Product markup

[victorylocksmith]

When I need lots of cheap crap locks fast, I go to Home Depot and by Defiant locks in bulk. I think it ones out to $7 a lock. I think it is like $28 for a two knob and two deadbolt combo if you buy six packs. Combine that with the 5% card member discount and we are rolling in garbage! Why buy grade three crap elsewhere online when you can swing by the old Home Depot! By the way, that is exactly what I am using for this big job later this week. Replacing four locks with the crappiest locks ever and rekying them. The I'm going to polish off the crappy used ones I got from his place and pawn them off on some other cheap saps for at least $10-$20 each!

[MSL]

Hopefully your username and your business name aren't the same. I don't think a client who googles you to check you out will be too happy about being the sap getting the crappiest locks you can find, or the sap getting 2nd hand garbage.

[billdeserthills]

Hopefully your username and your business name aren't the same. I don't think a client who googles you to check you out will be too happy about being the sap getting the crappiest locks you can find, or the sap getting 2nd hand garbage.

Why not? The client obviously is a cheap bastard who figures that "Locks only keep honest people honest" the sad fact is those defiant locks just happen to have the same internals that US Lock sells.
The only real difference is the cheap client would never find out what victory paid for the US Lock hardware. I get just as frustrated doing business with people who try to insist that "locks only keep honest people honest" BS and I have been known to yell at these folks that "You don't need to keep honest people honest, they are already that way"

[billdeserthills]

When I need lots of cheap crap locks fast, I go to Home Depot and by Defiant locks in bulk. I think it ones out to $7 a lock. I think it is like $28 for a two knob and two deadbolt combo if you buy six packs. Combine that with the 5% card member discount and we are rolling in garbage! Why buy grade three crap elsewhere online when you can swing by the old Home Depot! By the way, that is exactly what I am using for this big job later this week. Replacing four locks with the crappiest locks ever and rekying them. The I'm going to polish off the crappy used ones I got from his place and pawn them off on some other cheap saps for at least $10-$20 each!

Let's not forget the sales tax you'll save with your resale license--Out my way that's almost 10%

[globallockytoo]

When I need lots of cheap crap locks fast, I go to Home Depot and by Defiant locks in bulk. I think it ones out to $7 a lock. I think it is like $28 for a two knob and two deadbolt combo if you buy six packs. Combine that with the 5% card member discount and we are rolling in garbage! Why buy grade three crap elsewhere online when you can swing by the old Home Depot! By the way, that is exactly what I am using for this big job later this week. Replacing four locks with the crappiest locks ever and rekying them. The I'm going to polish off the crappy used ones I got from his place and pawn them off on some other cheap saps for at least $10-$20 each!

The difference between a professional and a pretender (backyarder or inexperienced locksmith businessperson) has much to do with understanding the difference between wholesale and retail. Homo Depot and Lowes etc are retail agencies. Distributors (who sell to the trade and not the general marketplace) sell at wholesale prices. This enables the businessperson to purchase (often) at cheaper prices and enjoy a better chance to earn profit from markup.

If you purchase from the big box, do you markup to the customer? If so, and they check the price by shopping at the same stores, they will in all likelihood complain about your overcharging and/or leave negative comments about you...something you want to avoid as much as possible.

Always buy from a wholesale distributor. The prices will be cheaper than the big box and if you use non-brand name products, often you can offer significantly better quality at competitive prices.

I recently employed a builder to build out/renovate 2 bathrooms and a new closet for me. I was astonished that this builder bought all his materials from Home Depot. Sure he might get a little price break....but obviously he doesnt know how to build relationships with wholesalers. I cannot understand why any professional would shop at HD or similar for professional grade products. Yes, I go there too...but for a drill bit or a packet of screws or gardening guff....but rarely do i purchase anyhting that i can get cheaper at my wholesaler.

