Where Is The Money At?

[J.Parton]

greetings guys! i put myself through the Foley-Belsaw program about a year ago. i learned quick and i easily progressed through their course. ive been Certified and Bonded for almost a year now, and still need a kick in the right money making direction! i pride myself on improving every aspect of my Locksmithing. i can do a wide range of things, from cutting by hand and machine and picking, to auto entry and lock service and repair. and im almost fully equipped to open my own business. but so far im not finding much money to be made in the field. lately ive been putting more focus on my Lockout skills, (automotive and home entry, and safe and vault entry). these areas seem to be producing the most money for today's Locksmiths. just looking for some advice on this decision and looking for the "must have" tools of the trade in these areas. the Foley-Belsaw institution offers a wide range of manuals and books in these fields, as well as tools (most of which i already own) but before i dump more money on tools and manuals, id just like a little feedback and maybe someone to bounce a few ideas off of!....and thanks in advance for the Help!

[Squelchtone]

Good on you for sticking with it even in tough times. That first year is always difficult no matter what business someone is in.

Your knowledge seems well rounded, and although I am not a practicing locksmith I am pretty much in the same boat as you where I could start a mobile or brick and mortal shop any time now, but I don't have all the needed equipment and could use more experience fitting and servicing locks. I like the idea of safe work, but at the moment only do easy minor things for friends and family and for small business owners I know (change combo, fix sticky parts, etc) and until I really learn my stuff and get more equipment, I know I wont be confident enough to walk into a business and say, sure let me manipulate or drill that safe for you, that will be $750 dollars please. Maybe one day.

In the mean time, you may find that selling and installing new safes may give you some good work, everyone is always trying to keep their stuff secure, especially in these desperate times. Mark up on an AMSEC or Gardall safe is pretty good, and they carry enough models to keep gun owners, small shop keepers, and other customers happy.

Get to know your Adams Rite MS1850 swing bolt lock and everything there is to know about servicing aluminum store front doors and crash bars, that's something people ask me to repair, adjust or rekey a lot. First time was an adventure, I had to swap out cylinders at a friend's store and he was cool enough to let me learn on the job, on his stuff. I installed some new high security cylinders, made sure all the parts worked smoothly, had to file some aluminum so the swing bolt would swing out smoothly so they wouldn't break the keys off trying to lock up or unlock the store, these are just things you learn on the job, and I'm sure you've already seen some of this. We try to keep advanced info to the Advanced forums, so I cant give too many details here, but look into the tools Peterson has for Adams Rite mechanisms, if you cant drill or pick a mortise cylinder on a store front, you may be able to use the Peterson Trip Wire tools to get the bolt open. That's all I should probably say, google to find out the rest.

Another way I can think of is finding a business or school that needs either new locksets to replace aging ones, or a new system that offers better key control. Have you bought into a system yet such as Medeco where you can offer an office building or school to remove their old mortise cylinders and swap in a high security solution that is tougher to pick and offers them key control so they know how many copies of each key are out there, and sleep well knowing no one is making copies of keys on their lunch break down at the local Home Depot or Ace Hardware? I work at a place where 80% of our locks have been converted to Medeco, and as money allows it we have the local locksmith back every few months to convert the remainder of our old Corbin system and put it on the new system, which is also Master keyed, so that's another solution you can offer customers.

Stock up on good padlocks, not Master, good stuff like Abus, Sargent & Greenleaf environmental, Medeco, Abloy.

If there are storage units around your area, give them your card, and even offer to pick, drill or cut off a couple locks for free, then they'll use you if they have some discus padlocks they cannot get off.. HPC sells some jigs that make it easy to hold a padlock and has a hole right where you need to drill it. Maybe you can even sell them a safe for the office, or some cameras, the whole point is about become someone they rely on for "this kind of work"

Depending on your state's laws and rules for installing alarms and CCTV systems, adding CCTV to your services is a good way to sell locks and cameras to a person who feels that they need those things. A camera system is very easy to install these days, you need a DVR, monitor, video/power cables to each camera, or their exiting computer network if they want the more expensive Network DVR and IP Megapixel cameras, and a power supply for the cameras if they choose standard 24v cameras. Also a good amount of mark up on that equipment. You can buy a camera for $99 and sell it for $179. Some of this work requires you to pull permits, and be state licensed to work on low voltage wiring, so do check your state and city regulations.

