Need Input - Residential Re-Key Pricing

[cab]

I have questions about the price of re-keying residence locks. These are bank owned, post foreclosure/eviction.

As part of other services I offer lenders, re-keying the residence locks is part of the package. To make the package attractive to lenders, I need to price the re-keys competitively.

My train of thought is to charge by the opening. Since we will be there already, this would eliminate any trip fee.

These are mostly new tract residences in So California built by Lennar, Hovnanian, KB Homes etc.., and most have Kwikset/Schlage KIK/deadbolt combos, nothing really exotic. 3 to 4 doors per residence usually, most have rear sliders.

What is your normal trip fee?
How do you charge – by each cylinder re-pinned, or by the opening/door?
What are your “piece meal” rates?

My initial thoughts were to charge $30 per door opening (both locks). Please keep in mind, the locksmithing service is in addition to other services, thus the discount. Certainly if it was a straight re-key job, normal rates would apply.

Any comments and suggestions are appreciated, and thanks in advance for your input.

[mrdan]

Trip varies by distance. Typically within the city it is around $40 trip and around $80 / hr labor and for residential it might be broken down into 15 minute incriments. But all these rates change due to distance or type of lock. Basic info though

[cab]

Thanks Mr Dan
I knew trip fees would be largely dependent upon mileage/travel time. I wanted to give a typical estimate for comparable purposes - but our area is all 5 So Cal counties, no out-of-area fees, we bill them just the same.

[Shrub]

Right so your now doing lockie work as a sideline and as such are doing it as a reduced rate becuause its not your real line of business?

Its people like you who are killing this industry if thats the case, what about the real lockies who your killing because you want to make a fast buck or two,

As regards rekey fees, its merely a couple of dollors (per lock) and not worth making some huge price structure over, if you get called out to do a rekey its a call out charge ontop of the couple of dollors to rekey,

I never have done and never will understand lockies that charge journey time, its bang out of order and on the same page as the builder who after his first cup of tea in the morning then says he needs parts and goes to sit in a carpark for 2 hours while charging you for the time hes 'getting supplies',

As always only my opinions which i believe im entitled to,

[cab]

Thanks for input Shrub.

Working around locksmiths, I saw two types; guys who would show up with cylinders already keyed; other who re-pinned on the spot. The difference in the invoice amounts – usually about $50-$100. It wasn’t too hard to figure out the more expensive guys re-pinned on the spot so they could charge more. The lenders caught onto this, and that’s what I am trying to figure out since wisely, the locksmiths never gave ma a straight answer.

Straight Hourly vs.
Service Call – if you charge one.


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As far as your opinion – I prefaced my post indicating I would not be “undercutting” regular fees. I’ve been a self-employed private investigator and business owner for twenty years; purchased a $300K business which collapsed, then brought it back. It’s a licensed profession and multi-faceted occupation, not a trendy or quick way to make a buck. It’s also no secret private investigation/security and locks are all interrelated.

Like any savvy business owner does, and as I have successfully done with my PI business, I have created a niche which utilizes both licensed services. My new business segment is nothing new and readily available to any locksmith. In fact, I have gone back and am using some of the same locksmiths I have worked around for the past twenty years, and even help set them up, doing the same thing.

And of course, as with any business, the mechanical aspects (locksmithing, investigation or even cooking as a chef) is the easy part of the business; it’s the ability to succeed at the other sucky portions which separate hobbyist, from business owners.

I would think your anguish and concerms would be directed more towards people who are encouraged to participate in a “sport” or hobby which could easily be used for unlicensed and unchecked locksmithing; thus hurting the profession far more than somebody who takes the time to ASK, learn, and to go thru the licensing and insurance process.

I understand your defensive comments – but think they are premature.

[jimb]

Like any savvy business owner does, and as I have successfully done with my PI business, I have created a niche which utilizes both licensed services. My new business segment is nothing new and readily available to any locksmith. In fact, I have gone back and am using some of the same locksmiths I have worked around for the past twenty years, and even help set them up, doing the same thing.

I would like to hear more on this as private investigation is an area of interest to me. It was an area I was interested in getting into until I discovered locksmithing. I even took some classes. You can pm me if you like.

To answer your original question on re-keys. I charge a $45 service call charge and $10 per keyway for re-keying. I say per keyway because in my area deadbolts that are keyed on both sides are common. I usually don't charge any extra if I have to open the house or if the working keys are lost or not available, unless they have an attitude. I have had realtors have a couple of houses within a few blocks of each other and these I will do on one service call charge plus re-keying charges.

