[The discussion that follows is in relation to a co/op gallery that has quite strict policies and might be a model for a similar organization forming in Montague.]
The basic mechanisms (of the example co/op) seem OK. I do find the minimum-pricing LAWS to be stifling since they take no notice of the economy (or lack thereof) arising out of wise production decisions or efficiencies of production. Case in point:
I produce 5 x 7 matted photos with a production cost of $0.10 for the print (4 x 6 reprints from photo shops), $0.14 for the matting (34 mats from a 32 x 40 sheet obtained in batches of 10 from source in the USA for about $4.50 each), no cost for the backing (produced from waste cardboard cut from cereal boxes, etc. or worst case $0.03 for 1/2 of a sheet of card stock @ 250 sheets for $12), and the clear envelope at $.05 (as best I can recall). The double-sided tape costs about $0.05 ($4 for a 36 yard roll and a 5 x 7 uses less than 15” giving about 86 prints per roll). Now, of course there is labor involved, although I’m sure I can produce them in a large batch with less than 2 minutes time giving $0.50 in labor (at $15/hour), but the point is there is about $0.37 of material cost in each matted print. With those costs I can afford to wholesale them to gift shops for $3.00 (to sell for $6.00) and still have a significant margin. Yet the co/op rules require a MINIMUM price of $12.00.
In the same way my 8 x 10 matted photos cost ($.40 + $.28 + $.12 + $.10 + $.06) about $0.96 in materials and I’ve set the price at $11, yet the policies, if implemented, would demand I raise the price to at least $15.
I notice that the price minimums do not reflect framing method for paintings; they take no account of frame quality nor differentiate for canvasses that are displayed without framing. Painting on Masonite board, or clever cost savings by waiting for sales, carries no weight in allowed prices. And, of course, there is no way to set minimum prices for other art forms…by the pound for sculpture or by the square foot for quilts?
OF COURSE pre-made high-quality frames with linen interiors are very expensive and OF COURSE artists with recognized names can command higher prices, but I question the justification for setting minimum price limits. My low-cost prints have not been leaping off the shelves, but I don’t believe their presence undermines the sales of other matted reprints of paintings; they are different things.
Presumably if someone is undercutting everyone else the collective group can rise up and boot them out after the 6-month probation!