Art Festival Newsletter | March 2024 | |
Achieving Success Through A Cohesive Body of Work | |
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Success for an artist is a deeply personal and not always solely based on financial reward. But the reality of the Art Festival Newsletter reader is that the majority of us are working artists and financial success can be a primary motivator. Over the last 4 months I have run or been a juror for a dozen fine art shows across the country. After seeing thousands of images, what struck me as the deciding factor for inviting an artist out of thousands of applicants is the cohesion of the work - the story that the artist was telling with just 4 images of the art and one of the booth. This is not a discussion about images, it is about the power that a cohesive body of art has. The ability to weave a narrative thread that connects the artist to the public.
A cohesive body of art is more than just a collection of individual works; it is a deliberate and thoughtful arrangement of pieces that share common elements. The significance of cohesion lies in the ability to communicate a your artistic vision.
Achieving cohesion in a body of art requires careful consideration of various elements that contribute to unity. One such element can be thematic consistency, where artists explore recurring motifs, subjects, or concepts throughout their work. This thematic thread allows viewers to discern patterns and meanings that may not be apparent in isolated pieces. Another crucial aspect is stylistic coherence, wherein artists maintain a consistent artistic language across their creations. Whether it be a specific color palette, a recurring technique, or a distinctive visual style, the repetition of these elements reinforces the identity of the body of art and establishes a recognizable signature.
Narrative progression is also essential in creating cohesion. An artist may choose to tell a story or convey a message through a sequence of
works, with each piece building upon the previous one. This progression not only adds depth to individual pieces but also invites the audience to embark on a journey through the artist's evolving perspective.
The process of creating a cohesive body of art can be a transformative experience for the artist. It requires planning, and an understanding of personal artistic goals. The result is a body of work that not only reflects the artist's unique voice but also showcases their ability to adapt and innovate within a cohesive structure.
Are artists who create a cohesive body of art more financially successful? In the world of juried art shows, the answer tends to be yes. Collectors often seek coherence in the artworks they acquire. A cohesive body of work suggests a thoughtful and intentional artistic journey, making the collection more desirable to art enthusiasts.
Consistent themes, styles, or techniques become associated with your name, making it easier for collectors and buyers to identify and remember you. This brand recognition is crucial for establishing a strong presence in the art market.
Galleries and curators are more likely to exhibit artists with a cohesive body of work. Curated exhibitions often seek artists whose pieces harmonize with each other, creating a visually and thematically compelling experience for viewers. As a result, artists with a cohesive style are more likely to be featured in solo or group exhibitions.
Your distinct artistic identity helps you stand out in a crowded market. Patrons are often drawn to artists with a clear and well-defined creative persona.
Photograph courtesy of Tayloe Piggott Gallery
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BOOTH IMAGE - THE DECIDING FACTOR FOR SHOWS
Just a personal note after looking at thousands of images - QUALITY MATTERS!!! I have been in the industry long enough to recognize that some of you are using the same images for YEARS! If you have new work, the jury wants to see it (so do the show directors!).
With new work, you need a new booth image. The booth image needs to reflect the body of work that you are bringing to the show. Your goal is to present a visually compelling and professional representation of your art
The booth image should showcase 3 sides of the booth. There should never be people in the booth and your name or business identity should be blurred.
- Ensure that your booth images are captured with high-resolution image (phone images can be great). Clear, well-lit to provide the jury with a comprehensive view of your art
- Present a well-organized and visually appealing booth. Arrange your art thoughtfully, paying attention to composition, balance, and overall aesthetics.
- Show the same body of work that you selected for your jury images
- Invest in a professional tent and visually appealing booth setup. A well-designed booth reflects your commitment to your art. Invest in wrinkle free table clothes that go to the ground. Propanels, mesh and covered grids that are tall enough to be visually effective and get rid of the cluter in your booth.
- Ensure that the lighting in your booth images accurately represents the colors and details of your art. Avoid harsh shadows or overexposure that may distort the perception of your work.
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Last Chance to APPLY: Click logo for more information!
