Business of Art Panel Discussion – Ginnie’s Blog

Tuesday evening, October 11, participants in the Business of Art (BOA) program, joined by a small group of interested friends, gathered at the Chemung Valley History Museum to talk about their artwork and experiences in the program.  BOA was sponsored by The ARTS Council of the Southern Finger Lakes (The ARTS) and Southern Tier Economic Growth (STEG).  Beginning in January 2011, 26 artists attended ten classes to help build their careers.  An exhibit of participants’ artwork can be seen at the Museum through the end of October.  Please click here to see photos of the exhibit and the opening reception.

Denny Smith, who facilitated the BOA classes, started things off by thanking everyone for coming, and asked the artists to talk a bit about the program and their experiences in it.

James McCarthy was the first person to speak.  He’s a self-taught artist who works in pastel, pencil, and silverpoint.  He joined BOA to take his work from a hobby to a job.

Diane Janowski introduced her current work, which is made with dirt from her family farm.  She joked about being coerced into joining the program, which gave everyone a good laugh!

Vickie Mike introduced herself.  She’s also a self-taught artist, whose work begins with pen and ink on paper.  She then imports the work into the computer and makes digital collages from it.  She took the class to make connections with other artists and the art community.

Debb VanDelinder is a scanographer who works with natural materials and has been exhibiting for 20 years.  She took the class because she wanted to kick her career up a notch.  She’s learned how to get her work into galleries, and learned more about the business end of things, which many artists are weak in.

Felicia Poes is a mosaic artist who has been doing this kind of work for 15 years.  She’s been selling her work for the past three years or so, and was very interested in the BOA series so she could learn more.  She took the NYFA MARK program at the same time.

Vani Akula is a painter who joined the class because she said that there were a lot of things she needed to learn.  Vani thanked Denny for sharing his wisdom.

Jennifer Fais is a watercolorist who worked for 30 years as a community planner.  She recently retired and took the class because she was ready to “become an artist for real”.

Karen Kucharski is a visual artist and dancer.  The work she submitted for the exhibit is related to an Artist à Crossroads grant from The ARTS.  She took the class because she sees herself as “the quintessential starving artist, who is really bad at business.”  She said she’s trying to figure that out, and taking the class was part of her plan.

Cynthia Hill is a painter and muralist, who has made 75-80 murals throughout the Northeast.  She learned over the years how to manage projects, and took the BOA classes to learn how to promote her smaller work.

Betsy Kent has experimented with many different art forms, but her goal after retirement was to focus on watercolor painting.  She wanted to learn more about business, and also connect with other artists.

Pat Jackson’s primary medium is pastel.  She took the class to focus on the entrepreneurial aspects of being an artist.  She said that meeting the other artists was a great benefit of the classes – “it’s nice to be part of a group that supports one another.”  The classes were beneficial on how to write an artist statement, learning about galleries, and discerning appropriate business opportunities.

Denny asked the artists if there were specific tools from the course they wanted to speak about.  Felicia said that one of the most important has been that she’s learned how to respond with “I am an artist” when people ask her what she does.  She said that she didn’t know that potential buyers would be interested in the artmaking process.

Debb learned the value of making personal contact with the client and gallery owner, to present oneself professionally, meet them and talk about the work.  After going through the BOA series, she felt that it was very important to visit the gallery in Santa Fe (where she was featured in a show this summer) and talk with the owner.  The talk with the owner was very helpful, because she didn’t really understand Debb’s work; now that she does, she has sold some!

An audience member said that it’s wonderful to see artists whose work she’s always admired being more confident and sure of themselves.

Denny asked Cynthia – who came to the program not only as an artist but a gallery director – how the program has affected her gallery work.  Cynthia said that the organization that supports the Franklin Street Gallery (The Arc of Schuyler), as a non-arts organization, didn’t understand how to operate a gallery.  This program helped Cynthia more professionally manage the gallery, and to assist exhibiting artists to help them be more successful.

Karen said this course has given her a better sense of how to handle contracts.  She said that in the past she ended up on the wrong end of contracts, so she wanted to learn how to accept money, and ask for money.  She said she now feels more confident in negotiating contracts.  Denny recounted a discussion we had in a class about rising gallery commissions, and that in taking control of contract negotiation artists could be fomenting a revolution of sorts.  Felicia then talked about wholesale/retail selling of work, and how consignment differs.

James jumped in and talked about how he learned how to value his time, and therefore his work.  Cynthia said that artists need to ask themselves “what are you worth?  What is your artwork worth?”  Young artists may not know how to price their work, or how to choose galleries appropriate to their work.

Jennifer Fais said that the best part of the series was that it helped her learn more about herself and her work, and how to market herself more effectively.  The goal-setting and statement writing sessions helped clarify these things.

Jennifer Seaman-Cook introduced herself.  She said that she’s worked in a lot of mediums, but is now primarily working in drawing, painting, and fiber arts.  She’s trying to balance her artmaking with teaching, and therefore isn’t a fulltime artist.

Jennifer Fais asked about the original goals of the program – if the organizers (STEG and The ARTS) hoped that some of the artists would band together and start a business in downtown Elmira.  Denny said that yes, there was that hope, and it still might happen.  Denny said that he and Sherri Geary (STEG) are going to look at a building this week, and that a local person has a rowhouse he’s willing to sell to an artist who would be willing to put in some sweat equity.

We then jumped into a discussion about arts development in downtown Elmira and other communities.

Colleen McCall, another BOA participant, introduced herself. She’s a ceramic artist whose passion is figure sculpture, but she also makes pottery.  She said she spends about nine months of the year making pottery, and three making sculpture.  With teaching, good pottery sales, and her family schedule, it’s difficult to go back and forth between the two.  Denny said that Colleen is well-represented at Handwork in Ithaca, and has quite a bit of success this year, getting into some good exhibits.

An audience member asked whether artists other than Karen are exploring controversial themes; Jennifer Seaman responded that she does a lot of feminist work.

Vani said that most of her work deals with Asian-based themes; how do you find galleries that focus on work like this?  Denny suggested that she ask her family and friends if they’ve come across galleries in their travels.  Also, he suggested that as she does more research, she’ll find phrases that might work better in Internet search engines.  Other artists suggested joining professional associations – Felicia belongs to a mosaic artist group, and Debb belongs to a group for scanographers.

Denny put a plug in for the Elmira Regional Art Society, an organization that gets together for social events, holds workshops, and exhibits artwork in various venues throughout the region.  The ARTS and Community Arts of Elmira are other good resources.

There was a wide-ranging discussion about upcoming events – check the Regional Arts Calendar at www.eARTS.org for a full listing.

To close, Karen asked Bruce Whitmarsh of the Chemung Valley History Museum to speak a bit about what he’s learned by having artists in the museum.  He said that a lot of people have come into the museum who might not otherwise have, and that he looks forward to more collaborations.  CVHM is going to work toward being more of a community resource and venue.

A fantastic discussion!  Congratulations to the BOA artists, and thank you to everyone who attended! Special thanks to the Community Foundation of Elmira-Corning and the Finger Lakes for its support of this program!

Music, Art and More in Hornell!

Today I had the pleasure of visiting the Hornell Area Family YMCA, which recently opened its new building.  Yes, it’s still a traditional YMCA, but this Y is doing something innovative inside its gleaming structure – The Fletcher Family Cultural Center, dedicated to the arts!

Director Rebecca Weaver Hamm gave me the grand tour, and I couldn’t stop gasping.  The Center includes a spacious art studio, with tons of storage space and four – count ‘em! – four sinks; a gorgeous community music rehearsal space, which is currently housing a beautiful baby grand piano, on loan from Fletcher Music; four music lesson/practice rooms; and lots of space for exhibiting two- and three-dimensional artwork.

The Center exists due to the generosity of Robert and Ann Fletcher and their family.  Bob Fletcher grew up in Hornell, followed his father into the piano and organ sales business, and now operates music stores in Florida and Arizona.

Classes are already in session at the Cultural Center.  Music classes include Adult Group Voice; Songbirds Voice, for tweens (8 – 12); and a music class for very young children, ages 0 – 5.  Private music lessons are also available for piano, guitar, strings, brass, woodwinds, percussion and voice.

