One of my biggest pet peeves is going into a gallery where either the exhibitor or the curator has decided to “show them how it’s done” in regard to pricing art. Thanks asshole, “I didn’t know ‘how it’s done’ before you showed me.” Even though the average annual living wage around these parts is about $26K, I’m glad the cheapest thing in your gallery is $3,000, to let everyone know how much ‘real-art’ cost. These are the mindsets that make galleries last about as long as whiskey in my flask at a chamber of commerce meet-and-greet.
Story Time:
Several years ago, there was a very large, very pretty gallery that opened up across the street from my old apartment. The couple that opened it, spent top dollar on renovating this old riverfront warehouse. Their business model seemed sound and familiar – live downstairs, rent half and use the rest for gallery. However I don’t think they anticipated the heating cost for a non-insulated 8,000 sq ft. building in Appalachian-rust-belt winters and they had some serious attitudes towards the natives. The first three exhibits were of well known local artists, except the normal pricing was tripled. This couple being from somewhere in the east-coast megalopolis, had come to town to teach us all a lesson about value (they actually told me that too). Needless to say, they sold nothing. Furthermore they engendered short-term disdain by the locals towards their own community’s artists. The couple’s savings dwindled, the gallery collapsed, and they eventually turned the building into condos that some incredible douches purchased at a fire-sale discount.
Outside of a major city, everyone knows it takes diversified income strategies to sustain a gallery, selling art works alone rarely pays all the bills. Depending on infrequent sells of a few really expensive works is a bad plan too, unless you don’t need the money. If you can’t or wouldn’t pay the prices you are setting for the works, who else would.
This aside, here is a good way to determine your gallery’s pricing schedule for art.
Nitty Gritty:
Figure out the living wage in your area. The Census website is good for this and settling arguments with friends. (warning: This is going to feel like an IRS form) Subtract about 35% for taxes and maybe a few bills and divide that figure by 24, now take that figure and subtract 55% from it. Now feel depressed for a second or two. Not only do you now realize how poor everyone is… including yourself, but you also know how much money people have in their pockets to spend on stuff.
While you are on the census website, get an age and income breakdown for your area and see the ages/income of the people living close to your gallery. This will kill your urge to market to demographics that don’t exist. A lesson no one ever learned in my home town; which is why it has endless closing businesses and tax-boondoggles for 36-65 yr olds, even though median age of the town is 20.4 yr olds.
The proportions of the pricing of your artwork should mirror the proportions of the income brackets in your community.
If 30% of your community makes $45,000 a year
than $45,000*0.65= $29,250
(multiplying 0.65 is getting the figure to be minus 45% of it’s starting total),
$29,250/24=$1,218.75.
(24 represents the average number of pay periods in a year)
This is how how much money 30% of your community has floating around every pay check to spend on bills and frivolity (like children and art). Chances are out of the $1,218.75, they are probably only willing to part with 45% ($548.44) of it for a quality work of art, and that’s for something they really like. Math and money mixed together make a prescription for antidepressants. Use you best judgement to tweak this formula.
FYI: I made this all up for me, but it works.
Also consider things like who has families on your area and the cost of living. People with families living at home do not buy art, and if they do it’s not the expensive stuff. Children and convalescents eat money (sorry of this makes people angry). Also high rent and over-priced homes burn up cash too. This is where you tweak the 45%-fun-stuff/65%-living-life-bills split on the final paycheck, it may be much closer to 15%/85%. This ratio also get more skewed with lower income brackets.
After you spend a night of doing this and plying through three bottles or a box of wine, you should have a nice pie chart and table of costs to assign to art. Excel formula maker or a smart friend can help you with this too.
As always, pricing for art should never be arbitrary. Artists have working wages just like everyone else. As a curator it’s your duty to find marketable art that fits the income table for your area and allows the artists to get paid wages they deserve or are at least comparable to the average living wage in your community.
Sorry to make your head swim with numbers.