What could possibly make a handbag worth $39,500?

Basic economics. There is ZERO link between what something costs to make and what price it has. It is all about perception.

They price it at $40K because they know some idiot will pay that amount (or more). Even though materials probably cost no more than $500.

Why do you think some restaurants charge $500 for a meal. Or hotels $2000/night? or cars $500,000?

Perception of value.

Some fool’s willingness to pay $39,500.

Supply and demand.

I guess you can see I’m not very much tuned into fashion. It seems that unless you want to advertise how much you paid, the prestige of it depends on others’ recognition of the cachet of your item. i’m asking only as a matteer of curiosity.

@elbanditoroso, I’d have to wonder how materials even managed to cost $500.

WOW! That’s more that I paid for my 2017 Ford F-150 (new).

It’s crazy how people will squander money. You can pay $1,350,000 for a Rolex watch (“Rolex Cosmograph Daytona made of yellow gold, ruby bezel and diamond paved dial). My $400 Apple Watch is good enough for me. HA!

Here’s a used Hermes birkin for $63,995.

If I’m not mistaken, the tres chic petit lock will vaporize anyone other than the fingerprint-verified owner who touches the bag.

I read that companies will give away an accessory like the 40k bag to a celebrity, like Beyonce, because when the celebrity carries the bag, it’s invaluable as free advertising and shows the world how chic the item is, because Beyonce owns one.

Plus they limit supply, so if you want that item, you might have to wait 2 years to buy one.

Plus it’s the name Hermes or whatever designer designs it.

What’s logical to you and me is not even part of the equation for someone who owns a 40k bag.

The only value of a product is it’s ability to meet the needs the customer. In this case the customer needs to show how rich and stylish they are.

Status

Price of a handbag $25
Handbag made of handwoven carbon fibres $39,500
Handbag of your deceased mother Priceless.

Postscript: Imagine the upgrade I’ve suddenly got in the pop-up ads that appear on my tablet! Now I’m seeing more Hermes handbags than Temu trinkets and lingerie. That diversion was worth it. Waiting now for the diamonds and Ferraris to show up.

My SIL works for Hermes and the handbag prices are insane. I don’t know the most expensive, but she definitely has sold some that are over $20k. I think a few of their bags are made from alligator.

Some are very hard to get, I guess they keep the supply very low on some bags. I know my SIL sometimes is hoping to be allotted an item so she can sell it. It’s nuts to me how much Hermes bags are even though the bags are beautiful. You can get some pocket books for $5—$10k. Still so crazy high to me.

I think most of the hardware is real gold and silver plate. I’m not 100% sure about that. I think very expensive bags might have solid gold.

Here’s the link to the website: https://www.hermes.com/us/en/content/310339-hermes-iconic-bag-lines/

The quality is beautiful, but yes mostly the name, status, supply and demand, and people will pay it.

Nothing. Well, maybe if it’s lined with blood diamonds, or gold.

@Jeruba I love how your ads have changed!

The bags on the site are gorgeous and, surprisingly, something I would actually use, unlike most super-pricey bags. On the other hand, I would never carry something so expensive because, as my mom would say, “it’s putting on airs.” It’s a form of bragging.

Whoa, here come the diamonds!

If I lost the bag I would be traumatized. I don’t like having something worth so much. I do have some very expensive jewelry (not $30k for one piece, but many thousands anyway) and it’s the same feeling. Although, even the not so expensive has sentimental value, so that would be upsetting too, or bot sentimental and expensive.

My purses are $40—$200. A lot less. They need to be lightweight because of my neck and shoulder.