In creating a Contemporary Art Pricing Guide in 2012… I set out to establish a quantifiable financial structure for new artists. Nine years later, this chart found new life, when Author Rachel Wells, penned: “Pricing Artwork with Borbay’s Contemporary Art Pricing Chart.”

CAP was also referenced by Steve Schlackman in his recent piece: “Contract Negotiation Tips for Visual Artists.” Based on the significant traffic to my site stemming from both mentions, I recognized this as a fine moment to discuss art pricing.

These are the biggest questions I receive: how do you establish your prices? How do you raise your prices?

While art has been around since the cave drawings of Lascaux… there is no fixed playbook for the creative class. That said, I do have some answers in this ecosystem of uncertainty.

Establishing your price is simple… whatever someone is willing to pay sets the foundation. We have a modern day equivalent in the NFT space — a floor price. From there, management is in your hands.

I became a full-time artist on July 2, 2009. When January 1, 2010 arrived — my prices went up… and thus, I adapted a policy of raising prices on January 1st each year. The percentage is not fixed, but rather, sits within a range of 5-15%… the amount depending on two factors: the previous year’s performance, and the forecast for the coming year.

Akin to a major social media platform constantly updating their interface, icreasing prices is essential for an artist and their business to grow. But, more importantly… it helps develop a healthy market, which greatly benefits collectors as the years go by.

Many artist’s create and sell reproductions — I have chosen not to do so. Thus, I have two primary offerings: existing original work created on spec, and commissioned work. When my prices go up each year, both existing and commissioned rates increase.

On existing work… to provide specific context — as many of you know, I am painting an 30″X30″ Guggenheim, each year, for 20-years. The first painting in that series sold for $2,400 — the most recent sale in the series was for $16,000 — and the 2021 iteration is listed at $17,000. Based on 2021’s performance and anticipated growth in 2022, that $17,000 Guggenheim will be listed at $19,000/$20,000 come January 1st.

Caveat emptor — while this may sound outrageous in the sober context of my market development strategy, I have already committed to listing the 20th Guggenheim for $1,000,000 when it is completed in 2028. Therefore, as the remaining Guggenheim’s find a home, this series will see a significant increase in the coming years.

There are other outliers. In 2014, a 30″X30″ that would have went for $7,000 auctioned for $14,000. Had I instantly shifted my market to that level, which I went on to achieve with consistency in 2019, I would have drowned my market. In alienating aspiring collectors, and challenging existing collectors — it would have forced me to reinvent completely. Sustainable growth is paramount.

On commissions… throughout my career, I’ve created quite a few works on commission. I greatly enjoy the process of collaborating my collectors to create something bespoke, with a critical focus on delivering a work that lives and thrives within the zeitgeist of my market.

When I established a pricing format for commissions in 2013, they were as follows:

16″X16″: $3200
20″X20″: $4000
24″X24″: $4500
30″X30″: $5500
36″X36″: $6500
40″X40″: $7500
48″X48″: $8500
60″X60″: $10,000 

By 2017, they increased to:

12”X12”: $5,000
16”X16”: $6,500
20”X20”: $7,500 
24”X24”: $8,500
30”X30”: $10,500
36”X36”: $12,500 
40”X40”: $13,500 
48”X48”: $16,000
60”X60”: $21,000

Today, they are:

12”X12”: $7,000
16”X16”: $9,000
20”X20”: $12,000 
24”X24”: $14,000
30”X30”: $16,000
36”X36”: $18,000 
40”X40”: $20,000 
48”X48”: $24,000
54”X54”: $28,000
60”X60”: $32,000
66”X66”: $35,000

Based on my standard form of contract, 50% of the commission is due upon signing; while the remaining 50% is due upon approval, prior to delivery. When I am able to forecast commissions, I am able to outline my earnings — which is critical for quarterly taxes, and, of course, making a living.

Black Friday, Cyber Monday, the Holiday’s, moving… these are all great times for the dreaded S-Word… a SALE. And I completely agree, if your business is selling cars, TV’s, etc. — not art. I do not believe in sales for creative work. Yes, I offer free shipping for a finite window during the holidays — but you’ll never find a Borbay on sale.

Why? I like to provide the elevator scenario… imagine you create a series of seven paintings and sell one for $15,000 to a collector. Fast forward six months, you are fiscally floundering, rent is due… so you sell the remaining three in the series for a total of $15,000 to another collector. Then, imagine them meeting in an elevator at Art Basel, speaking about the work they love. Your name comes up, “if you don’t my asking” breaches a price talk… and boom.

Two collector relationships shattered in an instant. And so, while it’s tempting to cash in on some reduced price work… I encourage artist’s to advertise price increases instead of sales.

You don’t want that hard earned $10,000 work to devalue 20% because you felt festive, and needed some holiday cash. Yes, this means walking away from sales… but, if it inspires someone to save up to acquire your creativity — you become aspirational. Aspirational brands thrive.

In closing, I believe it is critical to protect the good will and investment of your collectors. Every few years, I send updated appraisal letters for two reasons — to update their insurance records, and to notify them of the increased value of their work.

The artist’s connection to a collector is paramount, and a significant component of a successful market (something I’ll address some other time). But when it comes to pricing, it is important for patrons to know you are not only committed to your craft, but also to the value of what you create.

And, as we all know… once an artist ascends to that great atelier in the sky… their market sky rockets, as there is a finite amount of work available.

Please do feel free to email me with any questions you may have.