Use this worksheet to help you determine your break even level of sales
One business model for your art business could be producing and selling a series of prints, photographs, sculptures or multiple copies of any artwork. The advantage of this model is that it allows you to leverage the work or designs you have created and achieve some level of efficiency and predictability in producing the copies. An edition can be either limited or unlimited in the number of pieces produced. Before you embark on producing and selling multiple copies or prints, it is a good idea to know what your costs will be and how you should price the works so that you will make a profit.
An art project could be producing a series of limited prints sculptures or a quantity of one such as an original painting. If you are in business, by definition you are trying to make a profit. You may be trying to make a lot of profit, a little or somewhere in between. How do you know if you are making a profit? There are a couple of ways to determine your project profitability.
You can go ahead and produce an art project and sell it, you then add up all of your costs and subtract them from your project revenue and whatever is left over is your profit.
You can take more of a planning/estimating approach by determining what your anticipated profit will be before you start the project.
If you have already created your project and know your costs then your pricing becomes the most important thing in determining project profitability.
This article is about using a common business tool called a “Break Even” analysis. The idea is to identify all of your project costs combined with your expected sales price to determine how may units you need to sell to yield a profit of zero or “break even”. Of course you will probably want to do more than just break even.