How to set prices when starting a gallery with no reference point

01Why pricing is a curatorial act

Setting the price of a work is not a purely commercial act: it is a curatorial act that engages the dealer's responsibility towards the artist and towards the market. A price is a signal. It communicates to the collector the level of the artist's recognition, the seriousness of the gallery and the value the dealer attributes to the work presented. An incoherent price, too high or too low relative to the positioning of the artist and the gallery, sows doubt in the collector and erodes the trust that is the foundation of every transaction in the art market.

Galerie Templon has always treated pricing policy as a strategic element of its relationship with artists and collectors, ensuring that every price is defensible in light of the artist's career and the market context. Galerie Nathalie Obadia applies similar rigour, considering pricing consistency as a marker of professionalism that reassures both artists and buyers.

You must approach pricing with the same seriousness as the selection of your artists or the design of your exhibitions. It is not an administrative detail: it is a pillar of your credibility.

02The comparison method: your starting point

The most reliable method for pricing an emerging artist is comparison with artists of a similar profile. Identify artists who share comparable characteristics with your artist: same medium, same generation, same level of training, comparable number of exhibitions, similar institutional presence. Research the prices practised by the galleries that represent them. Gallery websites, art fairs and online databases provide this information.

If your artist is a thirty-year-old painter, a graduate of a recognised art school, with three or four group exhibitions and a first solo show in a gallery, look at what artists at the same stage are selling for in galleries of comparable size and reputation to yours. This price range constitutes your reference point, which you will then adjust according to factors specific to your artist and your local market.

Galerie Almine Rech has built its pricing policy for the young artists it represents by systematically positioning itself within the range practised by galleries of a similar level, avoiding both overbidding and undervaluation. Galerie Jousse Entreprise, representing both contemporary artists and historic design pieces, has developed a refined expertise in comparison that allows it to position each piece accurately.

03The objective parameters that influence price

Beyond comparison, several objective parameters must enter your calculation. Production cost is the absolute floor below which you cannot go without the artist losing money through creating. This cost includes materials, working time, studio costs and transport fees. An artist working in bronze or ceramics has significantly higher production costs than a draughtsman, and this economic reality must be reflected in the price.

Format is a traditional parameter in the art market. Galleries often use a price per point, calculated according to the work's dimensions, to ensure internal consistency in an artist's price grid. A point generally corresponds to the sum of the work's height and width in centimetres, multiplied by a coefficient specific to the artist. This system, although imperfect, has the merit of providing a logical and defensible framework.

Medium also plays a role. In market tradition, an oil on canvas generally sells for more than a work on paper, a photographic print or a multiple. This hierarchy does not reflect a hierarchy of artistic value but a market reality you must know, even if you may choose to nuance it.

The artist's career is the most determining factor in the medium term. Each institutional exhibition, each acquisition by a public collection, each significant critical text justifies a progressive price revaluation. An artist whose prices remain identical after five years of regular exhibitions and growing recognition sends a negative signal to the market. Conversely, an artist whose prices rise too fast relative to their career creates a bubble that will eventually burst.

04Classic mistakes made by beginner dealers

The first mistake is setting prices too low out of lack of confidence. You are a young dealer, you represent an emerging artist, and you tell yourself that modest prices will facilitate the first sales. This is partially true, but the long-term consequences are devastating. A price set too low anchors the artist in a range that will be extremely difficult to escape. Collectors who bought at low prices expect subsequent works to remain affordable, and any significant increase will be perceived as unjustified. Moreover, a price that is too low signals to the market that the artist and the gallery lack confidence in the value of the work offered.

The second mistake is setting prices too high out of excessive ambition. An emerging artist whose prices match those of a mid-career artist will find no buyers, as collectors perceive a gap between the level of recognition and the asking price. This absence of sales is worse than sales at low prices, because it deprives the artist of the market momentum they need to build their career.

The third mistake is inconsistency. If you sell a canvas of one hundred by one hundred and twenty centimetres for three thousand euros and another canvas by the same artist, one hundred by one hundred centimetres, for five thousand euros, without a clear justification linked to the work's complexity or its importance in the artist's production, you sow confusion in the collector. An artist's price grid must be logical, transparent and explicable.

05When and how to raise prices

Price increases are a strategic tool you must wield with caution and method. An increase is justified when demand for an artist regularly exceeds supply, when the artist benefits from new institutional recognition, or when an updated comparison with artists of a similar profile shows that your prices have fallen below market level.

The increase must be progressive. A rise of ten to fifteen per cent per year is a healthy rhythm for an emerging artist whose career is evolving favourably. A fifty per cent increase in one go, even justified by an exceptional event, risks shocking loyal collectors and creating a price threshold that new buyers will hesitate to cross.

Galerie Perrotin has managed price increases for its most in-demand artists with a progressivity that has allowed it to build a solid and lasting market. Galerie Thaddaeus Ropac applies the same principle of progressivity, preferring regular, moderate increases to sharp jumps that weaken market confidence.

Communicate transparently with your collectors about price increases. A collector who bought at a lower price and sees prices rise is reassured about the relevance of their investment. A collector confronted with a new price without explanation will feel manipulated.

06Managing discounts and payment facilities

Collectors frequently ask for discounts, and you must have a clear policy on this subject before your very first sale. The healthiest practice is not to grant a discount on the price of the work but to offer complementary services: delivery, framing, home installation. These commercial gestures preserve the integrity of the price while demonstrating your willingness to satisfy the collector.

If you grant a discount, never exceed ten per cent, and only grant it to collectors who are purchasing several works simultaneously or who are already regular clients. A generalised discount, known throughout the market, means your displayed prices are fictitious, which is destructive for the credibility of your price grid and for your collectors' trust.

Payment facilities are a different tool and often more relevant than a discount. Offering a collector the option to pay in two or three instalments, without additional charges, can unlock a sale without altering the work's price. Galerie Templon has always offered payment facilities to its collectors, considering that this practical arrangement facilitates the act of purchase without devaluing the artist's work. Galerie Chantal Crousel also offers payment schedules adapted to its collectors, particularly for works with a significant price tag.

The artist must be informed of your policy regarding discounts and payment facilities. If you grant a discount, the question arises whether the artist's commission is calculated on the displayed price or on the price actually collected. The most equitable practice is to calculate the commission on the collected price, sharing the weight of the discount between the gallery and the artist.

07Owning your prices with confidence

The price you set is your committed word. You must be able to justify it to any collector, not by detailing an accounting calculation but by explaining why this artist's work merits this value, why this price is consistent with the market and why the collector can buy with confidence.

A dealer who hesitates about their own prices communicates an insecurity that deters the buyer. A dealer who owns their prices with calm conviction transmits an assurance that facilitates the purchasing decision. You do not have to apologise for your prices: you must explain them, defend them and apply them consistently.

Artedusa enables young galleries to present their works with visible and contextualised prices, in a professional environment that strengthens the credibility of their pricing policy with international collectors accustomed to high standards of transparency.