Dear Arthur 4.1.2021

Dear Art,

Thank you for your fast and heartfelt response. I agree that there are many things that make something “art.” All the same saying that it is something that moves you is not enough! A parent is moved by a child drawing as a memoir of the child’s achievement, but that is not art. Although it must be said that there are those who would view an object that is similar in physical prowess to that of a grade school child as art. And the curse is that there are cases where this is even true. But a digress.

The point I am making is that that definition would make art only defined by the viewer in which case all the work made that is unseen would not be validated until seen. In my eyes that puts far too much power and influence in the hands of the viewer, or even more sinister in the hands of the collectors.

A further issue I have with that positioning is that it predicates mass acceptance for art to be art. That does not fit into history. Do we not look back through history to see art that reminds us or our past? This also touches on the idea that art is primarily defined by the viewer, which I have already questioned.

I think we can agree that intent plays a role in the arts. I also think that physicality plays a major role. Artists make things to communicate ideas to people. Maybe that could be a way to loosely define it? That would put art in the arena of communication. That is a theory I can agree with. What do you think?

Of course this opens the topic of craft and skill up. As engaging as the process of abstraction is I sometimes wonder how it is that we, as the general audience of the arts, have come to see such brilliance in the result of what can clearly be seen as an intellectual exercise? Abstraction feels at times the the reduction of all complex truths into single punchlines.

That is most clear in the work of some of the conceptualists. Like being the person who wrote the punchline on a canvas makes you the owner of that punchline, no matter how obvious it is. It really pusses me off at times. Although, the anger is more focused on the presentation and the allure that then surround these objects. Hang them in a college bar and they would earn a laugh and take their place in the memory of the students who away their underagedness beneath them. In the art world the same works are guilted with awe and are passed around while ratcheting up the price until they become useful as a tax write off for one of the aforementioned collectors. And this is not just true of the conceptualists. In fact, I think this is true of much of the big money are works. What’s the old saying?

“If it’s nit good make it big. If it’s still bit good make is colorful. If it’s still not good make it expensive. Then it’s good.”

Which brings us right back to the “importance” of the collectors as validates of what art is, or is not… urg.

Maybe you can shed some light on this? Until then, be well.

Best, Julian

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Dear Arthur 2.1.2021

Dear Art,

What a pleasure to have met you! Considering how strange the last year was it must be considered serendipity that we made acquaintance.

I was thinking back on our conversation and wanted to pick up on the point where you are and the world around you is headed. As a gallerist I must say that I am a bit more hesitant about the coming time than you are. I see your point that the marketplace is going to get flooded with cash as the stimulus spending bubbles it’s way up from the lower levels of the economy to those selling the goods that people are buying. And yes, the fear of inflation is going to cause investments in inflation safe harbors like art. But that all depends on wether the inflation actually hits, or if we are looking at a cycle of repeat stimulus payments until everyone forgets what it’s like to live without them… hell, maybe that would be best? History be damned and forgotten.

But what is art Art? This is a long lasting point of debate which we skirted when we met. I assume because the answer to this question is both elusive as also not politically correct. The current definition, or lack thereof is not better though. So maybe we should breach the topic? Among friends, and I hope that I can call you one, we have a freedom to discuss in a manner that has long been deemed offensive in the public sphere.

But enough rambling for a first letter. May I offer you the opportunity to voice your opinion of what art is first? I very much look forward to your insight.

With my kindest regards. Your new friend Julian

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Don’t show me your portfolio at an art fair!!!

I would like to address a situation that is unfair for every person involved and often leads to anger and the creation of false prejudice. The issue of art fairs and artists and the bringing of portfolios by artists to fairs.

Allow me to present some numbers first off.

  • Fair Rent : ~€45.000
  • Fair Travel: ~€10.000
  • Fair Art Handling: ~€6.000
  •  Fair Insurance: ~€2.500
  • Fair Incidentals: ~€3.000
  • Total: €66.500

The fair runs 5 days for 10 Hours divided into First Choice, VIP and Everyone day. That adds up to 50 Hours where a gallerist can sell art. If we are fair we can deduct about 20% for morning slowness and evening hectic which leaves 40 Hours.

