I wish to have an expandable bill fold wallet. do u have design one?
every pocket isexpandable with a folded side.
Two Hermès Wallets: One for €855 and One for €1850—What's the Difference?
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Time to read: 6 min
Luxury brands like Hermès are known for their exquisite craftsmanship and premium materials, but sometimes, their price tags can leave us questioning what exactly justifies such huge differences. Recently, I had the opportunity to visit the Hermès store at Milan Airport, where I found myself in just such a situation—facing two wallets with very different price tags. One was €855, and the other? A whopping €1850. I was determined to figure out why.
In this blog, we will answer the following questions:
- What are the key differences between the two Hermès wallets priced at €855 and €1850, and how do these differences impact the pricing?
- How does the time and craftsmanship involved in saddle stitching contribute to the high cost of luxury leather goods like Hermès wallets?
- Do you think offering a hand-stitched version of PEGAI's Malcolm wallet at $420 would appeal to customers seeking high-quality craftsmanship?
What's Inside?
The Initial Comparison: Fabric vs. Leather Lining
The first wallet I picked up was priced at around €855 (close to $900), which I thought would be a perfect candidate for my review series. But then, I spotted another wallet. When I asked the sales associate about its price, she casually mentioned it was €1850, which is over $2000! That made me pause—how could two wallets, both small, have such a massive price gap?
I asked the sales associate for more details. She explained that the cheaper wallet had a fabric lining, while the pricier one was fully lined with leather. Additionally, the more expensive one featured a small 'H' stitch on the corner. Now, as someone who designs and makes wallets myself, I knew there had to be more to the story because, in my experience, these two factors don't justify a €1000 difference.
The Real Cost of Leather Lining and Stitching
I’ve personally designed wallets with both fabric lining and full leather lining. The price difference between the two? Around $20. Leather is pricier than fabric, yes, but not by hundreds of dollars. So, this couldn’t be the main reason behind the massive price difference.
But I wasn't done investigating. That’s when I noticed the word "Sellier" on the more expensive wallet's online listing, which means "saddler" in French. A lightbulb went off in my head, and I zoomed in on the images of the wallet. Some parts of the stitching looked like they could be done by hand, but I wasn’t entirely sure.
@tanner.leatherstein 2 Hermes Wallets; €855 vs €1850—what makes the €1000 price jump? 🧐 #luxuryleathergoods #tiktokfashion #leatherwallet #walletok #hermes #tannerleatherstein ♬ original sound - Tanner Leatherstein
The Saddle Stitching Revelation
So, I called up my friend Peter Nitz, an expert in saddle stitching and Hermès craftsmanship. He confirmed my suspicions: the more expensive wallet was partially hand-stitched using saddle stitching. Now it started to make sense.
Saddle stitching is an incredibly time-consuming process that requires expert artisans. It’s a hallmark of traditional craftsmanship, and I know firsthand just how much effort goes into it. For example, my Malcolm wallet has about 130 centimeters of stitching. With a machine, I can get the stitching done in six to eight minutes. But when I hand-stitch, it takes me about 90 minutes—over 10 times longer!
Breaking Down the Pricing Math
With this new insight, I began to understand Hermès' pricing a little better. When I calculate my own wallet prices, I use a 3X cost multiplier. So, a fully leather-lined, machine-sewn Malcolm wallet costs me about $60 to make, which means I would sell it for around $180. If I were to hand-stitch that same wallet, the cost would jump to about $120, pushing the retail price to $420.
But Hermès operates on a much larger multiplier—around 13X, in my experience. That €80 difference in crafting costs between machine stitching and hand-stitching suddenly balloons into a €1000 price difference once it reaches the sales floor. It’s a massive markup, but that’s how luxury pricing works.
The Final Verdict: Is It Worth It?
Now that I understand the reasoning behind the €1850 price tag, I appreciate the craftsmanship a bit more, but I ultimately decided to pass on both wallets. For me, the value just wasn’t there, especially when I know how much work goes into creating a high-quality hand-stitched product.
The moral of the story? If you ever find yourself in a similar situation, make sure to ask about saddle stitching. It could explain the big price jump between seemingly similar products.
Should I Offer a Hand-Stitched Wallet?
As someone deeply invested in leather craftsmanship, I know there’s a special kind of satisfaction that comes from owning something hand-stitched. It’s a level of quality that machine-made products just can’t replicate. That brings me to a question I’d love to get your thoughts on: should I offer a hand-stitched version of my Malcolm wallet at around $420?
Let me know what you think!
Want to read more?
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To submit your product, please complete this form. Once submitted, we'll review the details to determine if your product fits our project. If accepted, you'll receive an email within seven days. In return for your donation, we’ll send you a free product from our PEGAI catalog, and all information provided will be kept confidential. If not selected, you’re welcome to submit other products in the future.
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About Tanner
Tanner Leatherstein
Known as the "butcher of leather bags," Tanner has amassed over 2 million followers and 301 million views, with features in outlets like The New York Times and Financial Times. PEGAI, Tanner's brand, embodies his passion for crafting premium leather goods with unmatched authenticity and precision.
Comments
I wish to have an expandable bill fold wallet. do u have design one?
every pocket isexpandable with a folded side.
Sure!!.. Why not have that option to offer a hand-stitched wallet for $420. You will always find people with different tastes and appreciation for good quality and craftmanship, as people who could care less to own a leather wallet because of their personal convictions. Beside, $420 is a very reasonable price for the top quality you offer in comparison to a designer brand as Hermes that sells just hype and status which is just a meaningless state of mind.