How To Price Your Artwork — Part 2
Article of interest: How To Price Your Artwork — Part 1
Continued…
Number 3: Where are you going to sell your artwork?
We’ve talked about finding a price that satisfies your financial requirements and we’ve talked about the necessity for having a bit of flexibility within that price to accomodate less than ideal situations. Now let’s talk about where you’re going to sell your work, because where you sell your work is also going to have an impact on your prices.
The classic lifecycle for an artist dictates that artwork finds its way to an art gallery or comparable venue for sale. Most, if not all, require some kind of stipend for brokering your work. You make the work, they sell it and the two of you through your partnership prosper together. You’ve got the goods and they’ve got the network to move it.
Some galleries will ask for at least 30% of the selling price as payment. Most will ask for a full 50% of the selling price. This is standard.
What!? 50%!? Yep. But look at it from their point of view. They’ll host your work in their gallery, a gallery which has to pay for electricity, water, heat, staff, rent, land taxes, etc. They’ll also probably be covering the cost of an opening night which will include food and drinks and possibly entertainment. They’ll be promoting the show which is an additional cost and, let’s not forget, they’ve got the contacts to sell your work. All of these expenses will be covered by the gallery and that’s why they ask for 50% of the selling price.
To put this in perspective, I chatted recently with Thomas Barbey, a gallery owner who runs his shop from a building on the shores of one of the Hawaiian islands. He told me his overhead was $60,000 American… per month! That’s the amount he has to make before he even sees a profit. That’s more money than I’ve ever made in one single year, and he needs to make that every month just to break even. Suddenly 50% doesn’t seem like very much, does it?
There is a way to combat this though…
I received some advice from a graduate student when I went to university and I’m going to give it to you now. When pricing your artwork to sell in a gallery take the amount of money you wish to receive from its sale… and double it. That’s right, double it. Take your $1000 painting and make it a $2000 painting. This way, when it sells, the gallery will take $1000 and you’ll get the $1000 you want as well. Everybody wins. That’s not too tough, now is it?
There is a fly in the ointment though. Again, you may be facing a situation where your customers don’t want to pay $2000 for your work. Chances are when entering into a contract or show with a gallery, they’ll tell you what can be reasonably asked for your work. You may have to engage your financial flexibility once again to make a sale. It’s not the ideal situation but there is an alternative to going the gallery route.
Sell your work yourself. Nothing is stopping you from selling your artwork directly. Direct sales will allow you to keep the price down. You won’t have to mark it up by 100% to satisfy a gallery. You can ask for your original $1000 and assure your customers the very best price when they purchase from you. Every penny you make will be yours and yours alone. Job well done!
The pitfall with direct selling is that it’s a lot more work than you might think. When a gallery hosts your work, they’re set up for it and they handle everything. It’s in their best interest to sell your work. That’s how they make their money.
You on the other hand will have to work hard to accomplish what they already offer. There’s market research, advertising, marketing, etc. You’ll have to set up a website, maybe start an e-mail campaign and get a client list together. You’ll probably have to do some socializing, get to know some people, hold a few hands, take a few meetings. The convenience offered by a gallery may be worth the mark up in the long run. All the while that you’re trying to sell Art, you’re not making it. There are alternatives though.
Outside of yourself, there are many other opportunities to show your work without having to mess around with your pricing. Many restaurants and cafe’s will show your work for nothing. They get your artwork on the walls to suit their atmosphere and clientele and you get a venue to show it. Bakeries, eateries, local shops — all may have a showing opportunity with no direct effect on your pricing. There’s probably also open house festivals and house dressing projects that will gladly show your work without asking for a penny. All are opportunities for you to sell your work at your original asking price. In the end, making Art as a living has to become a business and it’s in your best interest to make it the strongest business it can be.
I hope you’ve found these articles on pricing your artwork helpful. I can’t stress enough how important it is for you not to give your artwork away for a song. Always remember to set your prices according to what you want. If some price fixing has to be done after the fact, cross that bridge when you come to it. If you can’t get a good price for your work, don’t sell it! It’s okay to wait. Another opportunity will come along. Sometimes that’s the price of making Art. Sorry, I couldn’t resist.
For now, that is all. Goodnight.
Article of interest: How To Price Your Artwork — Addendum
