One of the most important challenges for artists to sell their artwork is pricing their artworks. Any artist for pricing should be able to answer these two questions:
How to value the artwork?
Why does she chose this pricing method?
Therefore, it is essential to follow the principles and procedures of the pricing process.
If you are among those who are new to the art sales market, then some basic pricing methods for artwork are outlined below.
1. Compare the price of your work with the price of works by other artists.
Find out in the art market or online sales sites for artworks at the same price and compare your works as they are. Note: When comparing works, pay attention to factors such as the size, shape, materials and achievements of artists such as awards, venues, press, media, etc., as these affect the pricing. Do not forget to search for the sold art only and compare with your works and avoid comparing the artwork still not sold.
2- Look at factors like time, energy spent on materials and cost.
Consider various factors such as time, energy, and the cost of materials used when pricing. Calculate the time taken to create the effect, consider a reasonable price for each hour and add it to the price of the materials used. If you want to sell your work on several channels or in different ways, note that the price of the work should be the same across all channels. Also, proportionality in pricing must be respected, for example, the larger effects should have a higher price than smaller ones. Try to have diverse works with a wide range of prices, as if one could not buy a great work, it could produce a lower-cost product. You can always increase your prices for solid reasons when you sell a few works. It is better to record the total sales and the price of each sale. Selling the effect at a lower price is better than not selling because of the high price. In addition, selling at a lower price at the start of your work will make your works visible and earn a reputation. At the time of sale, the artist is responsible for packing artwork for delivery and shipping. So the cost of packaging material should also be included in the price.
3. Consider the cost of packaging very large.
It may be necessary to use a wooden box for larger artworks. So if for professional Artwork, boxing was needed, it might cost up to $ 50. In such cases, it is better to first estimate the total cost of packaging, and then add it to your total cost when pricing your work.
Companies that have succeeded in marketing believe that the final stage of the transformation in the marketing mix, which can change the conditions for you, is product pricing. The reason for this is very clear. The supply price is equivalent to all costs, including production and product development, management, distribution, and advertising. Of course, the strategy of a company requires that a particular product be offered in a particular market for a certain amount of time at a price below the price that it would certainly not end up with. The price plays a key role not only in profitability but also in sales volumes and market share.
Sometimes one percent of the price increase can be up to 50 percent for a company to profitably. Especially for companies with a low profit margin, such as computer companies, smart pricing is a secret of survival and success. At the same time, price changes after the pricing are difficult, dangerous, and almost all customers have no realistic understanding of price fluctuations. After pricing, customers consider the price increase to be unaffordable and, on the other hand, the price drop has a negative impact on the value of the product and may reduce the share, market share, and profitability.
Therefore, it can be said that price is an important part of the marketing strategy. In addition, the price is an essential element of the transaction between the company and the customers, and sometimes it is the only factor for decision making to buy a product. Correct pricing in technology products is usually not easy. The physical part of products has high prices. For example, the average cost per kilogram of materials in making the satellites is 20,000 times the value of one kilogram of material in the construction of the building and 2000 times the value of one kilogram of material in the making the car, which is why the prices are barely set by market agents. The statistics show that in pricing these products typically in each case 50% of executives, 40% of sales executives, 30% of pricing committees and 20% of marketing directors are involved. In a world where products and the competitive position of companies are changing rapidly, managers need to know how to adapt themselves to different circumstances. They first determine the price based on commonly used pricing models based on all the necessary parameters and then improving it by using policy frameworks, company and market constraints. After choosing and fixing the right price, all behaviors of competitors, customers, and market agents are anticipated.
This policy can vary depending on the source of income. For example, a hardware device, a computer or a satellite can be sold directly, on the other hand, it can be rented. But in the case of software or some technologies, the story is a bit different. For a group of these products, licenses are issued and sold. This subscription is a password that has an expiration date and usage that is subject to that as well as the amount of access priced. In these cases, all sources of money will be affected and priced. Supply and demand are one of the major drivers of dynamic prices, and companies are careful to keep things in check. The price of a product always fluctuates between the two upper and lower points. Price ceiling and floor price. The price ceiling is the price that your customers will not be willing to pay more for your product. You may produce a product that the market does not stretch, and it is precisely for this reason that many ideas will never be commercialized. The price of the ceiling is determined by the market and determined by the price elasticity of the demand in the target market. However, this number may also affect production processes and create changes in production. The floor price is primarily determined by the manufacturer and is specifically calculated on the basis of costs.