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EVENT DETAILS
This two and a half day professional development event brings together show directors and those connected to the industry for learning, discussion, inspiration and networking opportunities. This conference is tailored to individuals who are involved with the planning of art fairs or festivals, including board chairs, council or chamber staff, and volunteers.
TOPICS OF DISCUSSION
This is a sample of what the conference will discuss this year. Details are on the Art-Linx website.
- Go Green Initative - Reducing the Carbon Footprint of Shows
- Board of Directors Engagement
- Show Liability and Legal Responsibilities
- Creating an Emerging Artist Program
- The Pyramid Scheme of Volunteer Engagement
- Round Table Directors Discussion
SCHEDULE
- Wenesday April 24th - Attend the fabulous Festival of the Arts - Arts Council Oklahoma City opening night event. Tickets provided by the Conference and include food, beverages and entertainment.
- Thursday, April 25th - Conference day ends at 4pm allowing time to return to the Festival.
- Friday, April 26th - Conference day that ends at 3pm allowing time to return to the Festival.
Registration opened NOW at https://www.art-linx.com/conference
Payment fo registration is due 3/31/24
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INVENTORY - Key to Tax Preparation and Savings
Keeping track of business expenses is a crucial piece tax preparation. This article is written for the professional artist that is self-employed.
Self-employed individuals file a Schedule C as part of their regular 1040 income form. Schedule C is also where you report your business write-offs.
Your basic work related expenses include travel (hotel, meals, etc.), vehicle and transportation costs, equipment, art supplies, home studio expenses, legal and professional fees, gallery costs & commissions, etc. Let's review one of the more complex and contentious deduction areas - Inventory. This was the first question that I was asked when audited by the IRS a couple of year ago - how are you calculating ending inventory. I know this subject is not very exciting but it is a very important to understand if you get audited!
Inventory
Inventory is often problematic for many artists. The IRS will ask you the method you are using to inventory your art. Generally, consistency in the choice of inventory valuation method is essential for accurate financial reporting and comparison over time.
For many artists that would be “cost”. You need to take an inventory at year-end of ALL your art not sold, this can include art from previous years. Traditionally Cost of Goods Sold is calculated using the following formula: Starting inventory (what is left at the end of the year) +(purchased+labor+materials) – ending inventory.
A simple example using a painter. At the end of the year, the artist has three unsold paintings. To calculate the ending inventory, you need to determine the value of these unsold paintings.
Steps:
- Assign a Cost to Each Painting:
- Begin by assigning a cost to each painting in your inventory. This cost should include all the direct expenses incurred in creating the artwork, such as the cost of materials (canvas, paint, brushes, framing) and any other associated production costs.
- For simplicity, let's assume you spent $50 on materials for each painting, and there are three unsold paintings.
- Cost per painting = $50
- Multiply Cost per Painting by the Number of Unsold Paintings:
- Now, multiply the cost assigned to each painting by the number of unsold paintings. This will give you the total cost of the ending inventory.
- Total cost of ending inventory = Cost per painting * Number of unsold paintings
- In our example, this would be $50 * 3 = $150.
- Record the Ending Inventory:
- The resulting figure, $150, represents the value of the ending inventory for the artist. This amount should be recorded in the artist's accounting records as the value of unsold paintings at the end of the accounting period.
It's important to consider that this is a simplified example. In reality, we usually have more complex inventory systems, especially if our art materials and production costs vary. The nature of the art and the uniqueness of materials will influence the choice of method.
The choice of inventory valuation method can significantly impact how these costs are accounted for (example - jeweler need to address precious metal value fluxations during the year).
Four common methods of more complex inventory accounting are the Specific Identification Method, FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Weighted Average Cost. Specific identification is suitable for unique or high-value items, while FIFO and LIFO are more common for homogeneous goods. Each method has its advantages and considerations when accounting for differential costs (warning - have a cup of cofee before reading this next section - it is all about the math)
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Specific Identification Method:
Specific identification involves tracking the cost of each individual item in inventory. This method is particularly useful when dealing with high-value or unique items as it provides a transparent and detailed approach to valuing artworks.