Art classes include Fundamentals of Drawing; Oil Painting; Watercolor; Landscape Painting; Digital Photography; and an introductory art class for ages 13 and older.

Registration is still open – call 607-324-5520 to join a class!

Rebecca is making lots of connections with arts organizations in the Hornell area and beyond, and looks forward to partnering with The ARTS as a Cultural Partner.  And we look forward to working with her!  The Fletcher Family Cultural Center will be a fantastic addition to Hornell’s vibrant arts community, serving people of all ages, abilities, and interests.  Congratulations to the staff of the Hornell YMCA and the people of the Hornell area!

Business of Art Session 10 – Ginnie’s Blog

We sat in a circle tonight.  No real speaker except me (to talk about The ARTS’ services and grants); the rest of the evening was devoted to an open discussion and answering participant questions.  A nice, relaxed final session!

Denny started us off with a brief review of what we’ve covered since February.  We began at the Arnot Art Museum, talking about positive attitude, goal setting, strategy and organization.  In the second session, we covered artist statements, bios, and artwork photography.  For the next few sessions, we had some pros come in, talking about business plans, pricing, accounting and taxes, banking/financing, legal and insurance issues, real estate and interior design, and then face-to-face sales and retail.  And finally, our last session was about social media.

I was up next, to talk about grants and services The ARTS offers.  Visit The ARTS’ website for this information.

When I finally finished my presentation (it was longer than I thought it would be), Denny invited discussion on anything and everything.  Jennifer started us off with studio insurance on top of homeowner’s insurance.  Her State Farm Insurance allows for up to $5,000 in coverage for supplies, etc., for a fee of $30.  Studio visits are not covered, though.  Karen said that for $330 she was able to purchase business coverage that covers the studio, supplies, and 90 days of off-site exhibition.  Felicia talked about crafters insurance she purchased, which covers liability for craft shows.  Fractured Atlas provides some temporary liability for artists, as well.

Karen introduced another topic: she asked about what would constitute a “top submission” for major shows, such as Representing Representation (RR) at the Arnot Art Museum.  Denny told her that curators don’t care how the submission is formatted; they want to see the work.  Diane talked a bit about how her video was chosen for RR8 (which didn’t happen, due to a change in leadership at the museum): the curator was looking for work himself, there was no call for submissions.  Denny suggested that if you’re interested in being in the next RR, you should contact Rick.  Also, make sure you have a very clean portfolio-related (not salesmanship) website, to get people to see your work.  It’s difficult to know how these websites should be organized – there are as many ways to do it as there are artists and web designers.

Jennifer referred to Sean Lukasik’s presentation, particularly about use of key words on the interwebs, and the necessity of using those key words in our artist statements and blogs.

After a break, we regrouped to talk about approaching galleries.  Unfortunately, Denny didn’t have any magic answers; there are multiple ways to approach galleries.  Images are most important, but you have to turn on your salesmanship.  A question was asked about how to find galleries that sell.  You need to actually visit the galleries to know what they’re about.  Denny talked about the methods of Jason Horejs from Scottsdale, AZ, who advises that artists “go shopping” – when you’re out in the world, see how you’re approached in galleries.  If you’re treated well, that gallery is most likely selling well.

Denny said that we never talked much about selling work to corporations and public entities.  Colleen mentioned that there might be an online database that lists companies that buy art.  Check out the Percent for Art program.  We talked for a while about ego and greed, and about approaching wealthy individuals who purchase art.  Also, about whether art purchased by corporations is an asset of the company, or interior design.  The Art in America annual guide includes corporate art consultants.

Diane told us about a device called a Square that fits on iPhones, iPods and iPads to scan credit cards.  The fees are minimal (2.75% of the sale) and there are no other fees.  Devices like this are quickly becoming essential, especially if you’re participating in shows.  Transactions are posted promptly to make record-keeping simple.

In the past, we talked a bit about framing, and Denny offered advice to keep it as simple and low-priced as you possibly can, unless you’re doing something that’s really classic. When the frame is excessively decorative, it may discourage sales.  Using a white mat is best, because it presents the art.  If you’re making really good art, you don’t need to do anything more to it.  Denny offered to teach us how to frame our work ourselves.  It’s important to remember that doing your own framing does take away from your artmaking time.  People shared with each other the names of some online frame dealers.

Karen shared something her mother taught her: use pillowcases to cover work that’s in storage, or make your own coverings using muslin or drop cloths.

Denny related a question that someone asked him about whether it’s better to do many small shows each year, or a few large ones.  Gretchen said that she usually chooses her shows, because each requires a lot of preparation.  Colleen said that she looks for specific key words in the calls to artists.  Denny said to pay attention to who the jurors are.

An update on “The Other New York”, a biennial sponsored by the Everson Museum:  it’s going to be in a variety of venues.  They’re asking for a resume, statement and 5 images, which will be followed up with studio visits.

Our final topic of the evening was the capstone exhibition, which we hope to mount in October. We want two pieces of artwork from each artist, and a good, clean artist statement.  Denny offers to work with people one-on-one on their statements.  We’re having some trouble finding a venue.  Unfortunately, the Arnot Art Museum isn’t available.  We looked at the Carriage House and the Harold’s building, both of which would require a great deal of work.  Denny did talk with Community Arts of Elmira, and they are a possibility; the only drawback is that they don’t have regular open hours.  Denny also talked with Bruce Whitmarsh at the Chemung Valley History Museum, which is a distinct possibility.  We’re going to keep working on it.

We’re also still working on the arts incubator idea, but it’s not something that’s not going to happen right away.

Karen suggests that communities that sponsor First Friday or similar events sell buttons to help support the events, because the ongoing cost can be prohibitive.  Felicia said that her participation in the Ithaca Art Trail has been successful.  Denny said that the Elmira Open Studio Tour will be taking a hiatus this year, and I reminded him that a 2012 Tour could be DEC fundable and they should apply this year.

And, we’re done!  What an amazing series.  As an artist, I learned so much.  As director of The ARTS, it’s been incredibly gratifying to work with such talented and committed artists and watch them learn and build community.  Special thanks go to Denny Smith, who facilitated the series, and Sherri Geary of Southern Tier Economic Growth.

I can’t wait for the exhibition this fall!

Business of Art Session 9 – Ginnie’s Blog

Sean Lukasik is our speaker tonight, here to talk about website design and inbound marketing.  Sean is the owner of Creagent Marketing.  He’s a member of The ARTS’ Board, a member of Alligator Mouth Improv, and is intensely interested in the arts.  I’ve heard him speak about web design and social media before and he’s good.  My inner geek is stoked!

Web Design

Referencing Marconi, Sean asked us, “are you ready?”  Technology moves very quickly – are we ready for the implications?  He said he believes that the medium is not really the message, because although the medium is constantly changing, the businesses that are most successful are those who have a strong, consistent message.

Your website should be an extension of what you do.  Sean said he’ll focus on the importance of marketing your website, not just having one.  He’ll refer us to some free tools, won’t talk much about traditional media (except to bash it), and will chat with us about some of our goals.

Debb told him she would like to know how Sean would rank various tools, such as website, Facebook, Twitter, blogging, etc.  Vani said she wants to know more about SEO –search engine optimization.  Denny wants to know if Sean has any thoughts about which tool might crash and burn first.  These questions will be answered as we go along.

Beth asked for tips on design and use of photographs.  Sean said he tells his students to think about the letter Z – the eye generally moves from left to right, then to the left diagonally, and again to the right.

Vani asked about linking databases to the website, and Sean said he’d do a bit of research.

Sean started talking about a website being the link between our art and business.  Your brand, personality, look and feel are the art; content, purpose and organization are the business components.  One tool you’ll need to get started:  register a domain name and set up an email address through it (you look more professional if you have an email address linked to your domain).  There are a number of inexpensive options for website development, including free templates and blogging software.  You can also pay for custom design and development (development is the code behind the design).

Regarding photos, make sure the photos are properly reduced, because page load times are included in SEO rankings.

