CHANGE THE STATUS QUO

Karenina Fabrizzi

Here is something that you won't hear from anyone in the Old World. The art market is in terrible shape. Galleries are dying. Emerging artists are being squeezed from every direction, and cannot live from that practice. more often than not, they have two jobs.

The market is highly dominated by a few players. They define what you see in the museums. in galleries, at any exhibit.

At Potatomike, we want to play a part in changing the status quo.

How we propose to change it is simple.

Let’s bring Accessibility and Transparency to the Art World. let’s be open and more candid.

So, let us explain why this is necessary. The art market is in decline. Look at the numbers. The total art market is valued at $65 billion globally, every aspect of it, counting, all the galleries, auction houses, and everyone else comes out to $60BB. Now that is also the revenue of a single Fortune 500 company in the US makes every year.

This gives you an idea of how small the art market really is. Here's another data point of how small the market is. The revenue of 55% of all galleries generates less than 200,000 in total revenue.

If you think of it, 50% of this revenue goes directly to the artist. So Galleries operates on razor-thin margins.

The usual deal is 50% goes to the artist, so the Galleries revenue income is approximately 125K, at which point, They have to pay rent, they must pay for staff, they have to pay their own salaries, they have to pay for the exhibits, marketing material, lighting, opening night, with wine and hors d’oeuvre, the flyers, social media, etc.

That's why it doesn't work.

30% of all galleries are closing their doors, And only a few actually make money.

The way out of this quagmire is to promote Accessibility and transparency. they are both equally important, but let’s start with transparency, and why it is important. Transparency in any market brings conversion and conversion brings revenues in.

Conversion is everything, and in the art world, it's terrible, almost non-existent.

The old way of “business as usual “ and a murky marketplace is no longer working except for the few stars like Koons, Prince, or Hirst. but what about the legions of incredibly talented artists that are struggling and suffering?

Bring Accessibility and transparency to the art world and watch things take off. An art buyer looking to make their first or second or even third purchase has really no clue as to the real value of a piece of art.

By making historical pricing and transparency mainstream, the art world will take off and flourish.

There has not been a time in the history of the art market where the art world was as mainstream as it is now.

We have never experienced so many people that visit and show interest in art. in fact, they visit beautiful exhibits at the top museums around the world, and the numbers keep on climbing every year. As a point in case, Art Basel in Miami was full last year, there were never-ending lines in front of the fair.

People want to go in and see art. it’s a moment in time every year, and the results in terms of people are incredible, but regardless, very few people end up buying artwork,

Why the conversion is not present?

Pay attention, next time you visit one of these events, everyone is clamoring and taking pictures, but nobody buys art. The Conversion is just awful.

Take an example of any industry. To make a point, let’s just compare, the internet to the art world.

So what do you do when you run an Internet company? You work on the conversion, you check your analytics, you import your data, you check your competitive analysis, you scrub your numbers, you look at the historical, you spend countless hours reviewing your data, and so on.

The art world hasn't changed an iota. In fact, the number of artworks that were sold in terms of volume of art is down by approximately 20 percent. then a decade ago. Sure you have incredible sales for 100+Milion, even a piece that sold for an astonishing 450$MM, but what about the rest of the artists?

Not good news. And at the same time, the number of millionaires and billionaires has more than tripled around the globe, and with so many more people visiting art fairs and events. the art world should be explosive, but unfortunately, fewer people do buy.

The reason behind it is once more, the lack of accessibility and transparency. if someone was to invest $5k in an artwork, knowing full well, the actual benchmark of the artist's work, based on previous sales, and a trend that could give a prediction of the value of the present artwork, people would look at emerging art in terms of investment and would pour in their capital into this asset.

Now, who buys art today? rich people. Buying art, from a confirmed handful of galleries and auction houses. in general, the stereotype is dominated by a wealthy white male in his 50s.

But wait… what about this painting or that one setting another record price? like The Davinci that sold for $450 million. And we all hear all this news about the auction houses setting record sales. that the art market is booming. Well, totally true. yes for the few privileged, it is true, Over time you see that prices increased dramatically over the past years. but for the rest of us, it is, unfortunately, the opposite.

In the past ten years, prices went up dramatically. if the majority of art lovers are not buying art, This leads to a conclusion. That this industry is still run by a few individuals. And then there is the rest, that is struggling, that is dying.

Another data point that is awfully accurate is that the major exhibits around the globe, are usually work presented by a handful of galleries, who themselves represent less than one hundred artists, and we are being generous here.

Approximately 25-30 artists make up more than 50% of the total revenue spent at contemporary auctions.

We have to change this.

Because art shouldn't be run by a few individuals, a few collectors. A few artists and a few galleries. Art is for everyone. we all want to see new things in museums.

We are demanding a diverse view of the art market.

What we need is we need more buyers and we will find them through transparency.

Both Accessibility and Transparency are the keys because it brings in new buyers.

Think about how difficult it is today to buy artwork in an art gallery. the surroundings more often than not are austere, it tends to make you feel uncomfortable. It's this white cube with very little emotion or life injected into it.

Going to a gallery could be a sterile environment, the first thing you notice is the emptiness and unease, and if you happen to like a piece of art, you must inquire about the price, which by itself is an unpleasant task.

Once you ask, you are now looked upon as an intruder, by a fleet of salespeople, who make you feel like you do not belong.. talk about conversion kill. And then the director comes down just to state that the artwork is not available or the price is stratospheric. . They make it incredibly difficult for our generation to buy out.

As such and in conclusion, we request accessibility and transparency, along with all the information on the artist and his/her collection, Now!, immediately, and at no cost. . But the art world is not giving it to us. it is trying to protect itself at the expense of all others. That's why. we are playing our part at Potatomike.com.

Let”s turn the art market into a trillion $ marketplace, accessible to all.