Finally, only after the product is sold, we can have the right comment about its pricing. Companies often change prices after sales. As prices go up, customers are forced and in spite of their intrinsic desires, and as the price rises, the number of customers drops rapidly. Price reduction also has its own consequences. Reducing the price avoids the company from its slogans. But often the price reduction with the policy of increasing the volume of sales is synchronized, and companies, prefer greater volumes to unit profits for different reasons. Do not forget, it’s not always a low price or discounts policies that the manufacturer has as his main weapon. Instead, sometimes by raising the price, you show the higher level of quality and performance than your rivals. It’s just the example of Apple’s approach, and because of that, it displays the quality and innovation of its products against its The physical. This method was proposed by Steve Jobs, who extracted it from a successful model of B.M.W products.
The Hofstede model has some serious negative correlations with the Globe study that should be reconciled. The Hofstede model gives a generic six category description of cultural among individual countries for business to get a very basic idea of differences. The uncertainty avoidance dimension in the two studies, Hofstede versus Globe that is, calls into question the validity of the Hofstede model and mentions caution to using the defined characteristics to derive decisions from.
Personally, I do not quite agree with some of the definitions such as masculinity among nations. Japan is rated very high and yet as a society they are passive when compared in person to an American. I was in the military, stationed in Japan for over one year which I base my experience on. Sure, the older generation expected wives to walk behind the husband ten feet at all times, which seems disconnected as a community but perhaps this is what Hofstede sees as masculine. Diminutive stature with low muscles mass hardly seems like a overly testosterone filled society. I just do not buy the entire model. Can somebody sway my opinion and illuminate what I cannot see?
Today, our rights to freedom of speech is on assault. No longer can truthful conversations occur among friends without citizens betraying their own cultural to pursue advancing minority cultures with education, employment, income redistribution, and even their own women. Most global media giants are created and grown by European populations among a few continents and yet the ideology is to censor their own cultural from discussing events in the community, nation, and the world. Facebook, Google, Instagram, and YouTube are banning accounts with the wrong type of vision of multiculturalism. But it is entirely acceptable for violent groups such as Antifa to assault citizens. Even among college campuses this narrative is seen among young adults. Of course, all liberals turn conservative as soon as they begin paying taxes in the tens of thousands. It is always easiest to spend other peoples money.
Diamond and Silk, a very funny duo, also an unlikely supporter of conservatism according to the liberal media, was banned from Facebook because of the danger they represent to their community. That is some funny and absurd lies. Facebook simply cannot let black Americans get the message out that the Democrats are not delivering on promises to the minority community. What happened to allegiance to the country which citizens reside? Why the allegiance to foreign countries?
Nike has turned its back on American ideals, values, and even its citizens that paid for their success for more than thirty years. Nike has turned its marketing campaign to bring in the NFL once-a-star, Colon Kaepernick, to shove anti-patriotism into corporate backed mainstream. America, prior to the unauthorized mass migration by its own paying citizens, used to have a long history of men serving in the military prior to entering the workforce. In the last forty years, men who have served their duty to their country has gone from forty percent to slightly less than ten percent in 2018. Without a country with more military service among its men, the men we are turning out are beta-males (weak, testosterone-less males that are incapable of defending their own women from criminals or invaders) and foreigners with no allegiance to the constitution which made the economy possible. Nike not only turns un-American in this manner but also has the moral-less decision making to outsource jobs to make use of child labor in foreign markets(until caught at least). Nike continues to have only African athletes modeling their shoes and appearing in their ads all the while trying to convince European men that these shoes will help them. Nike’s participation with sleazy lawyer, Michael Avanatti is pretty embarrassing as well and continues to show a pattern of gutter-sniping.
There is a progressive, liberal decay in society of Europeans on multiple continents where men with DNA that creates better methods in all aspects focused on have honest altruism. This altruism is used a weapon to deceive men into feeling guilty and their women into interracial coupling to destroy their own ancestral line. The phrase “It is all fun and games until somebody gets hurt” rings among rumor circles. How long will people pay for products by corporations that choose to betray the base consumer that brought them success? Addidas makes a better running shoe anyway.
Amazon is ranked as the world’s 2nd largest global retailer with sales around $233 billion US even though its market capitalization is the largest at $778 billion. Amazon has dominated e-commerce with 49% market share although in the United States, as of December 2018, e-commerce represents only 11% of all retail.
One product that has been sold globally through Amazon is Win Bigly. This book is written by Scott Adams who is also the comic strip ‘Dilbert’ creator. In the 90’s, Dilbert connected with working white collared Americans in the quirky Office Space environment. This book is written with entertainment in mind but it is about marketing and especially about the marketing of Trump and the liberal media hoax. My favorite example is about the “Fine People” Hoax Funnel where media claims are debunked by multiple sources but liberal citizens are incapable of accepting and continue a spiraling path predicted by Adams.