Things to think about:

• Most websites enhance existing brands
• How will your design tie in to your brand?
• How will your audience feel about your design?
• Does the design make sense?
• Content is King – content is even more important than design.  A blog is the best way to move up in SEO rankings
• Programming should make it easy to find the content
• Don’t use flash or graphics in place of text
• Real text keeps the page SEO friendly
• Focus on key words and low-level readability for a broad audience
• Pictures can enhance or take away from the design
• Moving/flashing graphics are annoying
• Graphics should not slow down the load time.  When uploading photos, reduce the file size first – photos should be no larger than 500 pixels in any direction and should be resolved at 72 ppi.  Use “alt tags” for your photos (descriptive phrases)
• Don’t show “Page Under Construction” messages – keep your content current.  No one really knows what the actual algorithm is for moving up in search engine results, but we do know that new content is usually ranked higher.
• Always test your site in various web browsers
• Be consistent in your use of fonts and graphics
• Don’t have an intro page
• Don’t sacrifice the look and feel of your site for content

Karen asked about design problems between browsers, and Sean said to make sure you have the most recent version of your browser.  When asked about blogging software, he recommended WordPress.  Jennifer recommended Weebly.  Sean cautioned us to use widely-used free software, because you’ll generally get better SEO results.  You can direct your URL to the blog software.

Headlines are tagged differently in HTML than other content, so if you have too many of them, your SEO will be disrupted.  Keep your content similar to what you see in newspapers and magazines.

Sean said it’s really about purposeful design.  SEO techniques are either “white hat” or “black hat”.  An example of a “black hat” technique would be including a long paragraph of possible keywords at the bottom of the page.  “White hat” techniques would be blogging, tagging photos, using metadata.

You want calls to action (“Find Me on Facebook”, “subscribe to our newsletter”, donation button, etc.), and a landing page (don’t always point people to your home page, point them to more specific information).

Karen asked if it’s best to have more pages, or longer pages.  Sean said it’s best to have more pages if you have a lot of content.

Colleen asked about key words.  A key word is a word that someone might use to search for your site.  Effective key words will be different for everyone; it’s a bit of a guess, but look at your analytics to see how people are coming to your site.

Inbound Marketing

After the break, Sean started talking about “inbound marketing” – driving people to your website.  He said that statistics show that businesses that blog every day drive significantly more customers to their websites.

What is inbound marketing?  If your website is the magnet, how do you get people attracted to it?  Blogs, Facebook, YouTube, webinars, Twitter, e-newsletters, SEO.  The all-stars are Facebook, Twitter, YouTube and Linked In.  Sean shared some statistics about Facebook and some reasons to use it, both personal and professional.  He recommended business pages.  Twitter stats are equally impressive, and it’s growing by 300,000 people every day.  YouTube is another all star, and is the second most popular search engine behind Google.  It’s a very easy site to use.  Finally, there’s LinkedIn, which is a professional social media site, much more formal than Facebook.  It’s about networking, job searching, opportunities.

This stuff really works!  It’s free, except for your time.

How does one set up their blog so it is posted to Facebook and Twitter?  It’s different for each blogging software.

Why do we use inbound marketing?  Because customers are spending money to get rid of ads – they want to find products on their own terms.  So, it’s important for you to be using Facebook and other social media so you come up in search results.

When is it appropriate?  What kind of things am I going to highlight?  Make it about the content, but make sure you’re using it correctly.

Search engines love: fresh, relevant content; alt tags and Meta descriptions; inbound links.  Search engines hate: high bounce rates, long load times, irrelevant content

Where should we be?  Facebook, blogs, and e-newsletters.  If you’ve got time or resources to hire someone, use Twitter, LinkedIn, and YouTube.

Who do we talk to?  It’s more about how you talk with people.  It’s like a business reception.  You don’t want to jump up on a chair to yell that you’re having a sale.  You want to engage someone, exchange business cards, get to know a bit about each other.  If you work this way, people will develop trust in you.

How do we do it?  Strategically.  Make a plan.  Organize the message.  Make it consistent.  Customize it.  Take a look at your business – who you are as an artist – and then think about how to use these tools.

Sean showed the Sigg (water bottle company) Facebook page as an example of a company that has no strategy of how to use Facebook.  He then showed a successful company’s website: Tom’s Shoes.

Developing relationships is what inbound marketing is about.  The hallmarks of successful relationships include confidence, balance, independence, communication, honesty, empathy, acceptance of change.

Measuring Success

Sean showed statistics pages for various social media.  If you have a business page on Facebook, you can easily see your stats.  Sean advised not to use stat counters for your websites – they’re not accurate; use Google Analytics instead.   Websitegrader.com is a great tool to measure your website’s effectiveness.  Try it!

We finished the evening with Rick reminding everyone about the call for artists for The Arnot Art Museum’s Regional Exhibition, which will be installed in September.  Please visit this page to download a prospectus: http://www.earts.org/index.asp?pageID=38&nid=250.

What a great evening!  I learned a lot and can’t wait to try out some of Sean’s suggestions!

Business of Art Session 8 – Ginnie’s Blog

Denny introduced Bettsie Park, our speaker.  She’s the co-owner of 15 Steps in Ithaca, teaches professional development with CAP, and is also a fiber artist.  Bettsie came  to talk about selling skills, specifically, “the art of the sale”.

I apologize in advance if these notes are a little disjointed.  I was really tired (The ARTS’ Annual Meeting was the night before) and had some trouble keeping up!

Bettsie started out telling us that selling is a process, not something you’re born with.  It’s a skill that comes with practice – lots of it.  “He who waits for the sale to happen will wait for a long, long time.”  Control the direction of the sale by being prepared, having great listening and communication skills, and being the expert your customer expects.  You’ve got to be hungry, have fire in the belly, be committed to the sale.  You might be reticent, but “do it afraid”.  Do it anyway, it’ll get easier with time, and your success will propel you forward.

In retail, the daily routine begins with a pre-check, preparing for the day ahead.  It’s the same for artists.  Be prepared, do your research about the gallery, shop, fair, publisher.  Learn about the market, read the trade magazines, visit the venues you wish to sell to.  Have a goal, have a plan.  Write down your step-by-step plan, and celebrate your successes.  Your selling kit – work, portfolio, written materials, etc. – must be complete and compelling.  Go through it with someone you trust to give you honest feedback.

Dealing with the customer is theatre, so do whatever you need to get yourself psyched.  Wear professional, comfortable clothing, make sure your breath is sweet, and avoid wearing discernable scent (you want your customer to focus on you and the art, not on how you smell, good or bad).

Salesmanship is a process.  Step 1:  When your customer comes in, greet them promptly, with a smile, and with a greeting that has nothing to do with business.  You want the customer to respond to you about something they’re interested in.  Avoid lines like “can I help you?” or “are you looking for anything in particular?”  These lines mark you as a salesperson, which you are not.  “Dance to the music playing” – tailor your message to the customer.  Be aware of your customer’s personal comfort zone, and stay just outside that zone, which is usually a bit more than one arm’s length away.  Bettsie invited Beth to role play the artist-customer dynamic, which was fun (see photos).  Don’t approach someone from directly in front of them, or from the back.  The side is best.  There are differences between talking with women and talking with men, but I don’t remember what they are; I think women tend to talk face to face, while men do not.  Hopefully someone will comment on this and clarify it!

After the initial rapport-building, you’ll be able to sense when to move forward to Step 2:  Assessing Needs.  Take the time to find out your customer’s needs, goals, desires, emotions.  Get all of the clues.  If you take the time now, you’ll be able to gain the customer’s trust.  Ask open-ended questions: Who?  What?  When?  Where? Why?  Tell me more.  What’s important to you when selecting artwork?

Listen more than you talk.  QAS – Question-Answer-Support – for every question you ask, listen patiently for all the details, and then respond, mirroring what they just said and asking another question.  Once you get all the information you need, select the piece or pieces you think the customer will respond to.  This is Step 3: the demonstration/recommendation.  You’re going to go show-biz now – share some stories related to the piece, but don’t share everything yet.  Talk about the technique, materials, but never use jargon.  Based on the info-gathering stage, reiterate how the piece you’ve selected meets the customer’s needs.

Regarding price: use the clues your customer has given you.  Always start high – don’t underestimate your customer’s ability to spend.  However, be ready with an alternative if price does become an objection.  Once you’ve finished your demonstration, be quiet.  Give your customer some time to process.  If a customer continues to talk with you, they are most likely buying.

Step 4:  The Trial Close – this is a testing phase, to determine what your customer will actually purchase, to see if you can add additional pieces to the sale.

