Here are highlights of the fourth chapter of the book “How to Survive and Prosper as an Artist”.
(Take note that the author’s base is New York. We welcome inputs on the local situation.)
1. Recognize the value of your time and your talent. The goal is clear: to derive a decent income from doing what you like doing best. Fear-based thinking is responsible for the difficulties artists have in establishing prices for their work. It has everything to do with self confidence and a willingness to defend your prices and take some risks.
2. Many artists tend to undervalue their work, with the belief that their careers haven’t measured up to the criteria necessary to justify charging higher prices or a fear that by setting prices that compensate them fairly, their work will not sell. But when artists set low prices on their artwork, it is a public declaration of their insecurities and lack of confidence.
3. Some dealers believe the myth that the work of unknown artists has little value.
4. You need to consider and integrate three factors: pragmatic pricing, market value and confidence in the price you set. Pragmatic pricing includes the time you spend creating work, conceptualizing and developing to completion. It also includes cost of overhead and materials. Include studio rental, utilities, professional fees, transportations, documentation and materials. Assign an hourly or weekly value to your time. Include too sales commission.
5. Large out-of-pocket costs should be deducted before a dealer’s commission is calculated.
6. Find work that is allied to your own and also compare their career levels to your own.
7. Set a value well above the price you actually want. This way there is bargaining leverage for any discount.
8. A price list should state the name of the artwork, medium, size and retail price. A dealer’s commission is generally based on a percentage of the retail price. Large overhead expenses are separated out on the price list so that an art dealer is not paid a commission on your overhead.
9. Agree to a joint discount with dealer or gallery only if either the client has previously purchased your work and/or the client is simultaneously buying more than one piece of your work.
10. Set the same high standards for pricing works as you do for creating the work. Do not be afraid to negotiate.
