How price of leather is determined? A Concise Guide to 7 Factors

Leather is a timeless material and is often more expensive than its artificial counterparts. However, its luxurious feel and durability make it worth the price, ensuring that leather is a one-time investment. The leather price trend for products fluctuates, but have you ever wondered why leather is expensive or what determines the price of leather goods? Are they always expensive? In this article, we will discuss the various factors that play a role in determining leather prices and leather goods.

After reading this article, you will have a good idea about leather pricing, enabling you to make better decisions when purchasing leather goods.

Why leather is expensive?

Well leather commands a higher price as compared to other fabrics but it’s not always the case as sometimes we can find some good leather products at a much cheaper price, even cheaper than the artificial leather goods. The price of leather and its variation depends on various factors such as place of production, origin, and many more but major factors can be the quality and type of hide.

We have seen many cases where a leather item bears the “Genuine Leather” tag and indeed contains leather, yet the price is very cheap. This happens because not all leathers are produced the same, and the term “genuine leather” doesn’t provide full information about the type of leather used. Moreover, it is just a broader term for all leather products.

Factors that impact leather price

Various factors, from production to market, impact the price of leather and goods made from leather. Here is an overview of these factors:

1.| Quality and types of leather

One of the major factors that make leather expensive is its quality and type. Generally, there are four types of leather, known as grades of leather: Full Grain, Top Grain, Split Grain, and Bonded. They all contain leather, which is why they bear the tag “genuine leather,” but they are not the same at all, and their prices can vary significantly. Full Grain leather is the highest quality and the most expensive leather type, while Bonded leather is the lowest quality and is priced the lowest.

Hides are separated by grades, which are determined by a thorough inspection process. The grade also depends on which part of the animal hide is used. For instance, cowhide from the back of a cow or bull is considered the highest grade.

2.| Production method

The second biggest factor that plays a role in determining the leather rate is the production method and tanning process. There are many methods of leather production, but generally, two types of methods are commonly used, and they can make a big difference in pricing. These methods involve special treatments and tanning of the hide. For instance, some leathers are coated with a glossy finish.

The two commonly used tanning methods are Chrome Tanning and Vegetable Tanning. Chrome-tanned leather is tanned with chromium salts and can be done almost anywhere without any location restrictions. Leather produced by this method is comparatively cheaper than vegetable-tanned leather, which employs natural tannin agents derived from tree bark and is a time-consuming process.

3.| Origin of hide

The origin of the hide also plays a significant role in the pricing of leather. It’s not just the type of animal skin that’s taken into account, but also where and how the animal is raised, and its overall health. Factors such as the animal’s life and the manner in which it is slaughtered are also considered.

For instance, animals raised in colder climates tend to have fewer surface flaws in the leather. If they are fed organic foods, the quality and strength of their hide are typically higher, commanding a higher price in the market.

On the other hand, animals raised in poor conditions, with surface flaws like insect bites or branding marks, or fed with feed containing artificial hormones, will typically result in cheaper leather.

4.| Location of tannery

The location of the tannery is a significant factor in determining the cost of leather. Different states or countries may have variable taxes, and the cost of living and operating can also vary with location.

Moreover, the availability of raw materials, such as raw animal hides and tanning agents, is a significant contributor. For instance, a tannery located near a slaughterhouse will have lower transportation costs for the skins. In the case of vegetable-tanned leather, natural tanning agents should be available near the tannery to keep costs low.

5.| Market demand and trade

The location of the tannery is indeed a significant factor in determining the cost of leather. Different states or countries may have variable taxes, and the cost of living and operating can also vary with location.

Additionally, the availability of raw materials, such as raw animal hides and tanning agents, is a significant contributor. For instance, a tannery located near a slaughterhouse will incur lower transportation costs for the skins. In the case of vegetable-tanned leather, having natural tanning agents available near the tannery helps keep costs low.

6.| Branding and marketing

Branding and marketing by various brands can indeed be another important factor when determining price tags on leather goods. Luxury brands such as Hermes, Louis Vuitton, Gucci, Prada, and many others can command hefty prices due to their brand reputation, which doesn’t come cheap.

Furthermore, marketing strategies employed by brands can also affect the price. For instance, the additional costs of expensive billboards and telemarketing ads can ramp up the price of leather goods.

7.| Additional costs

Various other miscellaneous costs can indeed be added to the final cost of leather and leather goods, such as import-export tariffs, especially in the case of exotic leather, and various regulations imposed on the leather industry.

The leather industry is highly regulated to ensure that hides are sourced ethically and production processes follow the standard operating procedures (SOPs) suggested by authorities. This adherence to regulations ultimately increases the production cost of finished goods made with real leather.

Conclusion

In conclusion, when asked about my thoughts on cheaper leather alternatives, I would say that real leather holds a special charm that cannot be replicated by any artificial material. Leather’s natural essence and the uniqueness of each skin give it an irreplaceable character. While faux leather is a cheaper option, can it replace real leather? In my view, nothing can replace the authenticity of natural leather.

However, a common question remains: Why leather is expensive? Are real leathers worth the price? In my opinion, the answer is definitely yes. Considering all its qualities and the craftsmanship that goes into making it, animal leather is worth the extra investment.

For more information on leather products, you can check our other articles or you can contact us. LeatherBlues is known as one of the best stores for real leather products. Explore our amazing collection of leather garments and services.

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