June 29, 2009

The ACE Newsletter

Pricing your artwork is a major topic among artists and our ACE guest contributor Kim Santini has an excellent article on the subject! One thing that she emphasizes is to be honest about what you are creating and research and accept the comments of a third party who can impartially offer a critique of your work. Be in tune and logical when selecting someone for advice. Bear in mind that if your third party is an artist, make sure that artist is someone who is successful and has a proven track record of sales! Many artists create beautiful work that may be appreciated by another artist but not necessarily appreciated by the buying public! We have all seen artwork that we would not buy personally yet the artist's work is in demand. There is a lesson in observation and your pricing is no different!
Enjoy Kim's article on Pricing your artwork and as always, comments and insights are welcome.

Pricing Your Artwork

by Guest Contributor Kim Santini

 In earlier articles, I addressed defining initiative, realistically assessing the compromises and emotional realities of turning artwork into a commodity and taking a serious look at the initial expenses of running a studio. It stands to reason that the next logical step in defining your studio as a business is determining price points.

 There is no formulaic approach for this. Some artists price by square inch, some factor in their materials cost. Some artists track hours invested in a piece and charge a rate based on that. Some artists price based on their perception of the pieces' merit. Others use a complex relationship of size and hours and cost. Google "pricing artwork" and you will be astounded at all the advice available (and while you are at it, take a minute to read Robert Genn's 10 Commandments of Pricing Artwork, which is invaluable - http://clicks.robertgenn.com/letters/2004/robert_genn_letter_040217.htm).

 But where do you start? How do you determine what the market will carry, where your work fits in among that market, and what your potential customers are willing to invest? You have to do some research. Thankfully the internet makes that process accessible for anyone with a computer, but it will take an investment of time.

 Start online. Find artists who are working in a similar vein as you (google subject matter/media/professional affiliations/exhibitions/etc and track back to their websites and contact information). Identify those who are at the top of their game, those who are just beginning, and those at several middle points. Strike up a conversation with them and ask about their pricing strategy. Explain that you are just starting out, and looking for some guidance in establishing your own price points.

 It's important to also pay attention to their sales - after all, the purpose of pricing properly is to induce sales. You don't want to model your own prices after an artist who has priced so low that they cannot keep up with demand nor do you want to aspire to be an artist with an unrealistic view thusly pricing themselves completely out of reach.

 Visit galleries whenever possible. Talk to the staff - ask them who their selling artists are and why. Make notes about who is selling, how experienced they are, and what their price points are.

 Talk to your artist friends and colleagues. Ask them the same questions.

 Talk to collectors, friends and family members. Who are they buying work from and how do they feel about it? Research those artists and learn about their pricing strategies - then compare their work and career to yours.

 After you've done your research, you will be able to place your work within the context of media, subject matter and skill level. You will see where you stand or rate alongside the artists you have looked at. This will then identify your price starting point or range.

 So let's say that you have learned the market will support sales of similarly painted 8" x 10" artwork at $99 each. How many hours will it take you to complete an 8x10? Can you afford to sell it at $99? How many 8x10s will you need to sell at $99 each in order to meet your budgetary needs (remember you've already identified what your estimated costs will be in the prior two articles)? How many hours will it take to create the total number of paintings you need to sell each month in order to meet your budget?

 Obviously, this exercise is for estimating purposes only. In the real world, there are many other factors that come into play when calculating, measuring and projecting sales. However, if you are wanting your studio business to be profitable, you need to identify your break even point before you even get started. This will allow you to make adjustments well in advance of being backed into a corner.

 For example, let's say that you invest 10 hours on creating an 8x10 painting. Selling it at $99 probably won't allow you to be profitable. Assess the situation before you quit the day job!! Do you modify your painting style so that you have 5 hours of time per piece? Do you enroll in classes that will help improve your skill set so that you can produce the same quality artwork in lesser time? Do you focus on creating smaller works that take 3 hours of your time that you can then sell for $69?

 When examining all of the above it is of utmost importance that you do so honestly. If you cannot critique your own work within the context of your peers, than ask for assistance from a trusted third party - again, choosing someone who can be analytical and truthful (remember, we talked about the fact that as a working artist you will regularly hear critical and sometimes painful truths about your work).

 For that matter, be brave and enlist the help of a qualified third party regardless of whether or not you are capable of looking at your work with critical eyes. Second and third opinions never hurt - it's key to have an understanding of multiple perspectives even if you don't agree wholeheartedly with them.

 It's true that the majority of the time emerging artists' art will be priced more affordably than that of an established artist, but at no point should an emerging artist be "bargain basement" priced. It is much wiser to price work competitively and intelligently so that clients will be enticed to buy, respect and love their purchase. Consequently they will be willing to grow with you (and continue to buy) as your career blossoms.

 This process I've outlined above will allow you to rationally avoid grossly underpricing. You've seen grossly underpriced artists - those who are selling original artwork at rock bottom prices. I've spoken with a few - the premise is that they are just starting out and need to drive business. The logic seems sensible - affordability should equate to more sales. But that applies more easily to purchases of things like gasoline or cereal. It doesn't apply to luxury purchases, which artwork falls within.

 It is difficult to define a painting's perceived value when it is priced less than a framed print at Walmart. Make no apologies for your asking price - you've earned that money through years of honing your skills. Look your customer in the eye and tell them your prices are only going to go up as your career advances.

 Respect your product, respect your talents, respect your time - and price things accordingly. You'll find that your customers will share the same respect.

 Finally, completing your research properly will give you the ammunition and information needed to have honest dialogues with potential clients. It will also allow you to make intelligent business decisions when steering the direction of your studio. And the entire research process informs you about the art market - your particular corner of it - while it also provides a great opportunity to begin building your network of colleagues and friends.

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