Opening a Gallery: A Profitable Alternative?

I’ve been exhibiting in art fairs off and on for about 40 years, but only in the past ten years or so have I jumped into this crazy business with both feet. During these recent years I’ve had some modest success and been able to make a comfortable living at it. I’ve been able to fulfill a lifelong dream of making a living at being a professional artist. I know, however, that as I get older it will be more difficult to withstand the physical demands and uncertainties of the art fair circuit.

I currently have my work in six galleries around Michigan (I live in Saugatuck) and I’m always on the lookout for more representation. The galleries and my website are providing more of my income every year, but they don’t come close to the income that art fairs generate for me. (I’m a digital artist exhibiting limited edition prints of my surrealistic take on environmental issues.)

I’ve also had some modest success in the gallery business when I opened a gallery in Saugatuck for a short period of time a few years ago. I gave up the gallery for a number of reasons. Number one was that I was unable to maintain hours manning the gallery as well as exhibit on weekends at art fairs. And, the gallery did not provide enough revenue for me to hire staff while I was away on those busy summer weekends. 

Now I have an opportunity to re-enter the gallery business again. I exhibit my work at Mixed Media Gallery in Douglas, Michigan, currently by highest grossing art gallery. Mixed Media has an adjoining gallery space that will become available next spring. This space is large and has a full length basement for storage as well. My quandary is that I’m not willing or able to man the gallery during those busy and profitable summer months when I will be out on the streets doing art fairs (or, alternately, spending quality time with my grandchildren). 

Downtown Douglas is quiet compared to Saugatuck, the town across the Kalamazoo River bridge. But Douglas is becoming a “destination” art gallery town with the main businesses being the Petter Gallery, Water Street Gallery, the Button Gallery, LaFontsee Gallery and Mixed Media, where I exhibit. I’m thinking it might be fun and profitable to become part of that mix in Douglas.

I’m still juggling numbers, but here’s how it could work for me. I will sign the lease on the gallery space and commit to paying the lions share of the rent and utilities. I’ll find three more (good) artists who will exhibit and commit to manning the gallery in return for keeping the lions share of revenue from sales of their own work. I’m not sure how many artists out there will think this is a good idea, but I’m curious and would like to find out. I guess the problem is the same with all art fair artists. They want to be out on the street selling their work on those busy summer weekends.

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  • Re: Podcast
    I made a huge mistake. I chose Petersburg because it was close to home [6 miles] and was "sold" to me by the city's cultural arts dept. as a tourist destination. I was wrong.
    In the meantime, the city is in a huge upheaval, not only for it's negative reputation for crime, but also the city itself is imploding. They're in the news every week- are missing millions of dollars, the water dept is shut down, the fire dept is closing branches, the mayor is illiterate, the city council is irresponsible... 45% of the population around the city is living in poverty [although there are pockets of wealth, they do not venture into old town]. The museums are closing as of this month due to lack of funding. Petersburg is a beautiful, unpolished gem. Some entrepreneurs are doing well [builders and a few restaurants], but it's not an Art Destination.

    At the moment of the podcast recording, I was taking a break from visiting my elderly father in the hospital, and I was really stressed, not feeling in a particularly great mood. I know this reflected on my attitude during the podcast, and for that I apologize. If I had opened a gallery in another city, I think it would have been more of a success. But the space was beautiful, and I did have a lot of traffic for a few of our juried shows. It just was not sustainable.

  • John, try custom picture framing when you open, it will help. It made a big difference in mine.

  • Hi Connie: I'm not much for verbal communication, but I'll help if I can. As for ArtPrize, yes. I'll be in the Grand Rapids Community College Gallery. Not even sure where that is right now, but I don't think it will be a high traffic area.

  • John, don't know if you heard it on the recent podcast, but I hope you are up to doing a podcast around this topic with me later this month ... so many options ... if there are others reading in this post who would be interested in talking about this also, please let me know.

    Are you going to be at Art Prize in Grand Rapids this year?

  • Thanks, Stephen. Very helpful. Still juggling options right now. Not sure which way I'll be going...

    John

  • Hi John,

    I did just that about 8 years ago, when I got a lease for a good space in a tourist section of Savannah (City Market) and my spouse agreed to help me. It's been a great move for me to do that, my income went way up from doing art fairs, and my productivity as well since I was in my gallery/home base working instead of packing and traveling and recovering. After a year or so I realized we'd make more money if my wife quit her job and just helped me. It really seems easy to let people come to you and know where to find you and your work. I also live in a pretty touristy location that only has a few slow months out of the year. I could do traveling shows then if I wanted to, but usually just try to stock up and maybe try some new ideas out.

