This is a question that I ponder all the time.  And in short, Sam and I tend to think that we have something for everyone.  Yes, we know that a majority of the purses that people purchase are less than $50. However, other than saving more money for one's self, that $50 has little to no additional benefit (locally or regionally).  I've done a lot of research into business models, and they are as important for consumers to understand. 

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First, there are two types of enormous business models.  There are generic bags designed and produced inexpensively overseas to create a $50 value purse with little of its value helping local communities. The second type are generic designer bags produced in nicer overseas facilities, with better leather (but not always the best leather -- particularly if they spray paint it with a logo).  Think about this for a second, why would anyone cover up a premium leather with an acrylic paint?  These fetch high dollar based on the logo, name, and company history, but they do little to help local economies.

Second, there are American companies and in-house design teams that have their products produced en masse in a country with lower labor costs.  They boast an American company (but not an American made product).  I find that the costs for these purses are typically directly linked to where the company is located (L.A. companies charge far more than Texas companies). 

Finally, there are American makers (like us).  We design our products and make them one at a time.  Even in this model, we are odd exceptions.  First, we use no additional help.  Second, we use no pre-made patterns that one can buy on the internet for making totes and wallets.  Third, we hand-stitch each and every item.  Our method is the slowest yet most meticulous.  Our prices are nowhere near that designer in France.  We are our own customer service and sales department.  And an amazing percent of the money spent on a great, handmade purse stays local and in the U.S.