Speaker A
Are you an artist creating original artwork and you're completely confused on how to price it? Well, stick around because today I'm giving you a completely customizable formula for how to price original art.
Learn a customizable 4-step formula to price your original art fairly, balancing materials, labor, experience, and market demand.
Key Takeaways
- Price original art based on value, not just time or materials.
- Use a price-per-inch formula as a starting point but customize it.
- Consider your experience, reputation, and market demand when setting prices.
- Ensure your pricing formula supports your income goals based on production capacity.
- Consistent pricing models help customers understand and trust your pricing.
Summary
- Pricing original art differs from regular handmade products because buyers pay for the end value, not just materials and labor.
- A common starting method is pricing per square inch, but this must be adjusted based on experience, reputation, and demand.
- The story of Picasso illustrates that the value of art includes years of skill development, not just the time spent on a piece.
- Artists should consider how many pieces they can create and sell monthly to ensure their pricing supports a sustainable income.
- Comparing prices with similar artists helps find a competitive and fair price point.
- Pricing consistently across pieces using a formula simplifies calculations and helps customers understand value differences.
- Adjustments to the base price per inch are necessary to reflect uniqueness, complexity, and market positioning.
- Artists must factor in administrative and non-creative time when calculating their pricing formula.
- Starting prices may need to be lower initially and raised gradually as demand and reputation grow.
- The goal is to find a 'sweet spot' where pricing covers costs, values the artist’s experience, and appeals to buyers.
Chapters
- 00:00Introduction to Pricing Original Art
- 00:29Why Quality and Marketing Aren't Enough
- 00:58The Picasso Pricing Story
- 02:22Value Beyond Time Spent
- 03:33Factors Affecting Art Pricing
- 05:16Pricing by Size and Materials
- 09:07Comparing with Other Artists
- 10:54Adjusting Pricing for Uniqueness and Sales Capacity
- 12:16Finding Your Pricing Sweet Spot
Full Transcript — Download SRT & Markdown
Speaker A
Hi, my name is Mei Pak. And I help makers artists and designers make a consistent income from selling their handmade products online.
Speaker A
Hi, my name is Mei Pak, and I help makers, artists, and designers make a consistent income from selling their handmade products online.
Speaker A
It doesn't matter how high quality or item is or how interesting your products are or how much great marketing you do.
Speaker A
I believe that pricing is one of the most important aspects of running your business.
Speaker A
You should be charging for your products based on the materials. The labor that has gone into it and also a profit margin but that formula kind of flies out of the window when it comes to something like original art people aren't paying you
Speaker A
It doesn't matter how high quality an item is, or how interesting your products are, or how much great marketing you do.
Speaker A
So to give you an idea of what I'm talking about. I want to tell you a story you've probably heard before because it's pretty famous.
Speaker A
If you're not charging the right price for your art, your business is going to struggle to be a success in general.
Speaker A
So he did a quick sketch in less than five minutes and the customer asked how much it would cost and Picasso told the customer and the customer said that's outrageous.
Speaker A
You should be charging for your products based on the materials, the labor that has gone into it, and also a profit margin, but that formula kind of flies out of the window when it comes to something like original art. People aren't paying you
Speaker A
It took me 30 years and therefore it is worth it. So what goes into a piece of art and its value isn't literally the amount of time that you've spent creating it.
Speaker A
for the amount of time you spend painting this piece. They're paying for the end value it brings to them.
Speaker A
I mean the same can be said for regular handmade products, but it's especially important for original art.
Speaker A
So to give you an idea of what I'm talking about, I want to tell you a story you've probably heard before because it's pretty famous.
Speaker A
Okay. This will all depend on your experience level and your reputation. Ation level and your materials.
Speaker A
So one time Picasso was outside doing his drawings and someone asked him to do a little sketch.
Speaker A
So let's say that you charge five dollars per inch you would calculate the total cost by using the square area.
Speaker A
So he did a quick sketch in less than five minutes, and the customer asked how much it would cost. Picasso told the customer, and the customer said, "That's outrageous.
Speaker A
and that would give you a number and you would add that onto any specific material costs like the frame or the price of the canvas or other items that aren't already calculated in your formula.
Speaker A
It only took you five minutes to do." And Picasso replied, "It didn't take me five minutes.
Speaker A
Seeing consistent across a range of art this also reflects that obviously people are willing to pay more money for a larger piece of artwork than they are for a smaller piece of artwork.
Speaker A
It took me 30 years, and therefore it is worth it." So what goes into a piece of art and its value isn't literally the amount of time that you've spent creating it.
Speaker A
So first of all, I want you to think about your creative process how many pieces of art?