    I've had employees as well as artists who I shared space with, etc over the years, and it's far easier to pay people than to expect other artists to actually show up when they said they would. Just my experience, of course. 10 bucks an hour plus 10 percent commission and they've been loyal.  

    The few times I've let other artists/photographers hang on my wall, it turned out they valued their time when they felt like it, more then they valued the "boring" times retail can be. You're giving them the much better deal, and they'll not appreciate it (my experience). I've tried to get other more mature and serious artists to split, but it's much harder to find people with the same idea (but it's a great idea, so who knows...?)

    That said, I'm opening a second location in town with another artist right now, we're splitting everything...rent, time in the space, and we keep separate books so it should be easy. He's always been more of a gallery person anyway, having owned a few here in town for a few decades. That's probably the sort of artist you need to find. Good luck!

  • Karen: You are bubbling over with ideas... and you've done a good job of looking into what the future of a gallery like I proposed can turn out to be. Yes, I think of it as a partnership. I pay money and the other artists pay time. But, you're right. I am the one who signs the lease, and the other "partners" are free to walk out at any time. Nothing holding them there if the enterprise goes south. But, that is what I would think can make it attractive to other artists. I consider my time to be more valuable than my money. I just have to find three more artists who think just the opposite. 

    The gallery business is tricky and its difficult to make a profit. Galleries come and go pretty quickly. But, I'm hoping to get some brave artists to join me and make a success of it. Details can be worked out as we go.

  • I think the idea is fabulous and has so much potential it's bubbling out into the street. 

    With the brief summary you've given us, a few things come to mind.

    1. Will any work from artists other than you and the three others be shown in the gallery?  Even an ongoing rotating exhibit would give freshness to the collection at all times.  Occasional Photography Workshops could be fun, as well as some showcase class/demo for the other artists.

    2. Close on the heals of showing other artists' work, how would you make any money? The Three Artists get most of the revenue from their own sales, while you pay most of the rent and expenses.  That only leaves the sale of your own work and a bit from others' sales to cover the expenses -- I know you're very good, John, but that seems to put a lot of pressure for multiple sales each week just to cover the nut.

    3. In my experience, people behave like fellow entrepreneurs rather than employees when they have a real stake in the business, at least emotionally but usually financially.  In your scenario, without a sense of ownership Artist 1 starts to grumble about missing a bunch of the good weekend art shows because "John has snapped up all the good ones and makes us stay here." She feels chained to the gallery.  Artist 2 starts out as an exemplary gallery worker, then as time goes by it becomes apparent she spends 98% of her days on site promoting her own work and ignoring the others'.  That's where her money comes from, sales of her own work, right?  Turns out Artist 3 is in a solitary field for a reason -- you would've never guessed that when confronted with strangers (customers) she becomes quiet as a church mouse and can't make herself ask for the order.  Worst of all, you suddenly have the headache of being an employer who must hire, train, persuade, conjole, handle conflict and critique three other artists. 

    I believe most or all of these problems go away when John and the Three Artists become the four co-owners of the business -- not necessarily entirely equal partners, but still partners.  John is the CEO and in charge of the money, every penny in and out.  Artist 1 is in charge of marketing and events.  Artist 2 is in charge of new talent acquisition (the temporary exhibits), and Artist 3 is the office manager (scheduling, supplies, etc.).T

    Then, if it's truly a partnership in which every time one of you walks in the door you look around and say "how am I going to make my business better today?  What if...?" equity in money has to follow.

    Say 50% sales commission from galleries is typical in your area.  Then for each sale of work the creating artist gets 50% and the rest goes into the pot.  At the end of the month, the pot pays all  overhead expenses and the rest is divvied up among the artists.  More sales = more income.  Somewhere in this equation there should be an extra chunk for John since John's neck is lying squarely on the contract.

    Maybe this is entirely off-base and if so I apologize for the boredom.  But I do think there are so many creative ways you could go with this, knowing that in 5 years it might look completely different because your and your gallery's needs have changed and now you have something even better.  

  • Sounds exciting, I've always toyed with the idea of having my own shop/gallery but alas, I just don't have the capital.  Let us know what you decide and how it goes...

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