Business 101 Lesson# 2

[victorylocksmith]

i think you guys have misjudged me, i only do this when they are being unreasonably cheap and need to get locks immediately. i dont see why there is an issue of providing cheap crap, when they are only willing to by cheap crap! how else would i go about it? essentially give away grade two locks when they are not even willing to pay $20 for a lock???

also, because i buy it in bulk, i get a better deal and the people who buy the locks from me only pay a maximum of $5 more per lock if they bought the lock one at a time. additionally, i do actually have connections with locksmith distributors, such as Clark, American Key Supply, and most recently HLFlake thanks to Bill!

look alright, would i sell them a home depot lock for $100? NO WAY, but if they only want to pay $20 a lock and stiff me money, then at the end of the day, that is up to them and how can they expect anything else but garbage locks?

[cledry]

i think you guys have misjudged me, i only do this when they are being unreasonably cheap and need to get locks immediately. i dont see why there is an issue of providing cheap crap, when they are only willing to by cheap crap! how else would i go about it? essentially give away grade two locks when they are not even willing to pay $20 for a lock???

also, because i buy it in bulk, i get a better deal and the people who buy the locks from me only pay a maximum of $5 more per lock if they bought the lock one at a time. additionally, i do actually have connections with locksmith distributors, such as Clark, American Key Supply, and most recently HLFlake thanks to Bill!

look alright, would i sell them a home depot lock for $100? NO WAY, but if they only want to pay $20 a lock and stiff me money, then at the end of the day, that is up to them and how can they expect anything else but garbage locks?

If they aren't willing to pay the going rate tell them to look elsewhere. That's what we do.

[billdeserthills]

i think you guys have misjudged me, i only do this when they are being unreasonably cheap and need to get locks immediately. i dont see why there is an issue of providing cheap crap, when they are only willing to by cheap crap! how else would i go about it? essentially give away grade two locks when they are not even willing to pay $20 for a lock???

also, because i buy it in bulk, i get a better deal and the people who buy the locks from me only pay a maximum of $5 more per lock if they bought the lock one at a time. additionally, i do actually have connections with locksmith distributors, such as Clark, American Key Supply, and most recently HLFlake thanks to Bill!

look alright, would i sell them a home depot lock for $100? NO WAY, but if they only want to pay $20 a lock and stiff me money, then at the end of the day, that is up to them and how can they expect anything else but garbage locks?

I totally understand how you feel & why tell them to go elsewhere, if you want their money, get it.
I really doubt that anyone can buy Defiant locks for less than Vicyory says he paid at Home Depot. They have a wholesale branch that You guys are not aware of, which is why your contracter shops there. It's called Home Depot Maintence warehouse and I have bought sliding glass door cylinders from them in the past, cause they were cheaper than my locksmith wholesaler charges.

[victorylocksmith]

i would love to not have to deal with incredibly cheap clients but, as it stands, 90% of my customers are CHEAP! so what is a guy supposed to do? if they only want to pay for cheap crap, then i am going to try to get the cheapest crap there is. i dont think anybody can honestly say they can easily get locks that are $7 or less, regardless of how crappy they are. oh and by the way, today, because of how guilty i felt about slinging such crap as defiant, I went and got some grade 3 general lock deadbolts. dont get me wrong, i am still using defiant knobs, but now i use general lock deadbolts because, nobody can tell the difference with the knobs because it doesnt have any branding but, now they cant tell how cheap and crappy the deadbolts are!

no but really, all ridiculousness aside, im doing the best i can with what i got. i'm even throwing in some security pins for free because i am generally concerned about the security of my clients. additionally too, i make sure everything is installed properly and everything is lined up right with the strikeplate.

[billdeserthills]

Seems to me like these cheap clients are prolly very glad to have found you Victory, and You have found a way to satisfy them & make a few dollars for yourself--Good business all the way around!

