Every gallery charges a percent, a commission. Many people try to figure out how to up their prices with the percentages, but I have an easy way to do it.
HOW NOT TO DO IT: Just a minder, this is how NOT to figure your percent, and I’ll explain why.
You want $75. You know the gallery takes 40% commission, so you think, “Okay, so 40% of 75 is 30. So I’ll just add 30 to 75 and have my price!” So you turn in your piece with a price of $105. HOWEVER, the Gallery is going to knock 40% OFF of $105. Guess what 40% of 105 is? $63. Now you’re wondering why you received a check for $63, and I will tell you, bad math just cost you $12. And don’t think this is a small thing–the difference is larger the more “net” you want to receive. For instance, using this formula, if you wanted to net $600, you could come out $96 short!
This is what your (incorrect) little equation looks like: 75 X 40% (OR 75 X 0.4) = 30 You follow up the equation with a second one: 75 + 30 = 105. THIS IS WRONG.
So how do you figure the adding of 40% to your price? $75 is 60% of the total price you want it to be, right? So to wind up with the correct price–pay attention, because this is HOW TO DO IT–you divide 75 by 60%. Answer is the amount the gallery will charge: $125. NOW take your figuring from before, and multiply $125 by 60% to figure how much you’ll receive. $75, the end result you wanted in the first place!
This is what your NEW equation looks like: 75 ÷60 (OR 75 ÷ 0.6) = 125 THEN TO FIGURE OUT FROM THE GALLERY’S END: 125 X 60% (OR 125 X 0.6) = 75. You always want the end result to be your net. You can change the numbers–if the gallery does 30%, then figure with 70% (because that is ultimately what your cut will be from the final figure).
Oh math, you fickle subject for artists. Where to multiply, where to divide…at least here, I’ve given you a tip I hope becomes imprinted! Our customers often find it confusing as well, as does any customer who doesn’t understand why 10% off plus a 10% off coupon does not equal 20% off the total price. (which is a subject for another day*)
Percentages are not the only grief causing math problems…
*okay, first you take the price, then take the 10% off. AFTER that, take 10% off the reduced price (for instance, a $10 item would actually cost $8.10, not $8). It’s tricky tricky, but retail clerks everywhere will appreciate you not fussing because you thought 10% off plus 10% coupon equals a total of 20% off. It can be a small difference on an inexpensive item, and less off than you thought on a larger item. Because do you really expect a 20% off coupon plus an item that rings 80% off means that item is free? No way!
*Ms. Wakefield spent several years working at a big box chain store. This has changed her attitude towards retail probably for the rest of her life.
Advice from the Curator's Desk 