by Maria Brophy
Then continue, “Your charity is doing important work, and so I’d like to make a donation that’s equal to 20% of the cost of the work. I’ll write up a proposal and send it to you and we can go from there. Sound good?”
The above script establishes two things:
that you recognize how important their charity is, and that you are willing to donate in the form of a discount, and;
that you expect them to pay you for your services.
Setting up the expectation changes the dynamic of future communications. Your proposal should then show the total cost, and then indicate the discount (donation) that you offer, and a total after that amount is deducted.
THE SMALL BUDGET
When a client says “I have a small budget”, what you think you hear them saying is that they want you to give them a cheaper price than you do everyone else.
This is the first mistake; assuming that you know what the client means. Without knowing how much money they are willing to spend, you can’t possibly know what their actual budget is.
Many of us make the mistake of thinking someone else’s budget is the same as ours. What I think is too expensive for me, would be considered affordable to someone in a higher income bracket. You can’t put your own budget restrictions onto your client.
I’ve had many instances where a client’s “small budget” turned out to be more money than what we quoted them. A small or large budget is different for each person.
One summer I had a collector call and ask how much it would cost for a commission. She started the conversation by saying “I can’t afford a lot, but I thought I’d ask how much Drew would charge for a 36"x48" painting.” At the time, we charged $3,600 for a commission that size. When I told her the price, I expected her to say she couldn’t afford it. But instead, she said, “Oh, that’s cheaper than I thought. Great, let’s get started.”
On the other hand, some clients truly can’t afford your prices. When a client asks for a price quote and mentions they are on a tight budget, just give a price quote for the work they requested. Their budget is irrelevant to your prices, because your prices are what they are.
If, after giving the quote, they say they have a budget smaller than your price, don’t make the mistake of giving them what you quoted for a lower price. If you do, you are lowering the value of your work and you will financially harm your business. You will also send a message to the client that your pricing is bogus.
If they suggest you charge a cheaper price now and they will pay full price later, do not fall for that one. Once you set a price precedent, the client always expects the same prices later. Instead of lowering your price, convince your client of the value so they increase their budget and pay full price. Often, a client’s budget is reflective of how much trust they have in you.
If they truly want your work, but they aren’t completely confident that you can do it the way they want, you have to take the time to convince them. Many times I’ve been able to get a client to increase their budget after gaining their trust that we are capable of producing what they need.
The way you convince them that you are capable is by talking to them. Have a lengthy conversation, ask a lot of questions, and then parrot back to them what they said they need. This shows that you listened and understand. If they feel that you understand them, they will have more confidence in you. Then, tell them about a previous client whom you worked with on a similar project and how it was a huge success.
Explain that you want to give them the best quality work possible, but the only way you can do it is if they increase their budget to allow you the time required. A lower price cuts back on your time and materials and will not allow you to do your best for them.
If they still cannot increase their budget, then tell them that the next best option is to lessen the scope of work so that it matches their budget. Often Drew will have someone ask him to paint their surfboard. They will want a full board painting and a lot of detail. Then he will price it out as a full painting, and they say they can’t afford it.
Rather than letting the customer go, Drew will ask, “What is your budget? I’ll give you a painting to match it.” If their budget is a fraction of the cost of the full board painting, he will paint a very small painting on the nose of their surfboard instead.
It’s not exactly what they wanted, but, it gives them what they can afford. Always brainstorm to find a way to get your client close to what they want, working within their budget, without you eating the loss.
You can meet their budget by lessening the scope of work, going smaller, using less expensive materials, use less detail, etc. Take the time to figure out how to cut back on time and materials to work with their budget.
Another way to help a client with a tight budget is to offer payment options. Have them pay 30% up front and then make monthly payments thereafter. Have them sign a payment agreement and give you a credit card number. You can automatically charge their card each month when their payment is due.
If the options above don’t appeal to your client, then refer them to an artist who is still in school and looking to build their portfolio. This doesn’t do anything for you personally, but you will be helping out a new artist and at the same time solving the problem of a would-be client.
Be sure to maintain a friendly and professional attitude with every client, even those who can’t afford your services. Wish them well, and let them know you’ll be happy to work with them if their financial situation changes. Be genuine and kind. If their experience with you was pleasant, they may come back to you later with a larger budget.
Clients who go to artists who charge cheap prices often do not get what they need and will end up coming back to you, once they realize they need a professional. At that time, their budget suddenly grows. Welcome them back and handle it gracefully. We’ve had this happen many times.
