How the Heck do Artists Price their Work?

Many people wonder about how art is priced. I can't go into the thought process behind how a Van Gogh or a Monet is valued, but I can offer some insights into how contemporary, working artists price their work. There are several factors that go into this and I'll tell you up front, most of them are completely subjective. Factors include the medium (watercolor, acrylic, oil, etc.), how well known the artist is, how the work is framed (or not), where the work is selling (art fair, website, gallery, co-op), and how big the piece is.

More on this subject later today...........................Please visit this evening if interested............:)

So, back to the guts of this issue, and some opinions and information for both the collector, and beginning or veteran artist who has not developed a "clean" formula for pricing.............

Robert Genn, artist, author, and publisher of the "Painter's Keys" newsletter, sums up his philosophy on pricing artwork in a straightforward manner, suggesting that an artist "start low, and raise the price by 10% each year." Really, a common sense, sound policy.
Because it may be argued that original artwork has no inherent value; and no true utilitarian purpose; determining whether an artist's work is priced fairly and appropriately often is an underlying 'worry' for the beginning (and often, even seasoned) art collector. I'd offer several simple guidelines or suggestions to all collectors who are purchasing original art to enhance their lives and immediate environs;........
When possible; do at least a minimum of research into the reputation of the gallery from which you will be purchasing ANY artwork. A visit to the internet, looking toward the length of time the gallery has been in business; the number of artists whom they represent -( A list of 200 artists whom they claim to represent is typically not realistic nor manageable; rather- look for a gallery that passionately and intelligently carry 10-40 different artists; whom they know well, and for the most part; have represented for many years).
Take time to become acquainted with owners and directors of several favorite galleries; until you feel very comfortable with their knowledge, honesty, and integrity. This kind of relationship may prove to ultimately be your most valuable ally in finding exactly what you may be looking for, while feeling confident that each suggestion that they make is geared toward your stated tastes, lifestyle, and price range.

In terms of pricing my own artwork; a relatively simple formula has evolved over a period of 22 years.:)
As a young artist; selling my watercolors to co-workers, and in a relatively short time; at large outdoor "fine art and craft shows";....I made the decision to simply look at other artist's watercolor paintings; take an (admittedly subjective) look at the quality of their work, and see what THEIR work was selling for. Some of my contemporaries at that time were the superb watercolor realist Steven Hanks; Cathryn Anderson, - painter of lovely, misty vineyards and scenes from the California wine country, Marilyn Simandle ;.....and a very long list of very fine painters.
After making an uneducated guess on where my work 'fit-in', in terms of quality; I simply considered the most expensive work; noticed some of the least expensive work; and priced my paintings essentially ' squarely between the two extremes. ' I was very lucky; and due to the vast numbers of visitors to these shows ( often, between 40,000 and 300,000 over a 2-4 day period); was able to sell all that I could paint. (Approximately 100-250 paintings annually).

Overall, the philosophy of "starting low, and raising your prices approximately 10% each year", has worked very, very well for me.
At this time; nearing the final quarter of 2007; (WOW! Time does fly. I need some ibuprofen, more coffee, and a reminder to increase my fiber intake!).........................; my pricing formula is relatively simple and consistent, and works as follows:

Small paintings (16" x 20" and under); are priced at $11.00 - $12.00 per square inch; including framing; based on the complexity of the subject.
Larger works are priced at $9.00 - $12.00 per square inch; and again;.....-complexity of subject matter is taken into consideration.

A humble, yet experienced suggestion to painters new to this elusive process; and interesting, frustrating,-yet exhilarating world of creating and selling your artwork: Try to keep your prices CONSISTENT , REGARDLESS of WHERE your paintings are sold. Your reputation, credibility, and ultimately; your entire professional journey will, in large part, depend on the continued consistency of the perceived value of your work.

Personally; there is one concession that I occasionally make in terms of pricing: the "friends and family discount". After all; it is MY work; and if I choose to offer a piece to family, or to a friend at a judicious and substantial discount; -you can bet that I will happily do just that, as a gesture of kindness and goodwill:)
Overall; simply 'start low, increase your prices just-a-bit each year';..and you will likely do just fine:)
Good luck, and best wishes to you all!