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Do People Buy More Art in the Bad Economy?

"Dick" [1] taught elementary school in California.  He had molded his life into his very own "American dream." Dick lived in a picturesque little town, enjoying his own corner of paradise...complete with 1,400 square feet, a manicured patch of green lawn, and a white picket fence.  At the height of the housing bubble, he had purchased a house utilizing a "zero down" loan.  "Real estate always goes up" he was assured by those parroting the conventional "wisdom" of the mid-2000's. If only somebody had told him conventional "wisdom" is often wrong.

In 2008, the overinflated financial system finally found the pin it had desperately been searching for, and with a loud "pop",  the housing bubble deflated.  Dick's little town was hit particularly hard:  People lost their jobs, people lost their homes, and many folks moved away.  Fewer kids attend Dick's school now, and, to top it off, the California state government has cut back on education funding.  

Result: Dick lost his job.  

By the time I saw this story on the evening news, Dick had been receiving unemployment  checks for approximately 95 weeks (nearly two years) and was complaining that the government (all of the rest of us) wasn't going to extend his unemployment benefits yet again.  Now, I'll admit, I'm not always the most sensitive person, but, I couldn't help wondering: what had Dick been doing for two years?  He was a smart, young, able-bodied man.  But, he hadn't started a business, he hadn't flipped burgers for extra income, he hadn't looked into the plethora of ways to make money online.  What he had done, he said, is that he had "looked for a job each week, but there are no jobs left in town."

Then the interviewer asked the question that was on my mind: "So, why don't you just move?"  (most of the rest of the town already had).

His answer, "This is my home, this is where I want to live.  I don't want to move."

There you have it.  He doesn't want to move. Dick wants the rest of us to pay for his wants, even though it's very clear he needs to make some big changes in his life if he wants to improve his prospects.  

He is refusing to accept the "new normal."

Here's the thing:  If Dick would come down here where I live...to Texas - we need teachers, houses are cheap, and jobs are (fairly) plentiful.  Or, if he doesn't like Texas, he could move somewhere else where his prospects would be brighter.  There's no reason he couldn't move out of the ghost town with no jobs left:  He isn't really tied to that particular California town.  He doesn't have kids.  He's not married.  The only tie seems to be his house.  Sure, finding a way out of his mortgage will likely involve some pain (unless he finds renters), but is that worth ruining his long term prospects?   

He could move and better his life, but he doesn't want to.

The New Normal

The American economy has changed.  We're in a "great recession" of sorts, even though, technically, by old definitions involving GDP and statistics [2], we're managing to eek out a tiny bit of "growth".  But we're only achieving that "growth" by engaging in massive deficit spending and piling up an unsustainable amount of debt.  In fact, after years of unbridled debt growth and heaping our bills on future generations (the only "special interest" who can't vote), I suspect we've reached a point where the downturn is now systemic rather than simply cyclical.  In short, the economy has changed and we're reaching a "new normal", much as Japan did in the early 1990's.  The post WWII growth levels we've all been accustomed to may not be returning anytime soon.

This downturn is real and some sobering and tragic stories have come out of it.  But many people are still refusing to acknowledge, that we're in a "new normal."  Now I certainly don't mean to minimize anyone's difficulties, but for many smart, talented, able-bodied folks, if they would actually accept this is the new normal and be willing to make the necessary changes, they could continue to thrive.  While the economy is sluggish, it's still a huge, huge, huge, innovative 15 trillion dollar economy and you are entitled to your piece of it. [3]

The New Normal for Art

Turning to art:  Artists sometimes write me and blame their lack of sales on "the economy" as if that explains everything.  I wonder: Is it really simply "the economy"?  Or are there things these artists could be doing, but aren't, because they don't want to? Are there marketing channels these artists don't want to invest the time and energy learning?

Since we've got the needle in our hand, let's burst more bubbles!  Obviously, the economy has been better, but it's not simply the economy's fault you're not selling art.  Sure, your old sales venues may be now failing.  But plenty of art is being sold.  If your old marketing haunts resemble an abandoned town in California, then you need to make changes to where and how you sell your art.  Don't keep trying to find a job in a little town that has been abandoned.  Don't be a "Dick."

How do I know art is selling?  Artists tell me!  Collectors tell me!  All the time.  I know artists who are thriving and daily thank their favorite deity that they live in a time with the magic of the Internet at their disposal.  But, if you prefer an actual data point, pay attention:  I read a story in Wired about Etsy, the art/handmade goods site.

