How to estimate the price of an artist's work

Galleries often keep a low profile when quoting prices. There are several reasons for this. They can, for example, keep themselves open to react spontaneously to price inquiries or to accept proposals. It is not always possible to know whether the proposed price is appropriate - for example, in the case of newcomers to the market. If you want to make a realistic offer yourself, you don't want to go into the negotiation completely unsuspecting. So how do you estimate the price of an artist?

To understand how to price an artist, you first need to know how galleries and freelancers calculate their own prices. With the know-how about common calculation methods, you then simply calculate back - and get a rough estimate of how much the work of the artist could be worth.

Researching artists' prices

Research is the magic word. Before applying this formula, you first need to find out some key data about the artist. Is the person under contract with a gallery or does he or she rely solely on self-promotion? - This is an important first indication, since the gallery receives about 50% of the price when a sale is made. Solo self-employed artists are therefore generally more favorable for collectors.

Has the artist already sold works? If so, you can try to find out the prices for them. Admittedly, this is not always easy, as the transactions often take place on a private level. But if interested parties were actually able to research a price range, they can certainly use this as a point of reference. As a rule, it does not get any cheaper: the unwritten rule on the art market is that a price should never fall, but tend to rise.

There are artists who set their prices intuitively, but this happens rather rarely. They are aware that they could make a big mistake in this way and perhaps even embarrass themselves. Especially at the beginning of a career, there is a danger of underestimating or overestimating oneself.

This formula is used by galleries and artists to calculate prices

The most common method of price calculation is composed of a formula and the somewhat mystical artist factor. In Europe and the USA, these are usually the two formulas.

• In Europe, you add the length and width of a picture (in centimeters) and multiply the result by said artist factor: (L + B) x artist factor. The result is the price (in Euro). So approximately (150 cm + 50 cm) x 5 = 1,000 euros.

• On the US art market, the square inch formula dominates, where width and height are also multiplied together, while the artist factor is lower: L x H x artist factor. Thus, the surface area is taken as a basis.

For sculptures, sculptures, etc., the depth also counts. They are generally a bit more expensive and the factor should be set a bit higher here.

How is the artist factor determined?

The artist factor is a bit of a mystery. For absolute newcomers, it varies between 3 and 10, while the upper limits are open as always. For the artist himself or herself, there are many clues as to how to set the factor. Outsiders who want to estimate these prices have to research these criteria to decipher the formulas. The factor depends on these criteria:

• Study and degree (reputation of the academy, if applicable).
• Was the person a master student?
• Is he or she a member of a professional artistic association?
• How much professional experience does the artist have?
• Are there any awards, prizes, scholarships?
• Are there publications in the press, catalogs, etc.? What is the general media presence?
• Exhibition behavior? How often and where do museums and galleries exhibit the person?
• Is there gallery representation?
• Is the person represented in public and private collections, museums, etc.?
• Does she already sell regularly?
• Is there any teaching activity or similar?
• Is there information about continuing education?
• Is the person an active member of an artist association?

Clearly, a person who meets all the criteria will set a pretty high factor and vice versa. Unfortunately, the art market does not specify exactly how high each aspect is weighted and exactly how it affects the factor. This is what makes it so difficult to get an idea of the selling price. A good point of reference then are similar works and artists with similar biographies. A price comparison may help here. By the way, the formula only tells you something about the net price. The value added tax and the possible gallery proceeds are usually added on top. Here again, it plays a role whether the artist is self-employed, whether they take advantage of the small business regulation and whether a gallery representation is involved.

Other factors for price estimation

Some include material costs and hourly wages in addition to the artist factor. There is no way to know this, of course, but the formula is then a good argument for making a counter-proposal if the price is felt to be »too high« - the result may well be considered »in line with the market«.

Is it too hard to find out something about the person? In this case, you can assume that they are still new to the market and have not had much work experience or sales. So, in case of doubt, the factor is rather lower and difficult research is an argument for a lower price.