Tips For Pricing Your Art

Often I am asked for help when it comes to pricing art. This is a tricky process because there are so many different pricing methods not to mention the emotional attachment to your creation that has to be considered. It is important to remember that your goal is to set a price that strikes the consumer as fair, at the same time enticing him/her to buy. Here are a couple of methods to consider for pricing your work, but I encourage you to do a little research and figure out which one is best for YOU.

Time and Overhead Pricing
In order to survive as a full-time artist with this method, the general rule of thumb is to create five pieces a month. This doesn’t mean you have to sell all five pieces each month but you need to build a stock so your clients have a variety to choose from. In this method you have to consider your costs and time required to create the piece and add a 10% profit margin. If it takes you a month of working on one original piece (eight hours a day) you should probably consider getting involved in the print market and not focus on selling the originals for this method.

Market-Value Pricing
Another method used to calculate price is to go into the actual marketplace and see what other artists with the same type of background and similar art (dimensions, media, content) are selling their art for. Make sure you check to see if they are actually selling, they may be charging too high and not selling a thing. The best way to do this is to go to an exhibition and see for your self.

Perceived-Value Pricing
Perceived value is based on the value in the minds of buyers and not on the basis of what it costs you produce the piece. This is harder to pinpoint but observation with trial and error (and a bit of patience) will get you to your price range.

My Notes
Consider combining all of the methods - covering your costs while meeting your market expectations and the buyer’s perceived value.

As a potential buyer, I might think something is wrong with a piece, or wont value it as much, if the cost is less than what I feel is its fair market value.

Before long, an artist who keeps labor records on each piece can learn to estimate quite accurately the approximate number of hours and cost of materials needed to produce any given work. This information can be useful for commission requests.

To study perceived value, you need to be on site at your exhibit. Study how people are reacting, what they are saying, prices, ect. What are they buying? Why are they buying? Why are they not buying?

Your prices should not vary from place to place (not just in your area but anywhere you are selling).

Do not sell anything you wouldn't want to be known as your work. It may reach the wrong hands and bring you bad publicity some day. Be proud of every piece you sell.

Gradual increases in price is the way to go. Collectors like to see a little movement in an artist's prices over the years.

Buyers expect that the larger the work is the more expensive it should be. I know a lot of artist do not understand this because miniatures require a lot of attention to detail but you have to always keep in mind the way buyers think.

MOST IMPORTANTLY: you have to feel comfortable with the price you set.