Step 5 is handling objections.  Take the time to listen, to determine what the objections might be.  Then ask the customer questions to help further your understanding.  Continue to really listen, add more information, and be prepared to offer alternatives, even payment plans, or to ship the work.

Step 6: Closing the sale.  It is extremely rare for a customer to say “I’ll take it”, so you have some work to do.  Take statements about the customer’s selections based on the information you gathered earlier.  Don’t ask more questions now – they could jeopardize the sale.  Share the customer’s joy in finding the perfect piece, and thank the customer.  Never say “no problem” after someone thanks you!

Step 7: Confirmations and Invitations.  Make sure customers know how to contact you, and invite them to correspond with you about their purchase.  Avoid saying “let me know if there are any problems”.  Think service and go the extra mile!

After the break, Bettsie spent some time talking about professional studio/art fair booth set up.  Before the customer comes to your studio or booth, you have to prepare your space to show your work to your best advantage.  Make sure your customers can move freely and safely.  Provide a chair if someone wants to sit.  Think carefully about refreshments.  Nothing messy.  Make sure refreshment area is spotlessly clean.  A bouquet of fresh flowers is always nice, but make sure there aren’t any strong scents.  Price everything clearly before your customers arrive.  Use shelf talkers – a story about the piece, or an artist statement.  Provide a mailing list signup.  Make sure your business cards are prominently displayed.  Provide a takeaway.  Music can be very helpful provided it doesn’t require active listening by you and your customer.  Music should set a mood and complement your artwork.  Consider color coordinating your wardrobe and your art, if you look good in those colors.  Make sure you have all of your supplies ready before you open.  Make a list and save it for the next time.  Build on the list.

When focusing on selling your artwork to a store or dealer, visit the store in person, to determine if your work is right for the store.  When you visit, ask for the owner, buyer or manager by name and indicate the reason for your visit.  Present your business card and briefly tell the owner/manager/buyer what you offer.  Then ask for an appointment to show them your work.  Make sure you have materials with you just in case the person has time to see you immediately.

HR/helpers: make a list of their duties; write a description of what each responsibility entails, and how you want it carried out.  Be specific about why each responsibility is essential to your success.  The day before people help you, go over everything with them so they understand and are comfortable with everything you’re asking them to do.  Leave time for questions.  Tell helpers what you’ll be doing.  Delineating boundaries is really important.

One-on-one selling:  When someone visits an art fair or goes on an art trail, they already have some interest, and they may have a specific interest in what you do.  People have wildly different demeanors and moods, so tailor your interactions to them.  Adapt the outline above so you start where your customer is.  Take the time to build an emotional connection with the customer.  Share personal stories, and tell people what makes your work different.  You want your customer to have an unforgettable buying experience.

Listen listen listen!

How to work the crowd: become a member of the party!  Mingle!  Engage in small talk, insert yourself into conversations, walk the floor, make eye contact.  Make sure you have visual access to everything that’s happening.  Use open-ended questions to assess why they’re visiting you.  When disengaging from one customer to speak with another, ask if they’ll wait for you.  They will.  When speaking with more than one person, you can speak a bit louder, use more expressive body language.  One-on-one, you can repeat your demo, but add something special for each individual.  When a group visits, one person generally has the power, and it may not be the person who is really shopping.  The powerful person may be somewhat negative, so it’s important to keep the conversation light, asking opinions of everyone in the group, while assessing the situation.

Troubleshooting #1: Someone comes in and wants to tell you their entire sad life story.  Don’t make eye contact, use neutral body language, lean back.  Don’t smile, nod or use any positive facial expressions.  Don’t ask follow up questions.  Turn away.  Say “well” and start to walk away.  This usually works.  You can interrupt the monologue and go see other customers.

#2: Unruly children can be troublesome.  Talk to the parents, not the children.  Always make it about the work, and never about their children’s behavior.

#3: What happens when a buyer asks for a discount?  Be prepared for the question and know what you’re going to do.  It’s an individual decision, and will vary from piece to piece, show to show.  A good way to do this is to offer a discount on more than one piece.

Questions:

I asked where the line is between being nice and being obsequious.  Bettsie said that we need to be ourselves, mirror what customers present, and sell with integrity.

Bettsie was asked about bargaining.  She said it’s a game.  You have to know where you stand, and you have to be able to convey the information clearly.

Karen asked how to respond to a customer who says “I bought a piece of yours last year and I always get fantastic comments on it!”  Bettsie suggested that Karen respond with “take a look at these earrings, wouldn’t they make a great set?”

Bettsie was asked what the average sale of work in her store is.  She said that up to $145 is generally considered impulse buying; anything over that people start to think about.  She said that sales in her store are generally in that range, with some over (significantly).

Vani asked about friends who tell her they love her work but can’t afford it.  Sometimes all you can say is “it means so much to me that you love my work”, and leave it at that.  Bettsie also reminded us that people’s economic situations can change.

Colleen asked for a positive way to say you don’t take special orders or commissions.  Bettsie asked Colleen to explain it a bit more, and Colleen said that she likes to explore new things in her work, so all of her pieces are unique.  Bettsie told her to say that!  Pat also suggested that Colleen show potential buyers pieces that complement each other.

Vani asked about how to respond when people ask how long it takes to make a painting, and then make judgments about the price based on the amount of time it took to paint.  Bettsie suggested that Vani tell stories about her studies, how she’s grown as an artist.

Bettsie was asked about how to deal with people you know who might be in your sales space and blocking access to other buyers.  Bettsie suggested that the artist make an announcement: “Hi everyone!  I’d love for you to see my new work, which is located over here!”

A question was asked about markup.  Bettsie says she always starts with an artist’s wholesale cost and then calculates whether she can sell it with a 2.2 times markup, i.e., $10 wholesale = $22 on the sales floor.

All of a sudden, it was 8:05 pm!  Time just flew by – what a fantastic presentation!

The real reasons the arts are important

Tonight I had the distinct honor of being the featured presenter at The Arc of Schuyler‘s 33rd Annual Meeting and Reception.  The focus of the evening was “Celebrate the Arts”, recognizing the life-changing work The Arc is doing through its Expressive Arts program.  Tonight’s program reads: “The Arc of Schuyler believes that art plays a critical role in the way people express their feelings and thoughts and has the power to connect people in our community.”  Well said!

The Arc serves hundreds of people every year and currently offers classes in visual art, dance, music, and writing.  Students move from class to class university-style, and are able to choose the classes that interest them.  Take a look at the Spring 2011 Class Schedule here.  Impressive!

Works of art made by Arc students were exhibited throughout tonight’s reception space (the lovely Harbor Hotel in Watkins Glen), and the program began with a series of short films created by students, which featured soon-to-be-retired Executive Director Jim Wilson (who knew he was such a good actor?  Jim, I think you should contact Lake Country Players ASAP!).  All kidding aside, I was really impressed with the video.  It was professionally shot and edited, and really, really funny.  Staff and students worked together to create something great, and I know this effort will continue.

The program also included recognition of 17 ten + year employees of The Arc, including Carolyn Sullivan, who works with students in the art studio.  She’s been working for The Arc for twenty one years, and her commitment is palpable.  She’s absolutely dedicated to the growth and development of her students.  It should be noted that Executive Director Jim Wilson has been at The Arc for 33 years and Assistant Director Jeanette Frank for 32.  I think that speaks volumes about the organization and the work it does.

My remarks tonight were about the intrinsic value of the arts to individuals and our communities.  I don’t get to talk about this very often, because I’m usually focusing on the extrinsic values of the arts, mainly how the arts contribute to the economy.  So tonight I really got to speak from my heart, about why the arts matter.  My remarks follow, and I welcome your comments.

But before I post my remarks, a few photos from tonight!

To follow are my remarks.

Thank you for inviting me to join you tonight!   For those of you who aren’t familiar with The ARTS Council of the Southern Finger Lakes, we are a regional arts services organization, working in five counties in the Southern Tier.  We help arts and culture grow and thrive by supporting artists, schools and organizations, and connecting them with the public.  Our goal is that everyone, everywhere can have access to the arts where they live.  This last point is critical, because the arts aren’t just for people who can buy fifty-dollar tickets and go to a concert hall.  The arts are for everyone.

