How to Set Pricing for Your Artwork

Like anything else that is bought or sold, the price of artwork is underpinned by its value. Value is the perception the buyer has that they will gain some benefit or personal satisfaction from a purchase. The higher the perceived benefit or satisfaction, the more value the buyer puts on the item. The value in a piece of art may be either the benefit of having it to admire or the dollar value that it gains over time – esthetic enjoyment vs. investment.

What goes into setting prices? 

This isn’t just about art. This is what goes into setting prices for just about everything. You have to consider what the price needs be to keep the business going, to keep up with the market, and to meet expectations.

The first thing to look at in keeping the business going is cost. What does it cost you to make a piece? What are the raw materials, resources, and even packaging that go into the cost of creating and delivering the item? You have to cover that first. Now, what is your overhead for creating the piece? What does it cost to keep the lights on and a roof over your head? As a startup, this may be covered by investment or that dreaded day job. But we want to work our way clear of investments and day jobs and turn a profit. What is the price point where you turn a profit?

Next, you can consider how your pricing aligns with pricing of similar items by artists at your career level. Are you matching their price and outselling them? If so, then raise your prices a little at a time. Are you matching their price, but not selling anything? Try lowering the price – again, a little at a time. What you are doing here is benchmarking to gauge demand. Pricing is flexible and moves with the markets. You want to always be benchmarking to know where you sit. In real estate, they call this using comps to establish value, where comps is simply short for comparable properties.

The third consideration has to do with expectations and relies on precedent. A precedent is something that has been done before. If you sold a painting for $10,000, you have established a precedent for your work. Precedent is a big part of the investment buyers consideration. They are looking at how your work grows in value over time, and precedent is an indicator you can point to when setting a price.

What things increase the price you can set for your art?

We’ve all seen limited edition prints – even signed limited edition prints. By limiting the supply of something, you directly affect the demand. This of course only works to lift the price where there is demand. If you don’t yet have demand, it can still be a good tactic for lifting the price in the future, when you do have demand. Let’s say you’ve created a hundred limited edition prints, knowing that you won’t sell that many. Eventually, as your work attracts more buyers, the prints you retain in your possession will be worth more than when you created them.

A second way to build up you selling price is by gaining prestigious references. When a well-known person or gallery picks up your work, you have a reference that impacts how other prospective buyers value your work. Letting people know about it helps build your reputation (see my article “Shameless Self-Promotion and Other Silly Notions”). It can be as simple as telling other people about something you’re excited about.

A third way to build up perceived value – and along with it, your selling price – is to gain public recognition. You can do this by entering contests, hosting events (start small), participating in your local art community, or by giving back through education and donation. Have you ever wondered about donated paintings in libraries or other public spaces? Were the artists famous before or after they donated the art? Ask around. I think people’s openness to donated pieces with surprise you – especially if it comes with your authentic backstory.

Here's a quick tip on both donating and testing price at the same time. Donate a piece to a charity auction. You will see what your work is going for when you don’t set the price, and you may end up with a new benchmark for what you can ask for your other work. I know an artist whose work sold at auction for twice what he had been charging. Maybe you can too.

Keep creating. Keep being seen. And keep promoting your current work enough to afford to do your best work.