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Pricing Art for Sustainability

Explore the intricate dynamics of pricing art for sustainability with Monika Waterall. This guide delves into the pricing dilemma artists face, covering essential elements like cost allocation, budgeting, and ensuring fair wages. Learn about wage-based pricing methodologies, joint ventures, and how to attract investors for sustainable art practices. Understand the impacts of both short-term and long-term costs, including supplies and labor. This resource is essential for artists seeking to balance profitability with sustainability in their craft.

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Pricing Art for Sustainability

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  1. Pricing Art for Sustainability Monika Waterall

  2. Pricing Art for Sustainability Pricing Dilemma Cost Allocation Budget and Ensuring Wages Wage-Based Pricing Joint Venture Advantages Cost-Based Pricing Attracting Investors and Your Investments

  3. Pricing Dilemma: Paying Bills Overhead Supplies Short term supplies Film, paper Clay, glaze Long term = EXPENSIVE Camera, computer Kiln, wheel Rent Utility Wages Labor = Pay Yourself!

  4. Accounting Terms & Practices Damien Hirst • Sotheby’s auction • Art Factories • 160 employees • Personal business manager

  5. Add 4 weeks of pay • $36,000 / 52 weeks in a year • About $700 Gross, $500 after taxes (Single 0 withholding) • Divide bills as evenly as possible per week • Remainder = Approximate Extra spending (going out) • This is how much money you see in your bank account Personal Budget: Weekly Fixed

  6. Personal Budget

  7. Ensuring Your Wage: Industry Standard Labor Hours x hourly wage Glassdoor, Simply Hired, Ehow.com Yearly Salary / 52 weeks in a year / 40 hours a week Ceramics Artist $27,000 = $13 per hour Photographer $30,000 = $14.50

  8. Wage-Based Pricing ( cost x 2) + ( labor hours x hourly wage) = Price Per Piece

  9. Wage-Based Pricing: Long Term Cost Allocation

  10. Wage-Based Pricing: Short Term Cost Allocation

  11. Wage-Based Pricing: Wage per Piece

  12. ( cost x 2) + ( labor hours x hourly wage) = Price Per Piece Wage-Based Pricing: Price Per Mug Short Term Cost $0.19 + Long Term Cost $4.50 • Total Cost per Mug $4.69 • Total Cost per Mug $4.69 x 2 • $9.38 1 2 • Cost per Mug $9.38 + Total Wage per Mug$10.38 3 • Price Per Piece = $19.76

  13. Add Long Term Supply Costs from Sole Proprietorship: • LT Supply #1 $_______________ • LT Supply #2 $_______________ • LT Supply #3 $_______________ • =$___________________________ Total Long Term Supplies Payoff of Long Term Supplies: Sole Proprietorship • $_________ LT cost payoff and ST supplies from Sole proprietorship from 4 a. • / $_____________ Total Long Term Supplies • = _____________ # pieces to sell to pay off Long Term Supplies

  14. Payoff of Long Term Supplies: Joint Venture • $_________ LT cost payoff and ST supplies from Sole proprietorship from 4 a. • + $________ Difference per Piece from Joint Venture 4 a. • =$__________ • / $_____________ Total Long Term Supplies • = _____________ # pieces to sell to pay off Long Term Supplies

  15. Payoff of Long Term Supplies: Joint Venture • $_________ LT cost payoff and ST supplies from Sole proprietorship from 4 a. • + $________ Difference per Piece from Joint Venture 4 a. • =$__________ • / $_____________ Total Long Term Supplies • = _____________ # pieces to sell to pay off Long Term Supplies

  16. Joint Venture Activity Find Best Possible Shared Cost

  17. Joint Venture Activity • $_________ LT cost payoff and ST supplies from Sole proprietorship from 4 a. • + $________ Difference per Piece from Joint Venture 4 a. • =$__________ • / $_____________ Total Long Term Supplies • = _____________ # pieces to sell to pay off Long Term Supplies • Best shared cost = earlier payoff • Double Cost Expense Returns after payoff= attracting investors

  18. 30% Cost + 30 % Markup + 30% Labor + 10% Retained Earnings • = Price Per Piece Cost-Based Pricing 30 % Markup = pay off Long Term supplies, then profits after Break Even point 10% Retained Earnings = future investment More expensive supplies = higher wages

  19. Pay Off Long Term Supplies Early = Industry Investments Real Estate Brice Marden Bought SoHo (artist neighborhood) properties cheap Gallery for Other Artists Day 19 (Jeremy & Clare Weiss)

  20. Creating Capital: Sustainability • Easy accounting • Payoff of Long Term Investments = Pitching to Investors • Guaranteed • Supplies • Wages • Profits

  21. Pricing Art for Sustainability Monika.waterall@gmail.com

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