ARTSY
The Etiquette of Negotiating Art Prices with Galleries
Art galleries remain a crucial cog in the global art market’s machinery. Yet given the uncertainty of these times and the inherent insularity of the art world, navigating the process of buying art from a gallery can be intimidating for any new collector. One of the most challenging aspects is negotiating with dealers and galleries, or even other collectors.
Here, we share gallerists’ insights and advice for new collectors on how to approach negotiating when purchasing an artwork.
Research the work
A crucial first step to gain confidence as a new art buyer is researching the artist of interest and their work. This is something anyone can do with ease, given the available access to information in our digitally connected daily lives.
“Collectors have never been more empowered,” said Joe Kennedy, co-founder of contemporary art gallery Unit London. “We are slowly achieving more transparency in our industry and there are many avenues for collectors to develop their own picture of an artist’s prominence and market activity—from apps that aggregate auction records, to the proliferation of galleries and advisors, art market news and media platforms, and of course, social media.”
Make a connection with the gallery staff
The next and inevitable step to overcoming the looming façade of an art gallery is to get in touch in person. Annie Kwok, director of Hong Kong–based gallery Villepin, advised that visiting the gallery to see the current exhibition, and then talking to gallery staff, is “always the best first step to understand more about the works and inquire about the price. It’s more personal and it definitely shows more serious interest than an email or website inquiry.”
Christopher Moller, founder of his eponymous gallery in South Africa, agreed: “Post-COVID, we live in a world of online platforms and virtual walkthroughs. We have moved away from the essential face-to-face interaction. Nothing beats face-to-face interaction, which is essential to building a relationship with collectors.”
Leaving one’s contact information also helps for a member of the sales team to reach out directly. “Most of our recurring sales are done once a collector has visited the gallery and a relationship has been established,” added Moller.
Talk about pricing intelligently
When an art collector is keen to purchase a specific artwork, they should endeavor to have a transparent conversation about pricing and their own budget with the gallery.
Most dealers agree that discussing money can be nerve-racking for a new art collector. Veteran art dealer Sundaram Tagore strongly recommended that when it comes to price, art buyers should study auction results—doing so puts them in a stronger position to discuss price of the work intelligently.
“Most galleries or dealers can immediately determine whether a collector is knowledgeable,” Tagore said. “As a gallerist, I’m always willing to listen to and work with knowledgeable collectors on price, provided the artist or estate has allowed me that latitude (some don’t). Placing work with savvy collectors is part of building the artist’s legacy. It’s a win.”
However, artists on the primary market, such as young and emerging artists or established artists without much auction history, may not have established market value outside the galleries that represent them.
Hence, when considering a primary work of art, the price depends on the artist’s place in their career trajectory, how many shows the artist has had, and whether their work is in museums or notable private collections.
“A work by an emerging artist with a thin exhibition history and few museum collections could fetch anywhere from $2,000 to $15,000, although collectors should keep in mind that production costs can also influence price,” said Tagore.
Understand the gallery’s practices
It is important to determine the fair market value of an artwork when negotiating with the gallery to avoid overpaying or underpaying. The industry standard for discount is typically between 5% and 15%. However, this can vary from gallery to gallery, rendering it essential for a collector to make an effort to understand the gallery’s practices.
Speaking with Artsy, Emma McKee, director of Mariane Ibrahim Gallery, the acclaimed Chicago gallery with outposts in Paris and Mexico City, said, “In terms of [price] negotiation, our gallery policy is to not give discounts holistically, which is reflected in the prioritization of the market in terms of the price. We made this decision out of protection of the market and out of transparency for our clients, which aids in creating a trusting relationship with clients.”
On the other hand, Moller believes the best advice he ever received from a veteran art dealer was to allow first-time or younger buyers to pay the artwork off in installments over three, or even up to six months, creating a sense of loyalty for the gallery as the collectors became more affluent.
Engage with the gallery beyond buying work
It is clear that a major priority for most dealers and art collectors is building a long-term relationship. This also goes a long way in easing the process of negotiation.
According to Ariel Lauren Pittman, senior director of Various Small Fires, “The best way for new collectors to build long-term relationships with galleries is to make a genuine, deep, and consistent connection with the program, not just a single work or artist, and to engage with the gallery beyond the transaction.”
While time and patience were cited as crucial ingredients, there are many ways to support a gallery and their artists in addition to acquiring work. “Support the gallery’s programming by regularly attending openings, events, and talks,” said Villepin’s Kwok. “The more we know about what new collectors are looking for, the more we are able to help build their collections in a meaningful way.” Other examples include supporting institutional exhibitions by being a reliable and generous lender, and making contributions that support exhibitions or publications of artists’ work.
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