Should Artists Bake Sales Tax into Art Fair Prices?
A pricing guide for artists selling at outdoor art fairs and open studio tours advises against rolling sales tax into the sticker price, arguing it inflates the perceived cost and may deter buyers. The article recommends listing the base retail price and adding tax at checkout, a practice standard in galleries. Exceptions occur when event organizers mandate tax-inclusive pricing; in such cases, artists should conform to avoid appearing difficult. The piece also suggests offering pre-tax discounts to close sales rather than letting tax calculations kill a deal. The author emphasizes keeping display prices clean and consistent to train collectors to treat artists as professional businesses.
Key facts
- Rolling sales tax into the sticker price inflates the initial price impression.
- Standard gallery practice is to show base retail price and add tax at checkout.
- Event organizers may mandate tax-inclusive pricing, requiring conformity.
- Artists should state the price plus tax clearly at checkout.
- Point-of-sale systems can automatically calculate tax.
- Discounts should be applied to the retail price, not the post-tax total.
- Artists may 'eat' the sales tax by adjusting the base price to close a sale.
- The article is from reddotblog.com.
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- reddotblog.com