Dealer commission rates

[Citizenvain]

First off, everyone should be compensated for their work. I’m just trying to reconcile some prices to where the market for various artists appear to be.

 

Surely commission rates vary between the dealer & artist but does anyone have an idea as to the average?

 

I notice the pricing on some new items continue to increase even when existing inventory from the same artist(s) remain unsold and it reminded me of an instance when I contacted an artist directly about a piece that was not found on their dealers site.

 

The artist said it would cost x but that I could have it for y since we were "cutting out the middle man." A 25% discount.

 

I figured this was simply a goodwill gesture but current pricing has got me thinking 25% may be the norm.

 

Any thoughts?

[alxjhnsn]

Commissions vary all over the place

 

I see few full commissions - ones with detail, size (11x17 min) and background for less than $300 and the most I've had quoted was $3000 for a Byrne commission. I suspect others are as high or higher - Adam Hughes gets that (r more) for his "con sketches."

 

If I had to pick a "mid-range," I'd say $1000 +/- $250 [$750-$1250].

 

If you are asking about dealer markup, I couldn't say. I've had one experience where the dealer was twice as high as the artist, but I don't know that that's the norm.

 

 

BTW, the bargain of all time is Katie Cook's $5 quick watercolors done at cons. If she's at a show near you, go get one. You will be amazed. A few lines, a little paint, and you have art!

 

[artdealer]

I think he might be talking about how much commission the art dealer/reps gets when selling the artists work.

Not that it's anyone's business. It's between the artist and the rep.

MI

[Citizenvain]

If you are asking about dealer markup, I couldn't say. I've had one experience where the dealer was twice as high as the artist, but I don't know

 

I was referring to dealer markup but appreciate your commission insight as well, Alex. Thank you.

[DocR]

First off, everyone should be compensated for their work. I’m just trying to reconcile some prices to where the market for various artists appear to be.

 

Surely commission rates vary between the dealer & artist but does anyone have an idea as to the average?

 

I notice the pricing on some new items continue to increase even when existing inventory from the same artist(s) remain unsold and it reminded me of an instance when I contacted an artist directly about a piece that was not found on their dealers site.

 

The artist said it would cost x but that I could have it for y since we were "cutting out the middle man." A 25% discount.

 

I figured this was simply a goodwill gesture but current pricing has got me thinking 25% may be the norm.

 

Any thoughts?

 

I may be wrong and have no first hand knowledge but I have got to think that the higher priced and in demand an artist is, the lower commission rate he pays his art dealer to sell for him. It just makes sense. For example if I'm Jim Lee (I wish) I wouldn't be giving anywhere near 25% to anyone to sell my art for me. (not trying to step on anybody's toes here) But I could hire someone for 30k-40k a year to be my art rep and save a ton of money. just my 2 cents.

[Citizenvain]

I may be wrong and have no first hand knowledge but I have got to think that the higher priced and in demand an artist is, the lower commission rate he pays his art dealer to sell for him. It just makes sense. For example if I'm Jim Lee (I wish) I wouldn't be giving anywhere near 25% to anyone to sell my art for me. (not trying to step on anybody's toes here) But I could hire someone for 30k-40k a year to be my art rep and save a ton of money. just my 2 cents.

 

I agree 100%.

 

I guess my real question is has the commission been added to the artists price or deducted from the artists price?

 

The example I gave earlier left the impression it was the former. At least in that particular case.

[DocR]

In the end the market will only support certain prices for a particular artist. In effect you can't add a dealer commission that gets you above what the market will support for a particular artist. So it always comes out of the artists end. However the example you gave shows that from either the standpoint of the artist or the buyer they are both saving and the only loser is the dealer.

[AKA Rick]

The dealers add tremendous value to the artist and collector/customer relationship, it's a management fee that's well earned from my observation as a buyer.

 

How many of us collectors have made deals directly with an artist only for them not to ship out the art in neither a timely nor professionally packaged manner.? It's aggravating and once you send the money, you are often S.O.L. to the whims of the artist since you have no leverage.

 

Many artists are truly creative types and not business types. They treat business transactions so casually, you nearly have to beg and plead to get what you paid for only to hear excuses of art deadlines for the delay in shipment. Dealers generally ('tho there are a few out there who are gruff in personality) provide professional customer service. The dealer can workout payments beyond cash transactions and payment plans.

