Basic Locksmithing business plan(?)

[Silverado]

I am interested in starting up a locksmithing/physical (passive) security business and I did take note of the post from a short while back regarding the books on locksmithing business.

I don't have much startup money to invest but I do have a plan for that. Would it be productive to start out advertising and performing lockout services (vehicle and residential) and moderate residential locksmith work while using the income from that to put back into the business to go toward more advanced tools and stock (perhaps a storefront of some sort eventually)?

Obviously it'd be a one man operation and I would be open to answering service calls around the clock.

There's practically no competition in the area, only one locksmith in a 50 mile radius. I understand most folks would get their keys cut at local big box home improvement stores, and likely residential work wouldn't be booming because people just take locks off, throw them out and buy new ones at said home improvement stores.

The typical scammers have their advertising in my area and I'm not even sure where they come from if you call them. The way I see it is that if I get the word out there and price service calls to compete with the scammer companies there could be enough business to be done to get the ball rolling toward bigger and better things.

I am just curious if anyone has experience or input on the thought of starting out doing lockouts and moderate residential work to grow the business into something bigger?

[femurat]

Competing with the scammers QUOTED price would be impossible. Competing with their ACTUAL price is pretty easy.
The problem is people don't know that they'll not pay the scammers quoted price.

Good luck

[ltdbjd]

That's pretty much what I did. My biggest investment was n HPC Blitz, a cheap duplicator, and a pinning kit. I bought some basic key blanks. If I needed an uncommon blank, I'd pick up a couple at the hardware store to use. I bought some lockout tools, opened a business account at the local bank, and had some cards printed from Vistaprint. I also used Vistaprint for my own email domain name so it looked more professional. I used my personal cell, though you can get a throw away phone for cheap for incoming calls.

I also used Vistaprint to make a couple polo shirts and t-shirts with my business name on them; polo's and dockers for calls, t-shirts to wear around town.

I worked out of the back of my SUV with a power inverter. I thought about magnetic signs for the car, but never did go that far.

I never planned on doing it full time, so I didn't spend a lot of time on advertising. It was all word of mouth. Since the closest guy is 50 miles away, you could contact him/her and see if he'd give people your number in case he didn't want to make the trip out. In return, you'd refer bigger jobs or jobs you weren't comfortable doing to him.

If I had a business call and they needed something I didn't want to buy and keep on hand, I'd tell them I just ran out of inventory and would order it that day. I had a small credit card attached to my business account for stuff like that.

Residential stuff is funny. When I moved out here, I found that people don't throw their hardware away and get new stuff; they just don't even bother with a key since they never have to lock anything.

I set a trip charge that included the first 30 minutes of labor.

In CA, I carried a small binder with my locksmith license, business license and insurance coverage page, along with some other articles and misc things to show customers who were concerned I was one of the scammers they hear so much about. Of course in WY, there is no licensing, and you're not required to have a business license for most businesses (with a few exceptions).

I always educated people about scammers. If they didn't ask why my trip charge want $19 like "everybody else," I explained scammers to them. If they didn't ask, I'd explain scammers to them during the call, saying something to the effect that I was glad they didn't fall for the $19 scam. I'd point out that NOBODY would come out for $19. Not electricians, not plumbers, not HVAC, not carpet cleaners, etc. If they said they'd be out for $19, you could guarentee they would be making their money some other way.

I guess that's a long way to say yes, that's a good way to start.

[cledry]

What training or real world experience do you have?

I don't ask to be obtrusive, just I think it is not wise to jump in without some experience. It can give the trade a bad reputation; one that says we are glorified handymen.

Not that there isn't a place for residential locksmiths or specialists in lockouts, but at a minimum to call yourself a locksmith and hang out your shingle you should IMO have at least 6 months to a year experience if you are sharp and have invested a bit into tools and stock. This would be the bare minimum to get hired at our company for example, and those guys really would be in over their head with most commercial work. Most shops require 3 years experience.