Application to Differential Costs: Specific identification allows for precise matching of the cost of each item with its corresponding revenue. It is especially beneficial when dealing with differential costs, such as unique materials or labor expenses associated with specific items. However, it can be administratively complex, especially when dealing with a large inventory.
Advantages of Specific Identification Method:
- Particularly useful for artists with high-value or one-of-a-kind artworks, where each piece has a distinct cost and market value. Each artwork is valued individually, allowing for a more accurate reflection of its unique characteristics, costs, and potential market value.
- Recognizes the subjective nature of art valuation, as the value of an artwork can be influenced by artistic reputation, critical acclaim, and other intangible factors.
- Provides accurate financial reporting by capturing the actual costs associated with each artwork, facilitating more informed decision-making
Calculation Steps
Suppose an artist creates three paintings during a year, each with unique characteristics, costs, and market values:
- Painting A: Cost $500
- Painting B: Cost $700
- Painting C: Cost $600
At the end of the year, the artist has the following inventory:
- 2 units of Painting A
- 1 unit of Painting B
- 3 units of Painting C
The ending inventory value using the Specific Identification Method would be calculated as follows:
- (2 units of Painting A * $500) + (1 unit of Painting B * $700) + (3 units of Painting C * $600) = $1000 + $700 + $1800 = $3500
The ending inventory value using the Specific Identification Method is $3,500.
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FIFO (First-In, First-Out) Method:
FIFO assumes that the first items added to inventory are the first ones sold. It matches the cost of the oldest items with current revenue.
Application to Differential Costs: Under FIFO, the costs associated with the oldest inventory are matched with current revenue. This means that the ending inventory is valued based on the older, possibly lower-cost items, while the cost of goods sold reflects the more recent, possibly higher-cost items. This method can provide a more realistic representation of the actual cost of producing or acquiring inventory.
Advantages of FIFO:
- Reflects Actual Flow of Goods: The FIFO method closely mirrors the natural flow of inventory, assuming that the first items purchased or produced are the first to be sold.
- Matches Current Costs with Revenue: The costs assigned to ending inventory are based on the most recent purchases or production activities, which can be more reflective of current market prices.
- May Provide Tax Benefits: In periods of rising prices, using FIFO can result in lower cost of goods sold (COGS), potentially leading to lower taxable income and tax liabilities.
Calculation Steps:
- Determine the Cost of Oldest Inventory: Identify the cost of the oldest items in the jeweler's inventory. This could be based on the purchase or production date.
- Multiply the Cost by the Quantity of Ending Inventory: Multiply the cost of the oldest inventory (per unit) by the quantity of each type of jewelry in the ending inventory. This gives the total value of the ending inventory.
Ending Inventory Value = Cost of Oldest Inventory per Unit * Quantity in Ending Inventory
Example:
Suppose a jeweler has three types of necklaces with the following costs and quantities:
- Necklace X: Cost $80, Quantity 30
- Necklace Y: Cost $100, Quantity 20
- Necklace Z: Cost $90, Quantity 25
If the ending inventory includes 15 units of Necklace X, 10 units of Necklace Y, and 18 units of Necklace Z, the total value of the ending inventory would be:
- Necklace X: $80 * 15 = $1,200
- Necklace Y: $100 * 10 = $1,000
- Necklace Z: $90 * 18 = $1,620
The total value of the ending inventory using FIFO is $1,200 + $1,000 + $1,620 = $3,820.
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LIFO (Last-In, First-Out) Method:
LIFO assumes that the most recently added items to inventory are the first ones sold. It matches current revenue with the cost of the newest items. While the Last-In, First-Out (LIFO) inventory valuation method is commonly used in various industries, including retail and manufacturing, it's worth noting that it might not be the most practical method for artists. LIFO assumes that the newest items are sold first, which can be challenging to apply directly to the unique and often subjective nature of artworks. Here are some considerations for applying LIFO to artists for ending inventory calculations:
The practical implementation of LIFO may be challenging for artists to track.
Application to Differential Costs: LIFO can result in a higher cost of goods sold because it assigns the cost of the most recently acquired or produced items to sales. This can be advantageous during periods of rising prices as it may result in lower taxable income. However, it may not accurately represent the actual cost of producing or acquiring inventory.
