As I mentioned before Studio Art Quilt Associates (SAQA) is holding an auction for a large number of small 12″ square quilts. You can watch the progress by reading the news on the SAQA home page.
This morning I sent the following letter to the board of directors.
[I have been warned by a friend that I should not pursue this matter for fear I will be blackballed by the very influential and powerful members of the board. Apparently I don’t believe the board members are so petty as to behave this way. I suppose I could be wrong - but so be it - I refuse to sit there quietly and say nothing.]
Dear SAQA,
I am extremely concerned by the current reverse auction that saqa is holding.
Several years ago I sent you links to some documents from the society of north american goldsmith’s concerning art auctions, www.snagmetalsmith.org/Publications/Professional_Guidelines/. I’m curious if the saqa board has read them.
I’d recommend the board reading each document in entirety but failing that here are some summarizing points:
III. FINANCIAL IMPACT OF FUNDRAISING AUCTIONS ON GALLERIES
Despite any altruistic intentions, fundraising auctions are dedicated to the selling of artwork and craft, - and in doing so, compete directly with galleries. Galleries operate year-round and must recoup the expenses of renting or buying exhibition space, advertising, inventory, staff, etc. - before they see any profit. Auctions do not operate year-round but benefit from the on-going public awareness generated by galleries. Auctions that sell art or craft at prices far below retail compromise the economic viability of galleries.
A. Revenue deferred or lost. The same people who visit and buy art and craft at galleries are also invited to auctions. Patrons may defer a gallery purchase in anticipation of finding a particular artist’s work at an auction. Or in another scenario, if collectors have purchased a piece by an artist at an auction they may not be interested in buying another piece through the gallery. Given both these examples, frequent auctions impinge or may even exhaust the resources patrons budget for the viewing and purchase of art and craft.
B. Artwork Devalued. Auctions rarely sell artwork for full retail prices. All selling prices of artwork impact the market for art and become part of the provenance of artwork. Abnormally low prices generated by auctions may become the de facto market prices. Retail sales at galleries may be directly impacted - and ultimately the value of artwork in collections and artists’ livelihoods may be affected.
FINANCIAL IMPACT OF AUCTIONS ON COLLECTORS
A. Sustainability. If a piece of artwork is just what you wanted and sells well below the retail price, then collectors may have gotten a bargain. But this is a relatively short-term advantage, since this practice, ultimately, is not sustainable. Artists and galleries suffer the cumulative financial impact of frequent auctions, possibly putting them both out of business. This negative financial impact is compounded if the auction is held within the same geographical area as the gallery or the artist’s retail business.
The closing of a gallery impacts the art community–artists, patrons, appreciators and collectors–by removing a location for the discovery and advancement of artists, the screening and selection of art work, and guidance offered by galleries relating to purchase and acquisition.
B. Auction prices can affect collection values. The value of a collection depends on the established value of the artists’ work. This value relies in part on demand for an artist’s work which is a matter of perception. When higher or lower (above or below retail) prices are generated at auction, the established value within a collection may change. Since appraisals for insurance purposes are often based on the recent sales of similar works by the same artist, changes in established market prices may impact appraised value. When generous bidding at auction yields higher than retail sales prices, every one wins. Unfortunately, since artwork sold at fundraising auctions often sells below established retail prices, the collectable value of an artist’s work may suffer.
FINANCIAL IMPACT OF FUNDRAISING AUCTIONS ON ARTISTS
A. Artists receive little or no compensation for donated work. Often, there is considerable pressure on an artist to donate work outright - receiving no percentage of the winning bid. Only the most generous auction organizers offer a percentage of the selling price to the artists. Since the work offered at auction typically sells well below the retail price, even with a percentage, the artist only receives an amount far below the wholesale value.
B. Artwork sold at discounted prices in auctions may affect your retail values elsewhere. Every artist should maintain control over the selling prices of his or her work. (Please see the discussion about value in the Discounts document, section II. Some Remarks About Pricing). Since auctioned artwork often sells far below retail price, maintaining control of pricing is impossible. The ultimate result of this discounted selling price is that the value of an artist’s work and the ability of a gallery to command full retail prices for the entire body of an artist’s work is adversely affected.
IV. RECOMMENDATIONS FROM THE PROFESSIONAL GUIDELINES COMMITTEE
A. Set a Reserve Price
The Professional Guidelines Committee recommends that the auction sponsor set a “reserve price” for work offered in an auction. The “reserve price” is the price below which the artwork will not be sold. This reserve would ideally be 80% of the retail price. The artists should be offered 40% of the retail price for their donations. The art organization will receive 40% of the retail price for fundraising and the collector has the possibility of receiving a 20% discount. Work sold above the retail price (as a
result of generous bidding) creates additional revenue for the auction sponsor.
I find the current auction being held by saqa to fundamentally flawed given the extremely low final bid ($50 /sq foot) and that the artists are not receiving a portion of the sales.
Does the saqa board disagree with the findings in the above reports? If the board disagrees I would like to understand why they disagree (does the board have proof that this information is incorrect?). If the board agrees I’d like to understand why the board is holding an auction that clearly goes against the recommendations in these guidelines.
While I am not a member a saqa, I am a member of the larger art quilt community and I feel the actions of saqa are negatively impacting all of our careers and I would like to understand why a professional organization that is supposed to be supporting their member artists is behaving in a way that is hurting all quilt artists in the long run.
Lisa Call