I had a strong suspicion that the response varied by country. So I asked the question in relation to two different currencies - but made the answers absolutely identical in numerical terms (except for the currency). As I expected, after one takes into account the currency difference the results are significantly different.
Now this one is a bit difficult so below you will see:
- USA: a chart for the dollar values
- UK: a chart for the sterling values
- $1 (US) = £0.641737 (GBP)
- £1 (GB) = $1.55865 (USD)
The numbers 500 and 1,000 are hugely influential in terms of people's perceptions of what are the big price hurdles.
- Both produced a peak and very similar values in terms of percentage responses
- after which there was very little activity until the next price hurdle was reached.
The Power of 500
- In the USA, 24% of the sample would buy art at less than $500 (£320)
- In the UK, 27% of the sample would but art at less than £500 ($775)
- around about a third of the market would contemplate buying art costing more than 500 (whichever currency)
- In the USA, 17% of the sample would buy art at less than $1,000 (£640)
- In the UK, 20% of the sample would buy art at less than £1,000 ($1,550)
- those contemplating buying artwork in excess of 1,000 (whichever currency) are only around 10% of the marketplace which reads this blog.
- you can get more people to buy your art at higher prices in the UK.
- Selling art to the USA: Which should mean that artists based in the USA should be assessing whether they should be marketing original artwork at serious prices to the UK
- there is much more resistance at lower price points in the USA when compared to what is experienced in the UK
- Selling art to the USA: Conversely, UK artists need to think very carefully how they price artwork when marketing to the USA
Now for the charts and the detailed results so you can see where these conclusions come from.
USA: What price is affordable art (in US$)?
- 70% of the 63 people who voted on the $ question thought that affordable art meant art costing less than $500 (£320)
- A significant minority think affordable art means it costs less than $100 (13%) or lower (8%). $100 = £64. $50 = £32,
- This means only 30% of respondents contemplate buying art costing more than $500 (ie £320)
- 17% would buy art costing more than $500 (ie £320) and less than $1,000 (£640)
- 10% would contemplate buying art costing more than $1,000 (£640)
- The overall profile of the chart is not dissimilar to the USA chart
- 64% of the 41 people who voted on the £ sterling question thought that affordable art meant art costing less than £500 ($775)
- A significant minority think affordable art means it costs less than £100 (15%) or lower (5%). £100 = $155 £50 = $77.50
- This means only 36% of respondents contemplate buying art costing more than £500 ($775)
- 20% would buy art costing more than £500 ($775) and less than £1,000 ($1,550)
- 9% would buy art costing more than £1,000 ($1,550)
What I'm interested to know is as follows:
- Have you ever thought about price points and their importance before?
- Have you ever considered price points might not be equivalent in different countries?
- Do you agree that 500 and 1,000 are very big and very important price points?
- Do these price thresholds influence how you price to avoid scaring people off? (eg pricing at $495, £950)
- Did anybody notice what I'd done in terms of the options available?