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No Callout Charge? How Does That Work?

This is the old Locksmith business info area and will be broken down to fill in the new sections below.

Postby globallockytoo » 14 Sep 2008 17:39

ufd538 wrote:we charge 60 an hour...like I said, we do not charge labor for rekeying knobs or deadbolts other than the rekey.


I believe this is correct too. But further above you indicated a rekey fee without labor for remove and refit.

Now you indicate a separate labor fee for "labor".....which is it? different strokes for different folks?

So you charge $8.75 per keyhole including labor to remove and refit?

at $8.75 per keyhole you are most likely just covering basic bottomline costs and barely making any money at all on the job charging only $35 service call.

Considering gasoline costs and the average locky vehicle being an 8 cylinder gas hog....you probably pay $5 to drive 10 miles to and from each job. Take into consideration insurance, registration, as well as the operating expenses of your workshop, electricity, telephone, advertising, marketing........at $35 you aint making too much money are you?

Probably explains why so many "so called" locksmiths are crap businesspeople and never make any serious dosh. Take some training i suggest in business management. Learn about the fundamentals for running a business. Dont just pull prices out of 'where the sun don't shine'.

Take some pride man.....locksmithing is a fully fledged trade that is actually many peoples livelihoods.

You dont see plumbers or carpenters or electricians "NOT" charging for labor.....do you?
One One was a race horse, one one won one race, one two was a racehorse, one two won one too.

Disclaimer: Do not pull tag off mattress. Not responsible for legal advice while laughing.
Bilock - The Original True Bump Proof Pin Tumbler System!
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Postby lunchb0x » 14 Sep 2008 18:40

globallockytoo wrote:
You dont see plumbers or carpenters or electricians "NOT" charging for labor.....do you?[/quote]

It would be good if we could get away with charging what an electrician or plumber charges, but for some reason our trade is the one which everyone expects us to do for free
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Postby globallockytoo » 14 Sep 2008 19:19

lunchb0x wrote:
globallockytoo wrote:You dont see plumbers or carpenters or electricians "NOT" charging for labor.....do you?


It would be good if we could get away with charging what an electrician or plumber charges, but for some reason our trade is the one which everyone expects us to do for free



You have this perception completely wrong. No one expects to not pay labor. The problem stems from some "so called" locksmiths deciding that they know better and bring the trade to disrepute.

If you are thinking that we can charge similar prices that those trades can charge.....we need to have enforced licensing brought in to force locksmiths to be certified and licensed by the state or Fed. Then there will be a suitable reason for charging such prices.

Locksmiths who consider the value of their skills as cheap....should go and work in a different trade. Leave this trade to true professionals

In Australia, I worked for one of the highest charging companies. They never ever discounted labor. They raised prices every six months. They had the lions share of the work across the country and people actually respected them and sought them out because they charged professional prices for a professional job. They warrantied their work and enjoyed quality relationships with suppliers and manufacturers. They were the first recommended company that the suppliers recommended for work to clients......why? Not because they gave everything away for free....but because they charged for everything..... providing true value for customers who were prepared to pay.

In every community there will always be discount hunters........but you pay peanuts...you get monkeys.

Start charging for value, warranty your work and do the best quality work you can do....or go and work for Pop-A-Lock like the locksmith described in this video....and make bugger all!

http://www.youtube.com/watch?v=lq3qpF5KcYY
One One was a race horse, one one won one race, one two was a racehorse, one two won one too.

Disclaimer: Do not pull tag off mattress. Not responsible for legal advice while laughing.
Bilock - The Original True Bump Proof Pin Tumbler System!
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Postby lunchb0x » 14 Sep 2008 19:48

I have had alot of customers that don't think they should have to pay $80 to be let into their own house, but they don't question paying an electrician $150 to come out for 15 minutes and change a light switch, this is what I mean by being able to charge what other trades do, I know that people expect to pay money for a job, they just complain about the price.


And as for having licensing I agree, I have worked with a few people that I wouldn't trust with taking my dog for a walk, but they are allowed to be locksmiths.
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Postby globallockytoo » 15 Sep 2008 7:37

lunchb0x wrote:I have had alot of customers that don't think they should have to pay $80 to be let into their own house, but they don't question paying an electrician $150 to come out for 15 minutes and change a light switch, this is what I mean by being able to charge what other trades do, I know that people expect to pay money for a job, they just complain about the price.