[victorylocksmith]

Hopefully your username and your business name aren't the same. I don't think a client who googles you to check you out will be too happy about being the sap getting the crappiest locks you can find, or the sap getting 2nd hand garbage.

they may be saps, but they are willing and informed saps. i let them know that they are buying crap, and when they get whiny, i tell them well if you are not feeling cheap, then how about some grade1 locks, OR maybe a MEDECO lock! then they get scared about the price and buy the crap i usually sell. come on man, what do you expect from buying a lock for $20-$25?! its not like i am charging them some large amount of money in order to make bank from ripping them off.

at the end of the day, the only sap, is the sap that is only willing to pay very little money for their own security.

[MSL]

Security is one of those things people don't appreciate until the little they had is defeated. I've worked for various security companies. People don't want to pay a lot of money for expensive equipment or well-paid guards. Problem is that if you're paying minimum wage to someone to guard your multi-million dollar property and equipment, you're having it protected by a guy who is only able to get a minimum wage job. Then the client doesn't seem to understand why the place was ransacked by a guard sleeping in the breakroom.

But then again with some small businesses, like someone opening a hotdog joint as the sole proprietor, just starting off you probably can't spend more than $25 on a lock even if he wants to. Times are tight everywhere I guess.

[cledry]

This is yet another reason why we rarely do residential locks. Commercial is so much better paying we will gladly leave that side of the work to those who want to deal with cheapskates. Don't get me wrong, some commercial accounts can be cheap as well, but it is a rarity rather than the norm. Where I work each employee is expected to bring in $400-$500 a day in business on average, this is just not easy with cheap residential customers.

[billdeserthills]

This is yet another reason why we rarely do residential locks. Commercial is so much better paying we will gladly leave that side of the work to those who want to deal with cheapskates. Don't get me wrong, some commercial accounts can be cheap as well, but it is a rarity rather than the norm. Where I work each employee is expected to bring in $400-$500 a day in business on average, this is just not easy with cheap residential customers.

That is true, and one of the things I really dislike about this industry is that most houses I have seen broken into, it wasn't the lock that gave out. It was the old rock through the window trick, see. Even in light commercial settings, the rock through the window trumps Medeco Everytime. I remember one location I worked at several times, it was a beauty shop with (4) aluminum/glass commercial doors. First time it was robbed, the thief wrenched a cylinder out so I put 4 armored guard rings on.
Next week they pried out the cylinder with a crowbar and made me look like an idiot, when the guard ring didn't stop them, so I put HPC guards over each mortise cylinder. The next week they threw rocks through the windows and I never got called out to do work there again, but the glass company sure did some good business there after that.
I had asked the owner the first time "what had been taken?" Turns out they kept cash in the register to begin the morning shift. I told her as long as there was easy money in there to steal they would keep on breaking in and wouldn't she consider buying a safe, or leaving the cash elsewhere, but she refused to listen.

[globallockytoo]

if you choose to use the same cheap garbage that Homo Depot uses, what do you think that says about you in the eyes of the market? they are devaluing you and worse you are devaluing yourself and the entire trade.

Often the Grade 3 product from wholesalers, like LSDA, Cal-Royal, USlock, PDQ and some others i forget right now, is often far superior quality to the brand name products of the same class. Often they will come with longer warranties/guarantees. Grade 2 LSDA comes with a 10 year mechanical warranty. I think Cal-Royal does too.

There are always three prices to quote the customer. The cheap way, the middle price way, and the expensive way. Everyone knows that the expensive way is always the right way, but often the middle price way will suffice the customer.

If you choose to push the cheap way.....remember this one pearl of wisdom, "Paying Peanuts, Gets You Monkeys!"

BTW....It is your ultimate goal to increase your reputation by providing better quality products and services. Leave the cheap stuff to the handymen and fakers. Do the right thing and strive to always move forward with quality and service. Your business will naturally increase, your reputation will become known for representing quality product and services and you will make more money, probably by working less.

It's up to you.......but dont you value yourself higher?