The
locks on the doors of most homes keep the skilled burglar out
for
about 30 seconds!
This
is especially true if the only thing slowing him down is a
standard
key in the knob lock.
Statistically,
there's about one residential burglary every 30
seconds
in this country.
Traditionally,
as the economy falters and times get harder, the
number
tends to rise.
Quite
naturally, people are concerned and frightened.
As
a result, locksmithing is not only one of the new "demand"
businesses,
it's rapidly becoming one of the more profitable
businesses
for entrepreneurs with not too much capital to invest.
Today's
locksmiths are usually well versed in mathematics and
basic
electronics.
They
almost have to be, what with the new types of locks being
introduced.
Today's
locksmith is more likely to be known as a "Security
Specialist",
than as just ordinary locksmith, as in the past.
Even
so, most locksmithing businesses are still one-man
operations.
In
many instances, it's a husband and wife family affair, with the
husband
handling the mechanical end and the wife the books and
financial
end of the business.
Most
of these small operations tend to concentrate on the repair
side
of the business, and deliberately choose to remain small in
size.
As
we will discuss later, however, this need not be the case;
these
small businesses can "grow up".
According
to the area in which he is located, an established, well
organised
and trained locksmith may gross between $50,000 and
$60,000
per year, using a van as a mobile "workshop", and space in
his
home as an office.
Remember:
As the economy turns towards recession, burglaries
increase,
and people become aware of the need for better locks to
protect
what they own; thus the locksmith enjoys an increased
income
during hard time.
You'll
need a preplanned sales programme along with
good
breakdown
on your costs versus expected income.
Direct
mail campaigns can be as simple as making up advertising
circulars
or flyers and hiring students to deliver them, or hand
them
out to shoppers in busy shopping centres.
The
best angle here is to offer a free check of their locks.
Show
them how easily a burglar could open their doors; and then
propose
new locks for all their doors at a special price.
You
should feel no reservation about putting a little fear into
the
prospect; remember burglary is real, and frightening!
Local
newspaper advertising can be as simple as a regularly run
advertisement
announcement your business location and phone
number.
However,
it's best used to "splash" a special offer such as the
replacement
of all key in the knob front door locks with deadbolt
locks
for half the regular price.
Whenever
you spend money to advertise, really go after new
business.
Once
you've installed or replaced the lock on one door, it's only
natural
to check the adequacy of the locks on the other doors, and
thus
you should be able to realise some real profits from your
advertised
special offer.
Promoting
and selling your services via Home Protection Seminars
could
work like this: You rent meeting space
in a church, school
or
even the meeting room of a popular hotel.
Run
lots of flamboyant advertising in your local papers announcing
your
seminar.
Have
brochures made up describing your services.
Have
your materials arranged so that you will get the name,
address,
and telephone number of everyone who attends.
Put
on a short half-hour to 45-minute presentation first about the
increase
in the number of burglaries and the losses sustained, and
then
follow through with a presentation describing the proper ways
to
ensure the security of a home or business.
Contact
your suppliers, and through them you may be able to come
up
with a slide presentation of a complete programme detailing how
their
line of locks, alarms and other security devices will
burglar
proof a home or business.
Make
sure that everyone in attendance gets one of your brochures,
and
then have sales people follow up on all who attended.
Via
telephone, your sales people can sell homeowners and business
owners
on a free survey.
Commission
sales people to make the survey appointments.
Outfitting
yourself and your help in smart using uniforms will
help.
Making
your calls in a clean, well organised van will also pay an
important
part in the image your customers have of your business.
You
want your customers to have confidence in your business, and
in
the quality of work you do for them.
When
they do, you'll find they are more likely to pay their bills
with
fewer reminders.
Think
of it like this:
A
large invoice presented by a man in a clean uniform who drives
up
in a good looking van and does quality work is going to be paid
more
readily than one for $25 presented by a guy in grubby jeans
who
drove up in a 10 year old decrepit transit van.
With
so many technological changes occurring within this field, on
an
almost monthly basis, it's to your advantage to stay on top of
what's
happening within the locksmithing field.
This
means subscribing to some of the better trade publications.
You
should be attending the various Locksmithing Associations
promoted
seminars and workshops that offer on-going help in both
the
technical and financial side of this business.
In
other words, you should plan to keep yourself up to date with a
programme
of continuous learning.
There
are several ways to get started in this business.
You
can buy an existing operation from a retiring craftsman.
Ask
him to help you with the technical side of the operation,
while
you spend most of your time actively promoting and managing
the
business.
Or,
you can hire the technical help you need, and the sales force
to
build the business while you do the managing.
You
can enrol in one of the popular correspondence courses, become
involved
in the business as you learn from the various trade
publications,
and progress at your own speed.
