The Fragile Ecology of Art: Understanding the Gallery Ecosystem
A Gallerist's Perspective on Preserving Cultural Spaces
By Brett Labit | Published: September 27, 2025
Last month, I stood in the empty shell of what had been a thriving gallery in downtown Phoenix. After 15 years of showcasing emerging artists, introducing thousands of collectors to new work, and hosting countless community events, they had closed their doors forever. This scene repeats itself across the country more often than most people realize.
As the owner of multiple galleries in Arizona, I've witnessed firsthand how delicate the art ecosystem truly is. Most galleries operate just a few slow months away from closure, while many talented artists would need to find full-time employment without gallery representation. The cultural destinations we treasure—places like Tlaquepaque Arts & Shopping Village in Sedona, the galleries of Laguna Beach, or Santa Fe's Canyon Road—exist through a careful balance of cooperation between artists, galleries, and collectors.
"Most galleries are a few bad months away from bankruptcy, and many artists would need to find a full-time job if they lost representation."
The Gallery's Role in the Art World
Many people wonder why galleries exist in an age of Instagram and online sales. The answer lies in what galleries provide beyond simple transactions:
For Artists:
We invest thousands of hours developing emerging talent, providing professional photography, creating marketing materials, managing inventory, handling shipping logistics, and building collector relationships. We introduce artists to new markets, secure exhibition opportunities, and handle the business side so artists can focus on creating.
For Collectors:
Galleries curate quality, provide expertise and education, offer professional installation guidance, and create spaces for discovering new work. We maintain relationships that help collectors build meaningful collections over time, not just make individual purchases.
For Communities:
Galleries create cultural gathering spaces, support local economies, sponsor arts education, and make art accessible to the public through free exhibitions and events.
Understanding Art Pricing
Artwork prices reflect market value, determined primarily by supply and demand. Like any professional—whether an attorney billing for their expertise or a chef at a renowned restaurant—artists with strong demand and limited availability command higher prices. The market ultimately decides value based on what collectors are willing to pay.
This reality can be challenging. Some artists and galleries discover their work isn't valued as highly as hoped. Rather than artificially inflating prices or offering deep discounts, the sustainable path forward involves improving the work, presentation, and market positioning.
The Economics Behind the Art
Here's what many don't realize about gallery economics. When a collector purchases a $10,000 artwork:
- The artist typically receives $5,000 (50%)
- The gallery receives $5,000 gross revenue
- After deducting rent, staff salaries, insurance, utilities, marketing, shipping, and other operating costs, the gallery's net profit averages 8-10%—just $800-1,000
This calculation doesn't include the months or years a piece might occupy gallery space before selling, or the countless hours spent moving, lighting, and presenting the work. Both artists and galleries operate on surprisingly thin margins for the cultural value they provide.
The Challenge of Direct Sales
Some artists choose self-representation through websites and social media. While this can work for those with marketing expertise or budgets to hire professionals, most artists find they invest as much time and money in self-promotion as they would pay in gallery commissions—time that could be spent creating new work.
More concerning is when artists sell directly to collectors the gallery introduced them to, or when collectors pressure artists for "gallery-free" deals. These practices might save money short-term but erode the very system that creates opportunities for discovering and experiencing art in meaningful ways.
Preserving Our Cultural Spaces
Art galleries have enriched communities since the 15th century. Today, they face unprecedented challenges from rising rents, changing buying habits, and misunderstandings about their role. Here's how each participant in the art ecosystem can help preserve these vital cultural spaces:
Collectors:
When you discover an artwork in a gallery, purchasing it there supports not just the artist but the entire ecosystem that made that discovery possible. Pay fair market value—neither inflated prices nor deep discounts serve anyone well long-term.
Artists:
Gallery relationships are partnerships. When galleries invest in developing your career and market, honor that investment. Build your own collector base for direct sales rather than redirecting gallery-introduced clients.
Galleries:
Maintain transparency in pricing, deliver exceptional service, and continue evolving to serve both artists and collectors in changing times.
A Shared Future
The next time you walk into a gallery—whether in Sedona's Tlaquepaque, along Canyon Road, or in your local arts district—remember you're entering a carefully balanced ecosystem. Every purchase, every relationship, every interaction either strengthens or weakens this cultural fabric.
We all benefit from vibrant gallery scenes: artists gain sustainable careers, collectors discover meaningful works, and communities enjoy accessible cultural experiences. By understanding and supporting this ecosystem, we ensure future generations can experience the transformative power of art in beautifully curated spaces.
The choice is ours: nurture this ecosystem now, or risk losing these irreplaceable cultural touchstones forever.
Brett Labit owns and operates Creative Gateways galleries in Arizona with his business partner, Valeria Gavrilova. They are dedicated to fostering sustainable relationships between artists and collectors while preserving the vital role of galleries in our cultural landscape.