How Do I Price my Work?
The delicate process of deciding how much to charge 
for your artwork is a struggle for most artists. The tug of war between the need to have your work recognized for its worth and the need to make it accessible to collectors is a difficult balance to strike. There are some common sense guidelines to follow that will help you find a good pricing strategy for your work.
How do I price a work of art?
A good standard way to set prices is the same way any business would to be competitive.
Consider below.
- Cost of Production
– Materials for this piece. - Cost of Presentation
– Materials for this piece. - Total Monthly Overhead Costs
– Insurance
– Dues / education
– Utilities
– Postage
– Employee Salary
– Studio Rental - Average number of pieces produced for sale each month
- Labor Costs
– What do you, or would, pay yourself hourly.
– Hours to produce this individual art piece. - Profit
– What % over cost do you think you should earn as profit? - Gallery Commission, if applicable
- Shipping Costs, if applicable.
- Framing if applicable.
It is important that your artwork prices always go up. So start low with the intention of allowing prices to rise. Of course this means controlling costs, usually via labor and expected profit margin.As your works become more popular, you’ll want to raise the price to what the market will bear.
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FURTHER CONSIDERATIONS
Research the Market
It is important to know for roughly how much work of similar genre, size, expertise, and materials is currently being sold. As you visit galleries and alternative spaces, note the prices for work that seems similar to yours. Research the education level, reputation, and exhibition history of the artists to make sure you are comparing your work with people of similar stature and education. When you have researched enough to know the range of prices, position yourself at the lower end of the range if you are an emerging artist. It’s important to exhibit your work, to have it seen, discussed, and purchased. Early on, those values are more important than big profits; as you become widely known and your work begins to sell briskly you can raise prices.
Count Your Costs
While you want your work to be attractively priced, you can’t afford to lose money producing it.
Carefully record the cost of materials, the rent and utilities for your studio, and the time required to produce the work.
Obviously, a work that takes a day to produce should be priced lower than one that takes weeks or months. After deciding how much you should pay yourself on an hourly basis, multiply that amount by the number ofhours it took to make the piece, and add the cost of your supplies and overhead. This is your basic cost; asking less means taking a loss on the work.
Material Considerations
The cost and permanence of your materials are important factors in pricing. Pieces on paper generally sell for less than works on canvas. Multiples, such as prints and photographs, follow the rule of the fewer in the edition the higher the price. Works produced on costly archival materials are worth more, as are pieces that incorporate expensive supplies such as precious metals. With sculpture, generally the more permanent the materials the higher the price. All things being equal, larger works generally sell for more than small ones.
Consider Your Excellence
You are a highly trained artist studying at one of the best art schools in the country. Perhaps you also have studied in other colleges or with other artists. Your history of exhibitions is part of your credentials as well. Your training and experience add value to your artwork. It is as important not to undervalue your work as it is not to set too high a price on it.
Consistency
Once you have decided upon a pricing structure, stick to it. It’s a bad idea to offer different prices to different collectors. It throws into question the value of your work and makes the collector who paid more feel cheated. The best way to be consistent is to decide on the retail cost of your work and negotiate the percentage the gallery takes. That way, even if you sell from your studio, the work is the same price – you just net more on studio sales and you don’t undercut your gallery price. Knowing that you have lower costs when selling from your studio, your collectors may want to negotiate the price. You can remind them that you still have overhead to produce the work, or offer them a discount, depending on the level of their support for your work.
Discounts
Some artists offer discounts for buyers who purchase more than one work at a time. Generally, the discount is 10-15% of the price. However, if you are selling through a gallery or a dealer, they may or may not be willing to split discounts with you. Be sure you understand (and preferably put in writing) how such matters will be handled before you agree to a show at a gallery or to work with a dealer or consultant.
One way to reward loyal collectors is to offer a price discount. The gallery management may not wish to split this commission with you, either – another important negotiating point when working with a gallery. Additionally, the gallery may have faithful collectors to whom they wish to offer discounts – this may not be in your best interest if you are offering a discount to collectors of other artists represented by your gallery.
Some artists value their work so that they can negotiate the price with a potential buyer, adding about 10-15% so they have some ‘wiggle room’ if the collector wants to bargain. A little genteel price haggling is not unusual. If you expect it and plan for it, it should not cause much consternation.
Working with Galleries
The percentage a gallery asks for displaying and publicizing your work can be considerable. Currently, about 50% of the retail price is customary.
It’s easy to conclude that you should just sell out of your studio. However, consider the work the gallery puts into promoting your work, attracting diverse collectors, and producing marketing materials.
The artist might make better (and more enjoyable) use of her/his time by concentrating on the art and letting the gallerist do the marketing. If you have set your retail prices carefully, you should be able to share your profits with the gallery.
Some galleries will help you to price the work; if they are reputable, there is nothing wrong with that practice.
However, you should make sure that all terms are understood and agreed to before you place any of your work with a gallery. For example, does the gallery’s 50% include 50% of the whole purchase price, or 50% of your profit after your expenses have been deducted? Obviously, the answer to that question is critically important.
Price Lists and Sales Records
Having price lists will discourage bargaining for price. Be sure to date the lists so you know how much you are/were charging at any given time.
Keeping careful track of your sales will help you to see when it makes sense to raise your prices. If your work is selling well at a lower price, try raising the price on your favorites to see if they sell quickly. If they do, it might be time to raise all your prices.
Keeping records of your sales is important. You will need records for tax payment and you need to keep track of who has your work so you can send them notices of future shows. A bill of sale should include the title, dimensions, medium and price of the work and the name and address of the collector.
It can also include information about whether you are delivering the work or the collector is picking it up.
Keep a copy for your own records.
Pricing your work is often emotionally charged and conflicted. After all, the prices your work commands are seen as a reflection of your worth as an artist. Making sensible choices about the value of your work and dealing fairly with collectors and galleries will help you to promote your career as an artist.
* Also see ArtDeadline.Com’s Quantifying Art
* The Art of Pricing Your Work Courtesy of The San Francisco Art Institute
