Keith:

Very interesting article. I think this will generate a lot of responses. Can't wait to read what others have to say!

I've got mixed emotions about auctions and fixed price sales. I have attended many. Coming from the view point of a buyer, I never cared for the fixed price/drawings because if I see a painting I want, I don't like to have to put my name in a box, then "wait and see."
I think some auctions can be good for artists, and our reputations. However, I would never get into one that was selling at bottom dollar prices. For myself, there needs to be a minimum set. I think it hurts the artist if his/her work is too cheap. If the work is selling to bring funds to a favorite charity, I have "overlooked" the fact that the painting should have
brought a lot more. But deep inside, I resent "cheapskates" who come to those events with the idea of "helping" the charity, then they want a painting at a bargain price. Something's a bit off here, in my opinion? I am now VERY picky about the auctions I attend, and particularly those I would put one of my own pieces in.

I donate to auctions only if I believe in the cause. Does it make sense business wise? Yes and no. No, because I'm really donating a piece of work. It may not my best or newest, but it's a good piece. I will only donate up to a certain value. If it is an expensive piece, then I will make the donation having a minimum price and either spit the proceeds that go above that or ask for the full proceeds above the minimum price. And I will only do maybe one/year.

But I do believe in the Karma effect of donations. I have found that almost 100 percent of the time, when I make a donation, I get something back in return. It can come in any form....from an outright sale of a new work, to a great connection. I don't make a donation because I want the Karma, but I'm always excited to see what will come of it.

So the bottom line is that I do make donations to auctions with the thought that it is a cause I want to support, limit the number of auctions I will participate in, and see what happens.

While I agree with many of the previous comments, there is one other issue that is bearing down on auctions these days. The buyers attitudes are changing. The auctions used to be a place where you could get some PR for participating, and numerous events offered at the venues, gave an artist the ability to make enough sales with the quick draws and the fixed price sales, that it paid to participate. Even if you didn't make quite as much as you wanted to on one sale, the numbers of individual sales made it worth the trip.

Now, with the bids coming down so low that they are not clearing, in some cases, the wholesale prices of the work, it becomes a question of re -assessing participation in some of these shows. The PR or advertising expense of the show was once a factor for doing a risky venue, but times have changed. If it means donating a share of the sales for commission, usually 35 percent plus not clearing the wholesale price, there is no longer the incentive there was even a few years ago.

Some auctions are putting a premium cost of 10 percent of the total onto the closing bids which the bidder pays, which takes away some of the dealing power the buyers had at an auction. That has managed to take away from the artists even though the intent of the premiums were supposed to by pass the artists and give the museums another way of collecting additional commissions on the sellers side. Our customers look at that and add that into the total cost of buying the piece, which, again lowers their bids.

This becomes the classic difference between whether or the venues and galleries are going to charge more for commissions and disincentivise the buyers or lower the commissions in order to make more sales. Until there can be an agreement, we are at loggerheads on whether or not artists can continue to participate in a system where they are basically barely able to cover costs.

Great topic, Keith!

Lot of feelings on this subject, but for me this has been a good way to add to the profit margin at shows.

This is the way I select auctions:
Is it a good show where people are buying from the artists and not just coming for a "yard sale" bargain?

Do pieces go at a decent price?

If it's a charity auction, do they give artist's a 50/50 split? (By the way, that's the only charity auctions I will do.)

Lot's of other reasons, but bottom line is...do my pieces sell decently in or out of auctions?

I do mostly quick draw or quick finish auctions...it's a great way to learn what has appeal to a general audience, hone your skills and not take yourself too seriously.

Bottom line is this: I'm running a business that has to pay the mortgage...I'm not desperate for sales, but will consider whether auctions add to my bottom line at a show. (Note: I don't enter all auctions at shows and never donate or enter pieces in local auctions unrelated to art shows.)

My job is to move these pieces...and I find the showmanship required at quick draws does bring people into my booth/show area, generating sales whether they bought mine at the auction or not.

I would recommend caution with auctions....do your homework....pick auctions where your work might sell best (wildlife at wildlife shows, etc.), pay attention to what is selling well..yours and other artists. I have finally realized that pieces with good contrasting colors project to an auction audience seated far from your piece, than more subtle pieces. Also, in many of the auctions I do, the artist can choose whether to carry their own piece through the seated audience for viewing or elect to have "the girls" that are available carry it for you. Carry it yourself...no matter what kind of idiot you feel like.

In the end, go with your gut feelings....auction selling isn't for everyone, but I find the rewards worth the effort.

Keith,
We do an auction at Mikki's gallery event. She does a special painting that we auction off starting at a penny. People love these. We usually get about 80 percent of retail. Last year we got 15 percent over retail. Three people were bidding. For us it's a way to make sure everyone enjoys the event.

I don't think these auctions are for everyone. You need to have a gallery full of people to get the live excitement. We only auction one piece and never the showstoppers. We pick something in the $1,000 range.