Persuasion in politics really does not rely on facts anymore. Fact checking whether by online sources, law enforcement, judiciary committees, special investigating counsels, or professors is no longer credible but instead repeating phrases until sub-conscious recognition swaying bias is the new normal. This book explains how Trump has mastered this marketing skill and how his opponents be them presidential candidates, news anchors, critics, or congressional leaders are not matched in skill set. The book either will give a laugh, a dizzying realization on reality, and/or a stubborn confirmation that it cannot be right.
Amazon is now quietly attempted to change the freight shipping industry without national level press coverage. The business model appears to charge rates that merely break even with costs displacing every existing freight company that relies on profits. This is a standard move from our Chinese rivalry for long term planning and even similar to Walmart’s versus the mom/pop retailers (except of course Walmart still sought profit but improved distribution through technology). This seems to be an obvious win barring any lobbying efforts among labor or corporations. This seems better thought out than drones everywhere. Will this begin a road map of Amazon brick and mortar stores nationwide?
For 2019, General Dynamics is making use of as many global marketing channels to maximize growth in today’s economy. Phebe Novakovic, CEO of GD, ranked among the twenty-five most powerful women in the world, ranked 7th among worldwide female CEOs, predicted a “14% growth in revenues over 2018” which would be a hefty $36.2 Billion USD. According the the annual earnings conference call, the global marketing channels are combining excellent opportunities to deliver products.
Gulfstream Aerospace G650 are among the highest profit margin product of GD with 145 business class jets due for delivery.
Global Business to Governments:
As a defense contractor, the GD M1 Abrams tank carries a profit margin of 15% and carries the revenues steadily for the past five years. The business to governments channels is interesting because politics can sway tides rather quickly. Don’t mess with this main battle tank!
Canada has helped broker a deal for the GD ranks for 3000 light armored vehicles to Saudi Arabia for $13 Billion USD. This deal has had controversy due to a journalist being killed rather maliciously but is still set for completion.
Pricing is a challenging process even for well-known brands. Because firms are not competing in a stable environment, they need to respond to rapid changes and change their pricing strategy. Information technology has helped firms to implement their strategies and increase their revenue and customer satisfaction. In this blog, we would see how different companies changed their strategies by proper use of information technology.
Challenge: Product pricing in the right way and forecasting market changes
The pricing and distribution system of the company was an old system that could not be responsive to the fast-paced retail market with the increasing competition. On the other hand, pricing usually requires an expert human, and it was difficult to predict market changes in these conditions.
Solution: Using Business Intelligence Decision Systems. To solve this challenge, GIANT FOOD has used the DemandTec system. This system is able to predict customer demand by analyzing a huge amount of competitive data and sales terminals. It also eliminates the need for an expert human for pricing with a comprehensive codification of pricing rules, the pricing process is done automatically. The GIANT FOOD system also enables to predict the effects of price changes and other improvements and changes ahead before the supply of the product to the market. It adopts a decision commensurate with the exact information provided by these predictions and chooses the proper strategy. By using this decision maker, the company has doubled its returns.
Challenge: Losing the market share of customers due to the rapid entry and growth of competitors.
The company is one of the top telecom companies in New Zealand, which holds about 50% of the market share. The entry of rivals and their rapid growth in the company’s market has threatened to cut the recruitment rate of new customers as well as the loss of old customers.
SOLUTION: The company, with the benefit of the data warehouse system from EDW, has been able to integrate data from different parts of the company into segments and provide an integrated view of the company’s entire data. The use of data warehouse led the company to the analytical marketing and led to the provision of analytical queries for different parts of the company, and could be used by suitable customers and marketing tools for each one. The company formed the Department of Customer Knowledge Analysis for market research, which, using data warehouse and data analysis, has survived in the competitive environment of the market and remains one of the top companies in the field. Utilizing the data warehouse, in addition to data integration, has streamlined marketing processes as well as better use of the company’s human resources, eliminating the need for several specialists to manage data.
Challenge: Huge volume and growing transactional data
The company is a satellite television service provider. With around thirteen thousand employees across the United States and Latin America, the company attracted around fifty million subscribers in 2008. With this volume of activities and subscribers, the company faces a large amount of data. On the other hand, company executives needed real-time reports from various sectors such as marketing and sales, customer services, and the technology sector for business decision-making.
