How Is Fine Art Priced? #4
The Art Lady-As Seen in Villager Magazine- by Arrachme
Have you wondered why paintings have a wide variety of pricing? Let us explore at what point an artist determines the pricing of their work. At what junction do others make these determinations?
Over the last forty years, I learned some interesting lessons on pricing my art. I studied every report, pamphlet, and informative piece of education that I could find on the topic. Even seeking out respected industry professionals to ask the question, “How is Art Priced?”
Angelica, art marketer, and artist-life coach knew the answer and was happy to share her wisdom. She generously guided me to her price per square foot formula which came with an equation. Admittedly, math not being my strong suit, I struggled through it. I must have done it right because the art sold for years and was dutifully recognized. I listed the prices in my studio, gallery, and website. However, like all things, the formula changed as the paintings grew in popularity. Angelica became a friend and went on to do my social media marketing over the next ten years. After a couple of decades, the price per square foot formula became completely obsolete. Everything changed but not for the reason you may think.
While exhibiting in Miami, Art Basel, and visiting the three galleries that represented me at the time, we were approached by a tall thin tightly groomed gentleman. He wore a black, well-tailored suitcoat. His soft manicured salt and pepper hair did not move a fraction of an inch as he moved toward me. With a firm Germanic voice, He said, “Come visit me in my gallery, 10:00 a.m. tomorrow and we will discuss your future.” Reaching out with one arm he motioned for me to take his card as he walked away. My husband and I quizzically looked at each other, at the same time we spoke the words, our voices overlapping, “I guess we should go.” We laughed with each other both thinking that this is just another weird or magical thing that has constantly happened on my art world journey. The next morning, we were on time to visit our mystery man. Indeed, Hans did have a fine well-appointed art gallery.
When we sat down, he informed us that he has been watching my career for years and had one stern reprimand that we needed to hear. He said, “I saw that you lowered your prices.” I remember thinking that I had only done it once for an exhibit. How could he know? Before I could respond he said, “Don’t do that again. The art world is a small place and as you should know, the higher on the scale that you go, the smaller it gets. We do not do sales! Do you understand? Once a painting is priced it only goes forward not backward. You may not think that we are watching you, but we are!” I never forgot his words of wisdom. We did not end up going with his gallery, but we are friends to this day.
Years later, I was approached again. I received an email, which I promptly ignored. I thought it was just another person involved in the pay-to-play world. This is where the artist is approached by a magazine company or exhibitor professing to want to promote the artist for a fee. The fees are a la carte. They range from selling wall space, co-op space, catalog, magazine fee, booth fees, you name it. The prices can range from $300 – $30,000 each time. I received another email, text, then a phone call. After two months of saying no, I found out that this was a real offer. The woman was based out of New York and London. She proceeded to tell me that she believed in me, the quality of the work as fine art, and had a plan for my future. She would be adjusting my branding. After explaining in writing what she was going to do for me and signing the contracts, she said, “Your prices are too low for the work that you are producing.” She went on to say, “I have chosen thirty pieces that our curators will evaluate. We represent artists that come from different backgrounds, which does not play a big role, but the branding does. I will get back to you with the pricing. Our clients have expectations when acquiring fine art. We will take care of everything for you. All you need to do is make sure the art is carefully packaged when the pickup tag is sent. There will not be any price negotiation. They will just simply purchase the art if it is what they or their representatives decide is appropriate for their needs.”
My painting, Deeper Findings, shown here was awarded recently for the exhibition in The Contemporary Art Project, Miami Art Basel Week, included in a featured locally in the Solo Exhibition, Sourcing Solace – Leesburg Center for The Arts. It has been selected for international recognition to be featured on Artsy and Artnet which is a platform for professionally represented art. It is one of the thirty pieces previously mentioned that was priced by the curators, right from the beginning. Classified as an abstraction, when turned on its side it transforms into a landscape.
So, the answer to the question we began with is that art is priced by the artist at the beginning of their career, then priced by professionals as they rise in the art world. Once a price is placed, it does not go backward. Fine art does not have fire sales or discounts. If a gallery runs blanket sales like a discount supermarket, they have an incomplete understanding of how the art world works. A serious artist will steer clear of this practice. The buyer should as well unless they are just wanting to cover a wall that they will later replace with fine art. There is a place for decorative art. This will be covered in a future article.
