What is the biggest mistake artists make when thinking about their pricing and discounting strategy?

The biggest mistake is believing their brand is so exceptional that normal business rules don’t apply—that they can operate like ultra-luxury brands without discounting. This is a combination of arrogance and naivety. The second mistake is underpricing from the start, which leaves no room for strategic discounting. Artists must understand that discounting is simply a game within the game of business. Price your work higher initially so you have room to offer meaningful discounts while still hitting your profit targets. The numbers themselves are somewhat arbitrary; what matters is the psychology of creating value and urgency for buyers while maintaining your financial goals. Master this, and you’ll outsell artists who refuse to play the game.

---

Asked by general business education · Answered by Patrick Shanahan and Nick · art-marketing-podcast · 2020-09-03