Our
recommendation is that you learn the fiscal and management
side
of the business, and hire others to handle the mechanical or
technical
side.
Thus
the purpose of this article is to indoctrinate you on the
business
side.
To
examine the technical details of this business would take
volumes,
and probably much of the information contained would be
out-dated
by the time it came off the press.
However,
we will provide you with an outline of the most common
types
of jobs a locksmith should be able to handle.
LOCKOUTS
Frequently,
a person finds himself locked out of his home, office,
warehouse,
etc.
Invariably,
this happens at odd hours of the day or night.
So
opening locks at odd hours of the day and night will be a role
you'll
definitely play in the lives of your customers.
A
typical pin tumbler can generally be picked open in about 30
seconds,
using either picks or a single piece of spring steel and
good
wrist work.
All
locks have tolerance and variations in manufacture which allow
you
to push the cylinder pins up out of the way while exerting a
turning
pressure on the cylinder itself.
CAR
LOCKOUTS
This
problem occurs frequently and will require a different
procedure.
A
tool called a "Slim Shim" is often used here, and works on most
domestic
and many foreign cars.
This
is pushed down between the glass and the weather stripping on
the
door far enough to reach the back of the lock cylinder on the
door.
You
simply push down or pull up.
A
"button popper" is also used, worked through the weather
stripping
on vent windows in the older cars, and angled back to
the
latch button.
A
"button popper" is also used, worked through the weather
stripping
on vent windows in the older cars, and angled back to
the
latch button.
LOCK
INSTALLATION
Much
of your time will be spent installing new locks and door
hardware.
In
many cases, homeowners and business people will want to upgrade
their
security with the latest model hardware for older homes,
offices
and other buildings.
Many
locksmiths get involved in new construction of new houses,
shopping
centres, and the like.
Often
you'll be adding more security to an existing door, such as
installing
a deadbolt lock.
PANIC
BARS AND DOOR CLOSERS
Many
locksmiths working the commercial or industrial market get
involved
in the repair and installation of panic bars in public
access
areas.
Panic
bars are those large metal bars you push on to open the
outside
doors of many public buildings.
Door
closers are those hydraulic devices mounted at the top of
these
doors which return the door to the closed position after it
has
been opened.
In
addition to these major areas of activity, locksmiths the world
over
do key duplicating and impressioning, which is the replacing
of
lost keys with custom made copies, and a wide variety of other
types
of sales, repairs and service work.
In
order to achieve maximum profitability as a locksmith, you must
be
able to offer these services to your customers, as well as
installing
alarms, safes, and vaults, high security work, such as
electronic
push-button locks with combination numbers,
recombination
locks, and masterkeying.
Just
because locksmithing is a "personal" kind of business, and
can
be started on a shoestring, and operated out of the home,
that's
not to say that a locksmithing service cannot be developed
into
a million pound business.
On
the contrary, there are a number of operations in some of the
larger
areas that have several mobile locksmith vans on the road,
in
addition to retail store locations.
These
operations are grossing well into the million pound figures
every
year.
It's
a matter of desire, determination and personal fulfilment and
satisfaction.
Attitude,
marketing skills and general business knowledge are also
positive
attributes necessary for real success.
Very
definitely, the sharp businessman with determined ambition
can
dominate any market with a modern locksmithing service.
The
key ingredient to this business is the utilisation of proper
marketing
and selling skills.
It
goes without saying: You can know all there is about the
mechanical
functioning of a business, but without innovative
marketing
and selling skills, your business will surely flounder.
However,
given the marketing knowhow, plus persistent sales
efforts,
you can succeed in this business with the knowledge you
can
acquire of the technical side.
The
success of any business is built upon the marketing and sales
expertise
of its founder, because after all, "mechanics" can
always
be hired, if you decide to go that route rather than learn
the
trade and the business.
Your
marketing efforts should stress the theme that your services
will
allay the fears of your buyers.
You
want to get across to your prospective customers the sense of
security
your service will provide.
You
can make them safe in their own homes; no longer will they
have
to worry about being rudely awakened in the middle of the
night
by a burglar rustling around in their house; no longer will
they
have to worry about coming back to a home that's been cleaned
out
or ransacked.
Once
you understand that fear is a basic human instinct, it's easy
to
see that virtually everyone can be a prospect for your services
as
a locksmith.
Your
potential market includes everyone in your area, because
everyone
has possessions.
So
every homeowner, every apartment dweller, every business owner,
all
the schools, churches, government institutions, and a wide
variety
of other commercial and industrial accounts can be yours.
In
this day and age, new homeowners and apartment dwellers want
the
locks changed the day they move in, so that former occupants
and
other key holders will not have access to their place.
In
addition, there will probably be the need for additional keys
for
each member of the new family, now that new, safer locks have
been
installed.
Commercial
and industrial accounts present an even more lucrative
market.