€66.500 / 40 = €1.662,50 / 60 = €27,71

What I am saying is that every minute of the fair costs the gallerist €27,71. That translates to €138,55 for a 5 minute discussion with a gallerist. This is the economic framework in which we gallerists work during a fair.

Enter the artist: The artist invests time and money in making a portfolio which is representative of the work they make. They travel to the fair, rent a hotel room, take time off of their day job, etc..

The hope is that they can show their work to a gallerist who will be deeply moved by the work, enough to represent them or at least give them a show in their gallery.

The problem is the forces acting on both parties in this situation. They are not compatible. The staff of a gallery is at the fair to make money to cover the costs and keep the gallery running. The artists want a chance to get into the gallery.

The solution is simple, understanding. If we gallerists put ourselves in the artists shoes then we can be friendly in the way we tell the artists that the time is not right. And equally if the artists understand the pressure o=the gallerists are under they will be able to accept that maybe it is enough to say hello to a staff member, ask them if they can send some material and what the best time would be to do so.

It’s an empathy issue. Be kind in both directions and understand that a gallery does not owe an artist it does not represent anything except common courtesy. That’s just the reality of it. And artists, enjoy the fair and the work on display. If you spend time looking at the work each gallery shows, and how, then your chances of finding a good match will be much higher.

See you in the pressure cooker!

 

 

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Most Art Ends in the Trash

The statistical fact is that the largest part of the worlds artistic production has and will continue to end up in the trash. It was far less in the past, but considering the onslaught of “artists” it is mathematically clear that most of what is being made now will end up in the trash in the same way that most of the drawings your children have produced have returned to the world as carriers of ink in the form of recycled paper.

My diagram in not complete, but it shows a basic flow from the artist to one of 3 final locations for artworks. Museums, Collectors and Trash. This is a harsh truth, but it is a truth and needs to be known so we can understand how the parts actually work together.

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Legacy

Most of us do not know what our great grandparents did. One of the curses of legacy is to know, but to know only in part. As with all stories that have passed through generations and have been told by many different people, the truth is an assumption that lies somewhere in the middle of the collective.

The history of the Sander family is one of these stories. I am in the 4th generation of people from the Sander Family who work/have worked with a body of photographs. An oevre that has helped to form the modern vocabulary of portraits. The power of August Sanders work is well described in a video by Hauser&Wirth here. But that has little to do with the legacy I am dealing with.

There is an old saying that history is written by the winners of the wars. That is a dark future to look forward to as it requires a looser as well. In my families case it seems like there are a great many people who have actively played a role in their own placement on the losing side, and for the most part because they have felt that they are right. But truth will set us free, no? Maybe, maybe not…

There is another saying about war that I think describes this sort of situation much more accurately.

In War there are no winners, just survivors.

But the history books need to be set right, and it seems it is my job to do so. So I start on this journey to uncover the real story that has led to so much infighting. In the knowledge that when the story has been told in full all will understand what happened and why.

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Gallery Economics, continued

After my recent post about the fun factor in the art market I want to put a few numbers to the actual cost of a gallery. First I will just outline and define some of the players involved.

Assumptions:

A Gallery has at least 1 person who needs to live off the money made in the gallery. I’ll call this person the gallery owner (go). I will also assume that go has a life cost of ~ €2000 assuming no children, and no student debt. If go has 1 artist who he represents, then we can assume that that artist also has a living cost of ~€2000 + materials. If artist is exclusively represented by go then we can safely assume that go needs to make €4000 + materials to cover the living costs of all parties. If we take a material cost of 10% of sales then we could assume a total of  €4400 for the gallery to break even if no other money is spent.

Of course go cannot show artist work without a space. This could be a joint space, a project space, or a gallery that is rented somewhere. Let me assume that a minimum for such a space will be €500 + utilities. That would be about €700. So for space,go and artist we now need to have €5100 in sales to break even. If this is in Germany then that summ end up being €5100+19%VAT = €6069.

No we can assume that artist will not only show with go, and that go cannot just show 1 artist. If the gallery has 4 shows per year and each show has a different artist, and each of those artists show with 3 galleries we have 1/3 artist x 4 = 1 1/3 artists for the gallery to support. If we stay with the €4400 for 1 artist then we end up with a sum of ~€3200 per month + rent and go living expenses. This also assumes that all the galleries who represent the artist are selling enough to help cover their share of the artists living costs.

