Second-Hand Bag Pricing: Why Doesn't the Market Follow Retail?

Hi vintagina, today I want to clear up some confusion about a topic that often causes doubt: bag valuations in the second-hand market. Too high? Too low? As the Jarabe de Paolo used to say, it all depends! But on what? Let's talk about it!

How many times have you wanted to sell your bag and, after receiving a quote, thought: “How?! I paid double for it in the boutique!”? Or why can you sell that bag you always see around, but which you're tired of, for more than you paid for it years and years ago?

Well, today I want to explain why the retail price is not always a reference for the valuation of a used bag and why, on the contrary, in some cases certain bags are paid much more than others (and sometimes even more than retail!).

The Law of Supply and Demand: The True Judge of Price

The golden rule in the second-hand world is the law of supply and demand. It doesn't matter how much you paid for a bag, but how much the market is willing to pay for it now.

• If a bag is highly sought after and difficult to find in boutiques, or is even out of production, the price goes up. And that's how models that you wouldn't have given away to your mother-in-law back then, today become icons because the celebrity of the moment or the designer of the moment has decided to relaunch them! The result? BOOOOOOOM in price!

• If a bag has little demand or is easily available new, the price goes down, and that's why some like-new, very recent bags are sold for less than half their price!

Simple, right? Yet, I know full well that it's not always easy to accept.

The Neverfull and Chanel 2.55 Case: Why Do We Pay So Much for Them?

Let's look at two concrete examples with bags that are always at the top of their game: Louis Vuitton Neverfull

The Neverfull is one of those bags we sell and buy back at very high prices, and do you know why? Because demand is always extremely high!

• In boutiques, it is subject to continuous price increases (since the beginning, the price growth has been much higher than inflation) and, often, you have to join a waiting list to get it exactly as you want it.

• Those who look for it on the second-hand market want an immediate alternative and perhaps also want to save a little compared to buying new, and in our case, maybe even have the option to pay for it in 9 interest-free installments! The problem is that demand is extremely high, so those who sell it get a high price and those who resell it already know that they won't satisfy everyone's "need" because the wish list will remain long! The result? Neverfull quotes remain high and we, as industry experts, have to adapt to market demand.

Chanel

Here the conversation becomes even more interesting. Chanel has increased boutique prices to almost surreal levels, and this has had a direct impact on second-hand quotes.

• If a new 2.55 costs more than €10,000, it's normal that the price also rises accordingly in the used market.

• Furthermore, Chanel has made it harder to buy in boutiques, thus increasing the desire of those looking for it to find it on the second-hand market.

The result? We buy Chanel at very high prices compared to other bags, precisely because we know the market demands them!

When the Retail Price Doesn't Matter (or Matters Little)

But let's get to the most delicate point: when is the retail price not a reference for valuation?

 If demand is low: If a bag, no matter how expensive in boutiques, has no market on the second-hand market, the price plummets. It's not out of spite, it's simply the market deciding.

 If supply is excessive: If a model is oversupplied on the second-hand market, even if it is expensive at list price, its quote will be lower.

 If the brand loses appeal: The fashion world is ever-changing. If a brand or model is no longer desired as before, the valuation will drop.

Conclusion: The Second Hand is Not Retail, It's the Market!

So, dear vintagina, the next time you receive a quote that seems low compared to what you paid, think about one thing: it's not a matter of fairness, but of market (after accounting for our need to make a margin to keep our business going)

And if, instead, you have a Neverfull or a Chanel 2.55 in your hands, know that you are lucky: there the market really works in your favor and we can't wait to make you our best offer! Write to us on WhatsApp at 3467350973