Well, last week surprised us with another price increase. Popular items like Speedy, Alma, NeoNoe, Favorite and Neverfull are now even more expensive.
Why Louis Vuitton Keeps Increasing Prices?
There are many reasons LV has to increase prices every year
1. Everything's becoming more expensive
Unfortunately just like the cost of living goes up so does everything else. To be expected with everything in life. In 1979 the speedy 25 was only $150, today it's $1,050.
The company has to compensate all the increases in delivery prices, staff salaries, rent etc.
2. Premium brand has to stay premium
Louis Vuitton is a premium brand that is all about exclusivity. Not everyone can afford it and that's the point. It has to be special. If they give up price increases, the items will eventually become affordable to everyone and lose their value.
3. Sense of urgency and investment opportunity
Louis Vuitton increases their prices pretty much every year. On the one hand, it makes you aware that it's better to buy a handbag today that tomorrow as tomorrow you'll pay more. On the other side, it makes a luxury handbag an investment opportunity as the prices will keep increasing and the bag will keep its value.
Louis Vuitton Price Increase Oct 2019
Here are the new prices compared to old
|Bag||Before price increase||After price increase|
|Louis Vuitton Speedy 25||$1,000||$1,050|
|Louis Vuitton Speedy 30||$1,030||$1,070|
|Louis Vuitton Speedy 25 Bandouliere||$1,430||$1,490|
|Louis Vuitton Speedy 30 Bandouliere||$1,450||$1,510|
|Louis Vuitton Neverfull PM||$1,240||$1,310|
|Louis Vuitton Neverfull MM||$1,320||$1,390|
|Louis Vuitton Neverfull GM||$1,400||$1,470|
|Louis Vuitton NeoNoe||$1,590||$1,650|
|Louis Vuitton Alma BB||$1,230||$1,320|
All prices for the most wanted items like Speedy, Neverfull and NeoNoe have gone up by $50-$70.
A popular Neverfull MM is now $1,390 (was $1,320). Last year it went up $50, this year $70.
What Pisses Us Off
Apart from a standard rant over a fact that you have to pay more for the item that hasn't changed in terms of quality or comfort, there's more. Louis Vuitton customers know that the quality of their items is decreasing.
You buy a bag for over $1,000 and you wanna believe it'll be your favorite item for years to come. However, in several months you end up returning the item to the boutique due to a strange problem.
Each year that are more and more issues with canvas items. There are cracks, corners get rubs after a month and in general, the canvas appears to be thinner.
If there's a problem with a canvas item, Louis Vuitton will probably either replace the item for a new one or give you the store credit. Some will say you have an amazing opportunity to change the bags every other month. However, if I purchase a bag, it means I really love it. I don't want a store credit or any other bag. If they replace it for a new one, that's awesome but how can I be sure my new same bag won't have the same problem if these were manufactured approximately during the same time?
So the only party winning here is Louis Vuitton.
I want you to get this correct. I'm their fan. I loved the company since I was a little child. But reading 10+ stories a day on their poor quality makes me wanna switch to YSL or Gucci (quality of Chanel is decreasing too).
What do you think? Share your thoughts!