Yesterday I had the opportunity to visit The ARC’s art studio and observe a class.  Students were making prints from designs drawn into Styrofoam.  I watched as brightly colored works of art emerged from simple tools, and witnessed the unbridled joy of the creative process.  Cynthia didn’t need to show me around, because an enthusiastic student – who, by the way, has very limited verbal skills – pointed out every piece of artwork and clearly communicated his passion for art.  Staff told me that this student has found his voice through artmaking – visual art, dance, and drumming.  And that’s what it’s about, folks.  No matter where art is made, no matter where it’s encountered, art can change people’s lives.

I spend a lot of time speaking about what I call the extrinsic value of the arts, particularly how arts and culture positively contribute to the economy.  It’s something I have to talk about, because, unfortunately, it’s often the only message public policy makers will hear.  I can spout numbers and statistics with the best of them, but what I really want to be talking about is the exuberance and passion I witnessed in the ARC studio yesterday.  The intrinsic value of the arts is what fuels my passion.

As we participate in the arts, we find that they’re not just something to do, an “add-on”.  They’re essential for living a full life.  A study by the Rand Corporation in 2010 found that people participate in the arts for the intrinsic benefits of arts experiences – pleasure, imagination, meaning, inspiration – not to improve their test scores or to stimulate the economy.  Indeed, the arts bring beauty, vision, and connection to our lives.  They help us communicate, play and relax.  They help us understand ourselves and others better.

Immediate benefits come from participating in the arts.  As I witnessed in the studio yesterday, participation motivates people to want to do more.  Students come into The ARC studio clapping, because they want to make more art; they want to continue the pleasure they receive from the creative experience.  That’s what keeps me going back to my easel and guitar, for sure!

Secondly, people who participate in the arts grow.  They communicate more effectively, have more empathy for others, and understand the larger world more fully.  And when people share their arts experiences with others, these personal effects spill over into the community, breaking down barriers, enhancing diversity, and fostering a shared community identity.

The ARC’s Franklin Street Gallery is a terrific example of this.  Artwork from The ARC’s students is exhibited alongside work made by accomplished local artists, and it’s enjoyed – and purchased! – by gallery visitors, who learn that being differently-abled does not preclude someone from being creative.  In turn, The ARC students learn that they’re part of a larger, welcoming artistic community that extends far beyond the boundaries of the studio and gallery.  This is what the arts do – they encourage individual creativity and personal growth, break down barriers, and strengthen communities.

I am continually inspired by the depth and breadth of arts and culture in our region, and how the arts benefit individuals and our communities.  I’m out there talking about the arts every day, and I challenge you to do the same.  Be an advocate for the intrinsic value of the arts!  Talk to elected officials, other public policy makers, and business leaders about the difference the arts are making in the lives of The ARC’s students, in your life, and in your community.  Tell them that the arts aren’t “extras” – tell them that the arts are essential for life!

Thank you!

Business of Art Session 7 – Ginnie’s Blog

Denny kicked things off talking about where to purchase art supplies, framing, packing and shipping supplies and passed out a handout with a list of places.  One he mentioned that isn’t on the list is eBay, which was a surprise to me!  Who knew you could buy art supplies on eBay?  Guess I shouldn’t have been surprised; you can get most anything on eBay.

After a moment of silence for members of the group who recently lost loved ones, Denny introduced Steve Kettelle of Pyramid Brokerage Company, to discuss real estate.  Steve began with considerations for when you’re just starting out, when you want to get your product out into the world.  It’s important to develop your brand first, because your choices will relate directly to your brand.  Wow.  I never thought of it that way.  Two things I’ve learned tonight!  Steve stated that you’re actually taking up real estate when you install your artwork in a coffee shop, or the farmers’ market, or Community Arts of Elmira.  But you need the coffee shop or other venue to be the draw for people to see your work – you’re depending on their brand.  At some point you might be ready to go out on your own.  You then make a decision between leasing and buying.

Leasing advantages:  flexibility of location; conservation of capital (not having to invest in rehab, or sharing capital costs with landlord); predictable costs (lease, utilities, etc.).

One lease type will be predictable (i.e., a certain amount each month); a triple-net lease will be based on the landlord’s desire to recoup her/his costs, and may include additional costs above and beyond a monthly rent.  This type may not be predictable.  There are other kinds of leases that relate to sales in the space. Steve said that it’s important to have good representation when negotiating a lease, because real estate agents in these cases will be representing the landlord.  Make sure you’re clear on what you can do with the space once you’re in it, and who is responsible for what.

Location is critical to any business.  Is your business going to need parking?  What kind of setting are you looking for?  Is it the best location for your type of business?  This can be subjective – one type of business may be right for one brand and wrong for another.  You want as slow a traffic pattern in front of your building as possible, so people can find you and see you.  One way streets are generally not good, because they’re designed to move traffic from one place to another.  Two-way streets are much more conducive to business, because people can see what’s on the street.

What about buying?  This may be down the road a bit for some artists, but it’s something to think about.  Steve advised against buying a retail space, because if the retail business fails, you’ll still have a building.  But an ownership situation has many benefits – you can alter the space the way you want, with lots of flexibility and virtually no restrictions (other than zoning or code).

When purchasing, location and visibility are important.  Is the location a place that art lovers might want to visit?

Make sure you have good legal representation when purchasing property, and good advice on valuing the property.  Most banks will require research on prior uses of the property – you want to know this so you have some idea if there will be remediation necessary (i.e., old gas station or dry cleaning properties).

You’ll be required to put 25% – 30% down, plus closing costs, if you want to purchase.  There are a number of partners in the community that can help with some of these costs:  STEG, REDEC, and others can help you go through the process.

We all need a place to market our wares.  Find the best spot that feels the best to you, that can give you the best environment to show and sell your work.

A question was asked about live/work, mixed-use space.  Unfortunately, this isn’t as prevalent as it used to be (Market Street in Corning being an exception).  It is possible to get variances to create live/work spaces in industrial areas; there are examples of communities doing this for artists.  But, there are significant costs in making those types of buildings habitable.  Jennifer stated that communities shouldn’t be giving out variances easily.   This could be a good project for The ARTS and STEG, to talk with local zoning boards about regulations that support artists developing live/work spaces.

A number of questions were asked about contracting with real estate agents; you can often contract with “buyer’s agents” when purchasing or leasing property.

What’s the difference between the gross square footage and useable square footage?  Gross includes hallways, bathrooms, etc.  You may pay more for “useable”.  Get out your tape measure!

Denny asked Steve to speak about the “state of real estate” in our region.  He said in general, the residential side is healthier than a lot of other places in the country.  Commercial real estate is getting better.  Retail first floor space (prime sidewalk space) has tightened up a bit, which is good for the economy, but it makes finding suitable space and negotiating for it a bit more difficult.  But, it’s not a tight market.  Market Street in Corning is more expensive; there’s a lot of space in Ithaca, but it’s more expensive than Elmira and Corning.

What are the chances for Elmira to create a space like the Torpedo Factory (Alexandria, VA)?  Steve said it always starts with artists, but the governmental model of weak mayors means they don’t have the power to make things happen.  City managers, city councils have the power, but they need to be approached.  I reminded everyone that creative development of downtown Elmira was one of the reasons STEG and The ARTS partnered for this workshop series.

Jennifer remarked that artist development in downtown Corning is problematic, and Steve reminded us to lobby our elected officials.

After a break, Denny introduced Annie Werner, to talk about interior design and creating a space for art.  (As an aside, I love sitting next to Bill Boland!)  Annie started off discussing the relevance of an art gallery in today’s world.  Art galleries used to be the only place where artists could show and sell their work.  But today, technological advances have put art within everyone’s reach.  But, original art is still for the elite, because it is original.  But you need to see a gallery as an extension of your marketing plan.  You need to have a web page, social networking, etc., to keep people updated and then bring them to the physical space.

Opening a gallery can involve significant costs.  There are several phases:  programming (needs), bubble diagrams, research, schematic designs, design development, and implementation.  The process can take any number of months, depending on how complicated the plan.

Programming:  what is the function of your gallery?  Form follows function!  Just showing work?  Yours, others, a combination?  Gallery/studio combo?  Live/work space?  Gallery with residential feel, or residence with gallery feel?  Gallery/studio/office?