Example of today's work: Install a senior swing LCN, troubleshoot and replace a Rixson in floor closer, replace Jackson 105 NHO opener on glass door, master key 19 Sargent LFICs. As well as more simple jobs like, removing a broken key from a showcase, a few residential openings and rekeys, replacing 19 cores on desks, replacing 37 cores and locks on desks, pedestals and credenzas, replacing a Medeco on a Fire King lateral file and repairing a second, replace YKK pivots on a storefront, repair a Yale electronic combination lock, install a Kaba ePlex in place of a Dorma mortise lock, quoting to install a Corbin wifi locking system including gateway, a couple of commercial rekeys, installing a dual biometric safe lock on a safe. I haven't mentioned a few because I am just going off the top of my head.

I think just doing residential and openings you could make a good living if you are willing to deal with the scammers and are a real hustler. As for the commercial work I would probably pass on it unless it is basic like rekeying stores in strip malls etc. Most larger commercial customers will require $1,000,000 to $2,000,000 on a COI.

The advantage is you have almost no competition.

[billdeserthills]

You absolutely can start up a business and grow it as large as you like. Most of the things Cledry mentioned are things I almost never even see in my business, mine is mostly residential. Today I had a client who wanted to replace his old kwikset locks with new ones. I put on a lifetime chelsea kwikset handleset w/ deadbolt on his front door and a polo knob with a deadbolt on his rear door. He thought he wanted a #15a pewter finish, but once I showed him a lock in that color and explained he might wanna replace his hinges, which were brass, he told me to just put brass colored locks on his door. Of course starting out you likely won't have all that inventory in your van, but I could have just as easily made a trip over to a hardware store and say "I need to go back to my shop for something." The other work I did today was rekeying a couple of mortise cylinders and a leverset & deadbolt
for a client who lost her keys last night at a bar. That was my 2-3 hours of work for today and I didn't hafta know anything special or even work a chisel for it.

You said you've been self-employed in the past, so you must know the hardest part is getting started. You can make money just unlocking cars and houses, without much investment--
I know I certainly won't ever live up to Cledry's idea of a commercial locksmith, and I won't lose any sleep over it either.

I find investing in your self and your business pays much better returns than any investment banker can offer--I doubled my money on my inventory, maybe even more if it was old
I can only remember doing that on stocks a couple of times--

Don't try to compete with the scammers, even they cannot. Instead be The person who doesn't screw everyone over, you'll gain a following just for that

[Silverado]

Very sound advice from each of you, I appreciate it very much.
I think my hesitation/concern comes from my last attempt at starting a business. Things did not go as expected and each potential customer, despite our offer for at least twice as much service as they already had, didn't want to pay for the services (and our offers were extremely competitive). Had everything set up, a website, business cards and uniforms from Vistaprint. The cost of everything was covered for a little while but the existing customer base wasn't reliable or consistent and most of the leads flaked out on me. It was more of a niche market since too many people are comfortable paying Geek Squad 4x the average industry rates because they have cute commercials on TV.

I'm going to be looking into the local laws and requirements to see what it'll take. Much more planning to do before anything else happens.

[billdeserthills]

There is a new company out my way called tech4life, they offer the same type service as geek squad but their prices are much lower,
they are always very busy and apparently geeks aren't always as stable as I once thought, judging from the many times I've rekeyed
their office. The 'old man' over there looks to be in his 30's

[Silverado]

We offered all the same services Geek Squad offers, and so much more for half the cost in almost all cases. Many repeat customers sometimes build a friendly rapport and then expect a "friends" discount at the low price of FREE-ninety-nine.
I think it had a lot to do with the area too. Too many people have a high school kid cousin/nephew/neighbor/grandson who they insist is a "tech genius" who is more than happy to butcher their computers and networks for free.

[Jacob Morgan]

If you're tech-savvy, could you add CCTV installation to locksmithing? CCTV systems have been going digital for a while (especially POE over Cat-5, with footage saved to a server), or for analog cameras they are going to DVR's. With DVR's one still needs to be tech-savvy to hook it up to the network, add hard drives, etc.