Here's the relevant quote:

"in July 2012 [Etsy's] year-over-year sales were up more than 75 percent. Not bad for a retailer selling mostly nonessential products during one of the most sluggish chapters in the history of American consumer spending."

Yeah, that's right.  Up 75 Percent [4].

At Etsy, at least, people are buying MORE art than in 2011.  And in fact, Etsy achieved profitability in 2009 at the height of the downturn, and has grown every year since.  They're going ahead and ignoring the "doom and gloom" and doing what it takes to grab their piece of the 15 trillion dollar US economy.

I know you can too!

Remember, Sharing Art Enriches Life.

Sincerely,

Clint Watson

FASO Founder, Software Craftsman and Art Fanatic

---------

[1] Not "Dick's" real name.

[2]  "There are lies, damn lies, and statistics." -- Mark Twain (among others), who attributed it to the 19th-century British Prime Minister Benjamin Disraeli.

[3]  I'm paraphrasing one of my favorite writers James Altucher, with the comment about you are entitled to your piece of our huge 15 trillion dollar economy.

[4] I don't have the articles I've recently read at my disposal, but, in addition to Etsy, sales of many non-essential luxury items are up across many companies.  There are theories as to why downturns spur activity in sales of art, luxury goods, and non-essentials, but those theories really don't matter.  What matters is this: while it may feel otherwise, art is selling.  That means there is a way for you to get a piece of those sales.

 

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Comments

 

Excellent post! I too have been guilty of not a accepting the new normal. Thanks for the nudge to reevaluate.

Clint -- If it was not for the fact that I have a daughter I would have probably moved to Texas by now. I may very well end up there once she is an adult. Illinois is not the best place to live tax-wise. LOL

As you point out... the guy in this story really has no reason not to move. There is nothing holding him back aside from not wanting to get out of his comfort zone. I know a lot people who suggest that the freedom of movement that has long been a staple of our country is not possible today. It is possible with planning.

When I was younger I moved around often. Sure, it was rough at times... but a little saving went a long way. Furthermore, I was not afraid to take on odd jobs or work two jobs in order to carve a path. Those years of exploring taught me a lot.

I see how this is connected to art in many ways. I know artists who complain about the lack of opportunities in their area... but when I mention traveling elsewhere in their state, even if it is just for exhibit opportunities, they cling to their 'stomping grounds' or argue that gas is too expensive. Ha. .



I'll add that the economy is never 100 percent perfect. So if an artist, or anyone for that matter, is waiting for the perfect economy before taking action... keep dreaming.

'The economy' is an easy excuse for lack of action. I personally know people who used 'the economy' as an excuse for not trying when the economy was arguably a lot better than it is now. The truth is that many of the people I'm thinking about simply lack ambition. They are looking for excuses... they are content with not trying.

It is vital for individuals, in general, to learn how to adapt. In fact, I would suggest that learning to adapt -- and overcoming personal / financial obstacles -- is part of the American way. Taking a few chances / risks is the American way as well. Sadly, a lot of us have forgotten that.

My art income since 2 years ago has nearly doubled, but it hasn't come without serious change...DIFFICULT change (and I don't mean that my art has changed much, either...more like change in attitude and business practices). It's funny that it was so hard to do things that I knew I needed to do (it STILL is hard to make more changes). But I guess it's the idea of being too comfortable where we are that prevents us from really blossoming.

I agree with your comment, Brian, that overcoming struggle is "part of the American way." I think it's easy for us all to dream that it might've been easier for us in easier times, but I think the "bubble" did our American attitudes a disservice...we were above the struggles, which meant we weren't prepared for innovative thought...but we can re-learn that.

Anyway, I'm becoming more and more eager to accept a "new normal" as often as possible, because I realize that the unknown is often much better.

HA! James Altucher is one of my favorites as well.

I think this is an honest, and much needed post Clint. I keep in touch with many artists at all levels and prices - they report how their sales are doing, and many who work with galleries have had their best year yet! It seems the larger, $10,000 paintings are selling best for them.

However, it's difficult to get into galleries at this point since they are not out of the woods with the economy and are working hard to sell the works of their existing artists.

That said, the market is very good to sell smaller, reasonably priced, unframed works online. The key is to not let EGO get in the way of selling in unconventional ways for lower prices.

Even established artists who work with galleries are supplementing sales with online passive and semi-passive income: selling on Etsy, Fine Art America (prints), and small works from their blogs and email newsletters.

I'm convinced that professional artists need to have more than one sales outlet and multiple streams of income so that when one isn't doing well, the others will fill in the gaps.

