Art

A New Collector’s Guide to Negotiating Discounts on Art Prices with Galleries

Published

1 year ago

August 12, 2023

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

Michael Gah, installation view of “Beautiful Creation” at Christopher Moller Gallery, 2023. Courtesy of Christopher Moller Gallery.

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

Patrick Eugène, installation view of “50 lbs.” at Mariane Ibrahim, 2023. Courtesy of Mariane Ibrahim.

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

Alex Foxton, installation view of “Trade” at Various Small Fires, Los Angeles, 2023. Courtesy of the artist and Various Small Fires.

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.

Reena Devi

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Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork

Published

5 days ago

September 13, 2024

Harry Miller

In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.

Alleged Fraud Scheme

Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.

Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.

Massive Seizure of Artworks

In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.

Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.

Artwork Returned, but Some Remain Unclaimed

In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.

Court Proceedings Ongoing

The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.

Impact on the Local Art Community

The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.

For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.

As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.

While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.

Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.

As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.

Art

Ukrainian sells art in Essex while stuck in a warzone – BBC.com

Published

2 weeks ago

September 2, 2024

Harry Miller

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Ukrainian sells art in Essex while stuck in a warzone BBC.com

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Art

Somerset House Fire: Courtauld Gallery Reopens, Rest of Landmark Closed

Published

1 month ago

August 18, 2024

Harry Miller

The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”

On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.

Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”

The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.

Blaze in the West Wing

The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.

About Somerset House

Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.

Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.

Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.

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