From time to time I’ll use this blog to feature interviews with professionals that serve key roles in the fine art community. International art dealer Reed V. Horth of Florida was kind enough to answer questions for a two-part interview. Part one dealt with questions for artists; below is part two which answers questions for art collectors. Enjoy!

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Please describe what you do and how you help collectors find the perfect artwork to add to their collection.

My particular role as a Fine Art Concierge often involves collectors telling me what artwork they want. This is sometimes a more clinical process than the pure, visceral feeling of buying artwork at a show, auction or gallery. This being said, I present a broad spectrum of artists, works, price ranges and media to them, then gauge their responses trying to find out their feelings whether positive or negative. I ask questions, and I listen to their answers. I do not try to fit a round peg into a square hole. Just because I have a work does not make it perfect for them. Perhaps there is another work or artist that suits them perfectly. That is the piece I want to find for them.

Do you advise your collectors to purchase for “pleasure” or for “investment”?

In this day and age, no one purchases anything they ostensibly do not need without thinking long and hard about it. I do not advocate Art being bought specifically “to make money”. That being said, art has much more solidity than many of the more “safe” traditional investment vehicles. I doubt many investment advisors were prescient enough to know that their “safe” investments would be selling at roughly half their value presently.

I believe that all art, no matter what the price, should be purchased for pleasure (whatever “pleasure” encompasses for you… pride, imagination, tranquility, lust, money, inspiration, discomfort, etc.) At prices under $5,000, collectors may buy without a reasonable expectation of monetary returns on that purchase. At about $10,000 the mentality shifts to a more pragmatic mode where collectors may desire some form of appreciating asset.

What documentation should accompany a piece of artwork so a buyer can prove authenticity if they decide to sell the piece later?

Generally, a writ of sale (i.e. a purchase order, invoice, or letter of origin) should accompany any fine art purchase. If the artist chooses, they may issue a “Certification of Authenticity” which certifies this work as being by their own hand. As their sphere of influence grows and there is more of a risk of duplication and/or fakes surfacing on the market, these Certifications become even more important. If an artist’s work is distributed by a publisher, the publisher will issue these certifications.

Additionally, artists should sign their works and keep an inventory of the works they have produced in their career. I would encourage them to give each work a reference number. Artists should know the date, name, size, media, consignment date, sale date and end user name (Oftentimes this is the gallery, and the gallery is not under any obligation to tell you the buyer’s name, although they may) This lineage establishes provenance so that an artist can retrace steps if and when there is a question of authenticity, or when a catalogue raisonne is prepared.

When a collector sells an original piece of artwork from their collection, do they have any responsibilities to the artist who created it? For example; reporting the sale, paying the artist a percentage of the profit, etc.

No. Once the artwork leaves the artist’s hands, the ownership rights are handed over. While Artists do maintain their copyrights to prohibit unauthorized reproduction, they do not have claim to any profits from sales.

(Note to readers: in the U.S. only California recognizes Resale Rights for artists. For more information do an internet search for “California Civil Code Section (§) 986”)

Many people who would like to become art collectors or learn more about art in general express a feeling of “intimidation” about the subject. Have you run across this sentiment before and if so, can you explain where you think it might come from?

Art is somewhat of an intimidating subject because we all feel that we “should” know more about it than we generally do, kind of like fine wines. There is a tendency to want to know about different varietals and appellations, but few of us will take the time or effort to discover the nuances that differentiate one bottle from another. It becomes more and more daunting because there is such a massive amount of information to disseminate. This is why dealers, artists, experts, clients and those who work in the arts oftentimes will specialize in one genre, era, style, artist or movement.

What qualities should novice collectors look for in a good art consultant or gallery? Should an art dealer have a long history in the arts arena?

Good dealers will make certain that customer service is such a focus that the sale will not be a one-time occurrence, but a long-term relationship that can be nurtured. Clients want to be loyal and come back to their comfort zone. It is difficult to gain this trust and all too easy to lose it from one bad piece of advice.

Great dealers do not always have backgrounds in Art, but most possess some degree of knowledge and can balance passion for the Arts with a pragmatic business-sense. I have seen dealers who know very little about Art or its history, but are gifted salespeople and marketers. Conversely, I have seen salespeople who are so knowledgeable that they bog clients down in Art minutiae and bore prospects out of buying. A balance between the right-brain and the left-brain must be struck.

But, my primary criteria for a person I work for or with is “respect”. I feel that everything we do in life boils down to this concept. Respect for oneself, for others, for time, for your business, for your contracts, for Art in general and the artists and clients you represent in particular. Respect in all things is paramount.