Plenty of art is being bought online - even from galleries! Prices are falling, even for the most expensive artists. I heard last week from a gallery dealer that one artist who used to sell large works for half a million, is now selling similar works for around 100,000. Whether right or wrong... art pricing is acting more like the housing and stock market... good time = higher values, bad times = lower values.

I do believe that more art is being bought and sold than ever before in history. There is no need for gatekeepers. Each artist is an entrepreneur, and is in full control of their ability to make a profit.

I'm a big believer that artists should create a source for passive income, as well as for the sales of originals. Two markets are better than one. Passive income streams, such as ebooks, reproductions, etc can be handled by someone else, and this type of business survives even if the artist can't paint at some point. All the most famous artists have passive income.

Collectors at the top of the price scale are few and far between, but there is a huge audience for artwork priced under $1000, and even a larger crowd for works under $500.

Again, the key is to not let your ego make the business decision - always be profit motivated. If something's not working, try another venue. Artists are even selling at farmers' markets these days. I'm selling paintings at a high end antique shop near home.

Yeah, I'm long winded, but just wanted to share a few things that I'm seeing works for artists. There's really no limit to how much we can sell if we're willing to do the "flipping burgers" of the art world.

This is a great post, Clint -- although it may not be a popular position, you're right on the money. Having spent my career in marketing, I'd like to add that it's important to always test, test and test. Test different sales venues -- online, shows, galleries, and special events. Test the addition of a Facebook page or a newsletter vs. a print ad. Get on a daily painting site, and test different price points. The anlaytics available for online venues are probably better than any other channel. The key is to record the results of what you test, pick your winners, then test some more -- continually refine what you learn. And don't just test different channels -- test which types of paintings sell the best. Maybe landscapes might sell better than still life, etc. Or if you just paint one genre, maybe colors might make a dfference -- test those. And always build you lists (email and otherwise); and continually communicate with those lists. Even if you think your communications fall on deaf ears, people will remember you, and you never know what might prompt them to make a purchase. It's important to be top of mind to any potential client. Every successful artist is also a successful marketer, and that success may be different for each of us.

Great article, Clint! Thanks for sharing the plain unvarnished truth...

Clint,
I agree with much of your post; however, I was disappointed by your reference in Footnote #1 to the name of the gentleman (fictional) and your unfortunate pun, if you will, admonishing your readers to not be like a "him'. I know a very nice man named Dick and I find that part of your article inappropriate and not up to your standards. I am not at all missing the very powerful point of your article, which is right on target, but you have a huge readership and a large impact and responsibility to each and every one. Please no more personal references like that. Thank you.

Dorothy - I know nice people named Dick too. It was perhaps a failed attempt and making it memorable based on an esoteric reference to a don't drink and drive campaign I remember growing up in the 80's. It was a fairly popular t-shirt back then.

The front read:

See Dick Drink.
See Dick Drive.
See Dick Die.


The back read:

Don't be a Dick.

Don't Drink and Drive.


You can see one here:
http://bit.ly/ZkbzR0

I didn't make the connection. If he chose any other name, someone else would have been offended. It just happened to be "Dick's" time. Don't worry about it.

Clint
Good article.
Art sales will vary from city to city but it is generally true that galleries are shutting down at an alarming rate. Here in the arts state of South Australia and its capital of Adelaide, half the galleries had shut down in the last two years and others are on the cards to do down the same track. A close look at why, will firstly reveal that most of the galleries in question were not showing quality art.
Interestingly, it has been one of my better 12-month periods with sales and this is largely due to Rotary Art Show sales and Private College art shows. Overall though, even these venues are hardly managing to stay on top. It's a matter of painting what sells - making a connection and being able to sell bigger amounts of smaller works mixed with a smaller amount of larger works.
I am in the middle of a solo show - www.david-sumner-gallery.com/Current.htm - you will see that no larger works have sold...just the middle of the road and smaller ones. It's an interesting trend. Oddly enough, my bigger works have sold at Rotary shows! At the annual Victor Harbor Rotary show of about 1600 paintings, they managed to achieve over $250,000 worth of sales. I sold one for nearly $5000 that I have been unable to do in a gallery. The reason - it's not just collectors that go to holiday town Rotary art shows.. it's all kinds of people including the very rich who own holiday houses there!
I think there is a lot of hype about online sales being the way to go but I don't believe it is all true and I say that by experience.
Different venues are the way to go. The more people that are there to look at the work the better. Not many people go into galleries. These days they seem to be full of friends, fellow artists and those who enjoy the free glasses of wine and nibbles!
cheers
Mike Barr


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