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Negotiating with Art Galleries

by Lori Woodward Simons on 6/3/2009 12:45:27 PM

This Post is by Lori Woodward Simons, Regular contributing writer for FineArtViews.  Find out how you can be a guest author.


My First Gallery Experience


Back in 1997, I began working with my first gallery in Kennebunkport Maine. Fortunately, the owners were completely honest, good with their finances, and great at selling art. Before that time, I had been participating in a few New England outdoor shows.

At the time, I had no experience with galleries, and being naive, I approached my first gallery in the worst possible way. My husband and I were on our way home from an outdoor show in Saco, so my car was full of paintings. We stopped at "Gallery on Chase Hill" in Kennebunkport because a friend of mine was showing there.

After looking around, I asked the gallery owner if she would mind taking a look at my work. (I know better now). Francesca Spain was not terribly busy, so she reluctantly gave me a weak "yes" followed by, "You should always make an appointment."  Honestly, I didn't know that.

I could tell by the look on  her face that she was expecting to see some really bad work, but I brought in my two best paintings and Francesca's face lit up. She asked if she could use one of my floral still lifes for their upcoming show poster and postcards. I agreed, and she set me up to participate in their fall show. I've since learned the correct protocol for approaching galleries.


Working Out an Equitable Relationship

With this post, I begin a series of blog posts on - how to work with galleries, but more specifically, how to negotiate with galleries so that both the artist and the gallery owner are pleased with the arrangements. These posts won't necessarily talk about finding and getting into galleries; rather they'll deal specifically with how to negotiate for what you want and need once you enter into what is called their "stable of artists".


An Equal Partnership

The term "stable of artists" makes it seem like the gallery is the horse trainer and I'm a horse - or worse yet, livestock. Most gallery owners honor and admire their artists, so I don't take this term too seriously. However, the important thing for us artists to remember is that our relationship with a gallery must remain equitable. In other words, we enter a business partnership, and that relationship needs to honor each member equally... no one is in charge of the other, and both parties must treat each other with respect and honesty.

In reality, it is the gallery who is dependent on the artists for income. Artists can sell their work at outdoor shows, home shows, invitational events, auctions, and so on. The gallery can only depend on the artists to produce and give them their best work in order to make a profit. It blew me away to hear that some of the galleries in Scottsdale pay $30,000 or more a month in rent. If that's true, then no wonder galleries close their doors in recessions. The ones that own their buildings, rather than rent fare much better in times like these.


Resist Being Star Struck

I fully understand how wonderful it feels to work with a gallery - especially one who advertises in national collector's magazines, but before we artists get so dazzled by seeing "our name in lights", we should make sure that any gallery we deal with has a good reputation with artists, on-time payments of funds owed from sales, and finally ample promotion of your work. After all, aren't we paying them a commission (often 50%) to sell our work when we could sell it on our own?

It's wise to remember that we are not employees of the gallery. We consign work - and that work rightfully belongs to us until it is sold. As soon as it is sold, we legally are due our compensation within a reasonable period of time. A number of years ago, I remember a law going into effect that stated: when a gallery does not pay what is due the artist after the sale, it is considered theft. No, I haven't sent the police to any of my galleries, but I've experienced my share of being cheated out of the money which was rightfully owed. One gallery held onto funds from sales for over 2 years. But in defense of the good galleries, 90% of those I've worked with were a delight and paid on time, every time.

While it may seem like I'm angry, I'm not at all. I, like so many of my colleagues have had to learn about these things the hard way.  But I learned how to avoid some of these problems by looking at my relationship with a gallery first as a business relationship. Many times, I've become friends with gallery owners.


You're A Business Owner.. Remember that

It's OK to check references.  What business deal would you go into without getting references? When a gallery dealer wants to represent me, I ask if I may contact any of their artists for references. I've never had a gallery owner turn me down.  I also ask if they have a consignment contract. When the answer is yes, I ask if I may take a copy home before signing, and if the answer is no, I let them know that I have my own contract. I say it with a smile, and if they look worried, I add that it is a reasonable contract.  Again, I've never had a gallery say no to this. However, one of my galleries found a way to work around paying me in 30 days - on every single sale, and after about the 4th instance, I became suspicious. Although I couldn't prove that the gallerist was lying, it is enough to say that I was unhappy with the arrangement and something needed to change. I eventually left the gallery, even though they were doing a good job of selling my work. Receiving my funds in a timely manner is important to my success.

 


Getting What You Need With a Contract

There are some contracts that give the artist very little negotiating power. I'll talk about these more specifically in following posts. One gallery in Tucson required the artist to pay half for all magazine ads. The only problem -- the gallery would post an ad in a major art magazine - without permission or knowledge of the artist, and then send the artist a bill. The artists refused to pay the bills, and the gallery eventually went out of business. I really liked the owners - they were nice people, but they didn't understand how to manage their business.

