Spacetaker is developing a comprehensive series of Arts Marketing workshops providing practical marketing guides and exploring best practices.

1. Part 2: Spacetake r’s Arts Marketing Series Art Festivals: Pricing, Presentation, & Sales Special thanks to Mitch Cohen, Missy Alwais, and Taft McWhorter for their contributions to this workshop.

3. A few seconds to capture attention.

4. Eye Catchers -

7. No

8. No

9. Presentation says a lot

10. Signs - Banners

13. You’ve captured their attention … Now what?

17. Education

18. Is there a story behind your work?

19. What's your story?

20. A story makes it personal.

21. Personalized Work

24. MARKETING ON THE SPOT!

25. Signs Business Cards Guest books Show schedules

26. Put your name out there

27. Guest books | Business Cards

29. Create a mailing list!

30. The King of business cards.

31. Leave an impression

34. Define Yourself Artist, business owner, retailer, wholesaler

38. Go Shopping! It is RESEARCH ! Look at what other artists/designers are creating not just colors, designs, and trends, but Pricing! Retail vs. Wholesale -If you are doing your research at a boutique or gallery you are looking at the retail pricing. Retail Wholesale/artist A retailer is the gallery/boutique/shop or the artist directly if showing and selling to the general public. A wholesaler is the artist/production selling to the person/retailer that is going to be selling to the general public. Public The end consumer.

39. How to determine pricing Keep in mind who you are selling to. Are you selling directly to the Public or to a Retailer? Retail Wholesale-artist Public artist Public is willing to pay a fair price for your art based on your research, you should have a good idea of what the market will allow. Retailers must make money, and still be able to sell your product for a fair price. As the artist/wholesaler, you must be able to make money, but price fairly for the retailer to still make their money too . As the direct seller to the public, your profits will be higher selling directly to the public.

40. How to determine pricing Retail Wholesale-artist Public Let’s assume your research discovered that your piece of art could sell for $100 (keep the math easy) You are selling your item to a retailer who is going to buy 12 pieces from you. You let the retailer know that they can sell these for $100. The retailer needs to make a minimum of a 50% margin on the item. Meaning, they cannot pay you more than $50 to make this item. $100 $50 If the retailer will pay you $50 for an item, you need to determine your COGS (Cost of Goods Sold). How much does it COST you to make this item?

41. How to determine pricing If the retailer will pay you $50 for an item- How much does it COST you to make this item? This amount includes the materials cost used in creating the goods along with the direct labor costs used to produce the good. It excludes indirect expenses, such as distribution costs and sales force costs. Cost of Goods Sold : from wikipedia Materials used to create the piece of art (everything) + Labor (yours and anyone else that you have that helps you) + Shipping, distribution or sales people working for you = COGS (Cost of Goods Sold)

42. How to determine pricing Retail Wholesale-artist Public Let’s assume your research discovered that your piece of art could sell for $100 (keep the math easy) You are selling your item to a retailer who is going to buy 12 pieces from you. You let the retailer know that they can sell these for $100. The retailer needs to make a minimum of a 50% margin on the item. Meaning, they cannot pay you more than $50 to make this item. $100 $50 Using the COGS formula, if you need to sell this item for $50, ideally, your COGS would be under $30… could be higher if you can make more in bulk. If you are a one at a time product, you need to make more per item. $30

43. Why Does the Retailer need TO Make So Much Money? A standard Margin percentage for retailers is a 50% , basically taking their cost of the item and multiplying by 2 . Some items have a higher margin and some have a lower margin, but for the most part, retailers love the 50% 50% margin is important for retailers to figure in cost of running a store: - Overhead (rent, wages, utilities, shopping bags, displays, insurance) -Ability to markdown merchandise that is not selling, not just your item, but all the items in the store. On average if a store can maintain a 35% average margin , it is doing ok. -Retailers try for a multiple item sale. -Profits increase as they sell more units per single transaction. -Profit from 1st item sold is usually eaten up with overhead costs- the 2nd and 3rd item is when the store starts making money. -Great retailers try for average of 3.2 Units Per Transaction . (UPTs)

44. Be A Retailer! Be A Wholesaler! If you are working a show, you are the retailer. Charge the retail rate! Ask the client if they are familiar with your work, or how they found you. If they were a referral from someone and are familiar with your work, it means they know what they are getting- you can charge more! If you have some artwork that can be done in a “mass production” type, you can be a wholesaler . Different shows require different pricing- be aware of your surroundings. What are other people are charging for similar items? Nutcracker Market (hosted by Junior League of Houston) draws a high end, mainstream crowd. Mark your items higher there than you would at the Winter Holiday Art Market. Can you afford to be a wholesaler? -Can you produce enough items to make your money? Remember, you will not yield as much on each piece, but if you can make enough, you will sell more at one time. (Each shop will buy at least 6 of an item.) Be a partner to your retailers, let them know what you sell the item for at a show and give them confidence that your art is going to sell fast!