Pricing is a crucial topic in art galleries and dominates transaction discussions. Although there are set prices for every artwork in a gallery, such as estades.com, there is room for negotiation. Buyers must also factor in the additional expenses to get the net buying price before committing. However, the elasticity of the negotiation has underlying factors which need thorough discussions.
Additional Costs
Besides the purchase price, artworks have additional costs for servicing, shipping, insurance and taxes. In most cases, these extra costs are not exhibited in the purchase price. They come in when finalising the purchase process. However, not all pieces of art have these additional prices. The buyer gets such costs based on the following:-
- Medium of Purchase - buyers incur shipping and insurance costs if they buy through an online art gallery. The additional charges facilitate the delivery process up to the drop-off point. If they buy in an auction at a physical location, the total cost might not have such costs unless the buyer asks for it.
- Terms of Service - some artworks are precious to the art world. Even after the purchase, the owner only has partial ownership. They have an appraisal purchase clause that allows the art gallery to service and maintain it. Such arrangements have some costs that the buyer and the seller must agree on before finalising the purchase.
Negotiation Elasticity
There is no predefined limit on how far buyers can go when negotiating. However, the laws of demand and supply can limit how low the buyer goes and how high the seller reaches. Since it is a business, the lowest selling price factors in all production costs and the profit margin.
If the seller is the artist, they can lower the price compared to buying the painting from a marketer. However, since the art market has no standard regulation, buyers might not know the best price to purchase painting art. To get better deals, buyers must invest their time understanding art and their valuation.
Technology brought the online art gallery to bridge the gap between buyer and seller, and increase the market reach. Nowadays, art lovers can search for artworks online, compare the prices and zero down on their choice. Pricing knowledge redefines negotiation, with both parties walking away happy after the transaction. However, the seller should break even on production and facilitation costs to stay afloat.
Payment Plan
Classic artworks are costly, thanks to their significance and the history behind them. They attract many admirers who increase their demand, increasing their buying price in the process. However, they are few, which makes such payments limited. Only those who have enough money and understand the art’s significance can make a single payment.
However, most art galleries have payment plans that allow customers to pay in instalments. Such arrangements often charge more to purchase painting since storage and maintenance costs are part of the transaction. Unfortunately, paying in instalments does not give too much latitude in negotiating art prices. However, it has its advantages since it provides the buyer with enough time to source funds.
Paying at once gives the buyer latitude to negotiate, while instalment payment gives the seller the upper hand. As a buyer, chose the plan that offers the best returns on investment without straining your financial ability. However, if there is money, consider making a one-off payment to benefit from the economies of scale.