And as for having licensing I agree, I have worked with a few people that I wouldn't trust with taking my dog for a walk, but they are allowed to be locksmiths.


The difference between locksmithing and electricians or plumbers is in the necessity.

You can live easily without ever requiring the services of a locksmith, yet your electricity or sewerage are staples that you cannot do without. They are completely different trades. An electrician can easily become a locksmith, but a locksmith can not easily become an electrician.

I know, we all would like to live in a different reallity, but facts are facts. Some trades are luxuries and some are not. Those that are not, usually cost more and are of more value to consumers.

Yes, you use your key everyday.....but do you need to? (locksmith)

Yes, you use your bathroom everyday....but do you need to? (plumber)

Yes, you use your refridgerator every day....but do you need to? (sparky)
One One was a race horse, one one won one race, one two was a racehorse, one two won one too.

Disclaimer: Do not pull tag off mattress. Not responsible for legal advice while laughing.
Bilock - The Original True Bump Proof Pin Tumbler System!
globallockytoo
 
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Joined: 26 Jul 2006 13:33

Postby globallockytoo » 15 Sep 2008 7:41

lunchb0x wrote:I have had alot of customers that don't think they should have to pay $80 to be let into their own house, but they don't question paying an electrician $150 to come out for 15 minutes and change a light switch, this is what I mean by being able to charge what other trades do, I know that people expect to pay money for a job, they just complain about the price.


And as for having licensing I agree, I have worked with a few people that I wouldn't trust with taking my dog for a walk, but they are allowed to be locksmiths.


I had a customer ask for a quotation to repair a door after a break in. They broke in themselves because they didnt want to pay $60 for a locksmith. The result is that they have to replace the whole door frame at a probable cost of $300.00-$500.00. (IDIOTS) Hindsight is a very powerful emotion.
One One was a race horse, one one won one race, one two was a racehorse, one two won one too.

Disclaimer: Do not pull tag off mattress. Not responsible for legal advice while laughing.
Bilock - The Original True Bump Proof Pin Tumbler System!
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Postby ufd538 » 16 Sep 2008 2:55

I do agree...there are alot of.....ummmm turkeys to put mildly....out there being "locksmiths", and this may lead to us charging less.

I do agree, our company needs to charge more, unfortunately, where I am at, people do not accept the fact that it will be the service call, plus rekey, plus so much an hour labor....they want more of a price. I can understand this as a person working for an hourly labor charge will prolly work slower. As I said I believe in charging labor for removing anything besides a deadbolt or a knob, unfortunately we have a couple guys, while they are good workers and have both been at it for 15 years each are a little slow on the change side. Telling them some changes in prices will not be effective as handing them a new price list. So I am working on that list.

BTW, out of curiousity, what do you charge for installing a deadbolt, and do you charge different if it is customer supplied?
So many tools out there to be bought by locksmiths....the trick is to know what to buy.
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Postby globallockytoo » 16 Sep 2008 13:13

ufd538 wrote:BTW, out of curiousity, what do you charge for installing a deadbolt, and do you charge different if it is customer supplied?


Depending on the application. If it's a standard application (wood door/wood jamb)....$45.00 or 45 minutes. I always do it quicker, but better to be safe than sorry. (average 25 mins)

Labor rates dont change just because customer purchases lock from me or provides it themselves.

The deal clincher would be that a deadbolt purchased from me includes re-keying to their key if they ask.
One One was a race horse, one one won one race, one two was a racehorse, one two won one too.

Disclaimer: Do not pull tag off mattress. Not responsible for legal advice while laughing.
Bilock - The Original True Bump Proof Pin Tumbler System!
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Postby behrlock » 4 Oct 2008 14:19

Been at this 25 years now. We need to charge a service call or a minimum charge fee or we go broke. There's no great mathematican needed to crunch the numbers here. We've only got so many hours in a day to make a certain exceptable income. Fuel, insurance, maintenence, leases, phones, licnecing, bonding, advertising, matierials, tools...... all ad up to alot of cash every month. A single service truck needs to do a minimum of 100 service calls per month at $100 each as a break even point minimal wage is included. Or 25 work days $400 a day minimum.

So $10,000 minimum.

If you don't you will go broke for sure :twisted:

Yes we need to charge a service call.
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