Two very good methods of pricing your paintings

• Method #1: Hourly: Let’s say you feel your hourly rate is worth $20.00. If you take 5 hours to do a painting than you would need to charge $100.00 for labor alone. Now you need to add materials. Let’s say you paid $8.00 for a canvas, $10 for supplies including pens, pencils, tracing paper, paints, etc… Now take that number ($18.00) and multiply it by 3.5 That equals $63.00. Round up to $65.00. Now go to overhead. Do you pay any fixed amount monthly in order to have a studio or anything? Let’s say you do this on the kitchen table using no new services. So charge $5.00 for overhead. Multiply by 4. That means $20.00 for overhead. So your profitable price would be:
• Labor $100.00
• Materials $ 65.00
• Overhead$ 20.00

You should sell that painting for $185.00 to meet typical profit.

• Method #2: Market Price: This is whatever the market will bear. To find this out, start with the price you come up with using #1. If people buy without hesitation, up your price for the next painting by $25.00, and keep going up with each “next” painting until you find a price level people will stop buying your paintings.
• Now I’m going to do an example……….
  * You do the above………….$185.00 people are happy to pay.
  * Add $25.00 for next……….$205.00 people still happy to pay.
  * Add $25.00 for next……….$230.00 people still happy to pay.
  * Add $25.00 for next……….$255.00 people still happy to pay.
  * Add $25.00 for next……….$280.00 people still happy to pay.
  * Add $25.00 for next……….$305.00 Nobody willing to pay.

This would mean that your price for a painting is between $280 and $305.00. Now you would start adding $5.00 for each painting you do until no one’s willing to pay. Now you have what the market will bear. For our example, let’s say $280.00 is the market price of your 5 hour paintings.

Now you really know how to price your paintings….

• You’re receiving…………… $ 65.00 Materials
• ………………………………$ 20.00 Overhead
• ………………………………$ 195.00 Labor (Thus your new hourly rate is $40.00)

Now whenever you’re asked to do a painting and you think it will take over 5 hours, you simply multiply the additional hours by $40.00.

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