Bubble diagram:  making a list of what you need.  How much wall space?  How accessible?  Security?  Public and private spaces?  Kitchen, bath, etc.?

Research:  contact your Arts Council and ask what resources/ideas they have.  Contact other agencies and local orgs that help with business development.  Contact realtors and contractors to get an idea of the cost of renting, owning, rehabbing property.  Think outside the box and look at all different types of space.  Make a trip to the bank, code officers, zoning boards – show your willingness to cooperate.  Don’t count out any possible sources of funding.

Annie mentioned the DUMBO area of Brooklyn, which has been revitalized to become an artist haven.  Live/work space was created and then restaurants, galleries, etc. followed.  Now many artists have been priced out of the market.  Annie said that this can happen when the real estate industry is doing the developing.

Schematic design:  moves from the bubble diagram to a real design, once you’ve found a space.  Will what you want fit in the space?  Annie showed a diagram of a 2-floor space.  Once you have the schematic design done, you take it back to the code office, possible funders, etc. for approval.

Design development: find out if you need a building permit, hire design professionals (architect or structural engineer), hire an interior designer, hire a general contractor.  Lots of decisions in this phase!  Display systems, lighting, colors, materials, furnishings, window coverings, etc.  Adjustments will have to be made according to budget, codes or other restrictions.

Display systems need to be flexible.  Annie reviewed several, including rail systems from Walker, pedestals, architectural elements.  She recommended we try an architectural salvage business to find unique items.  Light boxes can be used for transparencies or digital art.  Light boxes can be mounted on medium density fiber board.

Window displays will be the most valuable tool you have to attract passers-by.  You want people to be able to see inside.

Lighting is very important; Annie advised spending money on lighting.  Consider ambient lighting and lighting to accent the art.  She talked about track lighting, incandescent, halogen, LED, CMH (ceramic metal halide), and T5HO (new fluorescent).  Basic instructions on lighting artwork were given also.  Table and floor lamps are good for accent and functional lighting.  Ambient lighting is important too.

Colors, materials, and finishes:  painted walls (white, neutrals or darks).  White is contemporary and timeless.  Neutrals are good for galleries, both light and dark.  Natural walls, such as brick, stone or cement, are also great and require little maintenance. Floor coverings should ideally be hard, because they’re easier to maintain.  Even plywood works (Oh wow!  Another idea for The ARTS!), or reclaimed wood.  Carpet is generally less expensive, but has a shorter life span.  Make sure you get a commercial grade.

Sunlight control is very important, because UV rays can damage artwork.  Window coverings should be UV-blocking.  Awnings are also helpful to block sun and heat.

Building phase:  when you have your final plans made, obtain firm quotes from contractors.  Get more than one quote!  Establish a timeline, hire contractors, get building permits if needed.  When the project begins, you take down what you need to, put in new walls, partitions, electrical, plumbing, switches, phone lines, cable, light fixtures, etc.  Inspections may be needed before walls are closed up.  Finishing involves floor coverings, painting, installing fixtures, window coverings, certificate of occupancy, and installation of artwork.  Finally, the grand opening!

Colleen asked about good work light for the studio.  Annie said that fluorescent “chroma”, color-corrected bulbs are good.  3,000 – 4,000 kelvins are best.

Another great session!  Next time we’ll be at Community Arts of Elmira, with a slight change of plans.  Betsie Park, owner of 15 Steps Gallery in Ithaca, will talk about the retail art world and “the art of the sale.”

Business of Art Session 6 – Ginnie’s Blog

We were at the Clemens Center tonight, in Mandeville Hall.  Such a lovely place to be!

Denny kicked things off by introducing Ed Marion, a painter and lawyer who joined us to chat about legal issues.  His topics were copyright and how it applies to our studio disciplines, and contracts with galleries for consignment.

Copyright applies to things that are created, rather than brands.  You don’t need to use the © symbol or even sign your work for it to be copyrightable.  So what happens if someone takes it and reproduces it?  Ed told a story about one of his images, used without his permission.  He resolved the situation without legal intervention, but the story illustrates how skewed our thinking often is about copyright and art.

You can register your work with the U.S. Copyright Office, which assists in legal proceedings in that your attorney doesn’t have to prove actual damages.  This can also assist where legal fees are concerned.

Ed recommended Art/Work by Heather Darcy Bhandari and Jonathan Melber.  You can see most of it on www.books.google.com.  Melber is an attorney and Bhandari is a gallerist.  Melber takes each step of an agreement; when you show your work, you’re entering into a consignment agreement.  Remember that everything is on the table – there is nothing that can’t be negotiated.  Insurance, shipping, commission, etc. are all negotiable.  Denny has repeatedly told us that we shouldn’t enter into exclusive representation agreements, and Melber says the same thing.  He recommends using an inventory sheet, to which the contract refers.  Melber also talks about the bill of sale, which helps you with accurate income reporting and taxes, and provenance.

New York Law (Arts & Cultural Affairs Law, Title C, Sec. 12) outlines a basic agreement for artists with galleries, so even if you don’t negotiate a special agreement with a gallery, there is one in place.

Ed recommended a film titled “The Cool School”, about a group of painters in California in the 1960s.  The narrator of the film says you need 5 things for an art market:  artists, collectors, galleries, museums and critics.

New York law requires that artists get a release or some kind of permission to publicize portraits you’ve painted of people other than yourself.  A question was asked about portraits of famous people, and Ed stated that he doesn’t really know where the “line” is.  A question was asked about life drawing classes/open studios, and who has the contract with the model.  It should be the institution, not the students/participants.

It’s good to put your TAX ID number on your invoices, including agreements with galleries.

Ed mentioned Volunteer Lawyers for the Arts (www.vlany.org) – I reminded people that if they’re artist members of The ARTS, they have access to VLA through us, as a member benefit.  NYFA – New York Foundation for the Arts – also has great resources.

As the creator of an image, you hold the copyright, even if you sell the original work.  That means you can make prints, greeting cards, etc.  The owner of the painting can’t use the image for anything.  Put “Artist retains all rights” on your materials.

A question was asked about a photographer who takes a photo on the street – does she need to get permissions from people who may be in the photo?  No.  What if I make a drawing or painting from that photograph?  Yes, usually.  The law talks about “transformation”, but it’s a difficult line.  The Shepard Fairey case is a good example, as is Jeff Koons’.

Ed said that the law was written before the digital age, and this archaic law still governs these issues.  A question was asked about the expectation of privacy and whether you give that up when you’re in a public place.

Beth asked if she’s liable if someone who purchases her glass jewelry is hurt if it breaks; Felicia said that she carries liability insurance just in case her jewelry has a sharp point.

There was a discussion about consignment agreements – Debb volunteered to bring in some agreements she has.

Ed said that the people who are sued are the people who don’t communicate.

More excitement!  Andy Sprague and Suzanne Valicenti from Sprague Insurance joined us tonight to talk about – what else? – insurance!  Andy said insurance is one of those arcane things that is absolutely important for our businesses.

Andy started by discussing business property coverage.  Make sure you’re insured to the real value of the building, equipment, etc.  A question was asked if it’s good to break out your business insurance from homeowners if your studio is in your home.  Suzanne said that often homeowners policies have a limit, so it’s important to discuss this with a broker.  Also, your homeowners policy might not cover all liability exposure.  Frequent business traffic in your home may not be covered.  A question was asked about combining homeowners and business policies – are you insuring things twice?  Andy said no, the best way to handle an issue like this is to have two separate policies.  Andy’s company would recommend that if you’re told that there’s an all-encompassing policy that would cover both, look at the policy very carefully.

Suzanne said that there are some coverages that wouldn’t be covered under your homeowners policy: tools, materials, finished products, computers, etc.  Also, business interruption wouldn’t be covered by homeowners.

Inland Marine coverage is for work while it’s in transit to shows or elsewhere.  This could cover artwork, booth for trade shows, etc.  You can get this as a “floater policy”.  A question was asked about insurance through the Postal Service, FedEx, UPS, and whether that insurance will truly be honored; valuing artwork is subjective.

Debb asked about purchasing separate coverages; Suzanne said that typically business owners insurance will cover building, contents, liability.  Inland Marine is sold separately.  Product liability isn’t included in these policies.  Product liability protects the artist/producer against injury created by the product.  Felicia said that she has a policy specifically designed for crafters, which includes a lot of these things.