Once a company wanted Drew to create a poster for their surfing contest. It was a rush-job and they needed the art in two weeks. We gave them a price quote and they said they couldn’t afford it, so they hired another artist. Two weeks later, they called Drew in a panic. They said the artist they hired didn’t do a good job and now they were desperate and needed the art in two days. We gave them a new price quote and added a rush fee, because getting it done that quickly would mean no sleep for Drew for 48 hours. Now, they suddenly had to increase their budget plus had to pay an extra 20% rush fee.
21
TRAIN PEOPLE HOW TO TREAT YOU
“We tend to get what we expect.”
—Norman Vincent Peal
About 10 years ago, a local surfboard shaper and Drew made a trade. One painting for one surfboard. Some time later, the surfboard shaper drove by another local business and saw that the art on his Brophy painting had been printed on a poster and it hung in their window.
He immediately drove to our studio and stormed into the front door, yelling “That’s my art! That’s my art! How dare you sell my art to someone else!”
Drew looked at him and said, “How do you think I feed my family?” And then went on to explain to the shaper that if he limited his sale of surfboard shapes to just one guy, he wouldn’t be able to make a living. To stay in business, he has to sell his surfboard shapes to many people, not just one. The art business works the same way.
The man stopped and realized the absurdity of his anger. He calmed down, and came to understand. Most of our clients know that we have a business model of reproducing and licensing art. They have come to expect that if the piece of art they bought has mass appeal, they will see art prints of it become available. We have trained the public to be accustomed to our business model.
Those that aren’t okay with our business model may not understand this business, and so we have to take time to help them understand. And yes, some people will disagree with our business model, and that is okay.
Not everyone understands art, and even less understand the business of it.
But don’t let some
one’s misunderstanding of the art business change your business model. Instead, stand firm in your decisions and overall plan and be the example to others as to how it’s done.
HOW TO TRAIN PEOPLE
Drew always says, “you train people how to treat you.” People come to expect what you expect, and they will fulfill that expectation. This can work in your favor, or not, depending on how you choose to make your expectations known.
I’ve seen this truth unfold many times. One example is the relationship we have with the company Liquid Force. Drew designed wakeboards for them years ago. After a few years of not working with them, they called asking to commission Drew once again for new designs. We agreed on pricing, and our contact, Jimmy, said, “I know Drew won’t start until he gets a deposit, so I’ll have accounting cut a check right away.” He’s worked with Drew in the past, and he remembers that Drew expects partial payment before he begins the work.
You can train people to treat you the way you want to be treated by:
Being verbally clear of your expectations in the very beginning.
Being consistent in your policies (pricing policies, meeting deadlines, expecting payment on time).
Valuing your own time enough to not allow people to waste it.
Setting boundaries and sticking to them, without apology.
Word gets around and over time, all of the people in your life will get used to your expectations and treat you accordingly. They come to expect your expectations, and they fulfill it.
THE BAD CLIENT
One artist I worked with wanted help dealing with a bad client. She said the client paid her well, but they had a dysfunctional relationship. Her client would text her at all hours of the day and night and even on weekends. She felt compelled to answer their texts within minutes, or they would hound her. She felt like she was trapped, with no free time for herself or her family. She said it was like having a bad boyfriend.
The root of the problem was the artist, not the client. She had trained her client to treat her this way, by not setting boundaries in the very beginning. She had answered every single text within minutes, even on her off-work time. By doing so, she gave them a signal that she had no personal life and that it was okay to do this.
I suggested that she re-train them by setting specific work hours for herself and sticking to it. I advised her to send her bad boyfriend client an email saying:
“I wanted to inform you that for greater efficiency, I have restructured my work schedule. Starting immediately, I will be available Monday through Friday, between the hours of 9 a.m. and 5 p.m. If you need to send a communication to me during a non-work time, please know that I will respond as soon as possible on the following work day.”
Just like puppies and kids, it’s easier to train a client in the beginning. When you form a relationship with a new client, clearly tell them what your expectations and boundaries are. Most people will respect your expectations and give you what you ask for.
22
HOW TO PRICE YOUR ARTWORK
It would be so easy if there was a book out there that told you what to charge, wouldn’t it? Well, there is one for the commercial artist and it’s by The Graphic Artist’s Guild titled Handbook: Pricing and Ethical Guidelines. This book should be owned by every artist, as it contains general pricing guidelines and a plethora of written agreements that you can use. One caveat: some of the pricing guidelines seem to be too low, and others sometimes seem too high. But in their defense, pricing is based on so many different factors that it’s impossible to write a book that applies to everyone. I recommend using the book as a guide, but come up with pricing that is most appropriate for your work.