The gallery does have to do advertising, networking, framing, openings and dinners etc.. If this cannot be done by go alone then the gallery needs to hire some people. Each full staff member will add at least €2000 to the monthly expenses. Lets say the gallery needs 1 administrative person and 1 sales assistant, where as all 3 also share shipping work, cleanup, setup, hanging, gallery painting etc.. So with our adjusted artists cost we now assume

€700 + €3200 + €2000 + €2000 + €2000 = €9900 + all the stuff mentioned above.

If we put a simple number on those points (because they can vary greatly) of €1500 we end up with a monthly expense of €11400. We also have to assume that we have to charge VAT, so that number become €13566 including 19%. That scales up to €162792 per year where as there are active and less active sales months in the art calendar. From my experience the hot months are Feb-Apr, June, Sep-Nov. Thats 7/12 of the year. So if we take the sales we need to cover the expenses of the year and place them in the 7 months we get €23256 for each of those 7 months.

Now let’s do a reality check.

€23.256 @€500 / Artwork = 46 pictures per month. If the gallery is open 5 days a week = ~20 days a month then the gallery would need to sell 2.3 pictures a day on average. €23.256 @€1000 / Artwork = 23 pictures per month. If the gallery is open 5 days a week = ~20 days a month then the gallery would need to sell 1.2 pictures a day on average. You get the idea. Please remember that this is a break even calculation where there are no reserves built.

So I have done all this theoretical spitball math to point to a problem. If the engagement of the client base, the collectors, is not there then the galleries cannot function. I do not know of a single gallery that is not a mega gallery where the kind of visitor flow is so large that this kind of calculation could ever become a reality. The simple fact is that people will never buy what they do not know exists. If the collectors view the art world through a filter like the internet and do not engage with the art world where they are then only the work that is propagated by the large galleries will ever be seen, or seen enough. If the small galleries that are the breeding ground of young talent are ever going to survive it will only be because the people who buy art are aware of them and seek them out.

The art world ecosystem need all of the players. The mega galleries play an important role as do mid tier and small galleries. We could of course just say that all of this will regulate itself, as it always has. That is probably true. I cannot think of a sensible way to subvention the small galleries because they need to grow like all plants in the wild.

Nonetheless, it is important that the collectors and visitors to the galleries understand that we are effectively the backbone of the art world. We take the risks to show work we believe in. We invest large sums of money and time to help our artists grow. Many of us spend the money we have earned in other places to do this, and a great many of us will never make that money back.

I am not asking for pity. It is neither needed nor desired. Being a gallerist is a choice, and those of us who know what it means and have made it beyond the begining are proud of what we have achieved for the most part. But the artworld needs to understand that this is a labour of love with significant risks.

If you visit a gallery regularly to enjoy the artwork, enjoy the company and drink the wine then you should buy art.

If you can’t afford what’s on the wall then speak to the gallerist about other work they have, or a payment plan. Bottom line is, if you like what the galleries are doing then support them. Buy art.

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Every Second Counts

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No Fun at All!!

The art world is no fun at all!! We all have passions, hobbies, things we do that enrich our lives. These pastimes are part  reward that we give ourselves, part things that expand our ever hungry desire for new experiences,  part socially driven events and part whatever else motivates us to get off of our ass and do something.

When I was younger and in the gallery scene in SOHO of the 1980’s it was a fun vibe. Galleries all had openings on the same night. There was cheap wine, sometimes cheese and crackers, and most importantly lots of people. Those people did not come to a single dedicated exhibition, but would wander around the neighborhood and see many shows, much new art and run into people they saw at any of the other galleries. Out of this discussions would develop. From those discussion grew an engagement with the work, or not. Point is that the situation allowed for it.

All the galleries were sort of in the same boat. All of them were trying to get by. If you look at the Art Forum ads from that time you will see that all the artists showed with all the galleries, and some galleries got lucky. It was the wild west of you will. People were in it for the fun, for the excitement. They could buy 1-2 artworks per month on their salary and really had something to enjoy and to show their friends. Most of those artworks ended up not really rising in value on the market, but that was not so important because the collectors were engaged in a happening.

the collectors were engaged in a happening

In ~1991 that all changed, but it is safe to assume it changed earlier when some players in the market made their experience no longer about the artwork or the support of the artists, but about making money off of selling the work they bought. The simple idea is the same as with compound interest. Since it seemed to work everyone ran with it, until the ground they were running on broke away… crash.