We do have bargaining power, and the more artists realize that, the better off we'll all be. My advice is to hold back on signing a contract that makes you feel uncomfortable or used. Business contracts can be revised - you do have the right to negotiate.


Upcoming Posts

Upcoming posts will deal with specifics. I'll use real gallery contracts, share about how artists (I personally know) negotiate no more than a 40% commission, insist and get their compensation in 30 days of a sale or sooner. It is perfectly reasonable to ask for contact information and names of our collectors. I've done so without any problems, and in return I've promised not to sell to these clients behind the gallery's back. In fact, when I determine that a client found my work soley through the gallery -- if that client contacts me personally and buys my work, I send the gallery their commission. This practice goes a long way toward establishing trust between you and your gallerist.

Please keep in mind that although I'm writing these articles for Clint Watson's newsletter, he and I may have different views [ed. note - differing views are ok :-)]. He's a former gallery owner and I'm an artist who sells my work. So please take all info on this site into consideration, then form your own ideas, and make your own plan to negotiate with galleries.

Sincerely,
Lori


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Related Posts:

12 Steps to Get Your Artwork Noticed by Galleries

Art Galleries: The Good, the Bad and the Ugly

Gallery Representation

Do artists need galleries anymore?

Art Galleries

A New Kind of Gallery Relationship


Topics: Art Business | Gallery/Artist Relationship 

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 6 Comments

Robert Redus
via web
Hello Lori,

After reading your article, I have a few questions. Equitable exchange seems to be the hope of any business dealing. I have been with a couple of galleries for just over a year, and feel very fortunate to be showing my work. What I don't understand is how the commission structure seems to be a cover all sort of mentality. In one gallery I am in, my work is on the bottom shelf of a multi tierd display case and is virtually invisible. The potential for the work to sell is decreased by the ability to be seen yet I pay the same 50% as the work readily visible upon entering the gallery. Have you heard, or would you suggest of negotiating based on gallery geography and placement. Seems if the potential is diminished, so should the fee. Also do you recommend a length of time to stay with a gallery based on sales or exposure. I realize these economics are difficult and offer different possibilities. My final question, I am a painter as well as a jeweler and can easily produce a high dollar volume inventory, any suggestions on level of inventory based on dollars an artist should maintain with a gallery. Thank you in advance.
Lori Woodward Simons
via web
Robert,

Thanks for taking the time to ask these good questions.

Sounds like your gallery has top to bottom display of too many paintings. I work with galleries that hang their paintings, side-by-side all at eye level. I avoid galleries that line paintings up on the floor. It's too confusing for their clients to look at anyway.

Many times the gallery will take less of a commission from their best selling artists; they start artists with 50%. If you're unhappy, communicate. Worst that happens is they ask you to leave.

The galleries who run a tight and successful business don't let works hang on their walls indefinitely. After several months of not selling any work, one of my galleries asked me to come pick up all my work. While it may be a sad day for me, I know that galleries that do this have their act together - their wall space needs to bring in sales.

I like to switch my unsold paintings out after 3 to 4 months. It does neither me or the gallery any good to have the same work showing for a year. If you work with more than one gallery, this gives you the opportunity to send unsold work to the other gallery.

What often surprises me is that a painting can sit unsold at one gallery and sell right away at another. Good idea to move them around.

Hope that helps!
Lori




Ann Bell
via clintwatson.net
Lori, thanks for pointing out that the artist/gallery relationship must be equitable for both. So many of the artists I know simply assume that they are so lucky to be accepted by a gallery that they cannot ask for anything.
Louisa McElwain
via faso.com
So what is equitable when the subject of discounting comes up? Recently, I received a commission from a gallery with a shared 10 percent
discount deducted from the deposit. When I asked them for paperwork to prove that they had accorded the discount to the patron and did not simply keep for themselves an additional 5 percent, they got mad and terminated our business relationship, claiming that I did not accord to them the trust they thought I owed them. I would encourage artists to stand their ground and make the gallery eat their discounts, "Trust, but verify." After all, the gallery is entirely responsible for
the transaction...why should the artist be penalized for the galleries weaknesses in representing the value of their artists to their customers? And "the economy" is not a valid excuse for taking advantage of an artist who needs to sell work...2010 was the highest gross income of my 28 year career.

Patricia Pilipuf
via faso.com
Lori,
it would seem to me that the gallery system is very flawed, and definitely skewed toward their benefit and not the artists'.
I have only been involved with a cooperative gallery that takes 40 percent which I think is fair. For now, I'm trying to look at alternative ways to exhibit. Do you have any experience with alternatives?
Regards, Pat


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