The 2025 US Price Increase is Coming: How Much Are You Willing to Pay for a Hermès Bag?

Read also: New Confirmed Hermès Prices in Europe 2025

Just how high can Birkin and Kelly prices go? As the clock and calendar approach 2025, we can’t help but wonder about the timing and extent of the 2025 price increases likely to be imposed on Hermès’ desired handbags in this new year. Hermès is known to hike prices in the first quarter of a calendar year, though the precise dates vary. In 2024, those raises hit early and hard, yet did little to dim the shine and demand for Hermès Birkins and Kellys.

Best collectible investment. Better return than gold and art. Most coveted. Holds value on resale better than any other bag. Is there any accolade not bestowed upon the Hermes Birkin (and, of course, its sister the Kelly)? In 2019 the Knight Frank Luxury Investment Index (KFLII) added Hermès handbags as a category of alternative collectible investments, and later handbags generally with the primary focus on Hermès prime (aka quota) styles. Even CNBC was compelled to report on the success of these bags as a passion project investment, distinguishing between the Hermès holy grail bags and most other luxury picks.

Image courtesy: @bagsionista

Despite perceived softer sales in the secondary market, Birkins and Kellys remain the bags by which others are judged. These styles, particularly in popular and rare fabrications, retain the greatest value as a percentage of the retail price, often even exceeding it.

In the past couple of years, Hermès has veered upward from its nominal annual price hikes in the 1-3% range, typically enacted in the first quarter of the year. In 2022, Hermès announced that its 2023 prices would spike 5-10%, and they did. For example, the price of a Kelly 25 in Togo rose 10%, into five figure territory, up $1,000 to $10,900. Prices for larger Kellys increased in the 5-6% range, while Birkins lifted closer to 3%.

Image courtesy: @hpluxe

Yet, as we wrote then, there was little outcry to the announcement or the ultimate price hikes. However, our 2023 article got the Pursebop community talking. Interestingly, a large majority of commenters felt the expected increases were no big deal, perhaps even warranted. There was limited (although there was some) criticism of Hermès’ expected move.

The same was true when, in the first days of January 2024, Hermès imposed its 2024 price adjustment. This time it lifted handbag prices in the United States 3.7% to 9.6%, depending upon the specific model and specs. While Hermès clients and aficionados were perhaps surprised that the hikes occurred so early in the year, and that they again exceeded the pre-2023 range of 1 to 3%, complaints were few and far between.

Image courtesy: @leoniehanne

Of course, no one knows exactly how high the Birkin prices will go in the future, but so far, readers don’t seem deterred by any price increases.

Which leads us to this question: Is there a price that is just too high to pay for a Birkin (or Kelly)?

And to be clear, this discussion is about the retail price at a Hermès boutique. In other words, we are not (directly anyway) considering what people may, or may not, be willing to pay a reseller to get the desired bag at the desired time. Hermès, as we well know, is not known for the immediacy of availability, except perhaps for VVIPS. As a result, some people are willing to pay up and over for that convenience and access.

Image courtesy: @bagsionista

Back to the question at hand . . . If no one blinks at paying $10K for a small Birkin, what happens at $15K? Or 20K?

For the uber wealthy, we suspect bigger increases will have no effect on their purchasing plans. Assuming of course, they are offered bags. Indeed, some may prefer higher price points as the Birkins will be perceived as even more “exclusive.” After all, not everyone who can spend and/or save $10K can reach $15K or $20K.

But what about the, for lack of a better term, medium-rich? People who can and do buy several five-figure bags a year, but are conscious of the cost. Sure, some might think twice before the purchase; make sure it’s a desired bag rather than just “why not.” However, it’s doubtful a 50-100% increase would completely deter them. Perhaps, though, these clients might purchase fewer handbags.

Image courtesy: @the.life.of.niels

The buyers Hermès is at greatest risk of losing are the more aspirational and newer buyers. Someone trying to get their first or second Birkin who has worked hard to save up may feel it’s a constantly-moving goalpost out of reach. And they could just give up.

The effect of that, however, could be more than just losing a potential customer or few. In recent years, Hermès has broadened its offerings, extending to items beyond handbags and also price-wise. With its beauty line, you can have a piece of the brand for under $100. It’s a way to buy in and experience Hermès. Looked at from a marketing perspective as a way to develop and expand the customer base, a huge price move in handbags to a level beyond one’s comprehension and/or aspiration might deter any interest in Hermès.

Image courtesy: @freyakillin

CEO Axel Dumas was quoted in Forbes in 2014 saying “our business is about creating desire.” Assuming that’s still true, frustration can also dampen desire, giving in to rejection. An article in Psychology Today, posits that: “What is new and surprising in the findings about how wanting and liking come apart is that if our desire for something is frustrated, we don’t just want it more, we actually like it less.

The stated example relates to a desire to run a marathon in under four hours and how failure (or inability to do so – to which we relate lol) may lead to an unexpected result. Quitting. That’s right, rather than motivating you to work harder, it causes you to give up.

You can see how this could apply to the continuing inability to purchase a Birkin. At some point, the frustration may overcome the desire . . . and you just decide “pass.” Whether these customers ultimately call the Birkin overrated, deride those who were able to afford it, or something else, the effect is the same – a large swath of potential clients who have moved away from your brand.

Not to worry folks. At this point, the discussion is purely hypothetical. Moreover, Hermès is pretty expert in knowing the market. After all, it not only manages to make the most coveted handbags, it also positions itself such that its name alone is associated with being the best of the best. It’s not likely it would self-sabotage in the interest of a quick buck or euro.