how to score a deal on louis vuitton purse in paris

Louis Vuitton strictly controls price. You are never going to find it on sale at Neiman Marcus or their own stores. And an item will never go down in price once it has gone up. So how do you score a deal? Shop in PARIS! What better excuse is there to go?

Here’s my How-To guide on snagging a deal on an authentic Louis Vuitton purse:

Step one: Pre-shop online at louisvuitton.com. Choose the handbag or wallet of your desire. If you are geographically close to a store that carries Louis Vuitton, go check it out in person; nothing beats seeing, feeling and weighing the goods in three dimension. Let’s use my well used and beloved Neverfull GM as example. Note: when I purchased this a few years ago, it did not come with the pochette and was cheaper.

Step two: Comparison shop on louisvuitton.com. What, how, why you ask? louisvuitton.com is only the international font page, directing the user to choose her country to view the “real” homepage. Instead of clicking on USA as done previously, click instead on France. So you don’t read or understand French? Neither do I. But the different country pages are laid out the same and you can follow the same path to navigate as you did on the USA site to the selection of top handle handbags or small leather goods, whatever you choose. Once you’ve found the same purse, Neverfull GM, jot down the price in euro and compare the prices. Louis Vuitton has set different prices for different regions. France is cheapest, other European countries are slightly higher.

Step three: math! The Neverfull GM in US retails for $1,340. Then you add sales tax. Unless you are one of the lucky few living in the four states (Montana, Oregon, New Hampshire, Delaware) without state/local sales tax, the rest of us in the other 46 will have to cough up even more dough to get our hands on a coveted LV canvas bag. For me in Los Angeles, that is additional 9%. Grand total price: $1,460.60.

US

$1,340 x .09= $1460.60

In France, the retail price is 880E. At current exchange rate of 1.38E to $1, the price in dollar is $1,214.40. As you can see, the retail price is already $246.20 cheaper. But wait, it gets even cheaper. In Europe, retail prices already include what we call sales tax in US in the form of VAT (value added tax). And as a non-resident foreigner, we get VAT back when we leave the European economic zone. In France, VAT is 20%. That is an additional 20% discount of $242.88 for a grand total of $971.52! Unfortunately, we aren’t going to get the full 20% refunded. The companies that run the refund services take a cut of 6-8%. So your refund will be closer to 12%, not the full 20%. And by the way, the refund will not be credited back to your card for 2-3 months.

FRANCE

880E x1.38=$1214.40

$1214.40 x .80= $971.52 (price minus full 20% refund)

$1214.40 x .88= $1068.67 (price minus likely 12% refund)

GRAND TOTAL SAVINGS: $391.93!

Other things to consider:
1) Shopping limits. Luxury stores like Louis Vuitton and Chanel typically limit the number of purses one person can purchase in one transaction. Don’t be shocked to be approached by a desperate Chinese tourist outside one of these stores begging people to buy a bag for them because of this rule. So don’t take all your friends’ and their friends’ shopping orders when you go because you will not be allowed to buy more than two per transaction.

2) VAT Refund. To collect a refund on that precious 20% VAT, you will have to physically show the goods are being taken out of the country at the refund office at your departure airport, typically located past where your luggage was checked in. So if you bought a purse and securely tucked it away in checked luggage, you aint getting any refund! And, technically (or more correctly - legally), when you re-enter US, you must fill out the customs paperwork where you are to declare the total value of goods purchased abroad. Typically US citizens are entitled to bring back $800 worth of duty (aka tax) free goods. Otherwise, you could get fined taxes upon return home.

3) Credit Card. Many credit cards charge foreign transaction fee of 3%. You didn’t work this hard to have your savings diminished by a credit card company. Many cards, like Chase Sapphire or Capital One, do not charge any foreign transaction fees. Check with your company before leaving or get a new card (and the signup mileage bonus could help you make a return trip to Paris).

The deal you got will make your precious handbag even more endearing.

p.s. Go to the main Louis Vuitton store on Champs Elysees for the full effect and bask in your shopping triumph afterwards with tea and macaroons at Laduree just down the boulevard.

p.p.s. The Louis Vuitton building next to La Samaritaine at Ponte Neuf is not a retail store but their office headquarters. I found that out the embarrassing way.