Pricing Your Artwork

What every artist should know before putting a price tag on their work

The pricing of artwork is always a delicate matter for most emerging artists. But when art is your business and income, it should be an important consideration. Knowing what to charge could potentially mean the difference between success or failure of your art business.

As it is not an easy task get an overview of the common standard hourly rate for artists in Australia, I have included  the common rates for Australian Artists Fees & Wages from the publication "The Code of Practice" by the "National Association For the Visual Arts".  ​
Australian Artists Fees & Wages
By NAVA
Australian Fees & Wages Guideline.
Recommended Artists Rate
Regional Arts
Fair Wages and Conditions for artists.
Artslog
​Stories
Artslog
Artists  log working conditions.

Reasons For Fair Pay

Never Stumble when telling your price, “but be confident in asking what is reasonable for the work you do.
I was intimidated when asking even for a fair amount of money when I entered this profession and almost felt guilty to receive what would have been justifiable. Only when I learned what my collegues in the industry were asking for their services did I realise that I was by far underselling my work.  It seems my clients could smell that I was uneasy, hence doubted my pricing as much as I did. The moment I asked for fair prices believing that it was my right and fair, clients seem to have less problems with my price structure and I made more money not less, although being more costly.  
 
It is important that you think your whole situation through. Just to give you an example. If you undertake to sell an artwork for $100 instead of its real worth,  let’s say a $1000, you probably do this because you are convinced that no one will buy your work for the higher price. You feel pressured, because you spend on materials, but money never comes back to you.
 
There is something substantially wrong with this thinking, as was mine those many years ago. Because when selling an artwork for a thousand dollars instead of a hundred dollars, we can actually loose 9 clients AND SAVE an enormous amount of time, because we won't need to produce 9 more works to get to the same result. To sell it under price is crazy and doesn't make sense.  Today I rather invest my time in learning a bit of marketing and consult with art organisations rather than underselling my work to a pitiful degree.

I had to learn to understand why I have a right for a minimum hourly rate especially when working on commissions  and have listed those reasons for you personally and for the education of your clients to understand why you should ask for a reasonable and fair pay: 
​

Insurance   001

As a professional freelance artist you may need the following insurances: public liability, transit of artwork, damage to artwork, studio content, fire and theft to protect your studio and accident or loss of income insurance, because when you are sick, you aren't getting paid.

Superannuation   002

To freelance means taking care of your own superannuation, so the usual 9% rate of pay that any employer pays for your superannuation has to be factored into your pricing, as you have to create an investment fund yourself.

Workers Compensation   004

As a freelancer you are not covered under the workers compensation act, and whatever happens to you is your own responsibility. This implies that you have get a workers insurance to cover such situations. 

Arts Education & Training   005

Many artist have put time, effort and money into some form of arts education and some will invest in further education along the way. Your skills have come from an investment you've made, while some of you were studying (full-time or part-time) and otherwise spend time to learn your craft, when you could have made an income within this time. 

No Payments When Sick  006

The usual benefit of paid leave, paid sick days or long service is another reason for fair pay and needs to be incorporated into your budget.

No Holiday Pay   007

Like every permanently employed, you as a self-employed artist have a right for a yearly holiday. This is as important to you as for your customer, as you have to remember how much a relaxed holiday can recharge an artists creativity. And a well-run business takes this into account.

Legal Contracts   008

Contracts or legal advice cost money. Even if you purchase certain contracts inexpensively from the Arts Law Centre, you still paid for them so that your client and yourself have the best outcome without any legal problems. Many unprofessional artists run into all sorts of problems not letting customers sign contracts. For commissions I have found that if the customer feels uneasy to sign, you don't want the job, as trouble usually follows. If you explain that a contract is legally binding when a sum is agreed on, there is no reason not to sign for the sake of both the commissioner and the artist. 

Marketing   009

For an artist of any kind, work is just not flying in on its own. We have to spend to some extent on marketing, be it for a Website, printing materials, business card and so on. Even if you spend time and money through public relations in form of presenting yourself to potential clients and whether successful or not, networking takes your valuable time.