I am writing this because the young generation of collectors that are in the market now did not experience that. Hell, I barely experienced it, and I am not a young man. The young generation, the digital natives, did not experience the culture that was there before. The language of the art world is now so filled with things related to money that it is hard to get away from it. And as our understanding of value is very closely chained to it’s price we cannot get away from it either.

But there is a point where the development becomes self consuming, and it seems we have reached that point. The cost for a gallery (my gallery) to do a fair is always a five digit number. I am a small gallery. The larger galleries have 6-7 digit costs for a single fair. If we do some simple math it becomes clear that this can only be paid for if the artworks are expensive enough to make the income based on the galleries share of the artwork enough to justify the experience.

As a simple example: I spend ~€45,000 to do Paris Photo. This is a very important fair for my gallery, so I don’t really have a choice. From the artwork I sell there I have between a 15-50% share of the raw sales that my gallery gets to keep after paying the artists or owners. For the sake of this example if I take an average and say that my share is ~32.5% then I need to sell €138,462 in Art to make the fair break even. I have wall space for ~30 works of art if I work with smaller prints, etc. So by that measure my average price needs to be €4,615.

my average price needs to be €4,615

The fair has a visitor count that is 5 digits. The real selling time is in the morning during the VIP time when the collectors and museums have more space to actually look at the artworks. That time window is 2 hours per day. Assuming I have to make 80% of my sales in that time I need to sell 24 artworks in 8 hours standing in a room with ~200 other galleries who all need to do the same.

The result of this is that most of the galleries are now showing work that they assume has the best chance to sell. That chance has a lot to do with how often an artist or artwork has been seen. There are other factor of course. The issue of a galleries reputation and the trust built between a gallery and a collector are major factors. But those factors only help the galleries that are established. Everyone else will need to  play it safe in the hopes (delusion) that their chances of selling something will be better if it appeals more to the masses. And we can then sit by and watch the level of quality and newness drop to the lowest common denominator. That is just plain shitty.

Making the fairs cheaper won’t work because they need to make money. Making the art more expensive is not working because it becomes prohibitive to buy based on a regular person’s budget. If collectors are not buying regularly then they are not really engaged. It looks like this is broken from all sides, and that a simple magic fix does not exist.

Why can’t we go back to the engagement, the social experience of SOHO in the 1980’s?

Because we are not in SOHO in the 1980’s.

right… We are in the art market of 2018 and it’s a bit broken.  It’s time to think hard about how we can bring the fun back. Ideas?

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Culture and Culture Goods

I read a question in an article about fake news and cultural heritage the other day. The question asked if it was necessary to forcefully market the arts, particularly the estates of great artists? I have pondered this question often over the years.

As a child I enjoyed going to the museums in Washington D.C. which are filled with fantastic works of art by the greats of history. I would sit for hours in front of some paintings. I would lie transfixed below the only aluminium Calder mobile in the world. I enjoyed seeing and traveling in the universe these works opened in my mind.

Coming from a family of photographers and art dealers I was exposed to the arts at a very young age, and completely organically. My appreciation for the arts are not in their economic value, but in their message. I have always seen art this way.

Unfortunately we now live in a time of decisive markers. We look for verification of quality through indicators that can be metric-ized. Money, as a representative of work, has become the metric by which we define value. This is a complicated issue of course, and I would be foolish to think I could cover it in a sentence of two, but I do assume that the translational character of money is clear to most people. So, the more expensive an object is the more impressed people are by its worth. Now, when it comes to the arts, there is little to no physical value in what is purchased. A painting cannot be used except to decorate a wall. Its material is difficult or impossible to recycle. It’s life expectancy is limited, particularly in the contemporary art market where the craft of painting is not really held in high esteem. None the less some of these works of art sell for extraordinary sums of money. We deem them important and quantify that by putting a price of it.

If an artist then moves from the contemporary into a position of artistic evergreen, then we can discuss the idea of an artists estate or heritage being of value. This has, of course, to do with much more than the market value of an artists work. The impact that a body of work has on the zeitgeist, on the artists contemporaries and on society as a whole are all important aspects of the value of an artists heritage. Of course there are more aspects, but they are greater than the scope of this post.