[billdeserthills]

We offered all the same services Geek Squad offers, and so much more for half the cost in almost all cases. Many repeat customers sometimes build a friendly rapport and then expect a "friends" discount at the low price of FREE-ninety-nine.
I think it had a lot to do with the area too. Too many people have a high school kid cousin/nephew/neighbor/grandson who they insist is a "tech genius" who is more than happy to butcher their computers and networks for free.

You gotta be in the right place, I see business' go broke and they were just in the wrong location
when I was a kid, it was so slow in my town, we used to rekey the same location sometimes 3 times a year
and it would have a new name and new suckers giving it a go--You need to be able to stick with it for longer than 6
months, if you start up a business. You can be plenty flexible for most lock calls, I find

[Tyler J. Thomas]

If you're tech-savvy, could you add CCTV installation to locksmithing? CCTV systems have been going digital for a while (especially POE over Cat-5, with footage saved to a server), or for analog cameras they are going to DVR's. With DVR's one still needs to be tech-savvy to hook it up to the network, add hard drives, etc.

The hardest part about CCTV work isn't the multiple technologies or brands. Heck, any manufacturers rep worth their weight in salt will literally walk you through what you'll need for your first few jobs to get you up to speed. ADI will even compile an entire parts list/quote if you provide them with job site specifics.

The hardest part about CCTV work is pulling wire and installing conduit. For typical commercial, for ceilings/plenum areas it's not too much of a hassle, especially if it's all indoors. When you start transitioning from indoors to outdoors or in warehouses with 20+ foot ceilings that's when it becomes hard. Moving at a snails pace with a scissor lift, having to measure and cut and bend conduit around stuff, literally having to work with a wire lubricant, etc.

I recall having to trench conduit between a building and a parking deck at one of my first jobs. 50 feet or so but the trench had to be a solid foot plus conduit diameter underground. It was raining. And 40 degrees. And it sucked.

A lot of crappy installers will simply just leave the wire bare or may try to make it look "decent" by using tie straps but doing the job right requires a bit of head candy and a whole lot of hand candy.

Access control is fun; you don't have to install card readers 15'+ on the side of brick buildings. With a lot of companies offering true wireless access control systems now, you don't even need a low voltage license (depending on the state). Throw on a battery powered lock, plug in a wireless controller, configure basic network settings, teach the clients enough to be dangerous, and call it a day.

If you're just getting started in this, require 100% down on material costs with a 10 or 15% stocking fee if they cancel the job after signing the quote. Get set up with a distributor. Place the order once paid and then go out and install. A large majority of customers don't require multi-door solutions. Most just want to control one door (usually the front). Standalone electronic locks are child's play these days. Easy to install and manufacturers literally have instructional videos on YouTube on installation, programming, etc.

But yeah, start slow and expand slow. If this ain't your first avenue of income you can afford to pick and choose your spots.

[Silverado]

Funny you mention CCTV, I have an associate who does exactly that who asked me if I'd be willing to help him out. He's swamped with other things and needs some backup on installations.
I spoke to him about when I get this started I would refer his business for surveillance if he recommends mine for physical security and/or access control.
He said he's gonna need the extra help, and I'm sure I'll need an extra set of hands here and there too so it ends up working out for the both of us.
So, in a roundabout way I'll be supplying CCTV as well.

[Silverado]

So in looking further into things I have some more questions.

What is the average cost of residential and automotive lockouts? Does it differ based on the type of locks or manufacture of vehicle? Average pricing info is really hard to obtain because of these scammers advertising everything for $19.99 and I know ain't nobody making money charging $20 for a lockout.

[billdeserthills]

I charge $80 to pick open a house lock and $45-$85 to open a car
cars that relock themselves are $85, like Lexus

[cledry]

We charge $65-$75 to open a car, house or office.