Tag: Marketing

Decoding Insane Prices in the Art Market | November 20 2025, 19:03

Let’s be honest about the art market (and why the prices there are insane).

Actually, there’s no mystery to it. It works somewhat like NFTs, only with a longer history and a better reputation.

The scheme is simple:

You take an item that hasn’t been on the market in this form yet (a painting, sculpture, installation — doesn’t matter). You call it an “important artifact”. It helps if you have connections — galleries, auction houses, billionaire collectors. If you don’t have connections, then find someone who does and sell the cow to them. Since uniqueness is required, there will be no paintings of bears in a pine forest, no matter how brilliantly they are done. There will be something distinct.

The very notion of “this is a painting/sculpture” — is just a convenient formality. The main thing is that the object can be incorporated into the already established art trading system.

Art is such — one of the most convenient ways to “optimize” taxes and move large sums of money. Paid 18 million euros for someone else’s work, and then someone “on your side” bought some of your work for the same 18 million. Virtually no money was really lost (just taxes), and now in catalogs and rankings, two works are each priced at 18 million. The price can be pushed up by selling them cascadingly. Win-win. Auctions are just in on the deal. Further, if you donate this work to a museum for charity, you can even cut more taxes. But it can also be sold. And here’s why.

Currently, there are simply too many free funds in the world. The number of billionaires and their wealth is growing faster than the availability of truly rare assets (real estate, companies, gold, etc. have all been divided already).

Art is one of the few markets where “scarcity” can still be created literally out of nowhere.

If you have access to a hundred such wealthy simpletons and you can tell stories (“this is an investment for 20-30 years, it will only increase”), then selling is purely a technical matter. Two or three interested parties = bidding already starts, and already you see +50-100% to the price.

Over time, real cases appear: someone bought in 2000 for 2 million, sold in 2024 for 80 million.

These cases are used to convince the next buyers. New buyers with their money confirm and amplify these cases. The cycle is closed.

Result: the rise in prices in the top segment of art is directly tied to the increase in the number of super-rich and their capital. As soon as a serious global crisis occurs and the extra trillions stop being printed/earned, and the pyramid collapses, the market will very quickly show where there was real cultural value, and where it was just a beautiful financial scheme.

P.S. This doesn’t mean at all that all contemporary art is a bubble. There are works that are really important historically and culturally. It’s just that at the very top of the price pie, cultural value has long ceased to be the main driver.

But at the summit of Olympus of the most expensive paintings of classic genius solitaries, there will never be, because galleries and dealers need artists who can produce 20-50 works a year to satisfy demand, organize exhibitions in five capitals simultaneously, and maintain turnover. Artists like Lopez Garcia, Odd Nerdrum, or Ron Mueck make unique pieces that will become especially valuable only after the artist dies.

Exploring Shepherdstown: A Hidden Gem in West Virginia | August 20 2025, 13:00

From the trip to Shepherdstown, WV. A small town an hour’s drive from home, founded over 260 years ago. Hardly any tourists, but the few small restaurants and shops compete against each other for the attention and interest of passing travelers.

From the street, there’s an open window at the Lost Dog Coffee cafe. Inside works a very colorful bartender and owner, Garth Emmery Janssen. The coffee shop’s Facebook tagline reads “Founded in 1995 by two crazy punk rockers. We are not normal. We do things correctly. it’s ❤️”

Oat milk latte, please. Dear sir, Garth answers me, that wouldn’t exactly be a latte then. But if you insist, of course. Okay, I say, make it the right way, it doesn’t matter to me. The coffee turned out delicious.

Next, there was an art studio, which I have already written about in previous posts, a handmade cosmetics store where the owner eagerly shares her chemical experiments on the quest for perfect creams and soaps, and where she sells prints drawn by her daughter, who, unfortunately, has grown up and no longer wants to draw.

A very homely atmosphere everywhere. And a nice little town. It lacked modernity, and yes, our regions are all like that, with dust from the past, modernity is somewhat cumbersome.

The Art of Illusion in Pricing: Dishwasher Capsules and Subscription Models | August 09 2025, 13:06

An interesting marketing tactic: three different types of dishwasher capsules are sold at the same price: good Complete, premium, and premium plus. Identical packaging, identical prices, but of course, a different number of capsules. For example, platinum has 59 capsules, while the plus version has 47. It seems such odd numbers hardly register in the buyer’s mind, but not every buyer fundamentally thinks about whether it’s important for them to save money. However, if you compare the extreme versions, the platinum plus version is simply twice as expensive as the complete version.

Another interesting example – a subscription to LLM (Chatgpt, Gemini) for $200 a month. It would seem, what fool would pay a couple of hundred for something barely better than the basic for $20-30. But it’s a very sensible decision when you have a market of hundreds of millions of users: most of them are organizations. For an organization, $200 a month is not much different from $20 a month, both are negligible for the budget. Well, okay, even multiplying by hundreds and thousands of subscriptions, there are those who place themselves among slightly more premium clients at a small price for them.