The Pricing Conundrum.... 
4 pricing outcomes to AVOID!

(1) PRICES ARE TOO LOW 

You won't even cover your costs. 
Ultimately you won't have a business.

More importantly, your pricing signals that you should only be regarded as a hobby artist.

If your work doesn't have value, should you be selling it?
(2) PRICES ARE TOO MODERATE 

You never make enough money. 
You may make a small profit, but you never seem to have enough money to expand your activities e.g.
  • set up in a new studio,
  • go to art fairs which involve travel and overnight stays.
Bottom line - you can't afford to give up the day job - or if you do you may end up feeling like you're constantly on a treadmill and your enjoyment of your art diminishes as a result.
(3) PRICES ARE OUT OF TOUCH WITH THE MARKET PLACE

People probably won't buy your art.
A lot of artists do not know the value of their art or understand the nature of a marketplace. They haven't done any research. They haven't found a benchmark for how much their type of actually sells for wherever they live.
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People typically buy art for a perceived fair price. If an artist prices too high or too low relative to a buyer's perceived fair price, it's unlikely they will sell much work.
​(4) PRICES ARE TOO HIGH 

​People won't buy your art. 
You may limit the number of galleries prepared to sell your art in your locality. You will forever be anxious as to where the next sale is coming from

There's a lot to be said for not giving up the day job until you can sell enough art and make enough money that walking away from the day job seems the logical next step.

How to improve how you price your art
​

SO WHAT SHOULD YOU DO?

Find out more about the elements which influence pricing decisions. 

Your aim should be to identify the price which
  • reflects quality and context AND
  • enables you to sell art and make a profit

A price does NOT equal a sale! 
The price of a piece of art that you see does NOT equate to the price paid for a sale achieved - unless the picture has a red spot or sold ticket next to it.
  • Check out the prices of artists whose artwork sells well
  • Artists can and do sometimes price their art higher than the value of the art as perceived by others i.e. the potential buyers.
  • So the fact that you see an artist pricing at a certain level doesn't make that price correct or one that should be used as a baseline for other artists pricing their art.
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PLUS the price paid is not the same as the income earned.
How much the artist gets depends on how and where art is sold - and the expenses involved in displaying and selling their art (eg framing;  shipping costs; commission)
WHAT YOU ABSOLUTELY MUST DO! 

​Benchmark your prices against sales achieved NOT the prices asked

Find an effective benchmark for your art:
  • look at the prices which have achieved regular sales for artists of equivalent merit in the same location and selling through the same sort of venue (channel)
  • work out the influence of 'place' as an influence on 'price' - by continuing to read..... 

Options for pricing your art
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This section reviews different options for pricing art in principle.
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Do also look at How artists price their art - which reports trends between 2009 and the present day in terms of the use of different methods

Outcome Orientated
​

Outcome orientated approaches relate strictly to prices achieved

WHATEVER THE MARKET WILL BEAR
A market led approach to pricing which tries to find the price which ensures a piece will sell. This usually involves testing out different price points to find the one which maximise sales. The results will depend on the channels used to test prices.

Benchmarked
​

BASED ON COMPARABLE ART WHERE I LIVE
The artist studies prices displayed in local galleries and other places where art is sold and finds a comparable artist in terms of media and/or subject matter and relates prices to these. Success with this strategy depends on whether or not the baseline artist is selling work and how much a reputation earned over years has been factored into the price they charge.

BASED ON COMPARABLE ART ON THE INTERNET
The artist looks at what else is available on the internet and picks an artist or group of artists, notes the prices asked (or achieved at auction) and then adjusts accordingly. More astute artists search for information about the price asked which actually achieves a sale.

Input Orientated
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NO. OF HOURS SPENT ON THE ARTWORK
The price is determined by a calculated hourly rate based on the notion that materials costs are incidental and the crucial cost driver is the number of hours required to complete the work. It bears no relation whatsoever to whether or not the market will pay the price.

COST PLUS (WAGE RATE+MATERIALS COST+MARKUP)
The artist determines an hourly rate for their work, adds in the cost of materials (and matting and framing if applicable) and then adds a flat rate or a percentage as a mark-up which covers marketing and other business expenses and/or a profit element.

Arithmetical
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PRICE PER SQUARE INCH/CM
The artist determines a standard price per square inch or centimetre and applies this to all artwork. A different standard price may be worked out for very small or very large pieces. This can lead to odd prices.

​SPECIFIC PRICES FOR SPECIFIC SIZES
This is a variation of the price per square inch which adjusts (rounds) the price to a value which sounds more like a reasonable price. It avoids odd sounding prices.

​PERCENTAGE INCREASE EACH YEAR
This approach is often used by an emerging artist who wants to grow sales income over time. The emphasis is always on relating to prices charged in previous years rather than what the market will bear or is currently paying for comparable work or input costs.

Irrational

PLUCKED FROM THE AIR
This is the "it feels like a $500 painting to me" approach. There is no obvious rationale other than a gut feel and/or a wish to avoid doing research to check out the current state of the marketplace.

However it's a much more reliable approach (although less scientific)  if an individual has been doing their research and looking at prices being charged in the marketplace for art - and in particular has noted what prices art has sold for.

MY MOTHER/FAMILY/BEST FRIEND SAYS.....
Pricing based on the opinions of your nearest and dearest. Rarely, if ever, a sound basis for pricing art

Steal Like and Artist by Austin Kleon

Rated an average of
  • 4.6 out of 5 stars by 3,135 cusomer reviews (USA)
  • 4.6 out of 5 stars by 1,080 cusomer reviews (UK)

This book started out as a speech to college students about things the author wish he'd known when starting out. It sets out ten transformative principles to help help readers discover their artistic side and build a more creative life.
Paperback: 160 pages
Publisher: Workman Publishing Company; First Edition, Later Printing edition: February 28, 2012
Steal Like An Artist from Amazon.co.uk

Show Your Work by Austin Kleon

BEST SELLER!
Rated an average of
  • 4.6 out of 5 stars by 980 customer ratings (USA)
  • 4.6 out of 5 stars by 878 customer ratings (UK)

Another 10 transformative principles for sharing your work and succeeding as an artist in a digital world. I've got a copy of this book and it's very definitely worth a read if you want to show your work.
Paperback: 224 pages
Publisher: Workman Publishing Company
Published: March 6, 2014
Show Your Work! from Amazon.co.uk