Master System Pricing

[Urbex]

I recently got an offer from a customer to set up a system for his multi-family houses. I'll be recombinating twenty two cores (Schlage), cutting eight keys to code (SC1), and of course designing the system.

I'd like to know what some of you would charge to complete this job. I have some numbers floating around and I'd like to compare them. I remember seeing a thread like this somewhere but my search yielded nothing. From the way I see it I'll be charging for the twenty two separate cores and the eight keys to code; hourly labor rate charged for system design and installment.

Thanks!

[globallockytoo]

I would design the system Free Of Charge....but charge for master-keying each core. Then charge for remove and refit of each cylinder and hardware. Charge for each original key to code and duplicate charges for duplicate keys.

The actual bittings is "YOUR" intellectual property and does not belong to the client. If the client wishes to purchase the intellectual property (the bittings) then charge appropriately....(not less than $500.00 IMHO).

[straightpick]

[quote]I would design the system Free Of Charge....but charge for master-keying each core. Then charge for remove and refit of each cylinder and hardware. Charge for each original key to code and duplicate charges for duplicate keys.


/quote]

That is what I do. I charge $14.50 per cylinder for masterpinning and $7.50 per key. ALL keys are code cut - not duplicated. The quickest way to accelerate wear and tear on a masterkey system is to start duplicating replacement keys instead of cutting them by code. Charge your hourly rate for removal of cylinders and hardware and also your trip charge.

[globallockytoo]

I agree straightpick, but I prefer to design my Bilock systems exclusively like that (it is not possible to duplicate a Bilock key only originate)

For inline systems, the labor cost is reduced by duplication because of the time saving factor. Sure provide first keys by code, but give the client the choice for all keys to code or duplicates.
Most locksmiths duplicators are set well enough to recreate an original as a duplicate well enough to not cause the wear you are talking about IMHO

[Varjeal]

#1. Charge for setting up the system..it takes up your time and resources, and you should charge accordingly. I personally charge $50.

#2. After that I charge $25/lock which includes the labor of R&R as well as the masterkeying a lock. Since they are regular keys, I only charge $3 each.

#3. $45 Service call, and if not in town $1/km charge (I only charge one way)

[jdislandlock]

I recently got an offer from a customer to set up a system for his multi-family houses. I'll be recombinating twenty two cores (Schlage), cutting eight keys to code (SC1), and of course designing the system.

I'd like to know what some of you would charge to complete this job. I have some numbers floating around and I'd like to compare them. I remember seeing a thread like this somewhere but my search yielded nothing. From the way I see it I'll be charging for the twenty two separate cores and the eight keys to code; hourly labor rate charged for system design and installment.

Thanks!

Im not sure on if we charge for settin up the system or not.
$15/lock to pin up. with no keys, keys are $1.99 each(for weiser/schlage and common keys).
$40-60 trip depending on how far. Can go just straight time for trip if very far. Time it takes to install wich $64 an hour. i think thats it, im a apprentice locksmith not doing mobile, our other locksmith does.

[zeke79]

Your best bet is to NOT charge for the system design as in this case it remains your property. If they need keys, or cores recombinated due to lost keys you are the one they have to go to. A great way to get repeat business and ensure to the best of your ability that everything works as intended.

[globallockytoo]

Varjeal's opinion may be right for systems not wishing to be kept on a smithy's database....but it does transfer onus to the tenant or building owner.

I would charge substantially more for the system though.

My first thought would be to charge $200.00 for the system and at lest $50.00 per code.

That way.....they could choose who or when to access the system and by anyone.....If you then you can charge standard prices like everyone else. But you still have an advantage.

I see both sides....although I wouldnt promote the intellectual property rights at anything cheaper.

[lunchb0x]

He has also said that he is an apprentice so you can't go charging $200 for a master key system when he's still learning, if it were me I wouldn't be charging for the system just for your labour, re keys and parts, and if this is a cash job your doing after work charge a bit less than your company would during hours.

[jdislandlock]

im the apprentice not him btw... haha

200 for the system and 50 for each code? seems a bit pricey
to me. even if they do want our intellectual info.
but i do not beleive we give out any of the master keying systems
period as far as i am aware. I mean what good is it to them

[Urbex]

There's loads of good advice in this thread!

While I don't have a real company per se, I've been doing side jobs for friends and family. I've also found a family owned locksmith supplier a short distance away, everything's falling into place nicely. I'll probably always be doing side jobs/part time at the most as I love my current job.

Thanks to everyone who contributed to the thread

[globallockytoo]

im the apprentice not him btw... haha

200 for the system and 50 for each code? seems a bit pricey
to me. even if they do want our intellectual info.
but i do not beleive we give out any of the master keying systems
period as far as i am aware. I mean what good is it to them

It's deliberately pricey. But that is specifically if they want all the bittings. I am trying to discourage the purchase of bittings to encourage them to come back to me for more work, expansions etc.

But, to be fair....it is their choice.....if they want the bittings....and to choose someone else in future....then make them pay for your lost opportunities....This is business, not a charity.

[Safety0ff]

I agree with globallockytoo's post except for:

then make them pay for your lost opportunities....This is business, not a charity.

The pricing can justified fair simply by considering the microeconomics of the issue. Simply put, a locksmith's oppurtunity cost of setting up a master key system is much less than that of the corporation.
Therefore, the price of the system should be greater than the opportunity cost of the locksmith but less than the opportunity cost of the organisation requesting the system.
It's difficult to quantity the organisation's opportunity costs, but if you assume they don't have anyone qualified and no software, you can estimate that in terms of wages paid to unqualified people trying to make up a system, that it will be greater than $200.
Anyways, I'm not a locksmith or anything, but that's my opinion.

P.S.: If you want unfair pricing checkout UPS brokerage fees...

[globallockytoo]

Micro-economics has little to do with it........if I, as the systems designer (and owner of the software) design the system, build the product and give the client working locks and keys....they are welcome to come back to me and get additional services or products or keys. But if they choose to use another company to supply their products and services....and they want their bittings....then they should pay through the nose for it.

Screw micro-economics.....if they want to save money....they will come back to me....if not...they will go elsewhere.

Where is the business sense in your argument?

[Kyes]

It seems to me exact numbers are going to be difficult to provide based on what country you live in, where your material is coming from, exchange rates, market saturation, your skill level, your customers expectations(I have customers that are never ever happy but they only want to deal with me because I come closer to making them happy than anyone else. Knowing this I charge them a little more to make up for the time they take that I would be left going with out otherwise.)

My formula is simple though and helps me come up with a reasonable price most of the time.

Items I have to order in.

Items $0.25-$150 (My Cost Through Suppliers) + 40% + shipping = Customer Price.

Items $151 -$500 (My Cost Through Suppliers) + 25% + shipping = Customer Price.

Items I keep in stock or purchase in bulk.

Items $0.25-$300 (My cost per Item) + 55% (it costs YOU more if your capital is tied up in product) + shipping divided by number ordered = Customer Price.

Items $301-$1000 (My cost per Item) + 70% (the more it costs me the more of my capital is tied up in product) + shipping divided by number ordered = Customer Price.

As for the work estimate your time and apply the above formula as per item (T+M=P)

your hourly rate should be a reflection of your skill level (Locks are those things they sail ships through right?) Vs. Demand (you will receive your bonus based on how soon you finish the job before I finish talking) Vs. Competition (Three locksmiths per door in town... maybe time to move) Vs. Economic realities (I.E. Do you need to eat this week?)

Around here where I live $80 per hour for security call outs is on the high side but people pay with out complaint if the job is done right and fast. Shop work goes for $55 to $60 from the research I have done on local locksmiths.