Name two or three of the biggest mistakes first-time art buyers often make.

Many buyers think that they are instant experts because they Googled something. They will develop a picture in their head of how things are based on half-truths and innuendo. As with everything, we must take information with a grain of salt. Consider the source and remember that your research is cursory at best. Simply reading a few articles about art cannot substitute for an expert’s years of experience.

Buyers should also understand that reading auction figures only provides one minute cross-section of the pricing spectrum. The criteria being measured may or may not be based upon the same criteria with which you are dealing. Auction cycles, time, location, other items being offered and rarity are some of the myriad factors at work in an auction price. Some prices are anomalies and should not be taken as indicators of the market as a whole.

Are there any factors that make one particular piece of art more worthy of collecting in comparison to another?

I see a confluence of factors including being in the right place at the right time, rarity, speculation and being first or the last of a trend or series. There is not a tried-and-true, fool-proof method of determining which works are more important than others, but typically your gut will give you a good indication on whether or not the work you are obtaining is worthy of what you are paying for it.

Is there any type of work that you would advise clients against buying? If so, please explain why.

I advise clients not to buy works all the time. If it is over-priced or there is ambiguity in the documentation on a work or if has not been properly vetted by third-party experts. Your role as a dealer should be to advocate the best possible advice for your clients. Sometimes it is not in their interest to buy a particular work at a particular time. Sometimes it is in their interest to tell them to avoid it altogether. This is how you build trust with a client. Not merely seeking their hard-earned cash, but truly having their interests in mind and doing the best job you can for them.

Can you elaborate a bit more on what you mean by “vetting by third-party experts”? Who are these experts and what is the vetting process?

Depending on the artist, age, type, size and scale of the transaction dealers and/or clients will call in independent, third-party experts to verify the veracity of the information provided and transactional aspects. Third-party experts are generally dispassionate observers with no vested interest in whether or not money changes hands as they have no stake in the transaction’s completion, only in denoting their expertise as it relates to the work itself.

These third party experts include, but are not limited to: Appraisers, authenticators, attorneys, import/export officials, police and investigatory officials (who investigate a work’s clearance on the international market) and title insurance advisors (to ensure a work is available to be sold without title encumbrances).

Dealers do not necessarily serve in this capacity as there may be a monetary motivation preventing them from complete neutrality in the process. Not to insinuate that dealers cannot compartmentalize, but experts should primarily not have a buying and/or selling interest thereby ensuring no bias.

What should collectors know about copyright laws? For example; a collector buys a painting and would like to have the image scanned and placed on a mug, is this acceptable use of the purchased art?

Collectors purchase no copyrights whatsoever when they purchase a piece of artwork. If they wish to reproduce the artwork in any way, shape or form, they must obtain explicit written permission from the artist or copyright holder (sometimes this is the publisher) to do so. Copyright attorneys will be able to expound of the legal jargon behind this assertion a bit more fully, but if you are in doubt about whether or not you can…. you probably can’t.

Have you noticed a big difference between the American art market in comparison to the European art market?

Over the past several years the disparity between a weak US Dollar and the EURO and British Pound has caused many more Europeans to purchase high-end commodities in the United States. Exchange rates trading at over 2/1 caused British buyers to frenzy to the US to snatch up undervalued properties, art, gold, silver, diamonds, etc. The recent weakening of both currencies has curtailed much of this spending, but many investors still feel that they can milk the boom for a bit longer.

Tell a little bit about how you came into your line of work and where curious art lovers can go to procure your services.

I started in the Art business in 1997, and established ROBIN RILE FINE ART (www.robinrile.com) at the end of 2008. My passions and studies have always been focused on art. Once I realized my talents lay more in Art promotion and writing than production, I found my niche. That forte is in locating rare blue-chip investment-level works for high-end clientele. Through research, tenacity and connections many unbelievable deals can be located for investors right now. Oftentimes, I will receive very strange requests (Like one gentleman who wants a full-scale example of Auguste Rodin’s “Bourgeois du Calais”). But mostly they will ask for a blue-chip artist in a given price range.

I also really like to work with and mentor young talented artists. While I cannot work with everyone, I love to help artists establish themselves as professionals, make their passion their career, and develop long-term strategies which can build their reputations and oeuvre. It is a privilege to deal with such talent. I am humbled by it and will never take it for granted.

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Thanks Reed!

