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The difference between ‘profit’ and ‘profiteering’

By Geoffrey Williams, Founder and Publishing Curator, The Indigenous Art Book

 

In a recent post, I wrote that I would return to the topic of the difference between ‘profit’ and ‘profiteering’, because this is a complex and often ill-informed conversation between buyers and sellers of Aboriginal Art once the piece has been purchased outright and upfront from the artist(s).

 

Visitors to Aboriginal Art galleries – whether they be ‘bricks and mortar’, online, or both – often don’t realise that the paintings on display and for sale are owned outright by the gallery owner. As discussed in our earlier post, they are never there on consignment. I should also point out that I have no experience in the community-based Aboriginal Art Centre economic ecology, so I am not in a position to write about how these Art Centres conduct ‘business’ with their artists.

 

Understanding the difference between profit and profiteering in the context of the Aboriginal Art movement relates to ethical and fair business dealings with the Artists in the first place, and throughout our business relationship with them. Understanding the difference also means that we need a clear definition of what the two different words mean and represent.

 

Profit is a legitimate earning from the sale of Aboriginal artworks, often achieved through fair practices that respect the artists’ rights, creativity, cultural and reputational significance within the broader movement more generally, and the overall quality of the piece. Ethical galleries, organisations, and dealers make a profit by selling artworks at a reasonable and necessary markup, ensuring that the price paid for the piece in the first place has been fair, reasonable, adequate and respectful.

Profiteering involves exploitative practices aimed at maximising financial gain at the expense of the artists. Profiteering often involves taking advantage of the artists’ economic vulnerability, geographic isolation, or lack of access to fair and ethical markets or collectives where fair prices can be determined, resulting in underpayment or no payment for artworks. Unscrupulous dealers might purchase works at very low prices, misrepresent their origins, or even sell unauthentic or misappropriated works to increase profit margins without giving artists proper credit or compensation. This practice undermines the artists’ livelihoods, the cultural integrity and significance of the art, and creates a situation where buyers and collectors of Aboriginal Art believe that every gallery owner is profiteering, rather than making a reasonable profit on their initial fair and ethical investment.


My Country by Kathleen Petyarre. Painted in 2011. Acrylic on canvas. 90cm x 60cm. Image courtesy of The Bedford Collection and The Indigenous Art Book. © 2024. All rights reserved. Reproduction is strictly forbidden in all national and international jurisdictions.

 

The business of Aboriginal Art

 

Like any form of commerce, the business of Aboriginal Art relies on sellers making a profit on the pieces that they sell, and that profit margin represents a percentage of the associated costs involved with running their business. The perception that Aboriginal Artists are being “ripped off” or “exploited” stems from a perception that gallery owners should not be able to profit from selling the works they have purchased from the artist(s) for a profit, or that the artist(s) have been paid very little for their work when compared to the amount the piece is now being sold for. While there is certainly a history of unscrupulous and opportunistic dealings with artists and their families throughout the history of the Australian Aboriginal Art Movement, our relationship with artists today relies on transparency, mutual respect and understanding of the commercial imperatives. Mutually rewarding business relationships with artists are built on the foundations of trust, respect, and ethics, and it is next to impossible for us to function in the commercial world of Aboriginal Art if the artists do not trust us to do the right thing by them or their families – because they simply will not sell their work to us.

 

Case Study 1: A young artist learning how to value and sell her art

 

This particular example of a young artist’s first encounter with an Art Gallery is an interesting example of how important it is to establish a mutual understanding of trust and fairness when dealing with young artists and their families – and how quickly and unexpectedly things can go tremendously wrong!

 

A young artist had come to see me and sell me one of her paintings. She is one of the youngest members of a celebrated family of artists, and there was immense excitement about her beginning to painting her mother’s and her famous great-aunt’s story. The value of her work, and her place in the provenance associated with her painting, was indisputable – but like many artists, she had no idea what she wanted to sell the piece for. This is the rule, rather than the exception, because Aboriginal Artists rarely know what their work is worth. They see our prices, but they rarely appreciate what dollar value within our retail price is reflected in the price for them.

 

I made this particular artist an offer, and she accepted it – and there were smiles and much relief all around. Only a few hours later, I answered the phone to one of her aunties, who told me in no uncertain terms that neither she nor other members of her famous family of painters would ever sell to me again! It turned out that the price I had offered was considered way too low, and that I had taken advantage of this young artist, and that was that. The end. I suggested to the aunty that given that she was way more experienced in selling to galleries, that she come in with her niece and we go over the transaction again to resolve our issues.

 

Later that day, the young artist returned to the gallery with her aunty, and we began again. Aunty stood a little away from us, pretending to be distracted by bright, shiny souvenirs. I mentioned my first price, and before the young artist could respond, there was a sudden and very particular sound from Aunty that was, let’s say, negative. I increased my offer, and again, Aunty was not at all satisfied. I increased my offer again, and Aunty was silent – but for a reasonably satisfied smile and a nod. The price and the rules had been set and agreed.

 

Case Study 2: The young women from Arnhem Land

 

When artists from Arnhem Land make the long and complicated journey to Darwin to sell their weavings, it is always a cause for great celebration. On this particular occasion, a small group of young women arrived from Maningrida with a large collection of beautiful creations. The first roadblock was language – their relative lack of English, and my complete lack of any way to communicate with them! We stumbled awkwardly through the pleasantries – collectively realising that we were rapidly approaching a dead end. Fortunately, one of the young women had one of her famous Aunties (who I knew very well) on the phone from Maningrida, and after I was informed that these young women were members of her family, and that this collection of weavings was intended to fund their trip to Darwin (and back to Maningrida), the instruction was simple – “Best price Geoffrey. Good price.” The young women’s aunty stayed on the phone, as I tapped away on the calculator and noted values in what became a very long list. The total price was presented to one of the young women, who relayed it (and I’m not sure what else), to her aunty, who instantly approved and thanked me, and our deal was done.

 

The influence of Elders in the success (or otherwise) of negotiations with artists is an absolute certainty throughout the contemporary Aboriginal Art Movement. What is equally true is that if these same Elders consider you untrustworthy or unethical, then the consequences of that conclusion are not only unfortunate, but also final. Working with artists to develop our business relationship is crucial to not only our success in the business of Aboriginal Art, but more importantly, theirs.

 

Geoffrey Williams is the Founder and Publishing Curator of The Indigenous Art Book. He is based in Darwin, Australia. The Traditional Owners of Darwin and the surrounding region are the Larrakia (Saltwater) people. Larrakia country runs far beyond the municipal boundaries of Darwin, covering the area from the Cox Peninsula in the west to the Adelaide River in the east.

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