Price

To set a price for the product, costs need to be considered, including:

• Payments to the artist
• Art centre overheads (such as rent and operations)
• Design and production expenses
• Packaging and distribution
• The profit you want to make per product

Pricing should be based on market research, ensuring that it is competitive with similar products while still generating the profit required.

Calculate price per piece

When pricing a product, it’s important to undertake market research: investigate how much your target customers are willing to pay and ensure the price is competitive with similar products.

The success of a product depends not just on price, but also on quality, design, and uniqueness. If selling outside local markets, additional costs like shipping, warehousing and storage must be factored in.

Pricing will vary depending on where the product is sold:

• Direct to consumer sales – If selling directly at an art centre or market stall, then set the retail price for customers.
• Sales through retailers – When selling wholesale to retailers, it’s standard to set both the wholesale and retail prices—typically by doubling your landed cost for wholesale, then doubling again for retail. This ensures consistent pricing across all retailers and maintains healthy margins.
• Pricing for city or international markets – Selling farther from home is more expensive due to added costs like marketing, shipping, import/export duties, and storage. To ensure consistent pricing across all markets, it’s important to set both the wholesale and retail.

Tracking sales and customer information is important because it helps understand demand and adjust pricing strategies accordingly.

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GST

As you’ll be developing products under your art centre, it’s important to consider GST (Goods and Services Tax) from the start. Since your art centre is registered for GST, any goods bought or sold within Australia will be subject to GST, and you’ll need to account for this in your pricing.

GST in Australia is 10% of the total taxable value and is generally added after you’ve calculated your base costs, such as manufacturing.

If you’re importing products from overseas, you’ll need to factor in GST (10%), Duties (5%) and shipping. Once added to your manufacturing cost these combined costs are often referred to as your landed cost. This is the actual total cost of getting your product ready for sale in Australia.

Even if you’re manufacturing in Australia, you still need to charge GST on purchases and sales and report it in your BAS (Business Activity Statement).

GST must be included in your final retail price to ensure you’re not out of pocket when it’s time to remit tax to the Australian Tax Office.

Your art centre likely has a bookkeeper or accountant who can help you understand how GST and other costs apply to your specific pricing model.

Visit the Australian Taxation Office online for more information:
Taxable sales | Autralian Taxation Office

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Payments to artists

Copyright is an important asset belonging to the artist, and royalties are the payments they receive when their artwork is used on merchandise. These royalties are not optional—they are a necessary cost of production, just like manufacturing and packaging expenses—and must be included in the budget from the start.

When you are working out a fair royalty amount you should be guided by the Indigenous Art Code, which promotes fairness and transparency. This means:

• Artists must be paid fairly for the use of their copyright
• They have the right to understand the royalty terms, including when and how they will be paid, before production begins
• The royalty agreement should be in writing, allowing artists time to review and seek advice before agreeing

While there is no standard licensing fee, factors like the artist’s profile and level of experience, the type of product, and the licensee’s engagement with the art centre and community must be considered.

Visit the Licensing artwork and Copyright pages for more information.