I was back on the west coast over Christmas & I spied this dark red Chanel classic flap 2.55 bag. I always liked this bag, but I never felt the need to immediately own one until I saw it in this color. I had it in my mind that it was about $2,400, but was shocked when I was asked me to sign a receipt for $3,400 (not including tax). Apparently, the price increased at least twice since I last checked the price two years ago!
I did some internet research & learned of a 30% price increase this past August. First, I wanted to kick myself for not getting one sooner. Secondly, it made me angry that they raised it by such an obscene amount! There has been some speculations as to why the increases were made. Madison Avenue Spy have suggested it was due to the increased demand in China. However, others counter that that reasoning would not apply here where the economy is still weak. One sales associate told Madison Avenue Spy that “rising demand & manufacturing difficulties are the cause for the rapid price increase.” She continued:
“We don’t want Chanel to become like Louis Vuitton. They are taking more of an Hermés approach where it can take three years to get the bag you like. We want Chanel to stay a luxe item & not be Main Street.”By trying to create demand, they may have shot themselves in the foot though because I ended up returning the bag on principle. It was very hard for me as I LOVE handbags, but I couldn't justify it to myself (& believe me, I'm good at justifying these things to myself!). The only reason I wanted to keep it was in case they made further increases, but I figured I could put that money toward my dream Hermès Birkin. The only other reason to keep it (as one blogger put it) was that the Chanel bag appreciated in value more than her 401(k).