Interview Recap: Josh Baer with Jeff Poe on the Evolving Art Market
In this episode of The Baer Faxt podcast, host Josh Baer sits down with Jeff Poe, the ex-co-founder of Blum & Poe, for a second time. A year after retiring from the art world, Poe shares his candid reflections on how the market has evolved, what galleries and artists should focus on, and the lessons learned from past crises. Poe examines the industry's challenges, opportunities, and future directions with characteristic honesty.
Josh Baer: Welcome back, Jeff. A year ago, your episode was one of the most talked about in and outside the art world. What was the response like for you?
Jeff Poe: I got a lot of positive feedback, especially from dealers and collectors who appreciated the honesty. I don't engage much with social media, but my wife helped me read through some comments. I found the harsher ones amusing-it's part of being out of the game now.
Josh: Let's dive into the state-of-the-art market post-pandemic. What stands out to you?
Jeff: During the pandemic, galleries thrived by cutting expenses. Costs from art fairs, shipping, and travel disappeared; surprisingly, people kept buying. Revenue dipped, but expenses fell further, leading to increased profitability. However, the industry didn't learn from this-most galleries went back to their old ways of overexpansion and excessive spending.
Josh: Less is more, then?
Jeff: Exactly. Galleries can succeed by contracting. The problem is that many, especially mega galleries, expanded recklessly. They now face immense overheads, with multiple global locations to maintain. It's unsustainable.
Josh: What about mid-level and emerging galleries?
Jeff: Mid-tier galleries face different challenges. They need to rethink their approach-fewer shows, longer durations, and more thoughtful curation. Galleries also need to have honest conversations with artists and collectors about pricing and market realities.
Josh: What happens when prices drop?
Jeff: Dealers often resist lowering prices, but it's not the end of the world. The market is fluid, and price adjustments can benefit artists and collectors in the long run. It's about sustainability, not chasing quick gains.
Josh: What advice do you have for young galleries and artists?
Jeff: Be bold and creative. Don't try to emulate established galleries-it's not sustainable. Focus on building meaningful relationships with artists and collectors. For artists, avoid overproducing and stabilise prices. The goal should be long-term growth, not short-term hype.
Josh: What do you see happening over the next five to ten years?
Jeff: The market isn't going anywhere, but it will change. The eventual departure of figures like Larry Gagosian will reshape the landscape. Galleries that adapt by focusing on fewer artists and more sustainable practices will thrive.
Josh: You've stepped away from the art world, but do you still offer advice?
Jeff: Yes, I've been helping artists and galleries on an informal basis. It's rewarding to give back without any strings attached. My main advice? Stay grounded. Don't overextend. And be creative-it's the only way to stand out.
Key Takeaways:
- Pandemic Lessons: Reduced expenses during COVID-19 highlighted the value of contraction. The industry needs to focus on sustainable practices.
- Mega Galleries: Overexpansion and high overheads pose significant risks. Cutting back on locations, staff, and artists could help.
- Mid-Tier Galleries: Prioritise fewer, longer-lasting exhibitions and honest pricing strategies to navigate challenges.
- Artists: Avoid overproduction and inflated prices. Long-term success requires balance and thoughtful career management.
- The Future: The market will remain strong but will see significant shifts, particularly with the eventual retirement of industry titans.
- Advice for Emerging Players: Creativity and innovation are essential. Focus on meaningful work rather than replicating established models.
This candid conversation offers a rare glimpse into the art market's inner workings, providing valuable insights for artists, dealers, and collectors alike.
24 Oct 2024 - The Baer Faxt Podcast
