This is a bit about the objective elements of art pricing. Art pricing is both subjective and objective. The purely subjective aspects are quite complicated to say the least, and often are not at all related to the image itself… but that’s not the topic I’m exploring here. If you really want to get into the subjective elements, I’ve listed some at the end of this article.
On this page, I'm focusing on the "hard and fast math" parts; it's relatively - and I do say relatively - objective. Factors, in no particular order, include:
-Gallery's cut
-Framing prices
-Cost of goods
-Overhead
-Hourly wage
For our examination of pricing, let's start with an artwork that costs, say, $2000 - a nice 12x16" landscape, oil on canvas, which you like very much but by an artist you don't know, in a very nice ornate frame, exhibited in the preeminent gallery of a smaller city. How can the artist demand such an outrageous price, you ask? Um…Let's look at how much that artist will actually net for their labor.
As the preeminent gallery of a smaller city, the gallery is most likely taking a cut of 40%. (almost all galleries charge between 30% and 50%, with higher percentages usually charged at galleries in larger cities and with larger reputations. This *isn't* unfair; the galleries must also cover their costs and make a profit... You may ask: Can you get a deal by going directly to the artist? Sometimes... but wise artists must charge the same price outside the gallery that they would charge if they sold through the gallery. If they undercut the gallery price, they will soon find themselves "un-invited" to sell through that gallery).
So minus the gallery cut, this means that the artist is now receiving $1200 as their gross.
In order to display in the gallery, the artist had to put their work in a frame. Since the cost of framing has soared in recent years, it's reasonable to assume that a nice ornate frame cost the artist at least $300 and most likely more.
But let's make some assumptions that would maximize profit for the artist. Assume the artist is also skilled at framing. In this case the material cost is frame stock, with approximately five and a half feet required to cut the pieces (there is always some waste, dictated by the 45 degree cuts required). The typical price per foot for a nicer frame stock in 2024 is around $25/foot, or $137.50 for 5.5 feet, which is about what it will take to frame that nice picture. So out of the original $2000, the artist is now getting $1062.50.
In order to make that painting, the artist had to purchase canvas, whether pre-stretched or raw. A mid-range quality pre-stretched canvas coated in gesso (the base layer for most oil paintings) runs about $20 if purchased in bulk. Surprisingly, making one's own stretchers and stretching raw canvas is often more expensive than purchasing ready-made canvas. If we stick with the $20 price, however, the artist is now making $1042.50.
Of course, there's the paint itself. While each tube of oil paints will generally last for several paintings, a rule of thumb is that you will exhaust at least two tubes per painting of this size, out of the many colors that are used. A reasonable quality paint such as "Old Holland" will run about $20 per tube on average. Some are less, some are way more...
Mediums such as stand-oil and thinners such as turpentine are also expensive. So is replacing paint brushes as they wear out. But these quantities can be very variable, so we'll ignore that cost for now.
Most artists must have a studio to paint - a space to isolate them from distractions so that they can concentrate on their art. Assuming that this smaller city is in an average real-estate market, the artist is probably paying around $600/month to use that space. If we also assume that the artist is capable of finishing a fine painting every 40-hour week (which would actually be a fairly high rate of production), the studio cost of this painting was $150. If the artist is lucky enough to have a studio inside their home, this cost may be lower (but it's still not free, which is why the IRS allows a partial deduction for that home studio!)
Artist overhead also includes utilities. Depending on where the artist lives, this can vary widely. For our example we'll use $100/month, or $25 per week...
Add the other materials the artist needs to translate an idea into a painting (sketch-pads, drawing tools, and the like), and more... while this is hard to pin down because artists vary so much in their working methods, I'll use my typical cost of around $40/month. Again, dividing by four paintings per month, that's $25 for utilities and $10 for miscellaneous supplies for the very nice painting. Subtracting all these costs, the artist is now making $742.50 from that painting (and there are other costs I’m ignoring - insurance, advertising, etc. etc.).
Since we’re saying that this artist can create one fine painting per 40 hour week, divide by 40, and the artist is making $18.60 per hour for their efforts. Obviously, this is just an example; every artist and their situation is different.
If this seems like a lot to you, use these data points for comparison: The starting wage for a laborer with no experience is currently $18/hour. To get to the point of selling a painting for a mere $2000, most artists have invested more hours honing their craft than a lawyer spends getting their JD or a doctor their MD…
But then there are the subjective factors — Which is why I posted this quote on 6/4/2023: “Painting is not a profession; it’s a casino” — Mac
Recap:
$2000 Sale price
-$800: Gallery commission
-$137.50: Frame stock (assumes framing own work)
-$20: Canvas
-$40: tubes of paint
-$150: studio rent (one week while painting this piece)
-$25: utilities (for one week)
-$10: sketch pads and other supplies to work out ideas / compositions
________________
=$742.50 total
=$18.60/hour
additional reading:
SUBJECTIVE ELEMENTS
Subjective elements, fairly or unfairly, may include:
-Bigger equals a higher price (some artists even set prices by calculating square inches — but check out the prices of fine Persian miniatures!);
-Medium makes a difference; oil on canvas tends to be higher than acrylic, which is higher than watercolor on paper, which in turn tends to be higher than pen-and-ink, regardless of other factors;
-Schools the artist has attended, and prizes won, can influence pricing;
-Perception of process, intent, ideas, and techniques;
-Perception of originality;
-Whether the artist is beginning, mid-, or late career;
-In general, unique objects cost more than editioned works, whether paintings vs prints, unique sculptures vs editions of cast bronzes, etc.;
-Gallery influences - galleries tend to price artwork according to size, sales at that artist's most recent show, institutional shows or nominations for awards; but also, major galleries also try to keep prices for an artist on the rise. If a 12x16" painting by the artist sold for $500 last year, this year you should expect a major gallery to ask $1000 for a similar painting;
-Gallery stature: a work of art in a small town gallery will usually command a small town price; place that exact same work in “Gagosian” in New York City, and add quite a few zeros to the price.
-Price manipulation is another issue. Galleries, auction houses, and even artists themselves have been known to engage in practices that inflate or deflate the market value of artworks, creating artificial scarcity or demand. This can lead to prices that are disconnected from the intrinsic value of the art. This undermines trust in the art market (especially in markets such as those in the “art capitals” of say, New York City, Tokyo, etc.) but… the art world is a difficult place… which is why I maintain that you should never buy art as an investment unless you also want it as something to hang on your wall which will give you commensurate pleasure.
(If you want to learn more about subjective and variable factors in art pricing, an excellent article is at this address: https://arttern.com/417/articles/understanding-the-pricing-methods-of-paintings-a-comprehensive-guide/ ).