During and even since the formal end of the recent national recession, no industry was immune to the financial effects, including the art world. In particular, art galleries were affected, which resulted in them changing the way they do business. Here in Philadelphia, several longstanding galleries have chosen to shut their doors after many years in the business. However, a number of galleries have decided to move to new locations or restructure their business model. As a result, there have been a record number of art galleries, studio warehouses and art districts popping up all over Philadelphia. Although the infamous art bubble has popped, the growth of galleries is suggesting that artists and art galleries are changing their models and faring well in the age of the recession.
The traditional art gallery model, in which art galleries consigns artwork from an artist and sells the piece for a 30 to 50 percent commission, is no longer financially viable for art galleries. Some clients no longer have discretionary funds to purchase art or are in search of reduced prices and are buying directly from the artist. In addition, many artists are managing their own art sales by selling artwork out of their studios and/or online through their website or art websites to avoid paying the commission to galleries. This has resulted in a decline in art sales as a consequence of the recession and, since the costs associated with business overhead have not dropped along with sales, traditional art gallery models are no longer profiting or cost-efficient.
Several new gallery models and functions are arising, one of which is artist’s collectives. This new art gallery model is surging as young and new art professionals are teaming up to acquire studio and gallery space to show their artwork. This new model has been organically created under the economic shift of artists no longer depending on convincing privately owned galleries to show their artwork. Chasing their lifelong dreams, in pursuit of hobbies or simply to generate extra cash, artists have taken the power into their hands and become entrepreneurs. Typically artists are juried into an existing collective or a few artists come together and create their own artist collective. All of the artists split the bills by paying monthly dues ranging from $100 into the upward thousands. This model gives the artist an opportunity to show their work in a group or solo exhibit for at least an entire month on their own terms. The artist becomes the artistic director and receives the majority of the sales proceeds, which range in the upward 80 percent.
Kesha Bruce, curator, art consultant and advocate, puts it best when talking about the importance of artists joining forces: “I think it’s a great idea for women artists and creative to reach out and connect with each other. It’s not a cliché to say that there is strength in numbers. I say this all the time—other artists aren’t your competition, they are your greatest allies” (Bruce 2011).