HOW TO START YOUR OWN MOBILE LOCKSMITHING SERVICE

    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
    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
    organized 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 toward
    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 times.

    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 dollar business.  On the contrary, there are a number of
    operations in some of the larger metropolitan areas that have
    several mobile locksmith vans on the road, in addition to retail
    store locations.  These operations are grossing well into the
    million dollar figures every year.

    It's a matter of desire, determination and personal fulfillment 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 utilization 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 know-how, 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 home to a house 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 keyholders 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
    "departmentalized," 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/industrial accounts, there's also the possibility of
    ongoing service and maintenance. Definitely, the
    commercial/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 outfitted with the tools and
    equipment needed.  Such an approach will enable you to get started
    for as little as $1,000.  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
    $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 advertisements 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.

    This is definitely a business in which you decide for yourself
    exactly how far and how fast you want to go.  As we've said, some
    operators are perfectly content to work out of their homes, using a
    mobile van.  They don't want the larger problems involved in hiring
    employees, or the expense of maintaining a retail location.

    But to make the really big money in this business, starting small
    and working out of your home, you should plan to put more mobile
    trucks on the road, and as soon as possible, open a retail location.
    Each mobile van will give you another satellite business, and a
    retail location will afford you a base headquarters for your mobile
    vans.

    It is of the utmost importance that you build and maintain a
    professional image as a quality locksmithing operation from the
    start.  Clinging to the craftsman type of image will be of advantage
    only if you wish to stay in the "Mom and Pop" category.

    You should endeavor to handle all jobs as quickly and as efficiently
    as possible.  Outfitting yourself and your help in sharp looking
    uniforms will help.  Making your calls in a clean, well-organized
    van will also play 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 truck 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 truck.

    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 Association 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 program 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 enroll 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 report is to
    indoctrinate you on the business side.  To explain 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.

    RECOMBINATION LOCKS:  A customer may want to change an existing lock
    to work off a new key - the most common type of lock being the
    key-in-the-knob cylinder or pin tumbler lock.  When the proper key
    is inserted in the keyway, spring-loaded pins are pushed up and out
    of the cylinder, allowing the plug to turn, and opening the lock.
    When recombinating, you're changing the depth of these pins so that
    a new key is the only one that will work. Most house, auto and
    padlocks are the pin-tumbler variety. Different brands of locks use
    different depths, spaces and keyways.  But with a given brand of
    lock, up to 50,000 variations exist.  Thus, it's not always
    necessary to change to a new lock.

    COMBINATING ALIKE:  Some customers will have a house or a business
    with several different locks and keys, none of them alike or using
    the same key.  Sometimes these people will want to change to a
    system that will require the least number of keys to carry around.
    Here, you'll  be required to change the key coding so that one key
    works all the locks. Sometimes this requires the installation of
    common door hardware; however, in most cases, you'll  find the same
    brand of locks are used throughout the building.

    MASTERKEYING:  Apartment owners and other commercial accounts may
    want dual key access.  This is done by using locks with dual pin
    tumbler sets.  One works with the apartment key, the other with the
    master key.  Keys are spoken of in terms of code numbers. These are
    sets of digits reflecting the depth of serrations.  A given lock in
    a master key setup might respond, for example, to keys with code
    numbers 1-2-3-4-5 and 6-7-6-9.   Mathematical progressions are used
    in master keying .

    LOCKOUTS:  Frequently a person finds himself locked out of his home,
    office, warehouse, car, 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 lock 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 tolerances 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.

    AUTOMOBILE 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.

    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
    hard-ware for older homes, offices and other buildings.  Many
    locksmiths get involved in new construction of apartment houses,
    condominiums, shopping centers, 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.

    ALARMS, SAFES and VAULTS:  The sale and installation of alarms are a
    natural adjunct to the locksmith thing business.  Many larger
    locksmithing operations move into this area, which is somewhat
    specialized.  Alarms can be the "perimeter" type, which sound when a
    door is opened after hours, or "area" alarms. "Space" or "area"
    protection is generally preferred, and involves infrared, ultrasonic
    or microwave sensors triggering alarms by detecting movement.

    Safe and vault work is another specialty.  Some locksmiths have
    major banks and savings and loan associations as clients. They spend
    a good deal of their time changing safe deposit box locks and
    maintaining vaults and the like.  Gaining in popularity is the sale
    and service of safes for home and business use.  You will be exposed
    to all these specialties and to new technology at seminars,
    conventions and workshops .

    HIGH SECURITY work:  A typical locksmith is a "general
    practitioner," while the high-security locksmith is a "specialist."
    High security work is often done for major corporations, government
    institutions, large banks, race tracks, museums and wealthy private
    individuals who desire maximum security.  Often this work involves
    access control systems using card readers or voice print equipment,
    possibly combined with electronic push-button locks that work off a
    combination of numbers known only to a very few individuals.

    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, repair and service work.

    In order to achieve maximum profitability as a locksmith, you must
    be able to offer all these services to your customers.  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 lose him to a locksmith who can take care of his
    needs on the spot.

    Do some market research.  Analyze 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 anything 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, we suggest that you set yourself
    up with a van and take your business to your customers. It isn't
    absolutely 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 $3,000.  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 110-volt as well as 12-volt outlets for power.  This is
    accomplished with either a power converter or ready-line generator.
    Definitely something to think about is the addition of an air
    conditioning unit.

    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 you 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, micrometer, and mortising tools.  You may 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 keys.

    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 just that simple.
    Because traditionally, locksmiths have located themselves in
    "hole-in-the-wall" storefront shops or more recently in shopping
    center parking lots, 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 customer, and should be able to charge $25 to $35
    per hour (or more) for an installation or repair call.  A good way
    to upgrade your business is to 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 percent.  Thus, if you were to buy locks at a
    wholesale price of $14 you would charge your customer $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 we're 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 run 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 circularizing, 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 papers calling for commission sales people.
    Hire them to call on homeowners door-to-door and to sell the idea of
    up-grading their locks.  You'll need a preplanned sales program
    along with a 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 centers. 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 announcing 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 realize 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,
    fraternal organization facilities, or even the meeting room of a
    popular motel.  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
    insure 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 program 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.  Then have a commission sales person call on these
    prospects and make a quick survey, thens it 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 call 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 organized, 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 of your area telephone directory; and if possible,
    display advertising on buses or commuter trains.  Use your knowledge
    of how easy it is to burglarize 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 fraternal organizations.

    Innovation and persistence in marketing will be the keys to your
    immediate success.  As we've stated in this report, 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) should be able to quickly
    establish a profitable business that will continue to grow and
    prosper.

Associations, schools and publishers:

Associated Locksmiths of America, Inc. 3003 Live Oak St. Dallas, TX
75204

National Locksmith Suppliers Association 95 E. Valley Stream Blvd.
Valley Stream, NY  11580

Foley-Belsaw Institute Box 8525 Kansas City, MO  64141

Locksmith Business Management School 6301 Equitable Road Emeryville, CA
94608

Security Systems Management School 1500 Cardinal Drive Little Falls, NJ
07424

Locksmith Ledger 1800 Oakton St. Des Plaines, IL  60018