This morning, I was reading through an art forum that asked about whether artists should list prices of their artwork on their websites. In fact, I've seen several discussions on this topic, and many respondents had voiced that if you're working with a gallery, then you shouldn't post prices on your website - just in case the gallery raises your price or lists a different price.

So here's a few questions:

Who Owns Your Business?  Who Makes Executive Decisions?  Who Pays Your Taxes?  Who Sets Retail Prices? Whom Do You Work For?  Who Works for You?

During my Internet meandering, I came across the following quote...

You must always know the details of your contract with a gallery up front. If you’re free to show at other galleries and such, then rules change. But if the gallery that represents you does not allow that, then you are obligated to fulfill gallery prices. Period. That means you cannot offer collectors prices that differ from prices in the gallery. No wholesale prices, no discounts, etc. This is the price you pay for gallery representation. A price that is far too expensive in my opinion.

The part of the quote above that I have the most difficulty with is - "gallery that represents you does not allow that."

Who Runs Your Business?

I don't know about you, but I think it's time for artists to realize that galleries work for us, not the other way around. We are in charge of our business. We can sell our own work, but sometimes it's advantageous to have a gallery sell for us when they serve a clientele that we could not otherwise reach. However, that does not mean a gallery takes power over our business practices, prices, or tells us what to paint, e

As long as artists are desperate to get representation by galleries -- galleries will take advantage of artists.  Not all gallerists are crooks -- I know several gallery owners who would never dream of raising prices behind an artist's back. There are some really great, honest folks out there to represent you.  Gallerists who pay on time - every time, do not inflate prices, while keeping the difference, do not give discounts without your permission... and this is the way consignment business should be conducted.

I Do Like The Idea Of Working With Galleries

Over the years, I've recommended many artists to gallery owners, but I only recommend these artists to dealers that have a flawless reputation with artists. A lot of heartache and frustration can be avoided if you get references from other artists before signing on with a gallery.

So, from now on, realize that you are the one who calls the shots.  It's your business, and you determine whom to work with and what are fair business practices. Of course, this means that you are completely honest and fair in your business transactions. Decide what your price scale is ahead of time. Do not let gallery owners tell you what they allow and what they don't.  They are not your parents - they are your partners; there should be room for negotiation.

For example, one of my friends signed on with a gallery close to her home that disallowed her working with any other gallery in a 50 mile radius.  So she dropped the contract with a gallery that had been doing a great job for her-- in order to go with this new, untested gallery. Why did she do that?  I have no idea - perhaps it was because the gallery was closer to home or because it carried renowned artists. However, there should have been room for negotiation. I would have talked to the new gallery owners explaining why I didn't want to leave my former gallery in order to work with hers... especially since the 1st gallery was over 40 miles away from hers.

Set Your Terms Ahead of Time

So next time a gallery owners asks to see your work for consideration, think about which terms you will accept and which ones will not work for your business. Don't ever be desperate - desperation on your part invites folks to take advantage of you. Draw your boundaries. We must set up working systems with them that benefit both parties and take advantage of neither.

I plan to send out a newsletter next week that describes what conditions I set when I write my own contract for gallery representation. If you'd like to begin receiving my email newsletters, go ahead and sign up on this website. You can unsubscribe at any time, so don't worry about being spammed or locked in.

Sincerely,
Lori

The Breakfast Club

Back in 1995, I began attending a local artist gathering - which we affectionately call "The Breakfast Club". In '96, I wrote a feature article for Watercolor Magazine on 3 of the artists who attended these Wednesday breakfasts in Nashua NH.

Over the years, my attendance has waned - mostly because my husband and I spend weekends nearer to Keene NH, and I've been spending a lot of time on the road. But this morning, I decided that it had been too long since I'd seen my friends in person and not on facebook.

The Daily Painters

As the morning progressed into noontime, I listened as these artists spoke of their recent success or lack of it where sales are concerned. It seems that some, who had been working successfully with galleries for years, have not had any sales in months. While those who have been selling for several years with "Daily Painters" have been selling at about the same rate. While I do not list with Daily Painters (because I don't paint that often, and would be lying if I put "daily" on my logo), I have sold more this year on my own than when I was working with galleries. The galleries I have typically worked with are in resort locations, and travel is way down right now. If these folks don't travel to where the galleries are, then they won't see and fall in love with the artwork at these locations... resulting in poor sales for every artist in those galleries.

On the other hand, artists who have a list of their collectors on hand (like those who sell through Daily Painters, blogspots, or from their website), have the ability to contact their previous buyers. I have the names of a dozen or so who have collected my work in the past, and since I'm not currently working with a gallery, I have begun to work with these folks directly via my email newsletter.

Lifelong Collectors

Yesterday, Clint Watson of Fine Art Views wrote about how one contact can become a lifelong collector. Meanwhile, Seth Godin recently blogged that having 10 people who love and buy what you do -- might be all you need to make a living.

The folks on my email newsletter list are those who already own and/or  love my work. As a bonus, they seem interested in helping me with my career, and are eagar to promote my work to their friends and relatives. Because I'm not with a commercial gallery, I can ethically charge lower prices or offer a lay-a-way plan for those who really want to own my work but don't want to put it on their credit card. I can offer unframed or framed. I'm much happier getting a few less hundred dollars for a painting, yet actually knowing the people who bought it than selling it via a gallery to a stranger.

