How To Start a Locksmith Business

The locksmith industry is worth around $2,8 billion, and it is an industry that is still growing 4.4% p/a. People still build houses and commercial buildings, and all of them have locks, so the demand for locksmiths will still increase
 
We’ll learn from this guide, that it has a relatively low startup capital and barrier of entry. 
 
So, how should you get started? Follow this guide to learn how to start and run a successful locksmith business in a few simple steps. 

Locksmith Business: General Overview

How To Start a Locksmith Business

Locksmith businesses make money by picking and fixing broken lock systems, as well as maintaining existing locks.

As a locksmith, you can specialize in residential work, vehicle work or both. Many businesses also specialize in securing commercial buildings and even safes and vaults.

Step-By-Step Guide To Starting a Locksmith Business

Step 1: Market Research and Planning

As with any business, a clear plan is essential.

Firstly, know if there is a sizeable demand for a locksmith service in your location. 

Startup investment

One of the main attractive factors of starting a locksmith business is its low startup cost.

Starting your locksmith business as a home-based business can cut startup costs. Equipment purchase will be one of your largest initial expenses. You’ll want to consider a field service management software platform to help manage jobs.

Consider investing in quality tools if you can, they will likely last longer as well as ensure you are able to perform quality work.

Pricing Strategy

How much should you charge customers? While the number might vary depending on various factors, here are some examples you can use:

  • For basic services (i.e. picking a lock or changing a lock), locksmiths typically charge between $40 and $100.
  • Duplicating keys costs between $1 and $4, but complex keys can cost up to $20, while specialized car keys can cost up to $175.
  • For cylinder repair services, you can charge between $5 and $25 per cylinder. 
  • For new installations, you can charge a minimum fee of up to $100, and $20-$30 on top of it per lock (or per item)
  • If you have to go to the customer for service, the average mobile fee is between $40 and $150, and you can charge more after business hours or during weekends, up to $250. 

The best way to baseline your pricing structure is to check how much your competitors are charging. But, keep in mind that you don’t always need to be cheaper. If you can offer more value than your competition (i.e. if you have better tools), then it’s perfectly okay to charge more. 

Step 2: Forming a Legal Entity and Registering Your Business

Find out the legal requirements for starting a locksmith business for your location. 

Even if there are no legal requirements, licensing adds credibility and may help you attract more clients. In the same breath, insurance protects your business from potential liabilities and when dealing with the public this is a must.

If you are going to start the business on your own, then you can start the business as a sole proprietorship. We’d recommend establishing your locksmith business as an LLC or corporation. This way you won’t be personally liable in the event of legal disputes, debts, and other legal issues.

Step 3: Get Your Equipment

  • What tools and equipment do you need to focus on purchasing?

Obviously, this may vary depending on the services you’ll offer, but here is a list of basic locksmith tools and equipment necessary to get started: 

  • Key cutter/duplicator machine
  • Car key programming equipment
  • Keycode conversion software
  • Field service software
  • Lockpicks
  • Vehicle 

 

Step 4: Develop Your Brand and Online Presence

A strong brand will definitely help in differentiating your business from your competitors and winning your potential client’s attention. Decide on a brand name, and design a professional-looking logo. You can outsource the branding process to designers through Fiverr or other platforms, and there are also various affordable tools available online if you want to do it yourself. 

It’s crucial to have a professional and functional website. Tools like Wix, Squarespace, and WordPress can help you in creating a professional-looking website at a relatively cheap price, even without any programming knowledge. 

Obviously, you should also create social media accounts on relevant platforms where your target audience is at. 

Step 5: Marketing Your Business

This is probably the toughest part of the business: getting your first clients. 

While marketing your locksmith business is a very deep subject on its own and deserves its own guide, here are some tips you can use: 

  • Network with other businesses in the area (including other locksmiths), join trade shows and expos, and join groups like Associated Locksmiths of America that might help you in finding opportunities.
  • Start by doing jobs for family, friends, and peers, and ask them to recommend your services to their friends.
  • Promote your business on social media effectively using both organic efforts and paid advertising options. 
  • Consistently deliver high-quality service to get referrals from your existing customers.

Closing Thoughts

While the locksmith business can be a challenging business to start due to how the technology in the industry is changing at a rapid pace (which means, continuous learning), it can be a very lucrative business opportunity with a huge potential for success. 

By using the steps and tips we have shared above, you can start planning your successful locksmith business, create your competitive advantage, and win more clients.

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