How much would you spend on a handbag/tote/satchel?

I really want this Linea Pelle tote bag, but it's $260. It's a really good deal because it's on sale and used to be $435. I'm just soo indecisive! I have the money, but I've never spent more than $100 on a bag before and the idea of spending more than that just seems a little insane to me. Do you think that's a lot for a bag? How much would you spend?