Knowing my collectors personally has made a huge difference for my sales. Once someone buys one work from you, they are many more times likely to buy again. This is a known fact. During hard times, I like to offer my most loyal collectors incentives that make it easy to own my work. Because I don't have an expensive overhead - like gallery dealers do, I can afford to make exceptions.

Artists Helping Artists

Back to the Breakfast Club. Many of the artists were worried or feeling desparate - especially those who are dependent on their income from art sales. One had lowered her prices at a gallery to the point where she was making less than $100 after the sale. I know her work, and it is certainly worth much more than that. My suggestion is that she needs to get her work in front of a different set of buyers - those who are used to spending $400 or more for great artwork that is framed and ready to hang. Maybe she can no longer afford to sell though a gallery that takes 40-50% for $250. Perhaps she might do better by starting over with a good website and building a new following, one customer at a time. I can't say for sure, but meanwhile, her work is just sitting there. One of her galleries - where she was the #1 seller, has shut down for the winter months. Something's got to give.

People Are Still Buying and Collecting

There are still people out there who buy artwork, but they don't necessarily want to have to go on a trip to a resort to find it. Perhaps we artists might consider courting these art-lovers directly in the comfort of their homes by helping them acquire the work they love, then I think we may have a work-around during the recession.

For those of you who are continuing to work well with galleries at this time, please don't change anything. You need to support those who are doing a good job for you. Some galleries have such a loyal clientele that they get through recessions just fine. As my tennis coach in college said:  If you're winning, don't change a thing.. but if you're losing, try new things until you begin to win.

Please feel free to comment or share your ideas with others who read this blog. Working together by sharing what's working is the way to go.

Sincerely,
Lori

Well, I've decided to test out whether flexible pricing in economic downturns works.

I'm not currently showing at any commercial galleries, so I won't be lowering my prices behind their backs, and I hope my previous collectors will take advantage of the fact that I've lowered my prices for a time.  Prices will rise next spring. My hope and test is to see if sales pick up. I'll still be making money if they sell, and the works on paper are not framed.  Shipping is free.

I've never really had the opportunity to try this out because I've been working with galleries for the past 10 years. Now, I plan to take my sales into my own hands. I enjoy working with people and having direct contact with my collectors anyway.

So, I'll blog if I notice any increase in interest.

Lori

My Twitter Page:
PS if you want to follow my Twitter -- www.twitter.com/Loriwords

My Squidoo Pages are Coming!
I also plan to start a Squidoo page next week.  I'm thinking about topics such as:
Famous Painter Friends - what they know about painting.  Since I paint along with folks like Schmid, Guzik, Lipking, Pro, Baugh, Handell etc. They're all pretty much teaching the same stuff. I have a lot to share.

Landscape Painting Tips - I write an instructional column for Watercolor Magazine... maybe can share some of my accumulated knowledge on Squidoo. These are just some ideas, so don't hold me to them yet. I'll announce if I decide to set these up.

When difficult economic times seem to knock down art sales, I wonder why the price of art can't be flexible like the price of housing or gas? I realize that when artists are working with galleries that their retail price needs to stay rigid, so that collectors will pay the same price for an artist's work at any venue for that artist (including the artist's web site). I also understand that if galleries and artists lower their prices, that galleries probably won't be able to pay their rent, electric bills, and for ads - the price of these things never goes down.

With a 50% commission, if the price goes down too much, nobody makes any money with a sale.

But here's my question: If I, an artist who is currently selling through my own efforts, decides to keep my prices low or offer some works at bargain prices (maybe 25% down from regular), is there any reason why I should not do that? Is it ethical? I am not going below my previous gallery prices because my gallery sales took place a few years ago and those I've sold recently via galleries were priced very low as well.

One of my galleries routinely raised prices on artists' work - in this case, it was done ethically. The gallery dealer let the artist know about the higher price and paid the full 50% commission of the final sale to the artist. So... no problem there.  But wait a minute! Now the retail price of that artist's work has gone higher and higher, and it cannot be lowered... ever?  Not even during economic downturns.

Then the boom goes bust, and artwork seems too expensive and just sits on gallery walls. When the housing boom went bust, the price of homes came a tumblin' down, but not so with art prices. So some of these artists, who were doing fairly well in previous years, now can't pay their bills. So what's an artist or gallery dealer to do?

I really don't know that answer...  But here's my Question!

Why can't the price of artwork be flexible - especially in the middle range. If folks know that they can get an artist's work for less during down times, won't it spark a buying trend? Then when more money is flowing later, the artwork will increase in value (yeah, I know I already said that), What about the law of supply and demand?  Demand is down for certain price ranges right now. I've heard from a dozen or so artists who've had successful careers but their sales have dropped off drastically.

However, there ARE artists out there whose pricing is flexible, and they're doing OK. For example: a few artists I've been conversing with who sell on Ebay have not experienced a drop in sales - just a drop in what people are willing to bid, but the number of sales are nearly the same. So those artists are making "some" money, while some I know, who just deal with galleries -- well, sad to say, haven't sold anything in months.

This isn't to say that there aren't plenty of folks out there still buying art right. Some artist have seen an increase in sales. Jeremy Lipking has had a great year! Artists who've made a name for themselves on a national level, don't seem to be affected, but what about the rest of us?

I'd like to hear from some of you - see what your thoughts are on this issue. Don't be shy now...

Lori