The Pricing Conundrum

The Pricing Conundrum

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The Pricing Conundrum
The Pricing Conundrum
Pricing Case Study: Why Does a Hermes Birkin Handbag Cost $40,000?

Pricing Case Study: Why Does a Hermes Birkin Handbag Cost $40,000?

The conjunction of iconic status, managed rarity, managed desire, consistent economic appreciation, and the robust market for Birkins as financial assets drive the price.

Utpal Dholakia's avatar
Utpal Dholakia
May 13, 2023
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The Pricing Conundrum
The Pricing Conundrum
Pricing Case Study: Why Does a Hermes Birkin Handbag Cost $40,000?
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KEY POINTS

  • The Hermes Birkin bag is a unique ultra-luxury product whose astronomical price cannot be explained only with functional and emotional value factors like most other products.

  • Its iconic luxury status is derived from a carefully managed and sustained rarity and desire stoked by clever marketing honed over decades.

  • The Birkin is widely regarded as…

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