What Happens to Art/Artists/Art Community in a Bad Economy – A Brief Overview and Some Survival Tips
The economic graph is hardly ever stable. The only difference in various economic scenarios is the speed with which the turns happen and their duration of stay. Over time, market trends evolve, government policies change, and monetary values fluctuate. These factors of course directly affect different industries, including the art one. A long recession, just like the one prevailing presently, can very well crash the art market. The ensuing discussion deals with some key impacts of economic downturn on the art community.
Economic Shocks for the Art Industry
- Lowered Sale. Just like any other business, the salability of art works declines too. Though, art circles mostly comprise of the ‘elite’ class of a society, but even they may go thrifty, if the economic scene is depressing and sustains.
- Lowered Profitability. The selling price may have to be lowered per unit, in order to keep the business running or to recover the production costs. As a result, the profits may slide down drastically. This in turn means increased efforts and lowered margins.
- Expensive Raw Material. Bad economy hits from all ends. While the finished products may slide down in price, the prices of raw materials usually soar. Even if they do not rise, lowered margins may make them seem expensive. This may affect the output and even the quality of artwork, as the artists may go for cheaper mediums, which may deliver a compromised quality product.
- Artistic Frustrations. An artist may face crisis on all fronts, expensive raw materials, dipping profitability on each effort, and less buyers. Creativity takes a downturn, when there are no or reduced takers for it. With a sullen mood, definitely the production quality and the innovation levels decline.
Survival Tips for the Art Community during Economic Downturn. With money going on a low, the different sections of art industry may do the following to cope:
- Auctioneers and Galleries
- Strong Market Hold – During trying times, its literally the survival of the fittest that stands. Huge auctioneers and old galleries, which are well established and have survived financial meltdowns in the past, may be able to handle themselves. A strong and a loyal client base, great if at a global level, is a definite plus.
- Focused Sales - Open auctions are discouraged during tough times. Exhibits for sales should be carried out largely through invitation only or with the regular set of clients. This helps control inventory buildup, thereby leveraging monetary losses.
- Trimmed Rates - Its imperative that when the pockets are tight, price advantage is the obvious course to increase sales. Galleries and auctioneers need to quote a modest price to attract clients.
- For Collectors
- Be smart - Economic slowdown is a good time for getting good bargains, as most galleries and dealers would like to pass on the risk of selling artworks onto collectors. At the same time, it’s probably the worst phase to be neck deep in debts.
- Have the Eye - Collectors may explore and invest into modestly priced artworks of the emerging promising artists. Also investing in ‘Contemporary Art’ is considered a best investment at any time.
- For Artists
- Networking - Established artists with a strong and loyal client base are likely to survive through a recessionary phase. Therefore, intense networking, direct selling, and displaying art online, helps increase visibility.
- Be Flexible - Artists can be flexible enough to keep easy payment plans for reliable clients. Pricing art reasonably will also attract collectors.
- Gallery Representation - Artists should try choosing the galleries of repute to display their works. In addition, renting work for international exhibits may help expand the market base at a global level.
- Quality Art - Artists should go optimally creative and should work on the subjects of common interests, such as social issues. It is also advisable for the artists to not use watercolor paintings, since they are difficult to maintain and are prone to easy damage.
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