[2octops]

Are you licensed as a locksmith?



BTW......I agree 110% with Shrub. Nothing piss*s me off more than to see someone undercutting everyone else in the industry that is trying to make a living for their family, just so they can make an extra $90. If you need $90 more per house, then go up on whatever your rates are and don't pi$$ off the local locksmiths.

[globallockytoo]

California has some of the tightest restrictions for locksmith licensing in the country. I would be very careful if i were you. Without a license it is a misdemeanor offense that will get you arrested and fined.

Texas has the tightest locksmith licensing laws in the country and also the most rigorous enforcement.

Best you apply for a license I suggest. The only locksmiths who do not require licenses in CA are institutional and only if they never do a job outside the institution.

[cab]

Well, to satisfy anybody's concerns, yes, Cali licensed and insured, both occupations. Cali licensed as company, not simply a locksmith employee.

And why has this turned into ME undrecutting other local locksmiths? I asked for competitive pricing structures. I offer a package of services any other locksmith can offer too. I prefaced my inquiry, hoping to avoid this scenario. Geesh.

[Eyes_Only]

I think maybe there was a misunderstanding from everyone who read this thread. I personally don't see cab saying anything inappropriate or wrong from what I read.

[mrdan]

The rates I mentioned are the rates of the shop not my own so if I don't charge a trip fee , I would have to go find another job because I'd get fired. I do carry already keyed cylinders of different types generally about 3 or 4 of each type which is usually front door garage door back door and garage side door. The price we charge, I have no control over as an employee. And yes to the licensed question. We do have some at the shop and sometimes customers come in and bring their locks in for re-keying , they don't get charged a trip fee. You won't find an awful lot of lockies able to stay in business if they charged so little unless they can cut the overhead by running out of their homes. We also do access, CCTV, fire and burg as well and they also get charged differently. And yes, I am also licensed for that too. I started out as an alarm guy and eventually expanded and am now working at a place where I do it all. (I love it) too much info maybe but oh well.

[mrdan]

Oh, and there is nothing mysticle about the license, you just go down to the sherrif and do the "live scan" thing which basicaly means they take your prints and put them on file with the FBI and also check to see if you are a turdball with a life of crime. And they take your $$ too. It is not like there is some test you gotta take like the electricians license.

You do have to actually work for a locksmith though. (Or be a licensed locksmith shop) You cant just go in and say "I want to be a locksmith" and wham you are licensed!

[cab]

You won't find an awful lot of lockies able to stay in business if they charged so little

Yup, that holds true for any service related profession, not to mention it's been around as long as prostitution.

The smart businessman can use guys who undercut to gain an advantage over their competition - they make great sales examples of who not to hire.....enumerating the reasons why adds good fodder to any sales material.

Worrying about guys undercutting everybody else is a reactive approach, a waste of time.

----

On that note, I've read many, many business books - in fact just recently I had to box them up and place them in storage. Many of them look as new as the day I bought them - because they lacked content.

Except for this one book I bought early last summer. The covers are falling off, there's coffee, juice, motor oil, popcorn butter and who knows what else stuck to it's rolled up newspaper like appearance. Keep in mind, this book is less than a year old.

The Ultimate Sales Letter, 3rd Edition by Dan Kennedy. It's an easy read, and provides more creative and effective ideas than I have ever seen. Hands down the most knowledgeable marketing book I've ever come across.

[Eyes_Only]

I heard from the California Locksmith Association that the people who issues locksmith licenses are thinking of requiring anyone who wants a locksmith license to work for one for at least two years before you can qualify for it. They haven't done that yet but i wouldn't be surprised if they made this official in the next couple of years.

[cab]

I heard from the California Locksmith Association that the people who issues locksmith licenses are thinking of requiring anyone who wants a locksmith license to work for one for at least two years before you can qualify for it. They haven't done that yet but i wouldn't be surprised if they made this official in the next couple of years.

I know the PI license wasn't easy to get. The test focused on the laws and specific act governing the profession, so there was a high first-time test failure rate.

More importantly, you need at least 6000 hours of verifiable work experience. They first ask for payroll records; failing that, they put the burden on the PI license holder - and actually check, and sometimes even later audits to prevent a buddy from just signing off on it. That's wgy it's tought to become a PI in Cali - the only way to get hours is to start at the bottom of a large firm, then bounce from PI to PI since most are sole practitioners and usually don't have enough work or cashflow to keep a couple of guys busy.

I'm sure for locksmiths it would be a good thing too.