Hot on the heels of impressive sales that beat estimates, Hermès announced they’ll raise prices again. The French luxury goods maker is expected to raise global prices between 5% and 10% in January 2023 to make up for increased materials and labor costs, particularly in Europe. Previously, prices have risen around 2% per year, with them up about 4% in 2022.

Touting “very good sales” momentum for the 3rd quarter after generating 3.03 billion dollars in the three-month period that ended on September 30th, and up 24% year-over-year, the French group is thrilled with the strong growth in everything from ready-to-wear to watches and leather goods.

While sales in the e-commerce space continue to outpace brick-and-mortar stores, from a geographical perspective, sales in Asia (excluding Japan), China, the Americas, and Europe all increased over 20%, and retail travel is back too.

Even though many parts of the world are suffering through inflation and a potential recession, wealthy shoppers are purchasing luxury goods and Hermès is still one of, if not the most exclusive luxury brand in the world. With the production of its bags being slowed down by capacity constraints, they plan to speed up in 2023 by hiring another 800 workers in the first and second half.

WHAT DOES THIS MEAN FOR THE RESALE INDUSTRY?

Even though we’re unsure exactly how much prices will rise, it’s expected to be less in the US than in Europe and Japan. And while this may not be the best news for shoppers who are still hoping to get their hands on a coveted Birkin or Kelly bag, it may be good news for you since the value of your collection of pre-owned Hermès bags will go up again.

But if you’re wondering whether you should quickly stock up on Birkins, Kelly’s, Constance’s, and Evelyn’s, the answer is YES—now’s your chance to benefit from this increase because we all know there will be more in the future.

According to industry experts, the retail price increase means that you’ll have to increase the prices on your end too. And while we know you may be hesitant to raise prices because you’re afraid you’ll drive customers away, to make quotas and remain competitive, we strongly suggest you do. With inflation top of mind, an increase in transportation costs, and a decrease in manufacturing, you need to be properly compensated for your products, time, and effort. You must also keep up with the industry pricing trends.

Don’t forget, the holidays are right around the corner, and we’re here to help you source the best margins for your Hermès bags, clothing, jewelry, and accessories! Shop our Editor’s top Hermès picks here.