Speaker A
It's the years of training. It's your eye. It's so much more. So I want to make sure that you're charging something for those 30 years or 10 years or whatever it is for you so that you're getting a fair price for your piece.
Speaker A
So say you're only able to create two pieces a month and you're on track for selling those two pieces a month now, I want you to Get your formula and see can I actually make a living with this pricing formula given I can make install to a month.
Speaker A
I mean, the same can be said for regular handmade products, but it's especially important for original art.
Speaker A
but using the five dollars per inch formula. It's not enough for you to pay your bills with well now you know that you need to alter your per inch formula for your pricing.
Speaker A
Now, let's start with a formula. Now, this is just a starting place. Then we'll adjust it based on a number of factors until we get to a final formula that you can use for your unique business, and this is going to be different for everyone.
Speaker A
So that's what I mean by using a base formula, but then adjusting it to what works for you.
Speaker A
Okay, this will all depend on your experience level and your reputation, attention level, and your materials.
Speaker A
or who has a rabid following so I'm not suggesting that you underpriced your work, but I do want you to keep in mind. Demand on the market and know that you may need to start a little lower and slowly raise your prices over time.
Speaker A
So a standard way of pricing original art is based on a price per inch, and that's going to vary, but it's nice to have a consistent pricing model across all of your pieces of art, which is why I like to use the price per inch method.
Speaker A
So if you put up a painting that's $5 and you put up a painting that's $500 people will assume the $500 painting is better.
Speaker A
So let's say that you charge five dollars per inch. You would calculate the total cost by using the square area.
Speaker A
Has even done this experiment. He's an artist who commands a lot of money for his pieces, right? Like seven figures for one piece.
Speaker A
So, you know, 16 inches times 20 inches times the price per inch. So let's say you have a 16 inch by 20 inch canvas original painting. You would take 16 inches times 20 inches times the price per inch,
Speaker A
So that just goes to show that the value is relative. So pricer pieces high and people will assume your piece is more worth it.
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and that would give you a number, and you would add that onto any specific material costs like the frame or the price of the canvas or other items that aren't already calculated in your formula.
Speaker A
Then you are in a sweet spot. Another thing that will help inform your personal formula for pricing is comparing your work with other people.
Speaker A
So that would give you a starting point, and a huge advantage in using a formula like this is it makes it really simple to calculate prices, and it also makes pricing consistent across a range of art. This also reflects that obviously people are willing to pay more money for a larger piece of artwork than they are for a smaller piece of artwork.
Speaker A
So you can actually divide the numbers and figure out what that person is charging per inch and if you go to a site like Etsy or you shop around you can see which pieces are selling.
Speaker A
So let's take that as a starting point. And now we need to adjust it.
Speaker A
Like are you more expensive or are you actually less expensive than other people and of course you want to compare apples to apples here.
Speaker A
So first of all, I want you to think about your creative process. How many pieces of art
Speaker A
What are other pastels going for? You also want to consider how unique the work is that you're doing?
Speaker A
can you make in a month? And how many can you expect to sell in a month?
Speaker A
However, if you're doing a very avant-garde style that's completely out of the box and it's hard to find competitors.
Speaker A
So say you're only able to create two pieces a month, and you're on track for selling those two pieces a month. Now, I want you to get your formula and see, can I actually make a living with this pricing formula given I can make and sell two a month?
Speaker A
Another element to keep in mind is how much time do you actually spend painting versus doing administrative tasks?
Speaker A
Now, some people may have the capacity to create three pieces a month because maybe their process is simpler, but other artists might have a really complex process that's super time-consuming, and they can only make those two pieces a month.
Speaker A
That's Going into your business as a whole but it's not painting time, right and that needs to be calculated in as well.
Speaker A
But using the five dollars per inch formula, it's not enough for you to pay your bills with. Well, now you know that you need to alter your per inch formula for your pricing.
Speaker A
Your original art is to let customers go who aren't willing to pay your worth.
Speaker A
And so maybe five dollars an inch doesn't work for you, but now six dollars an inch would. Okay.
Speaker A
I sent you now when that happens, you do need to be okay with walking away because your work does have value and once you calculate your price and you stick with it, you will find that your customers are attracted
Speaker A
So that's what I mean by using a base formula but then adjusting it to what works for you.
Speaker A
for your time and positions you in the right spot among your competitors. So by using a Per inch calculation you can price your original art and by making the adjustments as I've suggested you will find the sweet spot where your art is selling
Speaker A
Another thing you need to consider is your reputation level. When you're just starting out, you're not going to be able to command the same prices as someone who's been established for years and years and has to work in lots of galleries
Topics:art pricingoriginal artprice per inchartist incomeart businesspricing formulacreative pricingart marketingselling art onlineartist tips
