agrees that the brand was founded in 1837 by Thierry Hermès as a harness workshop serving European nobility, making it the oldest luxury brand in the world.
While they started making saddles and equestrian supplies, they slowly expanded to make handbags, scarves, clothing, jewelry, watches, and other luxury products.
So, when people buy Hermès, they’re also buying a heritage brand that’s been around for nearly 200 years.
6. Hermès made THE Birkin and Kelly
If you are new to the luxury world, Hermès Birkin and Kelly are the ultimate luxury bags that anyone can own. They became cultural luxury symbols.
The Birkin is known for being a request of actress and singer Jane Birkin to hold everything she needed while looking elegant. Her original Birkin bag is one of the most expensive bags in the world.
The Kelly became famous in its own right when it became closely associated with Princess Grace Kelly of Monaco after using it to hide her pregnancy.
7. Hermès can hold their value
One of the main reasons that Hermès is expensive is their potential resale value.
Many of Hermès items are desirable because of the limited supply, making them sell very well on the preloved market.
Plus, if it’s a popular bag style, in a rare color, limited edition, etc., that preloved value will increase for collectors and resale buyers.
Altogether, it’s been said that Hermès is a luxury investment piece. However, high retail prices do not automatically mean a bag will be appreciated.
Hermès retail price vs preloved
If you are not shopping for the Birkin or Kelly, then preloved Hermès items might be worth it.
While preloved Hermès means the items have been used, many items are in excellent condition and are significantly more affordable than buying new ones.
However, if you do want Birkin or Kelly, their prices can be much higher than their retail price due to limited availability, high demand, and the difficulty of purchasing them directly from Hermès.
Frequently asked questions
Is Hermès more expensive than Louis Vuitton?
Hermes is more expensive than Louis Vuitton. Retail Louis Vuitton can cost between $1,200 and $3,000, while Hermès bags can cost $2,050 and $4,000. For the Birkin or Kelly, it starts around $9,000 to $12,000 at retail.
Can I walk into Hermès and buy a Birkin?
You normally cannot walk into Hermès and buy a Birkin on the shelf. It has been said that Hermès requires you to have a long purchase history with them before being offered to buy one.
Why is Hermès so valuable?
A couple of the main reasons that Hermes is valuable are the effort it takes to make one of their bags. It takes skilled artisans’ craftsmanship, labor, and time to make a Hermes bag.
What's the cheapest Hermès bag?
It has been noted that the cheapest Hermes bag is the Évelyne TPM, also known as the Mini Évelyne, starting around $1,900 to $2,500 USD.
In closing
Hermès is so expensive due to many factors. The brand has deliberately positioned themselves where their skilled artisans take over 15 hours to make a bag, creating limited stocks.
Limited stocks add an aura of exclusivity for Hermes. However, preloved Hermès allows you to shop your own Hermès pieces without breaking the bank. Plus, it’s much more affordable and sustainable!