The pricing of original art can be quite perplexing, both for the artist and the collector. These are one-of-a-kind items and art can be deeply personal both to the artist and to the collector. How much it is “worth” (monetarily speaking) is more dependent on some combination of the number of potential collectors interested in the piece (and their respective financial freedom) as well as some factor of the attachment and/or satisfaction the artist has with the piece than what any formula can calculate. And while art may be considered a necessary means to feed the soul, original art is still a luxury item and the artist would be remiss to mark the final price tag solely based on the material, labor, shipping, selling fees, overhead, and profit margin like other marketplace products. Experience (which you might think of as an artist’s hourly rate) and magic (the spark that happens when a work of art truly captures the spirit of the artist, the intent, and/or the viewer’s imagination and expectations - either purposely, or even accidentally) are difficult to factor into pricing decisions.
So, while I will “run the numbers” on many of the items I sell (note cards, calendars, magnets, etc.), I don’t typically look at a traditional cost breakdown for my original art (which is also why I rarely can answer the “how many hours did that take you?” question I am often asked.) The marketplace value doesn’t actually care what these numbers might tell me or how many hours I put into a piece. Also, as a painter, since I reproduce my art images in other forms I have potential earnings beyond the sale of the original art. (There are exceptions, however, like when I’m running a promotion or event and I want a better sense of the overall success to determine whether it’s worth doing again. As an example, you can see the actual numbers in a sample pricing process based on my Great Backyard Bird Count Auction for your consideration at the end of this post.)
Let’s take a closer look…
What is Market Value?
I find this evaluation can be different for every artist you meet, depending on their personal perceptions of value and how long an artist is willing to hold onto a piece to achieve a particular price. It is also why artists who have a trusted relationship with a gallery definitely benefit from that relationship. A good gallery, through their experience working with artists, participation in art events, and their relationships with their clientele, will have a great sense of what an art piece will sell for and traditionally can garner a higher price than the artist could directly. However, with typical 50% commission rates and a decline in quality smaller & midsize galleries1, as well as the growing popularity of online venues and marketing platforms - more artists have been choosing to sell directly to the public2. And with the pandemic, I see this trend escalating as many artists have been forced to create and/or expand their online platforms - myself included.
While my art career has generally been a result of direct sales to customers via in-person art shows and festivals as well as a few online platforms, I have also contributed work to gallery shows over the years. Though never being “signed” by a gallery, I still try to respect their work and relationship to the art community and keep my pricing at a level that I could show at a gallery for the same price I list it. In most cases, that figure is probably somewhere between what a gallery would typically charge if they priced it themselves, and what I would choose to charge to reflect the time, materials and experience I put into a piece. And while my work certainly doesn’t garner huge auction house prices, I am happy with my modest earnings - which is another component.
In the end, determining market value comes down to:
(A) experience - knowing what other similar pieces sold for, looking at what other artists in the same medium and genre sell their work for, finding the right market and audience, and understanding the actual professional experience/name recognition of the artist
and (B) a little magic - will the art captivate its audience, and will the piece be one of the lucky coincidences where it just happens upon the right person at the right place at the right time?
and (C) one more lesser considered component: sustenance.
Setting a price to sustain my art making
I actually had a family member show up to one of my three day outdoor art festivals where I travelled 500 miles (round trip), rented a van for transporting my work, spent 6 hours setting up a beautiful display (and afterward, 3 hours to take down), and 3 days of lodging and food actually suggest that if I made enough at the show to buy my family a dinner, isn’t that enough?
It was the naive idea that us “artists” are just trying to add a little extra spending money to the family budget which is provided by “real” jobs in a different industry or by a spouse.
Well, I explained (most likely not so elaborately or well), even though I like a good meal out with the family as much as the next person, it is not enough to sustain an art career. This is my livelihood. I have devoted years to an arts education, understanding and practicing my craft, and continually reflecting on and refining my art to a professional level - and I deserve to be paid as a professional. I am grateful I’ve been able to do so over the years, thanks to amazing supporters and a lot of hard work and determination. (Of course, as with any profession, there is also that luck factor - you know, e.g. when you give a great interview at the right time or bump into a friend of a friend who knows of a perfect job opening, or when someone encourages you to take that opportunity or chance and, in my case, when all signs seemed to be pointing me down the path of an artist’s life at a time when I desperately needed a new direction.)
While I have been very lucky over the years, I also started my working life like so many people - entering the work force at 18 with my first (non-babysitting) job at a Dairy Queen for a summer before college. I then went on to work multiple simultaneous jobs while in college (from dishwasher to lifeguarding and canoe rental to clerical and light bookkeeping work, and even as a nanny for a short time). Out of college, I signed up for office temp jobs which managed to find me quality permanent employment twice over the years - even if it was not in my educational field (fine art). At one point I was offered an art teaching job but decided to continue down a path of working my way up from temporary receptionist to MIS Manager instead - an interesting and often creative, yet stressful, path I took over a period of 10 years. I then worked in consulting for a couple more years before finally finding the strength to leave the job security (and stress) behind and return to art making - determined to make it a career.