From time to time I’ll use this blog to feature interviews with professionals that serve key roles in the fine art community. For the first post in this series I’ve interviewed international art dealer Reed V. Horth of Florida. Reed specializes in 20th century art and contemporary emerging artists. He was kind enough to answer two sets of questions for me; part one aimed at artists and part two aimed at art collectors. Below is the artists oriented portion of the interview. Enjoy!
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There are several terms used to refer to individuals who sell art: dealers, brokers, & consultants. Can you explain if there is any difference between these terms? And if so, please describe what role these individuals play in the art buying / selling relationship?

These terms can often be substituted for each other as their meanings often overlap. Ultimately, our role as Art Professionals is to consult and give safe council to both buyer and seller (whether to an individual artist or to a casual buyer, serious or professional collector, investor, museum or institution… the role remains essentially the same). Generally dealers have artists or genres which they deal in a physical or virtual capacity. Brokers generally are interlocutors between a specific buyer and specific seller. Consultants are some combination of the two who literally consult, artists, buyers, sellers and publishers. I have personally served in each role, and been called upon to write contracts, advocate for both buyers and sellers, and deal with attorneys and intermediaries on behalf of all.

What is the average commission an artist can expect to pay to a reputable dealer or broker who sells a piece of their work?

This is entirely case by case and will involve myriad factors, not the least of which is the work which will go into building or enhancing a market. Things which must be considered are the existing size of the artist’s sphere of influence, the resume of the artist and the style of work he or she produces. An artist who has a geographical following may not translate to other markets with the speed and vigor they might hope for. These markets may require a broader marketing plan and this equals higher fees for the broker or dealer. Often, as an artist expands, I have seen “Keystone” pricing structures (Example: The artist receives $1000 for a work, the marketer/Dealer “Keystones” the price to $2000. This incorporates their fees and the expenses inherent in marketing.)

Sometimes the role of the broker or dealer and the keystone pricing model are an area of confusion and debate. If you have a representative who places your work not just with private buyers, but also solicits galleries, and other art professionals, the artist’s fee is only one part of the overall “Wall Price”. (Example: The artist receives $1000 for a work, the marketer/broker “Keystones” the price to $2000. The gallery has a “Wall price” of $4000.)

With the above mentioned pricing structure in mind, would you suggest artists price their work with the keystone pricing already built in, or just price with their own fee in mind and allow the sales people who market the work to add their fees and increase the price of the work accordingly?

No, I do not recommend that artists try to build their own pricing model, as it inhibits and puts restraints on galleries, brokers and intermediaries who may not price in this fashion. Artists should find a fair price they are comfortable with and charge that amount. This keeps it simple for all.

How common would you say it is for a gallery to buy an artist’s work wholesale (like in most other retail industries) as opposed to taking on the work through a consignment arrangement?

I am not necessarily an outright advocate for open consignments. Artists must always be on the lookout for predatory dealers whose ethics may be “Questionable”.(Thank you!)I have advocated a “Buy one- Consign one” model. This is obviously case by case, but you should speak with other artists who the gallery represents in order to get an unblemished, third-party “off-the-record” appraisal of the way they deal with their artists.

Would it be considered gauche for an artist to request a wholesale purchase of their work instead of a consignment contract if such an arrangement is not a gallery’s normal practice?

Artists have assets… namely, their art. While all galleries have their own policies, and we must be respectful of their practices, you must protect yourself and not rely solely on the dealer to provide you sage council. Go with your gut. If it seems too good to be true… it probably is.

Good advice. If a gallery offers a 10% discount which scenario do you think is fair and please explain why: gallery absorbs full cost of discount, artist and gallery split cost of discount, artist absorbs full cost of discount.

Artists should price their artwork reasonably to their dealers. If they are overpriced to begin with, the gallery may need to ask you to eat a portion of the discount in order to get a deal done. This is fair for them to ask and fair for you to accept. This being said, if your prices are reasonable, the gallery should not need to go to you and ask you for a 10% discount as it is a small portion of the whole which can be made up for in bulk sales.

Are there some quick ways that an artist can determine whether or not their work is over or under-priced for a particular market?

Yes…. Are they selling? If not, pricing may be a factor. If so, prices may need to be bumped up. Build a dialogue with your representatives. Most dealers will let you know when works are moving more rapidly, as they will need more inventory. A solid dialogue with a trustworthy partner will allow you both to evaluate whether or not the market can bear a price hike, or whether or not the pricing is excessive. But, don’t raise your prices more than once or twice per year.

When an artist wishes to establish a relationship with a gallery or other type of art dealer, what is the best way to make first contact; phone call, email or cold call visit?

Dealers and brokers have busy schedules and their time should be respected, therefore it is probably best to make initial contact in the most non-intrusive fashion possible. I suggest a letter or email with one or two photos (low resolution attachments for email), followed up by a call to ask whether or not the information was received. If the work is well received, see if you can schedule an appointment to meet directly with the decision-maker in the business.

