Do you think my sculpture are too expensive?
I wanted to open my books here so that you can have a better idea of how much things costs and where is the money going.
Assuming that you purchased one of my wooden torso and paid 3400 Euros to the gallery. Congratulations on your acquisition.
The gallery will pay me 1700 Euros. They will use this to pay for their lease, their staff salaries, their overheads such as power, telephone, internet, insurance, asset amortization, maintenance, advertising, loans interest, and other running costs, and hopefully keep some profit.
I would have paid the import taxes and custom fees, generally around 7% or 119 Euros.
I will pay a percentage of the sales price to my agent, distributor or other third parties. This is around 8% on average or 272 Euros.
The shipping costs me 250 Euros.
I am now left with 1059 Euros to cover for my manufacturing costs which in this example amounts to 522 Euros, as follows.
Material and laser cutting 204 Euros
Assembly ( contracted for 10 hours at 15 Euros per hour) 150 Euros
Construction of the wooden base 56 Euros (including timber, turning, polishing, varnish or painting, screws, labels)
Studio photos of the finished piece (300 Euros divided by edition number) 35 Euros
Packaging (making a plywood box and packaging) 50 Euros
I must add a 5% percentage to cover for my overheads such as power, phone, Internet, amortisation, consumables, maintenance, insurance, transport, advertising, and other running costs.) This is 25 Euros
I am left with a 537 Euros profit. I sometimes make more (cheaper shipping, no agent commission, no import duties, or when selling directly from the studio) and sometimes less (shipping pieces between galleries, discount, exchange rates variations.)
If you buy directly from me, the sales price will be the same as if you bought from a gallery. I simply make more money. I rely too much on the trust of the galleries to sell my work and cannot afford to undermine this trust by undercutting them.
By large, your 3400 Euros are split as follows:
Gallery 1700 (less expenses )
My upfront costs amount to 1163 Euros, which I will only recover when the piece is sold. To help with my liquidity and my cash flow, I ask galleries to contribute a small portion of these upfront costs and require an advance equal to the shipping costs.
Please do not ask for a discount.