All that to say - I know work. I worked many real jobs. And even though an art career is unpredictable and without insurance or financial benefit packages, I have learned what I need to earn to meet my modest lifestyle goals… and hence, over the years I’ve learned to find a balance with pricing my art - somewhere between the price tag I want and the price tag I need to make a sale and to continue my art making.
As a result, I have two basic ways I choose to look at pricing my art.
Gallery Prices with a bit of Gambling
The “Gallery Price”: Let’s look at a recent painting “44 Birds”.
Based on my cost analysis of this piece, the selling price would be about $1000 (which puts me in my target range of $30-40/hr actual painting labor). To bring that to a gallery selling price (galleries typically take roughly 50% of the sale price), I would price the painting at $2000. However, what I would consider a “market value” price (a reasonable price to attract a few buyers within a 6-12 month window) is $1400 based on my sales of similar art - which actually happens to land me in my sweet spot of somewhere in between those two figures. (That doesn’t always happen, but it’s good to evaluate where you are every so often.) I choose to call this my “Gallery Price” (even though it’s lower than what a gallery would probably charge) because I will sell at that price whether it is directly through my website or hanging at a gallery show.
Rest assured, as every artist knows - no matter what I decide or how much I analyze, project and consider, there is ALWAYS that person who wants to question it. (One particular instance was a Seattle area surgeon who desperately wanted to break down the “ridiculous” amount I was charging for an original abstract painting I was displaying at an art show ($600 for a custom framed 24x24 inch piece which was underpriced, if anything!) Funnily enough, a couple hours later I sold the piece to a family on vacation from England who happily paid the extra to have it shipped internationally. Fortunately, for every one of these people, there are the plethora of supporters and kind, thoughtful people who understand and appreciate the true value of art and will say so (whether they can afford to buy it or not).
Next there is what I like to call the “Gambled Price”.
When I want to have a bit more fun, need a little extra art making motivation, want to gauge interest in new work, could use a bit more cash in the pocket, or all of the above - I like to create an auction event. I suppose to choose art making as a career it helps to be a bit of a gambler already. (I admit, I do enjoy the thrill of unknowns and possibilities and have been known to go to Vegas and step up to a blackjack table once or thrice.) In the case of an art auction event, the gamble is in - will I be paid for my effort or will I lose money? (The same could actually be said for every art festival I attend!) For auctions, I will typically take this type of valuation in aggregate - creating several pieces for a single event, and looking at the auction numbers in total. As many of you know, I recently created an event (featuring the “44 Birds” painting mentioned above) centered around my bird watching adventures and included several pieces for auction at DailyPaintWorks.com with a percent of the proceeds going to a couple of my local wildlife charities.
Because margins can be quite varied on this type of event (depending on where you host it, how many bidders attend, and what kind of bidding activity the pieces attract), I tend to look at the numbers a little more closely to evaluate the success of the event as a whole in order to look for ways to improve future events.
(Recent sample event below)
Cost Analysis: 2021 Bird Art Auction Event on DailyPaintWorks.com
In this case, given I wanted to create a fundraiser since the paintings were inspired by the Great Backyard Bird Count3, I am very grateful I ended up generating some modest earnings with the donations as well as new fun images to promote in the future. As you can see, though, the “44 Birds” painting sold for a “gambled price” of $750 (not my $1400 gallery price or even the $1000 cost evaluated price). But taken as a whole, allowing for the donations to charities I care about, I would definitely call it a success and hope to make it an annual auction event! (It was also a lot of fun to create new paintings in this context since, this year especially, I think I needed the extra joy found in counting birds and identifying species during the 4 day birding extravaganza.)
Now What?
Experience can tell me where to price my work based on size, materials, subject, style, customer base, selling venue and at a level which will continue to sustain my art making efforts. But with all these ideas, calculations, research, and needs considered - keep in mind that in the end, it’s still all about creating art and connecting with community. Whether looking to have an art career or wanting to understand the price tag of an art piece, remember - most importantly - that magic happens in between those lines and numbers and allows us to engage and experience the art and the world deep within our soul.
https://www.nytimes.com/2017/06/25/arts/design/art-gallery-closures-grow-for-small-and-midsize-dealers.html?auth=link-dismiss-google1tap
https://www.artsy.net/article/artsy-editorial-artists-bypassing-dealers-selling-directly-collectors
The Great Backyard Bird Count is a worldwide 4 day annual bird counting event - details can be found here: https://www.birdcount.org/