How should I price my art?

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Realm 7 - Profiting. More money in, less money out.

Realm 7 – Profiting. More money in, less money out.

 

Many artists have the same quandaries worthy of addressing here.

Although I wish I had simple pat answers to help bail artists out of their quandaries, sometimes I just don’t.

What I can do is provide is a fresh perspective.

quandary:

Hi Ann,

Would you be willing to describe how you priced your paintings when you just started selling? Or how would you price them if you were starting now?

I assume that since you were offering unique value, a lot more went into it than just looking at similar artwork in art galleries.

Thanks very much for your support in helping us all thrive!

Cristina

the way out:

Dear Cristina and (Artists Who THRIVE),

When I started selling my paintings, I was just selling paintings.

So, I did what artists do.

I looked around in art galleries and consulted with artist representatives to best determine comparable art and pricing. And this is a good place to start.

But those were the days when I was just selling art. Which, I do not recommend that you do.

What? Yes. You read that right!

The art establishment is cutthroat, over-saturated, incestuous, and nearly impossible to navigate.

There are a few rare exceptions but basically, it sucks.

“But Ann. Don’t you help artists increase their sales?”

Yes. I can.

And I can help artists increase their sales by helping them get out of the business of selling art and into the business of creating unique value above and beyond their art and selling that.

Do YOU like selling your art? Let me guess. “Ugh, no!” 

Exactly. Who does?

So. You should stop selling your art, immediately.

Just for fun. I paid to have my paintings appraised by a very reputable certified art appraiser here in San Francisco. He was one of the most unprofessional and rudest consultants I have ever met. His office was in his dirty house. And during the time he was charging me he took a appointment with his damn plumber! I can’t make this stuff up. I have a strong feeling that my reception would have been much warmer if I was a collector rather than an artist, even though I paid him the same amount. But I digress.

He appraised my paintings for almost half of what I sell them for. Which in a strange way, amused and delighted me.

Because I don’t sell my art. I sell unique value above and beyond my art.

That unique value is called meaning. Traditional art appraisals do not, and they can not, measure meaning.

Why do I do this? Because the amount I can charge for my art is no longer tied to the pricing factors baked into the primary art market.

Because I sell unique value above and beyond my art, I can eliminate the competition and charge more. And so can the artists who I have mentored.

Please note. I said unique value.

As soon as you borrow your uniqueness from another artist, you are not unique. You are a just a copycat. Your art is irrelevant, uninteresting, and not so marketable. So, don’t do that.

Unless you are participating in the scarcity and permission based art establishment, you are free to state your price.

Prices, just like paintings, are made up.

And that is why pricing is not the first part of my eight part methodology. It’s way down the line as part of Realm #7, “Profiting.”  You need to master the previous six realms before you get to the seventh.

Word to the wise. It’s better to start with lower prices than be forced to lower your prices. But do not underprice your work.

Test the market.

Just like making art, the skills required for selling art increase over time with experience. Eventually you will learn what the market will bare.

Missteps when Artists Operate from Scarcity

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vote_truth

I have an artist client that I have been coaching for quite some time now.  She’s invested in expensive and time consuming coaching.

To best define a lucrative Blue Ocean Strategy that will best serve this artist we have taken significant time and effort to analyze this artist’s:

  • strengths
  • weaknesses
  • values
  • interests

A Blue Ocean Strategy is a business model that offers a target market a unique value proposition therefore eliminating the competition.

Now, when an artist launches a new business, the artist cannot operate from the belief, “build it and they will come.”

Yes, as an artist, you own a business.  Unless you are a commercial artist or teacher with a JOB, you are also an entrepreneur.

An artist/entrepreneur has to build a new business and then let many people know that it even exists and what value it offers, over and over.

Then the target market will size up the business and decide whether or not “they will come.” The market will feel you out and see if they can trust you.

Your job: to be consistent and targeted in your sales and marketing efforts and to be persistent yet observant of results so that you can respond and make adjustments.

As an artist/entrepreneur, referrals will be your most important sales and marketing strategy.

We created a very clean and simple and elegant graphic identity for this client that effectively communicates her unique art education offering for affluent children.

What did my client do?  She tacked the word “HOUSE PORTRAITS” onto the existing logo. Huh?

That’s like sticking an advertisement for Michelin tires on top of an ad for Coke.

Whatever solid impression that logo made to prospects, it’s now been shattered.

Why did she do this?  “I’m trying to survive.”

Even though I’ve cautioned her about spending money on advertising, she did not consult me before she paid good money for a sign.  And because she’s paid for this silly sign she wants to use it.

No matter how much council I offer, how innovative the strategies we devise, or what experience I share, if an artist continues to operate from scarcity they will make missteps that will cost them money and opportunity and undermine their success.

