How to maximize profits and how pricing effects this
In a capitalist society business run on many principals. One of these principals, which I've addressed in the past is pricing tolerance. This is a post from a previous thread regarding this: I believe I used the term "pricing tolerance" let me expand by posting a portion of an article regarding this:
Random Price Testing One basic technique to determine the Indifference Band for any give product is to quote a higher price – e.g. $110 for any given $100 “widget” – every 20th visitor to your site (AKA randomly), and then to compare purchase rates. If you find an increasing tolerance for the price at the high end of the Indifference Band, you should probably consider raising the price. Note, however, that the purpose of this exercise is to test, to gather information . . . not revenue. In order to avoid possible negative publicity (AKA what happened to Victoria’s Secret when they were pricing products differently to the same audience), you may wish to consider refunding the difference as soon as the purchase order is completed by adjusting the invoice or sending a follow-up email. “As a special customer, the $110 widget you just purchased is now only $100. It’s our way of thanking you for your business . . . .” Once the pricing tolerance has been identified, the price on the “widget” should be adjusted to $110 across the board.
What I refer to is not over or under pricing. It is correct pricing. If I walk into a gallery and they are priced to the down side of my pricing this speaks to their patrons not my work. On the other hand same gallery with high side pricing may mean your work is not appropriate to hang there.
So, how to find your market position in terms of pricing:
Find what people will pay per inch x complexity of your work based solely on your market experience. Then using this simple matrix establish CONSISTENT pricing and stick to it! (I find this easy, I just look at what folks have said yes compared to no over a time period in the region I'm in) I know it sounds difficult, but look at it on the face of the issue, It Is Not. You know what people have paid in the past.
Now for the most important part. Adjust. Increase your matrix when demand calls for it, and discount as the unthinkable happens and demand diminishes and if you must sell.
The California artist Jerry Lipp is regarded as an instinctive master of acrylics. He achieves strength, drama and richness of color in a medium not easily controlled. His masterful techniques and incredible palette have long been recognized as unique and interesting as his works have earned international accolades.
Lipp was born in Los Angeles, California in 1962 and has always been immersed in art. Talent courses through him via his bloodline. Both of his Grandmothers were accomplished professional oil painters. His interest in art was guided by this constant exposure, guidance and tutelage of his family. This gave Lipp an incredible opportunity to learn from those master artist’s who were in the circle of his grandparents. Soon after this he was able to gain access to the newly developed world of acrylics. Frustrated by the “drying time” of oils, he took to this medium immediately. As acrylics gained popularity he grew his knowledge and abilities. He sat at the knees of some of the earliest artistic successes in the world of acrylics. He was able to digest a myriad of techniques as they were first developed. As the world of this new medium exploded so did his intimacy with this incredibly diverse ever expanding exciting new universe.
His earliest works proudly hang and are still highly regarded in collections worldwide. The artist sold his first piece in 1971 at age 9; “Man Pushing a Rock” was a sculpture of copper wire and stone, thoughtfully created with the mythical Sisyphus portrayed with all the emotion and frustration stunningly captured at just under one foot tall. He went on to create dozens of these works as well as hundreds of acrylic, oil paintings and sculptures all sold through the formative years of his life.
Though already an accomplished and successful professional artist, in 1981 Lipp attended the California Institute of The Arts. He was able to work his way through the Institute with his continuing success as a highly regarded artist. The artist continued to study under many internationally recognized abstractural masters. He continues to learn and grow as an artist. Lipp believes that arts creation is a practice, much like many other professions. “The longer you do, the more you create, the better you get.”
In 1987 Lipp went on to teach, unfortunately now with the demands on his time he will only occasionally be able to budget time to instruct a few workshops. Lipp regrets that his teaching career has been limited by these demands, he states “I love to teach, my biggest regret is that I haven’t enough time to do both, teach and create. I learn so much from teaching.” Though Lipp continues to give back with his participating in a number of foundations and charities, he still plans to teach in the future.
With this latest venture, the resulting works manage to convey effortlessly the particular emotion of each subject. We anticipate that his very personal vision and interpretation of these sensual subjects will appeal to his audience for years to come.