We also have a drawing for bottles of Senkarik wine, and other nice items. Those in at the event love these gifts. Last year Mikki painted flowers on a baseball cap and a tee shirt. Women took those first when their names were drawn.

We do not take part in regular auctions. In some of those type auctions artist see their work sell for less than half price. Then the auction takes their cut.

Jack

If you know you are going to be bummed out if it sells at half price or below---don't participate. Having negative feelings that fester are not good for the artist's soul and one's "inner artist." Artists can't afford to have that kind of negative energy.

I too have noticed that the years when I did not give to fund-raiser auctions, the "karma" also dried up. Thus, this ties into the first paragraph.... Give always from a happy heart. Paint always from a generous heart.

Further...if one is a prolific painter (I do a minimum of 50-quality paintings a year and while a lot sell in the galleries, as the years go by, the closets can't bear to have paintings hidden away. Thus, to keep the inventory moving, I have increasingly become more generous.

Have donated items for auction, but never there when the item is either given away to the person who won the draw, or when the bidding went on online. Think it would be very stressful..especially if either no one bid for it, or it came in really low. How does everyone handle that part of it?

I know that I shouldn't just give something valuable away (although I have given small things) and that we should ask for at least a 50-50 split.) Obviously Mikki commands a high price on her art...but what if you did start the bidding at a penny for my work and only sold the item for $3.50? How embarrassing would that be??? It sounds like choosing the right auction is the heart of success or failure....

I answered the questions in order, and you can read my responses at http://www.hollandartblog.com/

Great subject, Keith.

Sorry, the link isn't working to my blog for some reason: Here's my list: hope the formatting holds up. :)

• MY VIEW ON ART AUCTIONS – Response to Keith Bond's question on FineArtViews

Do you feel that auctions in general are good or bad?
Nothing wrong with them.

• Do you resent that you are giving away the art for next to nothing?
If I want to GIVE the art away, I will make it a gift. If it is a benefit, I will GIVE the piece to the auction…it's a gift. People are aware that it is a rare thing for me to do it.

• Are you honored to be at the show in the first place?
Pleased to be asked, and I always say so, sincerely. But I don't usually accept.
•
• Do you believe in the cause?
I only GIVE to the auction if I especially support the cause. (e.g., son's school; habitat for humanity *see story below)
•
• Does believing in the cause justify getting less for your art?
In my mind, it's a GIFT.
•
• Are you participating to please someone else (gallery owner, museum curator, friend,
• etc.)?
No, in fact I make clear that I steer away from most auction requests.
•
• Even if the piece sells for less than retail, do you view the buyer as a new life-long collector that you can cultivate and build a relationship with?
Sure
•
• Do you build that relationship?
If I am able.
•
• Or do you view the buyer as a cheapskate?
Not if I believe in the cause. I view the buyer as lucky.
•
• Are you grateful for any sale, regardless of how large or small?
I am happy for the customer that my work will be enjoyed, but I want the customer to know that future pieces are at the “regular price.”
•
• Or would you rather not sell anything than sell for less than what you think it is worth?
If it's a gift, it's not a sale.
•
• Or do you just deal with it because you are desperate for any sale you can get? No.
•
• Do you consider participation in the event as good PR or advertising or building brand image?
Sure.

• Or is your art only a “product” (dare I use that word?) that you could sell for more elsewhere?
If it's a carved “Silk Purse Product”, it's a product. If it's a painting, it's something more than only a product, usually.

• * RE: Donation to Habitat: Recently I donated a beautiful bowl that would have brought a very nice price on retail to a couple receiving a Habitat for Humanity house. They had been especially earnest about community service and I was personally grateful for service they had done for me. The couple were very touched, but more than that, the people at the dedication were really wowed. It has become their goal to get me to make such gifts for future dedications, which I cannot do. But it might be that some soul would buy some of my bowls and make it THEIR gift at future dedications. The subject comes up regularly. The value of similar bowls, therefore, has gone UP. This was a good promotion, but only as a by-product.

Since Marge and I retired and moved to NW WI, I have participated in local fundraisers with auctions, where I donate the art and the prices are usually lower than retail, however, once a year does not hurt and actually in my case helps to develop more name and brand regonition locally I think that auctions are good for the artist and the organization and especially the buyer, it's a win win.
Jim Springett-wildlife painter

Margie, I have heard this idea before and forgotten it. Well heeled volunteers for non-profits might welcome a tax write-off.

Jack White raises some good points. If you are going to go the auction route... you might as well do it in a way that offers you some control over the event. The best way, as Jack mentioned, is to put the event together yourself.

There are positive reasons for doing that career-wise. 1.) if press is received it focuses on you as well as the cause. I mean... a lot of times if you donate art to a cause for charity the artist is barely mentioned -- if you are 'running the show' you will receive some attention compared to the alternative. 2.) you are inviting people into your 'inner circle', if only for a few hours -- which can lead to good rapport.

I have done some charity auctions in the past with donated artwork... the downside is that I had to rely on others for space -- and that can lead to disagreements on how the auction should be handled. At the end of the day it is their space... and you are basically at their mercy.