John T. Unger con Art Heroes Review No.3 How to Price Your Artwork
Does pricing your artwork make you nervous? Are you worried that higher prices might result in fewer sales? One of the questions I see most often is variations on how to price artwork. This ebook cover both the strategies and realities of creating a price structure for your artwork that can grow with your career, will make sense to customers and insure that your art creates a profit and not a loss.Some of the topics covered include:PRICE TO IMPRESSOften, a lower price will hurt sales. Your price conveys how much you value your art, your confidence, your skill level and prestige. It also signals the perceived value your customers receive from the work. TEACH CUSTOMERS VALUEHelp your customers understand the value of your work by being consistent about your pricing and transparent about actual costs. If they don’t understand the value of art, that’s our fault as artists, not theirs. CALCULATING YOUR PRICEYour prices must cover the costs of materials, your time, and your overhead. You must also factor in profit. Overhead includes the cost of studio space and storage, suppies and consumables, utilities, internet and phone, insurance, accounting and bookkeeping, promotion, printing, show fees, and all other costs related to keeping your studio open. USE FACTS NOT A FORMULAThe best place to start figuring out your overhead costs is to look at the deductions you claim on your taxes. Or study the last 12 months of your bank statements. The stock formulae do not work for all artists because different media can have wildly different costs to produce. PRICING FOR WHOLESALEOnce you have a price that supports both your costs and profit margin, double it to reach your final pricing. Most galleries charge a 50% commission. Even if you don’t sell in galleries now, you must price to leave that option open in the future or you will not be able to expand and grow.RETAIL PRICINGAlways charge the same price whether selling direct or through a gallery. If your prices vary, it will cause mistrust, ruin relations with your galleries and anger customers who paid full price. COST OF SALESThe commission a gallery charges you pays for their cost of sales (marketing, promotion, time spent with buyers, etc.). Customers do not magically appear, they must be courted. When you sell directly, you have earned that additional money. Artists often fail to build the cost of marketing and sales into their pricing, but it’s essential.SCALING COST OF SALESEvery direct sale is the result of time, effort and investing in promotion: photographing the art, putting it online, writing sales copy, answering phone and email, meeting with customers. It is far more cost effective to make fewer sales at higher prices than to spend all your time selling. CHOOSE YOUR AUDIENCEIf your current audience can’t support the prices you need to cover your costs, seek a new audience. Wealthier clients are accustomed to valuing art and have the income to support buying it. You may have to adjust your approach to reach a new market. Consider the audience when planning new work— don’t make art purely because it will sell, but you may find some work is not viable and should be abandoned. The reputation you earn and the clients that buy from you are based on the work you’ve already done. If you economize by working smaller or using cheap materials, your customers will expect cheap art. RAISE PRICES ANNUALLYAs your art business and your reputation grow, so will your costs and your prices. Increasing prices 10% doesn’t effect the price of individual work so much that it will hurt sales, but the cumulative increase adds up for you. In a bad year, you may choose not raise prices, but you should never lower them. PRODUCTION ARTDoing production work gives you a steadier paycheck as an artist, but you may also have to invest in new and more industrial tools. Make sure you have a steady market before you invest heavily in specialized tools.