I noticed that savvy managers and shop keeps will look part numbers and prices up on the internet and its so hard to compete with some outlet selling locksets or cctv gear online, so the only thing I can tell them, is that I am there after the sale, I am local, and there to support them, try calling that website where you got the deal on the cameras and see if they offer support at 8am on a Monday. Sometimes I will say, fine, buy the parts and I will install them but know that if this breaks in a week, I just put it in for you, and it will cost a service call if I have to come out and fix or replace anything.

Advertize. Waiting for a call becomes painful, and a watched phone never rings. Get some quality business cards made, not free ones that say vistapr1nt.com on the back of them, that screams "home made, guy works out of his trunk" The USPS recently came out with a new targeted advertising thing where they can send your flier/pamphlet to every address on a particular street, zip code, etc. so you can pick the busy commercial drag in town where all the shops and business are, or the nice upper middle class neighborhood and send them all a nice glossy flyer advertizing your services. People move into a new house they need rekeys, people get divorced they need a rekey, repairs after a break in, employee turn over and owner feels better if place is rekeyed, etc.

Hope that gives you some ideas on ways to bring in more business.

Squelchtone

[2octops]

There is no one answer for your question or even a correct answer for your particular location (since we have no clue where you are).

Each locksmith operates their business in a different way. Some run storefronts, some run storefronts with mobile technicians, some are mobile only. Some focus on certain things like safes, commercial work, door work, automotive work, residential only, lockouts only or a combination of all or some of the previous listed. Some make a very comfortable living and some can not pay the bills at the end of the month. Some work alone wile others have people working for/with them.

When starting out I always suggest that you try to learn everything you possibly can about everything. Learn the basics of rekeying and lockouts. Then look into opening safes via multiple techniques, safe deposit boxes and teller lockers. Look at installing and repairing commercial hardware such as panic bars and door closers. Storefront pivots and hinges fit into this as well as thresholds, sweeps and weatherstripping. Don't forget to look at commercial frames and how they are assembled, repaired and installed. Lots of money there. Automobiles usually only need unlocked or keys made, but that can also call for transponder programming equipment as well as programming remotes, module programming after replacement and even theft recovery repairs. Residential is usually just lockouts and rekeys, but can also be installing new hardware, repairing or replacing rotted or damaged frames, overhead garage doors and openers, mailboxes and even locking out water supplies or gas supply tanks.

Once you get your feet wet on a little of all of it, you will be able to focus on the needs of your customers as well as what you actually enjoy working on.

I know a lot of safe tech's that will not rekey a door knob or deadbolt and have no clue how to unlock a car. These guys have mastered the arts of safe repair and maintenance over the years and make a fine living at what they enjoy working on.

I know a lot of guys that focus on large commercial customers. They do not touch safes, houses or cars, but if it has anything to do with a commercial opening they can repair or replace it very surgically and properly. These guys enjoy working on commercial hardware and replacing doors and frames.

There are lots of guys that focus only on automotive work and I don't mean lockouts. Sure they can unlock a car but that's not the calls they focus on. They make a living by originating keys and working with the electronics of the vehicles. Transponder technology is changing every day and more and more equipment is being needed to keep up. Programming transponders used to be as far as many of them went, but now they are also having to learn to diagnose module issues and program modules that have been replaced. This is not always as simple as plugging in a computer and pressing a few buttons. This can be very involved and gets as deep as isolating individual chip sets on circuit boards inside modules and rewriting specific lines of code in the software on those individual chips. These crazy geeks live for this stuff ans some make insane amounts of money for their knowledge.

I know some residential guys that are masters of the residential market. They are able to turn simple lockouts and rekeys into very profitable upsales by looking at other things such as rotted frames, bad thresholds and weatherstripping, file cabinets and desk and even locking out exterior water spigots and natural or LP gas supplies. These guys work on a lot of the residential safes that commercial safe techs laugh at and even install wall safes, sell residential security containers and bolt down existing safes. There is a lot of money in this market that most never look for.

I know a bunch of guys in large cities that only do lockouts. They do them quickly and professionally and a lot of them each day. It's hard to imagine making a living on $75 lockouts, but when you can run 10-15 a day, that's pretty good money for little overhead.

There's some real weirdo's out there that focus on furniture locks. Desk, credenza's, file cabinets, hutches, trunks, etc. I have a lot of respect for these nutjobs. They have no clue how to unlock a car or manipulate a safe, but by golly they can fix file cabinets that suddenly do not lock properly or desks that only lock some of the drawers instead of all of them when they are supposed to.

Then there are some of the guys out there that dabble in a little bit of everything but know their limitations on what they can and can not do and that is the key to success in this business. Know your limitations and when to call in an expert.