Who championed the artist?

The question will come up how the work became known? Who championed the artist? Which collectors bought the work? Which museums placed the work into a context that allowed the less informed to discover and embrace the work? How did the work even get to those institutions?

All of these are important questions. They all require individual investigation. Often this has to do with a person who is driven by the importance of the work in question and the artists legacy. And more often than not, that person is involved in the marketing of the artists work.

Returning to the question asked in the article, is it necessary to forcefully market the work from an estate, or is it enough to maintain it? I would argue that the process of making great art known is valid in and of itself. The gallery does this by exhibiting and selling art. The museum does this by exhibiting art and selling tickets. The publisher does this by publishing and selling books about the art. Newspapers do this much the same as Publishers. All of these “people” reach different segments of the audience. The greater the work, the larger and more diverse the audience. To assume that any one channel can speak the language of the entire audience would require of that channel to speak at the most basic and simple level. (rule of lowest common denominator) That is not really going to go well for material that is capable of speaking to many levels of the world audience.

Maybe speaking truthfully about the artist, their work and its meaning should be the requirement. No one gets to claim being wise for being the first to see the sun rise on a given day. The sun will rise no matter who speaks of it. This is how I see greatness in the arts. The greatness will be there, regardless of who speaks of it. My role, as a gallerist, is to speak of this greatness.

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A Thinking Mans Game.

There are parallels in every segment of the world of business. Things like the law of supply and demand or fashion are just 2 of the issues at hand. The modern media machine, being based on techniques developed by the Nazi’s before WW2 has a very specific aspect to it that seems to run parallel in most all of the markets I see. The technique is based in part on separating the wheat from the straw, and then further manipulating both parts accordingly.

For the separation there is a fairly simple tool that is used to allow people to feel as if they have increased their knowledge, where by they have only increased what they know. For the simple minded this will sound like the same thing, it is not. Knowledge has a very different quality than knowing things. A person can know incredible amounts of things, even things that are related to one another and sequential and still be an idiot, or worse, a blinded mule that follows orders. This particular issue is being multiplied exponentially by the flood of information we receive through media. If the summ of information becomes great enough it will in fact create a current of ideology which, if implemented properly will make the viewers feel as if they are in the know, and are still making their own choices. This will generally not be the case as this would require a clear differentiation of information, source and motivation as well as personal tendency.

This is not too much to ask, and certainly not what a controlling system is going to endorse.

The other group will be those that see this mechanism and see an opportunity in it. This is a useful group of people who will probably calculate out to be about 5-10% of the masses. These are then the people who could and may very well have a strong opinion themselves and also be knowledgable enough to implement their knowledge with precision. Of these there are a large number that can be assuaged by the simplest of things, luxury. That luxury can be formulated in any number of ways, be it fame, money, success, or what have you. Please do not understand this to mean that success is gifted to people in order to keep them compliant. This would be grossly unfair to the many individuals who have dared to follow their heart, or soul and have earned their success through specifically that purity of focus. This, in turn, would be the last group for the sake of this very skeletal framework of social hierarchy  and how it is manipulated through the market and such.

The title of the post is “A Thinking Mans Game”, which I will now actually get to.

As you all know, I am an art dealer, a gallerist, a curator, a collector, a lover of and believer in the power of the arts. One of the issues I have read at length about and discussed is how a gallery is defined. What is the essence, or the brand of a given gallery. It has been said that a gallery should show and sell work that is within a close boundary, both ideologically as well as financially. The rich like to buy from places where everything is expensive, and the hip like to buy things in the places that are all the rage. This does make sense in so far as it is easier to have faith in the quality of something if it is purchased from a place that has a reputation for being a sales point for high quality things. The Porche Design folding glasses of the mid 1980’s are a prime example of a brand being meaningful. But I think this form of confinement is a detrement to the arts I am responsible for showing. You see, if I base the work I show on my market, then I am only serving what the market wants, which by that very definition must be something they have seen. They would not recognise their desire for it otherwise.
Does this mean I am doomed to showing the avant garde? Maybe. A better question is if my intention to show the best I can find will allow me to be free of the bounds of both the main stream and the avant gard. If I am not concerned with those criteria, but rather concern myself with what I think is great then I am true to my duty as a gallerist, win or loose.

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