Why is it important that an artist who has gallery representation NOT sell work directly to clients at a lower price than the gallery?

First, it is unethical. You hire the gallery to do a job for you, just as they hire you to do a job for them. They depend on you to be ethical and not circumvent their efforts. A tremendous amount of time, money and energy is expended to build a market for an artist, market them and expand their sphere of influence. If this marketing yield a client interest, the client may try to go directly to you and it is your responsibility to send them back to the gallery who has worked so hard for you.

Name three qualities a dealer tends to look for in an artist and the artist’s work that make them want to represent the artist.

Talent: Number one factor. It comes in all forms depending on what the dealer likes, has a market for and specializes in. Bear in mind there are a lot of talented singers, but only one person wins American Idol.

Originality: This can take many forms. (Obviously, as this is the definition of “original”) This goes for media, technique, personality, genre, theme, and everything associated with your art. What separates you from everyone else?

Professionalism: Dealers depend on their artists to produce quality work consistently. This is their business, not just their passion. Artists who treat this as a profession tend to fare better with business owners who have overhead, staff and bills to pay.

Name some behaviors or qualities that can make a dealer or broker NOT want to deal with an artist.

Talent: Number one factor again. Some artists are good, but not great. It sometimes takes a fresh set of unbiased eyes to differentiate between the two. While myriad factors exist which define talent, it is entirely subjective and should be taken constructively.

Originality: If your artwork looks, feels and is related to everything else in a particular gallery, there may not be room for artistic competition in the existing contracts that gallery may have.

Professionalism: If an artist is unreliable, unethical and unprofessional, it is difficult for dealers to reconcile. If an artist sells directly to a client when the dealer’s work has clearly been the cause, it is unethical. If an artist cannot call their dealer or representative back when they are working on a deadline, it is unprofessional. Dealers often have a very narrow window in which to close a sale, before the buyer goes elsewhere or finds another item to purchase. Delays mean money out the window. If an artist displays unprofessional behavior, particularly when clients are present, that dealer, their other artists and all their future business may stand to be greatly damaged. Contracts are put in place for a reason. Make certain that they are fair to you and have terms you can live with. Then, once signed, live up to those terms. This is what you would expect from your dealer, right?

Can you name several “red flags” artists should look for when deciding which galleries and dealers to stay away from?

While there is no tried-and-true system for determining which galleries to deal with… Check them out. Talk to artists, neighbors, the local magazines or newspapers. Oftentimes, they will have good advice about individual galleries that you might not hear from the staff. Never sign contracts unless you are 100% certain you can live with the terms of it.

In your opinion, what is a fair “exclusivity” clause in a contract between an artist and gallery?

Exclusivity should be regionalized based upon geography, performance, sphere of influence and potential upward mobility. As a general rule, you should not have more than one gallery in any one town when you are starting out. If they are doing a good job and selling your work at reasonable intervals there is no need for change. Look for outlying cities that might have circles who would also enjoy your work and may have galleries to solicit. As that sphere grows, so will your business.

How has the Internet changed the fine art industry?

Anyone can be “discovered”. Whether it is dance, song, writing, art or politics, anyone has a shot when you have 200 Million potential viewers. That does not mean everyone will, but the information is out there. This also means that you will have more chances of being solicited directly and testing your allegiances to your dealers. Remember, if a gallery has done their job well you may have a spike in inquiries directly to you. This means they are doing a good job and they deserve to be rewarded for it. In the long run, these referrals back to the gallery will pay you dividends.

How do you see the fine art industry changing in the next 5-10 years?

I am not an artist, although I sometime wish I was… YOU determine the future of art. It is up to us in the industry to keep pace.

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Thank you Reed!
Keep watching the blog for part two of the interview featuring questions and answers for art collectors.

Further information:
Reed V. Horth is a Fine Art Concierge and dealer specializing in the location and procurement of international paintings and sculpture from 20th Century Icons such as Pablo Picasso, Salvador Dali, Andy Warhol, Roy Lichtenstein, Norman Rockwell and others; as well as contemporary emerging artists such as Travis Franklin, Tristan Schane, Erik Jones, Javi Suarez, Jr. and Peruvian Master Estremadoyro. For the past 12 years he has been responsible for the arranging estate sales and collections for museums, galleries, institutions, investors and private collectors worldwide, including members of the FORBES and FORTUNE 500 lists globally. You can learn more about Reed V. Horth at his website: www.robinrile.com