HARVEY Report post Posted September 3, 2009 Does anybody know the general range of profit between what an art gallery asks and what the artist wants?? I have no problems with galleries making a profit, that's what they're in business for. But I'm also not related to Bill Gates or Warren Buffet. I saw a sculpture I like in a western art gallery, and since everything's negotiable, I'm wondering if anyone knows what the general rule-of-thumb is for profit margin, if there is one. I am not trying to put the art dealer out-of-business, but I'd like to save myself a few bucks, too. Is the profit spread greater if an object is $10,000 versus $2,000? Or do galleries try to get the same percentage profit regardless of the amount asked? Anybody know anything about this? Thanks! Harvey Los Angeles Quote Share this post Link to post Share on other sites
cajun Report post Posted September 3, 2009 Does anybody know the general range of profit between what an art gallery asks and what the artist wants?? I have no problems with galleries making a profit, that's what they're in business for. But I'm also not related to Bill Gates or Warren Buffet. I saw a sculpture I like in a western art gallery, and since everything's negotiable, I'm wondering if anyone knows what the general rule-of-thumb is for profit margin, if there is one. I am not trying to put the art dealer out-of-business, but I'd like to save myself a few bucks, too. Is the profit spread greater if an object is $10,000 versus $2,000? Or do galleries try to get the same percentage profit regardless of the amount asked? Anybody know anything about this? Thanks! Harvey Los Angeles Hi Harbey Back when I was in the art gallery business, their was no discounting of art work. If an artist or an art agent caught you discounting art work, they would not sell to you again. People buy art as an investment and if a gallery discounts, it makes all of that artists work go down in value. Believe me other galleries watch what you do and will report you in a split second. If this is a reputable gallery, I don't see much chance for a discount. I was in the business for almost 40 years and have never given a discount on art work. Regards, Bill Parrie Quote Share this post Link to post Share on other sites
Dale Report post Posted September 4, 2009 Good luck. Eighty percent of galleries go under within five years. Few survive long term. Some are financed more from out-of-pocket funds and less by the art that's sold, simply because the owner loves it, has an appreciation for art, wants to help artists, or (insert reason here). The assumption that galleries have money to burn is quite misinformed. Just like Walmart, Target, mom-and-pop stores, or many/most other retail business, there is typically no "per-piece" profit percentage. There are other expenses like rent, electricity, phone, advertising, opening buffets, etc -- all intended to bring the collector to see the artists' works. Negotiating also doesn't fare well at most retail businesses. Unlike Walmart, Target, mom-and-pop stores, or many/most other retail business, it's not possible to put a piece on the shelf and wait for the customer to come buy it. Negotiate for it? I'd be a bit suspect of a gallery willing to do that for a single piece. Who absorbs the cut? Is it the gallery or the artist? More often than not, it's the latter. But I digress. The bottom line answer to your question is that there is no rule of thumb. If the gallery is making a profit, that means it gets to stay open another month. If not, you won't be buying any more art there. Quote Share this post Link to post Share on other sites
bruce johnson Report post Posted September 4, 2009 Harvey, Psssst, hey buddy. Wanna buy a cherry unframed "No Place for Amateurs" etching? There may be a floor price but in looking around there is no ceiling price. We have seen the same piece in one place for $450 and another for $1250. In the same town we have seen a $200 difference. You know who we collect, so we kind of keep an eye out for asking prices on what we have too. I have seen the new ones, and they both are good. I am still liking the bucker. Quote Share this post Link to post Share on other sites
HARVEY Report post Posted September 4, 2009 Thanks, Guys, for the input. Please understand I'm not trying to argue with anyone's experience(s) here. But when I read different places sell the same thing with an $800 spread, AND knowing the lower asking price party ain't losing any money for what he's asking, I just KNOW there's a profit margin in there. I have no idea whether a gallery owner would cut his own profit to move a piece, or go back and negotiate with the artist. I just don't know. But I DO think that if a piece is sitting in a gallery for a couple of years and hasn't budged, then reasonably and logically (Mr. Spock here), you'd think somebody would be willing to give a little leeway. Aside from things that don't have an economic price on them -- honor, integrity, etc. -- most everything has some negotiable room. I don't want to cheat anyone, but most of us I surely believe do horsetrade from time to time. Thanks again. Guys! Harvey Quote Share this post Link to post Share on other sites