The price of your artwork will be based on many different factors, including:
The market you choose to sell your work in (high end versus low end)
The medium you use
Your level of mastery
The strength of your name or brand and the demand for your work
The time involved
The industry standards for the type of work you do
Pricing varies from artist to artist for all of the factors listed above. I have friends who sell their original paintings for as low as $200 each, and I have friends who sell their paintings for $10,000. Sometimes the difference between the $200 painting and the $10,000 painting is hard to see. In art, pricing doesn’t always make logical sense.
Since the artists reading this book range from photographers to illustrators to fine artists, I can’t possibly cover all pricing in this book. Instead, I’ll share a few pricing guidelines that will be helpful for most of you.
PRICE IN THE HIGH END
VS.
LOW END MARKETS
When determining your pricing, you might be surprised to know that you can actually decide which market you will sell your work in. You can make the choice to either sell higher priced works or to sell lower priced works.
Your decision on which market you’ll sell your work goes back to what you want, as we discussed in the first chapter in this book.
If you want your artwork to appeal to celebrities and be sold for $20,000 or more, then that is where your focus should be. To sell in the high end market, you’ll have to use the finest of materials and develop mastery at your craft. You’ll have to form business relationships with people in that market. You’ll have to avoid venues where low price work is being sold.
If you want your work to bring joy to as many people as possible and you want anyone to be able to afford it, then that is where your focus should be. To sell to the mass markets, your work would have to be priced on the mid to lower end so more people can afford it.
I was at a local street fair recently and I visited the booth of a talented artist selling beautiful, hand crafted wood furniture. I remembered him from last year at the same fair; Drew and I bought two of his hand crafted stools for our studio. One thing that I noticed about his work is that it would sell very well in the high end market. But, here he was selling it at a street fair, priced too low. His small wooden chairs were priced at $200 each. I know that the amount of time this this gifted artist put into making each chair was worth well beyond what he was charging. He could be selling through designers in Laguna Beach, a nearby town where people with large homes and high incomes would love his work.
Maybe he doesn’t know that he can choose to hit the high end market instead. If I were coaching him, I would recommend that he no longer sell at street fairs and triple his prices. He could call on interior designers and art consultants in wealthy areas in the county. He could form a relationship with those professionals and sell his work at premium prices to homeowners that would love the work, and have the money to afford it.
Raising his prices would allow him to include a commission for the interior designers and consultants so that they have incentive to connect him with their premium clients. It would also pay him more adequately for his fine work. When prices are higher, it makes your art more interesting to wealthier people. If it’s priced too low, you give the impression that it is worth less than it truly is.
Everything you do with your business is a choice, including to whom you choose to sell to.
When you decide to sell your work at a flea market, you are making a choice of who you want your customers to be. As such, you have to charge prices at a lower amount to make it sell to the customers in that market.
When you decide to sell to the high end market, you will have to sell your work in places where that high end customer shops. As such, your prices will have to be high enough to attract the high end customer.
Please know, there is nothing right or wrong with either choice. I know many artists who make a great living selling in the lower priced market. Some artists’ work is entirely appropriate to sell at street fairs, and some would not be.
For example, jewelry designers. Some use low priced materials, imitation stones and China-sourced charms for their jewelry; this would sell best at a local craf
t fair and would be priced on the low end. An artist who creates jewelry using gemstones, fine metals and a unique style would price her pieces on the high end through galleries, fine art shows and boutique stores.
You have to decide for yourself where you want to put your focus. Your decision should be based on what you want for the future of your art business.
HOW TO COME UP WITH PRICING
Some artists have no idea what their prices are. They have different prices for different clients and projects. The problem with not having a consistent price structure is that you’ll often underprice your work. It also makes it difficult to discuss price with potential clients. And, lastly, it will be confusing to everyone.
Take the time to come up with a consistent pricing structure, one that you can memorize and explain to your clients. You can change your prices anytime. If you find that your pricing is too low, adjust it.
Pricing is best when based on something that can be measured, such as by the square foot or square inch, by materials used or by time blocks.
If you are not sure of where to begin with pricing, base your prices on the current market value. Research what the public is paying for the work of artists similar to yours. Use their pricing as a baseline and make adjustments to the pricing to be in line with your own mastery level.
Your price structure should remain the same regardless of where you are selling the art. If you are selling art in galleries, those prices should be formulated the same as the prices you are offering when selling directly to collectors. You cannot have two different price structures, as it will create a problem for the gallery and confuse the public.
Keep in mind, what one artist believes is a high price for a piece of art, another thinks is too low. Money and pricing is all relative to where you are with your mindset, your market and your background.