Each of the people above that specialize in certain areas have been in the business long enough to know who does what in their area and who they can comfortably refer customers to when they have something come up that they do not typically work on. If Ken is working on a vault at a bank and they need a bunch of desk locks rekeyed, he might call Seth and just order a bunch of plugs that he can swap out quickly. If someone in the parking lot locks their keys in the car, Ken is probably not going to stop drilling on a vault to open it but recommend they cal Rob to run over and open it quickly. If they have lost their keys and it's a late model vehicle that would typically have to be towed to the dealer to have keys ordered and programmed, Rob or Ken might refer the customer to Chad or Steve since they can come out and do the job on the spot.

It's all about networking and building relationships with other people in your industry that can do the things that you either can't or don't want to.

In a long, round about way, I'm just trying to say figure out what you can do and focus on that.

[J.Parton]

this feedback helps me out a lot. ive looked into security systems, and ive had the book training. im very computer savvy and ive been toying with free software such as "iSpy" which can enable a person to turn any desktop or laptop computer into a home security system. but with the right cameras and DVR equipment, and monitors, a full security system can thrown together in no time.

my main concern is trying to go TOO BROAD with my practices and not get enough focus on the right money making skill. i dont want to spend years perfecting my re-keying or master keying or spend the extra money to convert my key machine into a Code Cutter, if its not going to pay off in the long run. i recently came across a high school buddy locked out of an inherited gun safe. it was full of his grandfathers guns and jewels and what not, but no one had the combination. after researching it, we only found 3 individuals in the entire state that were qualified and confident to take on the job without a worry. and all three of these guys would charge for driving across the state plus the cost of opening the safe. (that is where the money is at).

being new to the field, most small jobs even get scooped up by the two or three old timers in the region. and like everyone else, ive visited local businesses and called around about internships, and im almost ready to give up and dive right in for myself! i guess im just not confident enough to take on the bigger jobs just yet. but im finging that the only way to get my foot in the door, is to get out there and take the leap!

[2octops]

Where are you at?

[J.Parton]

Arkansas

[Hollywoodpick]

What part of Arkansas?

I do think each area has its own type of jobs you will run into the most.

Today Sunday i did 2 lockouts and a lock install that a lady was trying to do herself and it did not go well so she had me come out and fix it. It was a mass parts from 4 locks all mixed together on the table and she did not know what went with what. One was a new push button entry lock that was not working she did not have the wire pushed in right to connect the front to the back.

As for safes i almost never get a call for that.
I did turn down two other jobs today making a key for a car i did not have a key blank for or a way to program as i do not have that equipment yet and a key locked in the trunk of a car with no trunk release button. I am not good at picking car trunks so i turned it down but i have on order six 2 in 1s that should be here next week that i think could get my in for this.

The money is in your marketing if people do not find you to call you it dose not matter what you do or not do you will not get the job.

What advertising do you have? Website if yes are you on page one in google for your area, Phone book, facebook account, flyers out around town, is your car or van lettered up.

I work out of a Honda Element all on location no store front for now with very low overhead. I take calls 24/7 but do not get many calls past 11pm but when i do i get paid a lot extra for it.
Good luck with it.

[Hollywoodpick]

I wanted to add i see you did the Foley-Belsaw program. I have the books to i picked up used on ebay and after looking at them i would never buy anything from them.
Everything seems to be so outdated and nothing new is in them on newer locks or newer better ways to do lockouts.
I learned the most from a video course i got from ebay made from a real locksmith that shows him right on the job working on doors and replacing locks and re-keying locks of all kinds. A wealth of good real world info.

For me i have found all the books i have picked up on locksmithing to be no more then a reference guide but when i have the lock in front of me on a job i have yet to need to look up anything most of it is easy to see as you are working on it once you get past the basic re-keying taking apart of locks.

Same with tools you can get much better prices from locksmith wholesale places once you get signed up with them
sometimes half the price.

I do use a auto guide to look up key blanks for cars so i know if i have it or not and if it is a transponder key or not i can work on or not.

If you are certified and have a business license go and join a few other chat rooms and from them you can learn more then other things you are looking at.
When i started not to long ago i quickly found that their is two worlds to being a locksmith. Once you break into the otherside and a accepted in the chat rooms you find tons if information on products you never heard of that do things a lot more easy in many ways and you can learn by asking ?s on anything and get much better deals on new tools and products and buy tons of used items that can save a lot of money.
If i would of known all this at first i would of saved well over $1500 on tools and things i over paid for.
I have many new tools i will never use a i have picked up much better tools that work better after learning more.
Even with auto unlocking some sets of tools are very old and once you learn new ways with newer tools you will never use the older tools. I have bag full of car unlock tools that i have never used or needed and i am opening the newer 2012 cars weekly.

dont spend money on stuff till you are 100% sure it is the right tool or product you need. Ask others first!!!