Bottom line. Fear can kill success.  Courage can create opportunities.

How do I handle the “can I get a discount on your art” question?

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I’ve covered the “can I get a discount on your art” question before, but it’s apparent that it still haunts too many desperate artists so it’s worth covering again.

When a potential patron asks if you will offer them a discount you should say “no” or some form of “no.”

I can hear it now. “Well they are a good friend.” or “They are a repeat collector.” Yes. That’s nice. Shoot yourself in the foot, if you like.

“Good friends” don’t ask for discounts.

And if they are a repeat customer and you want to acknowledge your appreciation, fine. But do it in some other value added way, like complimentary shipping, framing, or installation.

Why do I put such a fine point on this? Because it is costing you money.

And collectors are already confused about what amount they are paying for art and why. Your lack of confidence can undermine theirs and that can compromise or squash the sale.

So have a price sheet of your art at the ready. A written price is not as easy to negotiate as the one you speak.

Art is a luxury good. Don’t forget it. During the recent economic downturn a number of luxury brands threw themselves under the bus when they desperately discounted to stay a float.

The Hermès Group, founded in 1837, didn’t dare. They took the long view. What happened to them? They’ve maintained the luxury market’s respect and they’ve gained significant market share.

An art consultant I know, who has dealt with hundreds of artists over the years, confirmed that those artists that allowed her to discount their art sold significantly less work than those who maintained a policy to never discount.

Take the long view. Build your brand. Don’t discount your art. In the end, it will be worth it because you’ll sell more art.

How do I price a work of art?

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price-is-right

How do I price a work of art? This is a question that too many experienced and beginning professional artists pain over.

Here are three steps to help you establish you pricing your fine art.

1.  Make a list of all of your fine art offerings and the prices.

Start with where we are now.  Make a list of each type of item you offer and the current price.

Make another list of your entire sales history and determine the current average price of you art.

Now ask yourself, “Could I expand or modify my offerings so that I create more value for a bigger price tag?”

When I started my business 5 years ago, I limited my original oil paintings to plein air studies of four sizes.  Two years ago I expanded and offered large scale commissioned oil paintings. The result?  The average sale for a commissioned painting leaped to $22,000 versus the $3000 I had limited my market to before.  True story.

I let the market decide and they decided that they were willing to spend 7.3 times more than what I was offering initially.

So think big.  Keep it simple.  And create options for collectors with added value and a bigger price tag.

2.  Complete an appraisal of your art.

Knowledge is power.  Just like appraising a house you have to look at homes with comparable value.

  • One place to start is to ask a number of gallerists or art consultants for an appraisal of your work.
  • Do some research yourself.  If you add more unique value then account for that. When you know the value of your work then you can convey that with confidence to your collectors.
  • Note.  The problem is usually that artists price their work too low, not too high.  And the price of their art is tied to their self confidence, not the market value.

3. Maintain the price of your art. Do not discount your art.

If you don’t maintain your price, don’t expect anyone else too. Have your options and prices clearly stated in writing, just like any sound business.  If you don’t want to talk about the price of your fine art  then just hand your prospects the price list.

A common problem with galleries is that they often discount.  I think this is an incredibly stupid thing to do.  I know. Tell me what you really think.

Choose numbers that are rounded.  Not $999.  Just call it as it is, $1000.  You’re not fooling anyone.

And remember, art is a luxury. It’s not supposed to be cheap or go “on sale.”

Who’s in your Circle?

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Your success can be measured as an average of those closest to you.

As you strive for more success you may find that some in your circle will prop you up and encourage your endeavors and some will try to bring you down.  They will do this sometimes consciously, sometimes not.

Let’s face it, most people do not possess the focus and courage required to be an entrepreneurial artist and your desires and new behavior can make them uncomfortable.

Based on my personal experience, my ambitions and successes intimidated some in my circle, made others jealous, yet inspired the rest.   Because of this I was faced with two difficult choices.  I could accept their negativity or release them.

I realized that while embarking on an ambitious life-changing goal I could not afford to be influenced by negativity.  So I fired some and I minded what I shared with others.

This is a difficult realization.  But I was more committed to my success and well being than I was committed to accepting the negativity of others.

And eventually those in my circle whom I fired were replaced by much more positive, successful, and like minded people.

As my artist clients determine their focus and experience success they are in a delicate state.  They want, and they deserve, encouragement and support.

But they find that some in their circle, friends and family, not only don’t offer this but they bring them down.

Life is short.  Accept or let go of those in your circle who do not support you and trade up.

Successful and positive people hang around with successful and positive people.