SOLUTION: Despite the company’s use of the data warehouse system, due to fact that the system was out of date, and the provision of information and reporting on a daily basis, the managers’ need for quick reporting was not satisfactory. By using the new data warehouse system, data updates were reduced to fifteen minutes. This has led to significant changes in the company. For example, in a sales unit, a sales staff employee can immediately recapture the client by taking into account the proper strategy and offering appropriate proposals (higher quality, discount, etc.) by immediately observing the customer’s report. Utilizing this system will increase the company’s competitive advantage and decrease costs.
Challenge: Need to analyze non-structured data
It provides services, solutions, products, and technologies globally for individuals, large, and small organizations. The company’s most prominent products include personal and business computers, pocket computers, printers, and more. A large number of customers are contacted through email with the company. These emails contain important information such as customer feedback, their evaluation of service and product quality, and the type of customers that they are affiliated with. There is a large amount of this kind of unclaimed data, without analytical use, in different companies. Data mining can extract this vast amount of valuable data.
SOLUTION: HP has been able to extract valuable information from emails and customer comments by utilizing its tools. With a precision of 80% in extracting information from texts, this highly acclaimed system is now used by various parts of the company for targeted marketing and a better understanding of customer needs.
Challenge: The need for accurate and up to date information to support decision-making, and implementation of proper strategies in competitive conditions.
This international company is a global manufacturer of printed products with over 50 sales representatives in more than 160 countries. Given the competitive conditions of the market and the need for up to date and accurate business decisions, company managers needed quick and accurate information, which was not possible with the company’s old information systems. For this company, access to sale information, inventory levels, and information exchange with sales representatives are critical.
SOLUTION: The company was able to efficiently face this challenge by purchasing software for retail business intelligence that is compatible with stores and retailers. By providing the ability to analyze sales data and inventory of different departments, this system made it possible to access accurate information for employees throughout the company. Using this system, managers were able to accurately respond to queries such as the top store last week, in terms of sales, bestsellers, inventory levels per product, and more. Using this system has led executives to make better strategic decisions by better understanding their business processes, facilitating identification of new opportunities to attract customers, and choosing strategies to increase customer loyalty.
Challenge: poor performance in satisfying customers, high costs
Toyota Motor Company in the USA is a subsidiary of Toyota’s massive car dealership. In the late 1990s, the company was faced with problems in its supply chain. On the other hand, the inability to deliver the car to the dealerships on time was a matter of discontent with them, and the purchase from rival companies such as Honda was followed. The management of the transportation sector required close follow-up and accurate management of the supply chain, requiring accurate information and reporting to conduct this follow-up and effective management. The fact that the process was done manually or in some places using the old information systems caused the overlap of reports, inaccuracy in the provided information, and the slow process of data transfer.
The solution: The company set up data warehousing as an essential need for the company’s management. In 2000, with the upgrade of the data warehouse and Oracle data warehouse system as well as the Hyperion business platform, which had management dashboards, the company reached its goals. They increased 40% in the capacity of the car delivery with only a 3% increase in the cost and a 5% reduction in the time of transportation, as a result. The benefits of using the system in this section of the company encouraged Toyota executives to use the system in other sectors as well. The results showed that using Toyota’s business intelligence has led to a return on investment of 506 percent.
Challenge: The need for customer information for effective marketing
Egg is one of the world’s largest online banks servicing over 3.6 million online banking customers. Appropriate storage and customer data analysis is required to provide access to customer information and to prevent delays in the provision of services.
SOLUTION: By using the Customer Data Warehouse (CDW) the company was able to collect customer information in a comprehensive way, and with the use of these data, data mining tools were used to generate valuable reports and analyzes. Using this system Creating marketing campaigns using real-time data and customer segmentation was effectively implemented to implement strategies for each customer segment.
Challenge: The need to reduce costs, increase customer loyalty and encourage customers to come back.
This online business, which began as a florist, went on to become an online retailer and became one of the top brands in the field. This e-commerce business, like other customer-oriented businesses, needed to attract and keep customers, and as a result, needed customer information for real-time decision-making. To increase customer loyalty and attract new customers.
Solution: Using the SAS data mining tool, the company has been able to discover customer purchasing patterns and use this knowledge in its business practices. The use of a recommender system for old customers and the proposal to buy items based on customer purchasing history has increased customer loyalty to this online retailer. Additionally, by using the knowledge generated by the marketing process data mining process more efficiently, and taking into account potential customers, the company gained enormous profit while competitors were trying to stay on the market.
Source: E. Turban, R. Sharda, J. E. Aronson, and D. King, Business intelligence: A managerial approach. Prentice Hall, 2008