[i_b_larry]

I am not in the locksmith business but I have operated a number of other service businesses over the past 40 years.

My experience has been that when people need a service, especially a service that they have never needed before, that the first place they look is in the Yellow Pages. Even with the Internet and Google searches, the Yellow Pages have an amazing following. (No, I do not work for them.) My suggestion for a person who is going to start a new bricks-and-mortar business is to secure the location and get a telephone number right before the deadline for advertising in the next edition. Place your ad but do not bother to open until the new phone book comes out. Just be careful that it is the phone company's yellow pages and not one of those privately published things that nobody uses.

A web page is a great help but do not look to it for more than about 20% of your business. Ignore the telemarketers who offer Search Engine Optimization services. It's the biggest scam going these days.

Location is a serious consideration for a bricks-and-mortar operation. The storefront on main street will cost a lot more than the one around the corner on first avenue. The one on main street will be seen by ten times as many people as the cheaper location.

The sign on your store should show just 4 things: The name of your business, the type of business if it is not clear from the name, the street number and the telephone number. Leave everything else off the sign. The street number of you business should be prominently displayed as a huge number of people will see your advertising and head for your shop remembering just the street address. I used to advise against putting phone numbers on signs, but with everyone carrying cell phones today it's surprising how many people will call as they drive by.

Pricing is always a challenge. I started an auto repair business once many years ago and based my hourly rate on 8 billable hours for each 12-hour day I put in. One day I realized that I was operating at full capacity and making no money. I concluded that realistically, I could only get 4 billable hours a day. I adjusted my rates accordingly and started making a living.

I once obtained a license from the court to be a private process server. I figured that I needed to charge a minimum of $35 per job. I found, however, that the going rate was only about $10. The reason was that the market was flooded with military retirees who were unable to understand what it cost them to do a job. Their attitude was that it was $10 they would not have had otherwise, even though they spent $20 on gas and other expenses.

Pricing your work is always hard, especially when you are new in business and in desperate need of making some sales. Figure out how much you want and post your prices. BTW, if you are running Bob's Lock Shop and wearing a shirt that says "Bob," customers are more likely to try to dicker with you because they know you are the owner. Take the name tag off the shirt and tell the customer that "Bob won't let me change prices."

It took me awhile to learn that service businesses are different than retail. We are so bombarded with advertising for low prices that we come to believe that price is the most important element. Listen to your customers, though, and you will find something much different. A customer looking for service will usually start off asking a question such as, "Do you do this kind of work?" Once they have ascertained that you can do the work, then they will have questions to narrow down whether you can do the work at a time and place that is convenient to them. The last question they ask is usually the price and I think they ask that only to see if the have funds on hand to pay rather than to compare it to someone else's price.

When I managed a self storage about once or twice a week I would get calls where the first and only question was, "What's your price on a 10-by-10 locker?" Initially I tried to convert these calls to sales but learned that no matter what I said the caller was not interested. In the end, my standard response to that question was that "I have no vacancies." My point is that there are customers who will never be satisfied with your lowest price, so ignore their butts.

[cledry]

Personally I wouldn't consider starting a business after just taking a mail order course. I think a better route would be to work for an experienced locksmith for a few years and gain real experience and get a feel for the market and what is required to turn a profit. I would say 2 to 3 years for an intelligent person should suffice, but I have known people with 10 years experience that would not be able to run their own business. Even if they have the knowledge they have other limitations that would prevent their success.

We have a small shop and just 4 vehicles on the road and are constantly busy. This week we have a few jobs that are in the $1500 to $2000 range, about 10 jobs in the $500-$1000 range and a $14,000 job. That is what is on the schedule without taking a single job over the phone. We will add small $100-$200 jobs each day from folks needing something simple but these will be worked in around the larger jobs. The $14,000 job will entail a lot of time spent driving as parts of the job are about 300 miles away, but that is how we get the larger accounts by working a wide service area. Perhaps expand your service area to gain customers.

Our shop isn't extremely busy but we like to have at least $500 a day in sales. Many of these are large profit items like laser cut and transponder keys with a low cost of material but a hefty selling price.

[TheDoc]

If you like computers, look up trilogy by alarmlock, all the software is free and there ate training videos on there website, great markup on cost and well made