Andy mentioned “Hired, Not Owned” insurance, for protection of you and the business if you hire someone to transport work, etc. to a show, gallery, etc.  This is a common thing to add to a business policy.

Suzanne said that artists who rent studio space should also have business insurance.

Andy spoke about gaps in coverage.  Sometimes, due to cost, artists may not be able to purchase as much insurance as they want/need, but it’s important to understand the scope of what you buy.  Suzanne said that insurance companies are moving away from issuing blanket policies to organizations for craft/art fairs, etc., and are also moving away from one-time event coverage also, focusing on annual contracts.

Suzanne said to also look for coverage that includes a blanket additional insured.

Vendor policies are based on your projected receipts for the year.  Some business owner policies are a flat rate, based on estimated exposure.  Suzanne said they’ve seen annual contracts that range from $300/year to $3,000/year. The most expensive ones are those that will cover event attendance, equipment, liability, etc.

Suzanne then talked about health insurance for employers with two or more employees.  She referred to materials from Excellus Blue Cross/Blue Shield.  There are plans for sole proprietors; you do have options under some small business plans.  Some companies have become more flexible in eligibility based on income.   Suzanne said that they see small businesses going toward consumer-driven plans with higher deductibles, to keep premiums low.  Sole proprietors would be in the community-rated pool (organizations with under 50 employees).  Rates are tiered, based on family/partner/spouse configurations.

With a high deductible plan, being a business owner, there are different funding options to fund the deductible.  You can set up a tax-free savings account to pay your deductible, or your employer may create a HRA (health reimbursement account) to fund a portion of the deductible.

Ann asked if personal property of others is covered under a business policy; Suzanne said that you want to make sure you have this included in your policy.

Andy said you need to treat insurance as a constant effort, always reassessing what you’re doing and how much coverage you need.  Suzanne said your business liability coverage would cover damages in someone else’s space.

Colleen asked about the Elmira Open Studio Tour; Vickie said she sought guidance and was told that she needed business insurance to safely participate in the event.

Jennifer asked if Inland Marine covers transport of equipment.  Suzanne said yes, you have to list the value – original receipts are preferable, with serial numbers, etc.

Suzanne said that the issue of appraisals often comes up with insurance companies, so you need to justify prices.  Companies will look at your history of sales for similar work and what the market will bear in terms of sales.

Gretchen asked if one business policy could cover two artists working in the same space.  If they’re in a partnership or form a corporation, or if one is considered an employee, then one policy would cover.  If not, both artists would need separate business coverage.

Next month @ Steele Memorial Library – real estate and retail/studio design!  May 10!

Ed Marion briefs us on the law.

Andy Sprague and Suzanne Valicenti educate us on insurance.

Business of Art Session 5 – Ginnie’s Blog

We were at the Chemung Valley History Museum tonight – have you seen the Mark Twain exhibit yet?  It’s great!

Denny welcomed everyone and introduced Bruce Whitmarsh, the new director of the Museum.  Brian Qualey from the Small Business Administration’s local office started things off with a brief history of the SBA: check out their website for full details.

Brian’s presentation tonight is about business financing and financial planning.  He said that when starting a business, you have to have logical assumptions about your financing.  Most businesses can be financed – “it’s all in the presentation”.  Brian handed out a packet that includes a wealth of information on small business.

When inquiring about a loan, make sure you speak with a commercial lender, and have your business plan with you.  The number one thing lenders look at is management capability.  You want to break even the first year – at least – and go from there.  The SBA goes up to $5 million for loans.  Most small businesses are looking at a maximum of $100,000.  REDEC (Regional Economic Development and Energy Corporation) can provide gap financing when a borrower doesn’t have much equity.  REDEC also provides SBA micro loans.  What’s an “eligible loan”?  This is based on the type of business and use of profits.

The regional SBA office works very closely with the Small Business Development Center, and downtown development agencies like Elmira Downtown Development, STEG, Corning’s Gaffer District, Schuyler County Partnership for Economic Development (SCOPED), etc. to encourage local business development.  The SBA office will review business plans.

A question was asked about business plan templates; Brian suggested participants check out websites: score.org, SBDC.org, SBA.gov, business.gov, nys-opal.com.  Business plans should include projected revenues, expenses, competition, overhead, etc.  When looking for a smaller loan, the information needed is pretty basic.

Denny asked if Brian has had arts related businesses come to him; he said he gave a similar presentation a couple of months ago in Windsor, NY (Delaware County), and has worked with a small studio in Ithaca.  His office assisted with West End Gallery years ago.  Arts business planning can be difficult because it’s difficult to make projections due to inventory.  Denny stated that most of the audience is probably in a sole proprietor situation, and asked the group if anyone has been thinking hard about this and has questions.

Vani asked about setting up a studio to photograph her own work and purchase the necessary technology; Brian said something like that could be eligible.  It’s important to carefully estimate how much working capital one would need to start and maintain the business until it starts making a profit.  Lenders generally approve 3-6 months of working capital, but after that the business has to start making money.  When asked about the time period for repayment, Brian said that it depends on projected proceeds – SBA repayment can go up to 10 years.  Interest rates can range from 2 ¼ over prime to 4 points over prime, maximum.  Brian said most banks won’t charge the max.  Loans can cover capital costs (even in your home) as long as they relate to the business.

Jennifer reminded everyone to check their local zoning regulations first.  Brian agreed: contact the following first: County Clerk (DBA, zoning contact), New York State (sales tax), and the IRS (EIN number).

Brian closed with reminding people to mention to lenders that you’ve been doing your artwork “on the side” as a “hobby”, for some time before deciding to start the business.  SBA finances lines of credit, called Express Loans, to help provide working capital.

I found this presentation to be very hopeful.  Starting your own business can seem overwhelming, and it’s good to know that even with government budget cuts, there is money available to help people get started.

After a break, Jim Leisner, a CPA from EFP Rotenberg joined us to talk about tax issues.  He works with The ARTS’ able auditor, Bryant Dillon.  Jim stated that incorporation may not be necessary at all; a Schedule C for taxes may be enough.  He said the question is what’s deductible (buying lunch for your friends isn’t).  Jim said it doesn’t scare him if a Schedule C shows a loss, but losses will draw attention at the IRS.  He said that many people are shy when claiming expenses, but they shouldn’t be, as long as the expenses were incurred in good faith.  He doesn’t see many Schedule C audits – the IRS focuses its attention more on where the money is, because it costs them to perform audits.

Business use of your home (Form 8829) may be audited – you need to have a separate space solely dedicated to your business, but if you own your home, you’re probably already getting enough deductions on Schedule A that you don’t need to file this form.  You could depreciate your house, but if you sell the property at a profit, you’ll have to pay back the depreciation.

Record-keeping should be simple.  Have a separate credit card and checking account for the business, so records are easily accessible at tax time.  These can be personal or business accounts, but some business accounts are fee-based, where personal may not be.

Jim encourages getting an EIN (you can get one for a sole proprietorship), to protect your SSN.  Keep a diary/calendar to keep track of business activity and expenses.  Keep track of mileage and meeting details.  QuickBooks is a very good program to use, but you don’t need it.  You can pay someone to come in once a month or even twice a year to do the books.

You want to keep track of your customers.

Jim explained a bit about how to claim mileage.

A question was asked about inventory.  If what you create is intensive with materials (i.e., metal, wood, or you subcontract to produce some part of the art), keep track of those costs.  But if the value is based more on your time and creativity, you don’t have to capitalize those costs.

You can only deduct the cost of the materials of an artwork you donate to a charitable cause.

How to report commissions: claim only the net that you receive.

Karen asked a question about sales tax, and Jim referred her to the NYS Tax Department for state info and information about paying sales tax in other states.  Debb stated that one good reason to get a State sales tax number is that you won’t have to pay sales tax on your materials. You do have to file quarterly reports though, even if you didn’t have any sales!

We finished the evening with fantastic presentations from Beth and Karen, who are both participating in the NYFA MARK program.

