Art and the Internet

[tedh]

OK, so those of us in the art business are trying to survive the perfect storm: a bad economy, increasing Internet sales, and the rise of the BBs. Buyers want to spend less, and when they have the money, they buy online and from furniture stores, home decor stores, and Walmart. Here are my assumptions:

- high-end art is dead-end art. I don't want to be in this space, because I want to eat;
- low-end art is from China;
- art.com stuff is easy to beat on price;
- there still is a future in selling art, because all those other sources are still in business;
- small independents like you and I have to fight back.
- I've seen signs of life in this business: the young crowd is buying youth-oriented art - deviantart.com and eyes on walls are examples. Older buyers are still out there as well, and we are seeing them come back more and more. They are hard to please, and require top-notch service and bottom-notch prices.

So here's what I'm thinking: fight them all on price by copying what they do, and do it better. Art laminated on board with plastic frames that look good; box-buying; find the highest online prices you can, then discount off these; only display the current best-sellers from our publishers. Encourage immediate impulse buys.

I've experimented with these principles, and they work. I took a range of Vanscoys, lammed and framed them, and repeatedly sold them out. Did the same with other misty landscapes. The average sale was lower, but the margins were higher, and the volume was consistent.

What does not sell? limited editions, consignments, and traditionally-framed prints (mats and glass). Remember that there's a race to the bottom: there's no limit to how little people want to spend. The most common price point I've seen is $150, so we target less than keystone - way less. It's not how I'd like to see the business evolve, but that's life.

Customer behaviour: cheap and disgusting: constantly seeing people bringing in Walmart carp and asking us to cut mats to fit the art and that carp. Constantly asking for a deal. Showrooming. Walking away from what we think is a serious discount. Asking us to sell their old, worn-out, faded junk.

Comments?

 

[Dave]

I hope it's not an aberration, but after seeing a very slow art market we've seen a good up tick in high end fine art sales in the last few weeks. I've talked to a few other galleries and they too have experienced better art sales in the past month and also better traffic. Interest seems higher too. The sales have mostly been in paintings that are in the $ 4-5000.00 range.

I agree with you that the print market, whether L/E's or open edition is still floundering and it is not our main focus except for the recent addition to the gallery of Dr. Seuss L/E serigraphs where we have made some great sales but the jury is still out with whether they will continue to do well.

We depend on framing to cover the nut and any art sales are gravy. The last few weeks the gravy has fortunately been flowing and I hope it is a new trend.

 

[tedh]

and our framing sales are running ahead of any of the past five years. But the 80/20 rule is killing me: 80% of our overhead is generated by the gallery, which brings in 20% of sales. And the reverse for framing, so framing is carrying the gallery. This has never happened before.

 

[Prospero]

There still is a healthy market for good paintings. Not what is was admittedly, but people are still willing to pay for quality stuff.

What I call the 'furniture art' market is more or less the same as it ever was. Only the images change. People who want a big picture to fill a gap on the wall aren't interested in investment value. They will pay so much and no more.

Problem is, some people don't appreciate the difference. A picture is a picture. I've had a spate of people lately bringing all sorts of carp in wanting me to sell it for them. (Sign of the times....) Most are basically worthless. The frames are damaged/falling apart/generally manky. The contents are not in fashion/crinkly/faded. I couldn't give them away.

I always tell people that if they buy a decent painting it will at least hold it's value. Which is true for the most part.




Limited edition prints died about 1995.

 

[CB Art & Framing]

I like your attitude but this really scares me

Fight them all on price

No matter how inexpensive you think you can go, there is someone out there who will go cheaper-especially Online.

 

[tedh]

I like your attitude but this really scares me No matter how inexpensive you think you can go, there is someone out there who will go cheaper-especially Online.

Agreed, but I'm looking for the impulse buy from tourists that come to town. I have to keep prices down and have a really wide selection. This province's economy is bad, really bad: federal government layoffs coming soon, tax increases announced regularly, energy prices going up, and disposable income down. I think that to stay alive in the near term, we have to get those prices as low as we can, but still maintain healthy margins.

 

[i-FRAMER]

i would be careful lowering your prices. It can be harder to raise them back again to a healthy profit later when you need to. Also, in my experience you only attract that low end customer. I would much prefer to raise my price and attract the higher end and do less work. Maybe i am getting lazy, but i do not want to chase a few dollars and double my workload.
The customers that chase price have no loyalty, are more likely to complain and take up your time.
We have one framer in our area who charges at least double of everyone else in town. He has 4 framers and 3 counter staff, yet he uses the same materials. The customers that go to him are the ones that want to pay the most, because they feel they are paying for the best. He moves in the high society social life, regularly advertises on TV and that's where he gets his customer.

Aim higher not lower.

Cheers

 

[Luddite]

Deviantart? Really... People go there to blatantlyCOPY other artist's work( I have seen one freind's same image copied maybe 10 different times!)...OK not everyone is sleazy, but there's enough... I found my stuff copied in there, badly bit clearly my stuff. No, I don't. and never will have a gallery in there! L

 

[tedh]

Deviantart? Really...

I found an artist there whose work I loved, and sent him a big advance. He sent me five images which we printed as giclees. When the advance was drawn down through royalties, we advanced him more. Did this a third time as well. His name is Zhu Zhu, and his work is digital art. Amazing stuff. I've bought art from deviantart as well - Stanley Lau.