Is this why Hermes is so expensive?

Not the silly overpriced scarves and bracelets, the actual leather goods that made them famous.  Photo gallery here of the Hermes workshop.

It takes an average of 48-hours for a master craftsman(or woman) to complete a Hermes handbag.  Unless you're someone I know who thinks that's only a couple days cause people should work 24-hours/day (yes, many people, even the smart ones, sometimes lack common sense), chances are you'll realize that each bag takes more than a full week to complete.  That's a lot of time spent hand crafting a piece of leather good.

More details about the Birkin construction here.