State Your Price – With Confidence

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Recently I was researching rates for a service.  And I felt like I was participating in a version of the game show, “The Price is Right.”

The providers I contacted offered a range of rates and some included the fact that they were negotiable.  Hmm. Negotiable?  It left me feeling, in two words, confused and hesitant.

I also noticed that their office phones where actually their mobile phones. How did they answer them?  Hello.  Not.  Hello, the name of the business and then their name and how can I help you?

Their email addresses were not associated with their domain but they were AOL and Comcast email account addresses.

A few of the websites were created from templates and they forgot, or they had not yet filled in, all of the webpages.

None of these unprofessional factors alone disqualified them but each triggered a response that left me with the impression that they were not all that professional.  And it left me asking myself, so what price is a fair price for their services and what and should I pay them, if at all.  As a matter of fact, I didn’t.  I stayed with the provider who was professional.

The results of their missteps made them appear to me as if they have a lack of confidence. Bottom line, our perception is our reality. And we don’t pay for anything without a certain degree of confidence.

So when you are selling your art, do you state your price with confidence?  Are your prices negotiable? Do you discount?

The fact is that as a painter I’m literally selling paint stuck on canvas.  So how I convey the value beyond paint on canvas is critical.  There must be confidence on both sides if I want to make a sale.

Don’t guess and don’t leave your prospects guessing about your price. Know your value, know your price.  Be professional. It will give you confidence and inspire confidence in your collectors.  The result, increased sales.

Balancing Creative Time and Business Time

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Salvador Dalí

 

So you know how it is, we have a huge “to do list”.  And all of these “to-dos” can easily become overwhelming.

In fact, I’ve noticed that when you ask people “How are you doing?, they often reply with, “I’ve been soooo busy.”  Is that our new greeting?  I sometimes think, “Well, are you too busy for me?  Maybe I should go?”

All of these “to-dos” can also encroach on our precious creative time.  My suggestion is to edit your “to-do” list by a very simple rule.  First, which of these “to-dos” are income-generating activities?  Then which ones are marketing activities?

Next.  Sort these income generating action items by how close they are to a path to cash.  For example: meeting with a collector is closer to generating cash then updating your eCommerce site. Right?  They are both important, but which one deserves your immediate energy and attention? If you don’t have an eCommerce site and you don’t have a potential collector to meet with, then you need to work on activities to launch  eCommerce site.

The next way to cut this list down is to examine which action items can be delegated.  Could this action item be handled by an intern?  A virtual assistant?

I expect all of my artist clients to maintain a calendar and that they budget their time as carefully, if not more, than their money.  Why?  Because you can make more money.  You can’t make more time.

This calendar also helps draw boundaries around creative time.  I find that I’m most creative and energized in the afternoon.  So after noon, on Tuesday through Friday, administrative and marketing activities stop and creative time begins.

I guard my creative time.  Obviously that’s because this is how I want to focus my life force and so that I can create an art inventory of quality.  And so that I can generate revenue and keep painting.

My creative output also cuts a path to valuable intellectual property, a la reproductions.  And intellectual property is an asset that generates income that does not have to be traded for time.  And that is the best and the fastest path to cash.

Should I Discount my Fine Art?

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“Should I discount the price of my art?”  Uhmmmm.  Let me think about that.  Ah, HELL NO! Original works of fine art are a luxury item.  And discounting your luxury product is the very best way to shoot yourself directly in the foot.  And when you do this that bullet ricochets and can hit the entire art market.  So, if you’re discounting: Cut it out! Or stop complaining that you don’t make enough money.

Oh, I can hear it now. “I have to discount.  We are experiencing a deep recession, don’t you know?”  “Yes, I do.”

I recently attended a presentation sponsored by the San Francisco Luxury Marketing Council reviewing current luxury market data and trends.  I almost jumped out of my chair with glee when the presenter confirmed that the one category of luxury where sales have actually increased during the current recession is, you guessed it, fine art.

So there.  You have no excuses to discount your luxury product, besides a lack of marketing and negotiating skills.  So let me offer you a couple of useful tips.  If you maintain a range of offerings, at different price points, you can often redirect your prospects to the choices that work within their budget.  My price points currently range from $5 to $39,000 and everything in between.  If you don’t have $5 to spend on my art, then I can’t help you. And I can live with that.

If redirecting a prospect doesn’t work and they press me for a discount, I maintain a handy reply.  “My prices are about to be adjusted upward, so now is actually a good time to buy.”  The looks on their faces, “priceless.”  No pun intended.

My former art rep in LA confirmed that those artists who she represented, who did not discount, consistently experienced a significantly higher sales volume.

So take your power back! Build your brand. Don’t discount it.