Portfolio   010

Being in business requires to present your artwork in a professional manner, whether in form of photographs, prints, copies or  online presentation. To create a professional portfolio can be expensive.

Studio Rent   011

Whether you have a separate commercial studio or work from home, it is space you pay for. If your studio and office takes about 30% of your living conditions, you can claim 30% of your rent. So with electricity, water and other costs involved for using a space to produce your art. When you own a home, it is better to speak to an accountant because if you claim for a space that you own, you might have to pay income tax when selling it.

Art Materials   012

Unarguable artists do have a lot of expenses for art materials and I am not talking about those you use for a commission as that should automatically incorporated into price . It is about the materials you have used and paid for to get to the standard and skill you have now.  Don't forget how much you have spent over the years for your trials and errors  to experiment.

Website & Social Media   013

Every artist needs a website these days and it cost money and time to keep it updated, moving and alive. So if you use any type of social media. It is mostly the time that runs through your fingers when marketing through social media. 

​Here are some points to consider when deciding what to charge for artwork offered to your clients:
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​If you work on a commission, the norm is to price your artwork on an hourly-rate plus materials basis. However, remember that commission-based work is priced differently from gallery exhibits, which again are priced independently from licensing arrangements.

Pricing Your Artwork

Price your artwork well with thought and common sense.
  • KNOW YOUR WORTH Do some research and collect information about what your peers, with similar skills and experience charge. Knowing your charge-out rate is critical in determining how to price your commissions, your licensing fees or exhibition pieces.  Get familiar with the Australian norms of artwork pricing, and base your prices accordingly  
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  • EXHIBIT CONFIDENCE Once you have determined that your rates are fair and reasonable, you should be confident in communicating those rates to clients and prospective patrons. If you are confident that your rates are reasonable, you’ll be able to convince others of that confidence too – otherwise your pricing of artwork might seem unreasonable to buyers or exhibitors alike!
 
  • DON'T SELL YOURSELF SHORT  Just because a competitor undercuts you in pricing, doesn’t mean you have to sell yourself short! True art-lovers recognize the value of a piece of art and reducing your rates will only make them suspicious (or doubtful!) about it. Clients have to understand your work situation and value your status and to understand that payment for freelancing artists should acknowledge that art workers are responsible for their own disability or sickness insurance, are accountable for any faulty work and are not receiving any of the usual benefits an employee has a right to get, such as paid leave, paid sick days or superannuation or long service benefits. To the contrary they have to cover insurance costs, and deal with sporadic cash flow problems. And on top carry the costs of establishing and maintaining a fully equipped studio or work environment regardless if working on commission based work or for exhibition purposes. Finally, the self-employed must bear their own training and professional development costs.
 
  • KNOWING HOW TO PRICE YOUR COMMISSIONS or determining the price of each exhibit piece, is about believing that ONLY YOU have the talent and skills to do what you do. So why should pricing your artwork be dictated by how someone else prices theirs?
 
  • BE CONSISTENT Always price your artwork consistently across distribution channels. If a client finds a piece of yours at an open market sale, that is priced lower than what he/she purchased at an art gallery, your credibility could be irreparably damaged.    
 
  • DON'T OVERPRICE EITHER! When deciding what to charge for artwork of different types, don’t be tempted to drastically raise your prices – just because you can! If you want to survive and thrive in the Australian art world for a long time, then pricing your artwork reasonably is the key to your art business success.    

The Ultimate Artwork Pricing Resource

The Code of Conduct, available from NAVA is a remarkable resource that every Australian art business owner should be familiar with.  Plenty of information with valuable tables for all different types of pricing within the arts sector, be it for employment or freelancing situations :
  • Fees for studio space
  • Copyright fees
  • Illustration fees
  • Information for public and new media artists
  • Loan fees
  • Rates for teaching art
  • …and lots more!

Whether you wish to learn how to price your commissions or what to charge for artworks based on a licensing arrangement:


​As an art business owner, you may also want to consider a paid membership at the NAVA. You could learn a lot about how to price your artwork, and other topics relevant to art business owners, from your peers at the Association.