Business of Art Session 4 – Ginnie’s Blog

We’re at Community Arts of Elmira (www.communityartsofelmira.com) tonight, which is located in the Langdon-Pratt Mansion on Lake Street.  It’s amazing to see what a committed group of volunteers has been able to do here – the building is beautiful!   Cynthia Hill, a program participant and Board member of Community Arts of Elmira, spoke for a few minutes about CAE’s historic building and the organization’s plans (including a ceramics studio and darkroom!).  Painting, drawing and other classes are already in progress.

Jennifer invited everyone to her 60th birthday on July 12 for 60 hours of art!

Denny introduced Eva Capobianco, an artist from Ithaca, and Board member of State of the Art Gallery (SOAG – www.soag.org).  SOAG is a cooperative gallery that is 21 years old, registered as a charity with NYS, but not a 501(c)(3).  SOAG currently has 26 members, and all members share in the work.  Members pay dues, and pay extra for solo shows.  The organization developed a board to help govern the organization, but policy changes have to be approved by the entire membership.  Committees include Installation, Reception, Publicity, Interns, Membership, Special Events, Operations, Schedule, Fundraising, Marketing, Webteam, and Long Range Planning.

Members are required to sit in the gallery 5-7 hours a month.

Pros: (1) Artistic freedom: a commercial gallery has to sell art in order to survive, but a coop has other sources of revenue (i.e., dues, fundraising), to cover expenses. (2) Community: member artists own the business and interact on a regular basis. (3) Always a show coming up, a reason to make art.

Cons: (1) Time commitment: sitting in the gallery, committee meetings, etc., can take up lots of time.  (2) Financial commitment: dues, other fees (not as high as others, though).  (3) Artists are pretty much responsible for their own marketing, where a commercial gallery would do that for you.  (4) No “agent” to sell your work.  (5) Decisions are made by majority rule.  (6) You’re responsible for selling work when you sit in the gallery; not everyone likes to be a salesperson.  (7) Things take time when you’re working with a big group.

Application process is quite intense; new members have to be approved by a simple majority of the entire membership.  Membership will be capped at 30, and jurying in April will be done from original work first, then by electronic images for voting by the membership.  Membership decisions also include making sure the candidate is willing to participate in the ongoing life of the organization.

Sales are made by the gallery and a 10% commission stays with the gallery (90% goes to the artist).  Commissions last year totaled $2,000 (but this doesn’t mean there was $20,000 in sales – there are several variables).  The gallery hosts 12 exhibits per year, including group, 2-person and solo shows.  Solo/2-person exhibit rotation depends on the number of members.  There is often a “new member” exhibit as well.

SOAG often receives Decentralization grants from Community Arts Partnership, the arts council in Tompkins County (www.artspartner.org).

A question was asked about membership turnover.  Eva stated that there are long-term members, and those who come and go.  Membership has been stable for quite some time, which she feels is a good indicator of how well things are going.

The Marketing Committee is very active planning special events, which are bringing more people into the gallery.

The gallery has been located in the same space for 20 years (and never had an increase in rent!).  The owner sold the building last year and SOAG negotiated a 5-year lease.  They are still paying below-market rent, but the increased cost did require a dues increase.

There is no storage for member artists.

Denny asked Eva if she is pleased on a personal level with sales of her work in the gallery.  She said she sold more work during her last solo show than ever before.  She’s selling more as part of a coop, but attributes much of the recent success to her marketing sales as fundraising for several LGBT/marriage equality organizations.

A question was asked if the organization has explored buying space or branching out to additional locations; Eva said that they have decided not to do either (to do neither?  Grammar experts, please weigh in!).

Denny asked how many applications for membership SOAG has; there are currently 4 applicants for 3 openings.  Eva said these numbers are typical, because of the amount of work required.  She estimates she spends 3-5 hours per week on gallery work.

Denny asked about setting policy, and how they do this – are there sources?  Eva said that there may be sources, but the organization is doing things on its own.

Karen asked what the gallery does that is considered educational.  The gallery provides continuing education workshops for artists, which are free and open to the public; artist talks; etc.  Eva said that CAP has been taking over much of this role, getting stronger and stronger.

Jennifer asked if the gallery has shown any highly controversial work.  Eva said that a couple of years ago, the theme of a member show was “State of the World at State of the Art”, which produced some very interesting work.

I really like this model, as it’s all about community for artists and being a resource for the larger community.  If I was actually making work, I might apply for membership!

After the break, I reminded the group about Charlie James’ poetry reading on Thursday night at The ARTS (5:30 pm).  Denny reminded the group that Tedd Arnold will be speaking about his illustration and art careers at the Elmira Regional Art Society meeting that same night, 7 pm.

Denny introduced Ann Welles, who for many years was the curator at 171 Cedar’s Houghton Gallery (www.171cedarartscenter.org), and now operates her own gallery, Exhibit A, in Corning (www.exh-a.com).  This Friday night, Exhibit A will host an opening for James Paulsen, from 5:30 – 8 pm, with an artist talk at 7 pm.  Ann also mentioned the Trimania festival in Buffalo on Saturday.

Ann stated that the first thing you should know when you approach a gallery is that gallerists are very busy with what’s currently up; the second priority at that point is finding new artists.  Ann said she tries very hard to get back to people, but there are many things that need to be done every day.

Exhibit A is two years old.  Ann’s intent is to take everything she learned while working for 171, to make the business successful within five years.  Ann said she created a for-profit gallery because she wants to do things her own way, and also doesn’t want to be subject to the vagaries of public funding that can affect non-profit arts organizations.

Ann tells artists that most do not make their entire living from selling their work – they teach, work at other jobs, etc.  Ann hopes to make connections with other galleries, which can help the artists she represents.  Her relationships with artists are one-on-one, and built on trust.

Ann tries to keep her overhead low, so she can show work she likes.  When asked whether she makes decisions on what to show based on what she thinks will sell, she said no – she tries not to underestimate the purchasing public.  She said that the art business is actually opposite other businesses; instead of finding out what people want and selling it, you make/sell what you want, and find clients who are interested in it too.

Ann was asked who her clients are, and she said they’re mostly visitors to Corning; she doesn’t spend much time marketing to locals; she’s more interested in “reaching out to people who are a bit more savvy.”  She said her sales so far have ranged from $200 – $8,000.

Her focus is on contemporary art, and her commission is 50%.  She estimates the initial costs per show range from $1,500 – $2,000.  She mounts six exhibitions per year.

The benefit for artists working with a professional gallery is that they don’t have to any of the work.  There’s still teamwork, though.  She’s building her stable of artists, and visits studios in Buffalo, Rochester, Ithaca, and other places looking for new work.

Ann’s current focus is on building her clientele; she looks at donor lists from museums in the region, and other sources, to reach potential buyers. She said she’d like to take the gallery to some of the big art fairs, which can really help connect with the buyers’ market.

When asked about how Ann developed her business plan and determined her initial costs, she admitted that she is very fortunate to have a husband with a full-time job, so she has health insurance and stability.  She started with some savings, and did a Kickstarter (www.kickstarter.com) project that raised $4,000.  She said she had $15,000 – $16,000 in sales last year.

A question was asked how her website contributes to her gallery’s success.  She downplayed its impact, stating that although it serves as a storefront, you still have to do the work.  She mentioned www.opensiteexplorer.org as a good website for research on links and statistics for websites.  She highly recommended social networking as one of the most important tools available to gallerists and artists today.

Denny asked Ann about the best way an artist can approach her.  She said to attend an opening, visit the gallery, learn about the type of work she shows.  She said she doesn’t have time to educate artists; they should already be professionals.  She prefers to show artists who are somewhat experienced and have shown in other places.  An artist must have compelling work – that’s what’s reviewed first.

Karen asked what Ann thinks about artists who have multiple bodies of work.  She said she said it’s hard to market an artist who is doing a lot of different things.  Artists who do have multiple bodies of work should be able to clearly and easily express the connections between them.

Ann recommended looking at other artists’ resumes (particularly artists whose work may be similar to yours), to see where they’ve shown.  She then showed some pages from her website, including the artists she represents.

What a great evening! So much to think about: how we manage the Gallery @ The ARTS, and how we work with member artists; the community of galleries, artists and buyers; and my own work (or lack thereof) and how to get it shown.  Inspiring and a bit overwhelming!

Eva Capobianco talks about State of the Art Gallery, a cooperative fine art gallery in Ithaca.

Ann Welles of Exhibit A Gallery in Corning talks about her gallery and the artists she represents.