Understanding Art Pricing: How are art prices calculated?

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For both new and seasoned collectors, the art market’s pricing mechanisms can be tricky to navigate. Ever since Affordable Art Fair was founded in 1999, we’ve insisted that every artwork at the fair be shown with a clear art price and artist credits alongside it. This empowers you to build your understanding around the pricing of art at the same time as discovering art’s life-enhancing properties.

Why is a screenprint less expensive than an oil painting of the same size? What biographical details might mean two aesthetically similar works are priced differently? While value can be a subjective concept, there are some key elements which contribute to the prices you’ll see at the fair. We hope our guide below will empower you to understand how the artists and exhibitors presented at the fair arrive at the prices you see on the wall.

Materials

Costs for materials, framing, and other production expenses are factored into the price. Artists often double these costs to ensure they cover expenses and the type of medium (oil, watercolour, bronze) and the quality of materials used can affect the price. Oil paintings on canvas, for example, typically fetch higher prices than works on paper.

Time

Small, intricate, original artworks typically have a higher cost per cm than larger editioned screenprints on paper because they take longer to create. Some artists use formulas to price their work, such as multiplying the artwork’s dimensions by a set currency amount.

Originals vs editions

An editioned artwork, which is common art industry practice for many repeatable mediums such as cast sculptures, screenprints and photography, can be sold multiple times to different buyers and normally results in lower pricing when compared to unique artworks.

Gallery Commission

Galleries usually take a commission (often around 50%) from the sale price. As with all other businesses, galleries have costs to cover for space, fair participation fees, marketing and personnel. This commission is considered when setting the initial price.

Artist’s Reputation and Exhibition History

The artist’s education, fame, and career level significantly influence pricing. Established artists with a strong exhibition history and awards can command higher prices. Recent achievements, such as successful solo exhibitions or awards, can also justify higher prices.

Emotional Factors

Artists sometimes price their work based on emotional attachment or perceived value and this is also an important element for buyers to consider when determining whether an artwork is worth their investment. Selecting an artwork for your collection pivots around your reaction to, and relationship with, the work.

Ultimately, regardless of financial value, if you love the artwork you’re purchasing, you’ll get happiness from seeing it in your home every day. We think this might just be the best way in which you can receive a return on investing in art.