Larger
companies tend to want their keys 'departmentalised', so
that
office workers can get into the building on weekends, but not
into
the factory or shipping areas, and vice versa.
Banks
and savings institutions frequently need the safe deposit
locks
changed.
Generally
speaking, newcomers to this field should focus their
efforts
on the commercial and industrial area as soon as possible.
The
commercial market is vast, and often up for grabs in many
areas. In addition, the profit margins in these
areas are
excellent!
With
one of these accounts you'll have work paying about $500 or
more
per visit, compared with $25 to $50 per visit for a
residential
job.
With
commercial and industrial accounts, there's also the
possibility
of ongoing service and maintenance.
Definitely,
the commercial and industrial business is well worth
going
after, and can put your business in the black very rapidly.
However,
it does take aggressiveness, and the determination to
sell
these accounts.
Start
small.
Consider
working out of your home in the beginning.
Most
of today's successful locksmiths began by working out of
their
homes, with the family car or van fitted out with the tools
and
equipment needed.
Such
an approach will enable you to get started for as little as
$500.
You
should be aware however, that this is just a beginning, and
not
all it's going to take to really establish your business.
With
this level of investment, you're more or less limited in the
business
you can handle and the money you can make.
Locksmiths
who want to make the really big money should be
investing
all their early profits into more equipment and
inventory
up to a level where they can offer complete full service
locksmithing.
Such
a business would require at least $5,000 in equipment,
perhaps
even up to $10,000, depending on how many different
services
you want to offer.
This
estimate for start up costs does not include your van or
inventory
of spare parts and new locks.
Perhaps
a quick word of caution is in order here.
You've
no doubt seen or heard some of the advertisement promising
all
kinds of big money to be made with your own locksmithing
service.
"Just
send for the learn at home correspondence course, and you'll
be
home free".
It's
true that you can earn big money in this business, but as
we've
noted earlier, without a lot of sharp marketing and selling
expertise,
plus at least the essential equipment to handle the
kind
of work these courses teach, enrolling in one of these
courses
will put you no further ahead than you are right now.
This
business requires equipment and knowledge.
You
can make excellent money as a locksmith, so long as you
operate
your business capably and in a professional manner.
But
without a full line of the equipment required to handle a wide
variety
of jobs, you will be limiting your total income potential.
The
more you invest in quality equipment, the more different kinds
of
jobs you can handle, and thus the more money you'll be capable
of
making.
It
is of utmost importance that you build and maintain a
professional
image as a quality locksmithing operation from the
start.
You
should endeavour to handle all jobs as quickly and efficiently
as
possible.
Locks
and security are of prime concern to your customers, and it
follows
that when a customer wants help in this area, he wants it
taken
care of immediately.
Thus,
you must position yourself to handle his job immediately, or
loose
him to a locksmith who can take care of his needs on the
spot.
Do
some market research.
Analyse
your local market area before you embark upon this
business. This can be done via letters to the local
locksmithing
association,
Chamber of Commerce, or even by checking through the
yellow
pages.
As
important as everything else, you'll want to know how many
locksmiths
are already operating in your area, and how much of the
market
you can expect to attract with your business.
Most
industry experts agree that any more than one locksmith for
every
30,000 people tends to saturate the market.
However,
you should study the operations of the existing
locksmiths
to determine if you can capture a good portion of the
existing
market by offering more and better service, especially
with
a well planned effort towards the commercial and industrial
accounts.
In
many areas, the established locksmiths have been in business
for
20 years or more, and are not interested in expanding their
businesses
to include the newer and more intricate types of
protection
available.
Look
your market over.
Determine
if there's been any real effort made to "sell" the
market
on upgraded protection.
Door
to door sales efforts; direct mail advertising campaigns;
local
"hard sell" newspaper advertising; home protection and
business
security seminars, are angles that can be used to launch
your
business.
These
approaches should prove to be especially profitable if the
existing
locksmiths have been sitting back and letting the people
come
to them when they have a problem.
Get
to know the building contractors and start bidding on the
installation
of locks on their building projects.
You
will get your share of the business, even though at first you
may
get contracts only from the new builders, who have not had
experience
with other locksmiths.
For
a fast start in this business, I suggest that you set yourself
up
with a van, and take your business to your customers.
It
isn't necessary to buy a van off the showroom floor, and outfit
it
with all the equipment you'll ultimately need for a full
service
locksmithing business.
That
would be nice, but it would probably run you close to $50,000
or
more.
By
shopping around, you should be able to pick up a good, late
model
used van for about $1,000.
You
might be able to work an even better deal by leasing a new
van,
and writing off your payments as a business tax deduction.
One
thing you'll definitely want to consider is a van that has a
raised
roof in order for you to stand upright in it.
