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Price Calculation for the RiverRun Portfolio

 

Determining the selling price of the RiverRun portfolio has involved the integration of three major areas of valuation:

1.      Expenses

The obvious accumulation of costs per copy. It is included in the calculation of all copies as the absolute minimum necessary in order to be able to afford the material needed for the next copy.

2.      Hours and wages per hour

A necessary factor to allow the artist enough living expenses in order to continue to produce. The hourly wage is rather arbitrarily set at $20 per hour, about $40,000 per year, or less than one third of the expected salary for a computer programmer consultant.

3.      The value of the prints as having artistic value.

The value of the actual art over and above the expense and effort of production. The initial value is set at zero. The value of the prints is then escalated through the edition based on the average or $172.00 per individual print of the same size in an edition of 199 prints. That amount is then reduced by half. This is to lower the price per print in the portfolio collection in order to attract those collectors who intend to break up the collection and donate the individual prints to tax free institutions at the individual print rate.

 

To derive the final selling price the needed income per copy is then doubled, as it is assumed that on the average the artist can only hope to receive 50% of the selling price.

 

The price is structured such that every copy includes the expenses, but the wages and print values begin low and then escalate throughout the edition. This is to make the prices attractive for the initial sales of the portfolio when the artist is desperate to recover initial expenses, and to make up the overall average in the later numbers of the edition when the quality has also evolved.

 

Finally, the reason that there are three ways to buy this portfolio is to offer a less expensive version, and a sliding scale of prices by allowing the choice of optional prints.

 

Not only will this portfolio evolve over time, but it also allows the collector to participate in the design of his or hers particular copy by selecting the optional prints. In principle this means that any particular copy may be unique.

 

 

 

 

 

 

COMPLETE EDITION

180 pages text

38 prints

BASIC EDITION

180 pages text

10 prints

 

EXPENSES PER COPY

Text, 180 pages

paper, ink & waste

$180.00

$180.00

Binding

Board

Glue

Print

Cloth

Slipcase

Wood

Glue

Sandpaper

Finish

Lucite

$100.00

$100.00

PR & Marketing

$50.00

$50.00

Prints

38x2.00 = $76.00

10x2.00 = $20.00

 

 

 

TOTAL Expenses per Copy

$400.00

$350.00

 

 

 

 

HOURS / WAGES

Printing Text hours

50

50

Binding hours

10

10

Slipcase hours

15

15

Sign, cut, trim, collate, spray

2

2

Print hours

38 prints / 13

10 prints / 4

Total hours & wages per copy

90 hours x $20.00 = $1800

80 hours x $20.00 = $1600

 

 

 

 

 

 

 

PRINT EVALUATION AS ARTISTIC OBJECTS

Print Evaluation per portfolio divided by 2

38 prints x $172 / 2 = $3250

10 prints x $172 / 2 = $900

 

 

 

 

 

The above three above values were combined and distributed over the edition in the following manner:

 

 

Complete Edition

 

Basic Edition

 

Custom

Edition

copy #s

Expenses + Wages

Prints Value

Final Price

Expenses + Wages

Prints Value

Final Price

additional cost per print

1-15

$2600

$00

$2700

$2400

$000

$2200

$20

15-30

$3500

$1600

$5100

$3200

$450

$3650

$55

31-45

$4400

$3250

$7750

$4000

$900

$5100

$100

46-60

$5300

$4675

$10,000

$4800

$1350

$6150

$150

61-75

$6200

$6500

$12,700

$5600

$1800

$7400

$200

75-79

$8000

$7000

$15,000

$7000

$2000

$9000

$230

 

 

 

 

 

 

 

 

 

What is not accounted for in the above calculation are the amorphous hidden costs.

 

In addition to the expenses used in the calculation is an estimated expense of nearly $20,000.00 for capital equipment such as computers, printers, network, software, paper cutter, trimmers, binding presses, wood working tools, etc. Spreading this out over an estimated 10 projects, this amounts to $2000 against the RiverRun portfolio.

 

In addition to the hours/wages is the initial creation of the raw data, about 2 months. The initial writing and creation of the body of the text, another 2 months. The scanning, manipulation, testing of images; 1 month. The revision, collation and integration of images into text; 1 month. The creation of the actual pages; 1 month. Promotion and marketing, materials, travel, postage, etc,; 1 more month. Rounding down this estimated 8 months to 6 months, or 1000 hours at $20 per hour, this amounts to another $20,000 invested in the RiverRun portfolio.

 

Together this amounts to another $280 of expenses and wages that have not been applied to the above calculation of the selling price of each of the 79 copies of the RiverRun portfolio. Doubling this from wholesale to retail, the price of each the above copies should have been $560 more.

 

Realistically, taking into consideration these hidden costs and the fact that the edition may never sell out, I estimate that my return on the RiverRun portfolio will be in the neighborhood of around $4 to $6 dollars an hour, and only that much after I have sold the first ten copies.

 

I do not list this very poor investment under the column of Artistic Suffering. It is, rather, in the category of the artistís passion for the work, and the artistic compulsion to communicate.

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