If you've had your eye on a Chanel handbag, now might be the best time to take the plunge. The industry is buzzing with the news that the French fashion label will increase its prices by a whopping 20% on August 1.

Apparently Chanel is concerned that it's becoming a "main street" brand like "Louis Vuitton," when it would much rather have the exclusivity of Hermes.

The brand doesn't seem concerned about turning off its loyal customers, but after looking at all the price hikes we've seen in recent years I would be. Consider the 227 Reissue bag pictured. In 2008 you could pick one up for $2850, while today it's priced at $3600. If the rumors are correct, in a few short weeks we'll see the same bag priced at a whopping $4100. A 40% markup in just two years seems pretty outrageous to me!

So will higher prices make Chanel more appealing, or will it simply see fans flocking to eBay? I guess we'll have to wait and see!

[Source: Fashionphile]

Chanel 227 Reissue Bags on eBay

Chanel Black 255 Quilted Classic Patent Leather Reissue 227 Flap Bag US $4,200.00   Auction Ends: 26d 15h 58m Make it yours...

CHANEL Leather 255 Reissue 227 Jumbo Flap Bag Black CC US $3,695.00   Auction Ends: 25d 20h 44m Make it yours...

Chanel White 255 Reissue Quilted Caviar Leather Classic 227 Jumbo Flap Bag US $2,258.00   Auction Ends: 22d 12h 19m Make it yours...