Frequently Asked Questions by Not So New Collectors
1. How is artwork priced?
How artwork is priced has always been a bit of a mystery. Here are some general guidelines:
First, there’s the artist. Work from an accomplished artist whose work shows up in prominent collections is more highly valued and simply costs more than work from an up-and-comer. Along with pricing based upon their past sales, many artists factor in how much time they’ve spent on a particular work, accounting for various phases including concept, drawings or models all the way to completion.
Then there’s the overhead that goes into the work itself, which includes:
Studio rent, utilities and insurance•
Materials like paint, brushes and canvas •
Property (inventory) insurance•
Phone, Internet, Website•
Healthcare•
Marketing•
Retirement accounts, etc.•
Years of education and training •
It all costs money.
Although this may vary from artist to artist, some use a formula that factors the costs listed above into a singular number that is multiplied by the square inches of the work. Of course there are exceptions such as: If a painting on canvas and drawing on paper are the same size, generally the drawing costs less. This formula or other variations makes their prices consistent and if the artist sells work at the same price point on a regular basis, expect the price to increase from 5-10 percent annually.
Now that you know the secret, you’ve got to ask yourself what the value of the work really is to you. That formula should look like this:
Piece of beautiful original art, $XXXX.
Piece of beautiful original art your neighbor doesn’t have (nor ever will): Priceless.
2. Can I pay in installments?
Most galleries and many individual artists will allow you to pay for a work in installments or on some type of payment plan – just ask.
3. Can I negotiate a price with the artist and/or gallery?
It is not uncommon to negotiate for any major purchase and artists who sell their work for a living understand that art is a business and with that some negotiation may need to take place now and again. Although these artists are usually eager to sell their work, the price they have chosen is based on a specific formula as we saw earlier (see # 1) and is what they have determined to be the appropriate and fair price for that particular piece. With that said, some artists are more willing to negotiate than others and depending upon your comfort level with the artist, it is not considered disrespectful to ask. Most artists would like to make a sale and will try to work with you. If they are unable to negotiate on the price they will offer a similar piece that fits your budget or offer a payment plan.
If the artist is represented by a gallery the price of the work sold from their studio should be consistent with the work when it’s sold from the gallery. As for negotiating directly with a gallery, discounts are typically reserved for repeat clients – and those who purchase several pieces at a time.
4. When buying through a gallery, what percentage does the artist receive and what effect does it have on the price of the work?
Galleries and artists typically negotiate a percentage of the sale price. Some split the sale down the middle, and for good reason. The gallery provides the venue, security for the work, the marketing, an opening reception and most importantly the audience. The gallery is responsible for building the reputation and furthering the careers of the artists it represents. Over time, this increases the demand and value of the work and creates more opportunities for the artist to exhibit and sell. As a rule, galleries do not mark up the price, but take a percentage of the established selling price.
Percentages for alternative spaces such as coffee shops and cafés are often very little or nothing at all as the venue benefits from having the artwork in their spaces and are not obligated to market and/or sell it, only display it. Many sales happen through these alternative spaces and are usually a good place to find work from emerging artists. Most non-profit venues will take a smaller percentage as well, usually in the 15 - 35 percentage range.
5. Will I get a certificate of authenticity? A receipt?
Your artwork should always come with a receipt or bill of sale and possibly an artist’s statement (a general statement about the artist’s work, why they do what they do, the material, or medium, they use and what they are exploring or trying to achieve with their work). If you purchase a limited edition or another “multiple” of some sort, be sure to request a certificate of authenticity. Keep all this paperwork together along with any other information you may have such as a postcard or brochure from the exhibition for your own interest and the authenticity of your collection.
How artwork is priced has always been a bit of a mystery. Here are some general guidelines:
First, there’s the artist. Work from an accomplished artist whose work shows up in prominent collections is more highly valued and simply costs more than work from an up-and-comer. Along with pricing based upon their past sales, many artists factor in how much time they’ve spent on a particular work, accounting for various phases including concept, drawings or models all the way to completion.
Then there’s the overhead that goes into the work itself, which includes:
Studio rent, utilities and insurance•
Materials like paint, brushes and canvas •
Property (inventory) insurance•
Phone, Internet, Website•
Healthcare•
Marketing•
Retirement accounts, etc.•
Years of education and training •
It all costs money.
Although this may vary from artist to artist, some use a formula that factors the costs listed above into a singular number that is multiplied by the square inches of the work. Of course there are exceptions such as: If a painting on canvas and drawing on paper are the same size, generally the drawing costs less. This formula or other variations makes their prices consistent and if the artist sells work at the same price point on a regular basis, expect the price to increase from 5-10 percent annually.
Now that you know the secret, you’ve got to ask yourself what the value of the work really is to you. That formula should look like this:
Piece of beautiful original art, $XXXX.
Piece of beautiful original art your neighbor doesn’t have (nor ever will): Priceless.
2. Can I pay in installments?
Most galleries and many individual artists will allow you to pay for a work in installments or on some type of payment plan – just ask.
3. Can I negotiate a price with the artist and/or gallery?
It is not uncommon to negotiate for any major purchase and artists who sell their work for a living understand that art is a business and with that some negotiation may need to take place now and again. Although these artists are usually eager to sell their work, the price they have chosen is based on a specific formula as we saw earlier (see # 1) and is what they have determined to be the appropriate and fair price for that particular piece. With that said, some artists are more willing to negotiate than others and depending upon your comfort level with the artist, it is not considered disrespectful to ask. Most artists would like to make a sale and will try to work with you. If they are unable to negotiate on the price they will offer a similar piece that fits your budget or offer a payment plan.
If the artist is represented by a gallery the price of the work sold from their studio should be consistent with the work when it’s sold from the gallery. As for negotiating directly with a gallery, discounts are typically reserved for repeat clients – and those who purchase several pieces at a time.
4. When buying through a gallery, what percentage does the artist receive and what effect does it have on the price of the work?
Galleries and artists typically negotiate a percentage of the sale price. Some split the sale down the middle, and for good reason. The gallery provides the venue, security for the work, the marketing, an opening reception and most importantly the audience. The gallery is responsible for building the reputation and furthering the careers of the artists it represents. Over time, this increases the demand and value of the work and creates more opportunities for the artist to exhibit and sell. As a rule, galleries do not mark up the price, but take a percentage of the established selling price.
Percentages for alternative spaces such as coffee shops and cafés are often very little or nothing at all as the venue benefits from having the artwork in their spaces and are not obligated to market and/or sell it, only display it. Many sales happen through these alternative spaces and are usually a good place to find work from emerging artists. Most non-profit venues will take a smaller percentage as well, usually in the 15 - 35 percentage range.
5. Will I get a certificate of authenticity? A receipt?
Your artwork should always come with a receipt or bill of sale and possibly an artist’s statement (a general statement about the artist’s work, why they do what they do, the material, or medium, they use and what they are exploring or trying to achieve with their work). If you purchase a limited edition or another “multiple” of some sort, be sure to request a certificate of authenticity. Keep all this paperwork together along with any other information you may have such as a postcard or brochure from the exhibition for your own interest and the authenticity of your collection.
