This Post is by Keith Bond, Regular contributing writer for FineArtViews.  Find out how you can be a guest author

When I first began pursuing art full time, I had a neighbor who knew very little about art.  Countless times he told me, "Keith, you should put your art in the annual 'starving artists' exhibit at the Hilton Inn.  You could easily sell your paintings there for $25."  (Maybe he was telling me something about my art!  Those paintings were mostly assembly line paintings from Mexico or Taiwan.)  He didn't realize that my costs far exceeded that amount, not to mention my time. 

Other people I knew from church or the community would usually gasp when I told them how much a painting costs.  I found myself justifying my price to them, even though my prices were relatively inexpensive.  Like my neighbor, they were not art collectors.  They didn't have a clue.  Some eventually did become collectors, but not all. 

I no longer feel the need to justify or make excuses for my prices.  They simply are what they are.  My prices are based upon demand for my work, my level of ability, and the market in which I exhibit.   I also must take into account the costs I incur producing my art and how much my time is worth to me. 

It was difficult when I first began to paint to price my work appropriately.  There is danger in pricing it too low and there is danger in pricing it too high.  I did finally find a price point that seemed to fit.  Over time my prices have increased.   

If you find yourself in the situation where I was a few years ago, let me give you a few things that may help you price your work.

1. Know your costs.  Including: supplies (paint, canvas, brushes, thinner, etc.), frames, studio (even if you paint at home, prorate the square footage designated as your work space), utilities, shipping, office, accounting fees, attorney's fees, insurance, photographing your work, marketing and advertising, internet, phone, membership dues or entry fees, display booth expenses, lighting, etc.
   

2. Galleries commonly take 40%-50% commission.  Price accordingly even if you sell your own work.  You may eventually show at a gallery or other venue which takes a commission and you don't want your prices to suddenly double.  Never, ever undercut your galleries.  Your prices should be the same whether purchased through you or a gallery.
   

3. How much time is invested in each painting?
   

4. How many of your paintings are good enough to sell?
   

5. Re-calculate how much time is invested considering the ones you scrap.  Once you determine your costs, gallery commissions, and how much time it takes to create your art, you must decide how much your time is worth.  Price your work so that your bottom line reflects at least what your time is worth.
   

Retail – All Costs – Commissions = Bottom Line 

6. In many industries, the bottom line is somewhere around 20%.  I was once told by a successful artist that when all is said and done, he takes home about 25%.  That means that he would need to sell $100,000 worth of art a year to only make $25,000.  As your reputation increases, your potential to raise your bottom line increases as well.  But this takes time.
   

7. Consider your reputation.
   

8. Consider your level of skill.
   

9. Consider your market.
   

10. Consider other the price of art by other artists who are at a similar level of skill, reputation, and in the same market.
    

11. Realize that you will need to adjust your prices from time to time.  Inflation necessitates an increase just to keep the bottom line constant.  However, you should increase prices as demand increases.  Your work can tolerate the increase and it justifies clients' previous purchases.  They want to know that they made a wise purchase / investment.
    

12. There is a psychological element as well.  Higher priced items tend to be perceived as better.  Be careful that you don't go too high too quickly, though.  If you price yourself into the range of the more serious collectors, you must have the quality to justify it.  Serious collectors know quality.

13. Realize that a smaller painting has more overhead than a large painting.  Frames and canvas are usually a better value as size increases.  Set-up time, time required to photograph, time required to update the web site, time devoted to crating and shipping, etc is often the same regardless of the size of the painting.  The amount of rent, utilities, and other overhead expenses remain constant regardless of the size of the artwork.  Therefore a small painting costs you more to produce than a large one.  Consider pricing with this in mind.  I price at a certain rate per square inch plus an average overhead cost. 

  Average Overhead Per Painting + (Rate X Size) = Retail Price

If you determine that you can't sell enough to justify doing your art, don't quit your art.  Rather, work on improving your art, finding new venues, increasing your reputation, etc.  Over time, you will find a market for your work.

Sincerely,