Calculation Steps:
- Determine the Cost of Last Purchase: Identify the cost of the most recent acquisition of items. This is the cost per unit of the most recently purchased goods.
- Determine the Quantity in Inventory: Count the number of units or items remaining in the inventory at the end of the period. This is the quantity of goods you still have on hand.
- Multiply the Cost of Last Purchase by Quantity in Inventory: Multiply the cost per unit (from the last purchase) by the quantity of items remaining in inventory.
LIFO Cost=Cost of Last Purchase×Quantity in Inventory
Example:
Imagine an artist who primarily creates sculptures using a specific type of clay. The artist purchases the clay at different prices over time, reflecting changes in the market or the artist's evolving preferences.
- In January, the artist buys 50 kilograms of clay at $5 per kilogram.
- In May, an additional 30 kilograms are purchased at $6 per kilogram.
- In September, the artist acquires another 20 kilograms at $7 per kilogram.
Throughout the year, the artist produces sculptures of varying sizes and intricacies, and some pieces are sold while others remain in inventory.
At the end of the year, the artist wants to calculate the cost of the remaining clay inventory using the LIFO method. The LIFO method assumes that the most recently acquired items are the first to be used or sold.
If the artist has 30 kilograms of clay remaining in inventory, the LIFO calculation would involve using the cost of the most recent acquisition:
LIFO Cost=Cost of Last Purchase×Quantity in Inventory
\text{LIFO Cost} = $7 \times 30 \, \text{kilograms} = $210
In this hypothetical scenario, the artist values the remaining clay inventory at $210 using the LIFO method.
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Weighted Average Cost:
Calculates the average cost of all items in inventory, weighted by the quantity of each item.
The average cost is used to determine both the cost of goods sold (COGS) and the value of ending inventory.
Advantages of Weighted Average:
- Simplicity: The weighted average cost method is relatively straightforward to calculate compared to specific identification or other complex methods.
- Smooths Fluctuations: It helps smooth out cost fluctuations, especially when there are significant variations in the costs of individual items.
- Fair Representation: Provides a fair representation of the average cost per unit, considering all items in the inventory.
Calculation Steps:
- Determine Total Cost: Sum the total cost of all items in inventory. The cost includes the direct costs associated with acquiring or producing the art, such as materials and labor.
- Determine Total Quantity: Sum the total quantity of all items in the inventory. This is the total number of units or pieces.
- Calculate Weighted Average Cost: Divide the total cost by the total quantity to calculate the weighted average cost per unit. Weighted Average Cost = Total Cost / Total Quantity
- Apply Weighted Average Cost to Ending Inventory: Multiply the weighted average cost per unit by the quantity of each item in the ending inventory to determine the total value of the ending inventory.
Ending Inventory Value = Weighted Average Cost per Unit * Quantity in Ending Inventory
Example:
Suppose a jeweler has three types of rings with the following costs and quantities:
- Ring A: Cost $100, Quantity 50
- Ring B: Cost $150, Quantity 30
- Ring C: Cost $120, Quantity 40
- Calculate the total cost: $100 * 50 + $150 * 30 + $120 * 40 = $5,000 + $4,500 + $4,800 = $14,300
- Calculate the total quantity: 50 + 30 + 40 = 120
- Calculate the Weighted Average Cost: $14,300 / 120 = $119.17 per unit (rounded)
- Apply to Ending Inventory: If the ending inventory includes 20 units of Ring A, 10 units of Ring B, and 15 units of Ring C, the total value of the ending inventory would be:
- Ring A: $119.17 * 20 = $2,383.40
- Ring B: $119.17 * 10 = $1,191.70
- Ring C: $119.17 * 15 = $1,787.55
The total value of the ending inventory using Weighted Adverage Cost is $2,383.40 + $1,191.70 + $1,787.55 = $5,362.65.
For a comprehensive and accurate understanding of your financial situation, it's advisable to consult with an accountant or financial professional who can provide guidance on accounting practices and inventory valuation methods.
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The Art-Linx website has the most current Call to Artist information
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