After
all, you'll be doing most of your work in it, and to have to
stoop
all the time would soon become quite tiring.
Generally,
you can run a workbench down either or both sides of
your
van, building in adequate storage shelves and drawers under
the
workbenches.
Above
the workbenches, and on the sides of the van, peg board
works
very well for hanging your tools and key blanks.
You'll
need 240 as well as 12 volt outlets for power.
This
is accomplished with either a power converter or ready line
generator.
Whether
you do or don't start out with a van, you'll need a
variety
of equipment.
Your
first basic investment should be a key duplicating machine.
This
is the machine you'll be using to take one key and make
copies.
You'll
also need a key coding machine which will allow you to turn
keys
out to new codes. This machine will be
essential for the
combinating
work you'll be doing.
These
two machines will be the workhorses of your business - the
basic
machines you'll need to call yourself a locksmith.
So
shop around and be sure to get good quality, dependable
machines
to do the work for you.
You'll
also need a wide variety of hand tools such as files, jigs,
drills,
screwdrivers, micrometers and mortising tools.
You
nay also want to check out the additional profit potential of
your
owning a hand key coding machine.
You
should also have a pin-kit, plus key blanks, locks, and
padlocks.
Depending
on how aggressively you intend to pursue the different
areas
of the locksmithing business, you should plan to invest at
least
$1,000 for a beginning operating inventory of spare parts,
locks
and key blanks.
Before
ordering your inventory, work with your area distributors
or
suppliers to determine the most frequently needed locks and
By
creating a professional image, turning out quality work, and
having
a van that enables you to take your business to the
customer,
you'll be able to charge accordingly.
It's
that simple.
Because
traditionally, locksmiths have located themselves in "hole
in
the wall" storefront shops, or more recently in shopping centre
car
parks, most have never charged more than a pittance for their
work.
In
other words, they have been under pricing themselves.
The
great advantage of being mobile is that you can take your
services
to the upper income areas, because they not only have
more
to protect, but are more likely to appreciate the value of
your
services, and pay promptly.
When
pricing the locks you sell, always mark your procurement cost
up
by at least 30 per cent.
Thus,
if you were to buy locks at a wholesale price of 314, you
would
charge your customers $18.50 for the lock, plus your
installation
charge.
If
a key blank costs you $1, your price to the customer would be
$1.65
plus whatever portion of an hour you figure it takes you to
turn
it out or duplicate it.
What
I'm saying here is to always consider the base cost of your
supplies,
plus a profit margin for yourself, and then the
installation
charge.
Thus,
a two-hour job to install a couple of deadbolt locks, with
keys,
might cost the customer $75 or $80.
The
best quality work, and the lowest prices in town, are of no
value
whatsoever if you have no customers, so you must
aggressively
seek out customers.
Don't
wait for them to come to you.
Knowledge
and concerted efforts in advertising, promotion and
personal
sales will bring you customers.
As
mentioned earlier in this report, you can and should use door
to
door circularising, direct mail, local newspaper, and seminar
type
sales efforts.
And
don't forget the tremendous advantage of using the telephone.
Run
an ad in your local games calling for commission sales people.
Hire
them to call on homeowners door to door and to sell the idea
of
upgrading their locks.
Then
have a commission sales person call on these prospects and
make
a quick survey, then sit down with them and make
recommendations
on how they can improve the security of their home
or
business.
From
there, it's a natural lead-in to "we can do the job" for
(whatever)
amount of money.
The
seminar and telemarketing angles can be very profitable for
you,
and if promoted properly, will build your business faster
than
all other plans put together.
The
important thing to keep in mind is that you must be aggressive
and
go out after customers.
By
all means, take advantage of the direct mail opportunities.
Have
a flyer or circular made up elaborating on your services,
specifically
the upgrading of current security and
burglar-proofing
of a home or business.
Hire
students to deliver these door to door, and commission sales
people
to contact and follow up via telephone.
Once
you've got your sales efforts to homeowners and local
businesses
organised, hire a couple of sharp commission sales
people
to call on the government agencies and institutions, such
as
hospitals and schools.
By
all means, buy a good sized display ad in the yellow pages, and
if
possible, display advertising on buses.
Use
your knowledge of how easy it is to burglar most homes and
businesses
to come up with angles to get your name, and the name
of
your business, written up in local newspapers and other
publications.
Make
yourself available for interviews by local radio and
television
talk shows, civic clubs and other organisations.
Innovation
and persistence in marketing will be the keys to your
immediate
success.
As
I've stated earlier, most locksmiths are craftsmen who do good
work,
but just don't understand the merchandising and selling
opportunities.
With
the business and marketing skills we've touched upon, plus
quality
workmanship (which you can hire others to perform for
you),
you should be able to quickly establish a profitable
business
that will continue to grow and prosper.
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