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

NIB CHANEL NAVY BLUE DISTRESSED REISSUE METALLIC CLASSIC DOUBLE FLAP 227 JUMBO US $3,799.00   Auction Ends: 6d 13h 35m Make it yours...

Chanel Grey 255 Reissue Quilted Classic Leather 227 Flap Bag with DK Silver HW US $4,350.00   0 Bid Auction Ends: 15h 56m Make it yours...

CHANEL $3650 10P Quilted Black Caviar REISSUE 227 Flap Bag US $800.00   35 Bids Auction Ends: 1d 17h 56m Make it yours...