 

Some artists have delusions of grandeur, often overpricing their own artwork. The dealer brings sense into the equation. They're experienced on marketplace valuation. Dealers are compensated typically on a %, so it's in their best interests to service both the customers and the artist. Of course they want to command the highest value, but at the same time if a piece if overpriced and doesn't sell "15% of something is better than 100% of nothing" so are the effectively serving both interests of the buyer and seller (artist).

 

Most dealers have a network of customers who trust them and an organized method to get the artwork out to the right set of eyes. Only a few artists have their own websites and most just sell at conventions. So, the dealer provides the artist with an organized forum with a larger community viewing the art, an audience an artist if left to their own means may not have the opportunity to showcase their art to.

 

Like any other celebrity management relationship, sometimes the artists wants to be liked by the fans, so any hard decisions, whether sketch commission policies, autographs or art sales, are made by the artist, but communicated by the dealer. In that way, sometimes cut the dealers some slack, they're not against you and are only often doing what the artist has instructed them to do.

 

Some dealers can and will negotiate on prices. In some cases, it's a discussion between the dealer and the artist if a lower price is offered, and other times the dealer takes a personal cut in their commission rate. What that rate is is immaterial. What rate is important is the final sales price and whether or not to buy based off of that (i.e. "don't worry about the money in other peoples pockets"). So, whether the commission fees are paid by the artist out of revenue generated or if a dealer marks the piece up to over the commission, it is that proverbial "it is what it is" and the price you pay is the price you pay without concern to who gets what share.

 

 

[Citizenvain]

Thanks for the response AKA Rick.

 

The most pleasant experiences I've had buying art have been directly with the artists. Dealers have been a mixed bag thus far. I've certainly encountered the "gruff personality" a time or two though I've had some exceed my expectations as well.

 

You've given me a much better understanding of the value added though. Perhaps prices have just reached a point where I'll be keeping more money in my own pocket.

 

Never a bad thing.

[Edward-G-migration]

Thanks for the response AKA Rick.

 

You've given me a much better understanding of the value added though. Perhaps prices have just reached a point where I'll be keeping more money in my own pocket.

 

Never a bad thing.

 

Preach!

[AKA Rick]

. Perhaps prices have just reached a point where I'll be keeping more money in my own pocket.

 

Never a bad thing.

 

You're welcome. This is a smart statement you've made.

 

Too many collectors get so acquisition obsessed to the point they'll pay anything and accept any behavior from artists, dealers or sellers blindly. The pursuit of possession is so much about emotion and ego, it's good to take a step back, take a breath and think about the pending purchasing decisions.

 

As the consumer your economic empowerment should follow the "with great power comes great responsibility" mantra. Sellers whomever it may be need to earn your business dollars. Buyers of collectibles need to be responsible also for their own overhead, be it paying rent, saving for necessities, etc. So, pocketing the money is smart.

 

Also, some collectors buy buy buy on impulse or out of boredom (I've been guilty of that) and end up with a collection riddled in mediocrity and regret (which I have many pieces in this category)

 

Anyone who spends any significant amount of money on 2 oz of 11" x 17" paper with pencil and ink drawings should think about the purchase, as it is in part an investment decision. If it were just about being a fan of the art image, anyone can "right click" their mouse and save the image on their computer and look at it day and night, and that's FREE.

 

People tout the value of their art, but it's not so easily liquid as stocks and bonds, you need to find a buyer (circling back to why dealers can add value, they also do consignments and trades with collectors)... So, keeping liquid cash for future considerations on well thought out purchases be it for a home, a car, or what have you, is wise in today's economy.

 

Good luck in your collecting endeavors, and stick to your guns... buy what you LOVE (not just what you only like), and pay what you can afford - - and don't go into debt in the name of the 2 oz of cardboard cocaine called comic art either

 

 

[ImageFan-migration]

Not that it's anyone's business. It's between the artist and the rep.

 

Commission rates may indeed be confidential information, however a fact finding mission that results in this information being brought to light is certainly beneficial in assisting with the valuation of an artists's portfolio. This information may be considerably valuable if the dealer in question is an incorrigible prevaricator prone to delivering platitudes.