Tech-Savvy Vertical

As the panel discusses, multifamily is at the forefront of the smart lock movement with the phone becoming the credential of choice for many. Locksmiths get called in to help property owners make the right decisions on hardware and software that now goes beyond just securing doors to offering convenience and ease of use.

“We're getting consulted on new construction projects from what kind of hardware to use, to what kind of software to use, and with the upgrading of existing units,” notes Winton. “A lot of buildings already have pre-existing infrastructure, and I think people really need to consider that there may already be wiring in place. There may already be electric strikes on exterior doors. There may already be a significant amount of this infrastructure in place. And a lot of times what I'm seeing happen is systems that were integrated 5, 10, or 15 years ago.  Those systems have been replaced; they're not servicing them anymore and the original manufacturers dropped that lineup. And so now they have to change to something new.”

Winton points out that once you have the power supply to the wire, to the electric strike, and to the door, “that all stays the same, no matter what system you're using, no matter what kind of software or intelligence system that you're using, you can apply any of those or any of these new systems to that existing hardware,” he says. “And then on top of that, we have companies that will integrate individual units as well. So, the perfect opportunity is a building that was maybe built 10 years ago, and they already have electronic strikes and access control on the perimeter doors. We can integrate that with an updated system, whichever company you prefer that's going to meet their needs, both on a budgetary mindset and on features.”

He continues, “And then there's probably also a standalone unit that will integrate with that as well. And we can move on from the fobs to something more secure, like facial recognition, biometrics, and using your phone as a credential. This is what the industry is demanding and what our clients are demanding. And it really is expected now. It's not a matter of, is this a feature? It's like, does your car come with air conditioning? Well, of course it does, it's 2026 … what are you talking about? You know, 20 years ago, there was a feature, so now it's expected.”

Younger agrees, noting, “I love Wayne's analogy of your car’s air conditioning – as something that was a feature in security two years ago, five years ago, 10 years ago is now expected and the expectation grows over time.”

In terms of the types of jobs he is getting, Younger says he is doing about 30% new construction and 70% retrofit jobs in this space, which really dictates the role and approach he takes.

“Retrofit-wise and almost universally, they're going to want to add new features in addition to just making the lock work,” he says. “So, from a management standpoint, they don't care if it's a brass key or if it's a phone as a credential, what else can I make work for my tenants? And that's what they're really trying to do … it's that curb to kitchen that you can get out of a smartphone. So, I'm going to always go in at this point assuming that they're going to want to use phone credentials, for example.”

Growing Your Business

Younger says many times he will be working with a multifamily property on smaller scale and then when they are ready, work with them on a larger upgrade project, which is how he has been able to grow his business in this area over time.

“To land the work, it's really a matter of taking customers you've already got, and ask them where they're at in the progression,” he explains. “There's somewhere on a progression of not using any kind of technology to – we must do this and we've got to do it right away because we're losing too many tenants.”

He also recommends that locksmiths work with the National Apartment Association, BOMA, and other local housing associations to expand reach in the area you do business.

“Go where apartment managers are at first,” he says. “And second, and this is something as a locksmith we have a great opportunity, because our manufacturers and our distributors really don't have the ability to fully install everything for a project and then make it all work.”

He adds that it is important to “make sure that your distributors and your manufacturers in your area know that you can do this. And that's half of it; let them help you because they're going to say I need to have something done and I want you to do it. I want anybody who's coming into San Diego to say, ‘We know that Grah's done 20 of these, and they should be able to handle this project for us.’”

He continues, “Then the third leg of that stool is to really make sure that you talk with the reps for the rental property management companies, the Yardies, and make sure that they know that this is something you can do, because they too are out looking to sign up new customers for their software, their management software. And so, as they bring somebody on, they want somebody else who can commission a whole building of locks onto that software and onto something greater.”

Bazala astutely points out that property owners see locksmiths as trusted advisors, which is where they have a distinct advantage in being chosen to be a part of these projects.

“They all point to kind of the same thing – that the way to get higher margins is to build trust and be the expert and know your stuff, present the options, ask the right questions. I know it is kind of basic selling, but it is important to [embrace] that role,” she says. “I think those connections, though, that [Wayne and Glenn] mentioned between the locksmith and the manufacturer reps, I think that's key. Locksmiths and system integrators that you may know are already doing these jobs, which is key because they'll get big jobs that they can't get done alone, or they need done in a specific timeline and need help doing. All those relationships are totally critical.”

Understanding the Proptech Space

As multifamily property owners look to bring all systems and technology under one platform, or one tech stack, it is important to understand what they are looking for from a management perspective long-term.

“These residential engagement platforms in the multifamily PropTech space drive building management,” notes Rawls. “So, I would say understanding those systems will make our partners, the locksmiths, stand out to the end user. Locksmiths are helping them grow their NOI, grow their revenue … sharing ideas with them … so I would say that's a big one. And remembering that, in my opinion, we see this all the time, the unit door is the driver. So that's what's driving the buying decision from owners, operators, and developers in this industry.”

Bazala agrees, adding that the software is now controlling and managing the software, which is why it is important that the lock that is chosen for their building be as agnostic as possible. “The gates, all that stuff has to be agnostic so that it can work with third-party software [providers] and aggregate so that you have kind of a unified single platform that the homeowner or the property manager gets to use, which is a key trend from a manufacturer distributor perspective,” she says.

Donohue also sees the multifamily space moving away from traditional keys to more software-based, electronic access control options.

“One of the things that we've been seeing is a big push going from hardware-based installation at the site and moving more toward a cloud-based system, whether it be through an Internet connection or through a Wi-Fi connection, or through cellular connection. depending on the site,” he explains. “So, we've been seeing a big growth in access control, with a mixture of our wireless locks and our hardwired controllers going into that.”

He continues, “And we've had a big push into moving to that [single] platform, which is our MVP platform that brings both our hardware controllers and our wireless locks together. It allows the end user to use a single application to control, add users, delete users, run reports, see video, and everything right from their phone. Another big trend we are seeing is getting those integrations to work with other platforms, as well. So, the biggest growth we're seeing right now is from that cloud-based access control, which makes it easy to do those types of integrations.”

Keep it Simple

As Winton points out, while each job has different needs and budgets, it is important to simplify your approach as a locksmith.

“I really want to understand the client and the customer's needs,” Winton asserts. “I think if that's not the focal point, you're going to miss the target every time. You have to understand what it's like doing a maze backwards, right? What is the desired end result? What do you want in a perfect world when money's not an expenditure – just what do you want in the end? And then we'll try and work back from there. And once we understand what they want as far as features and usability, then we look at the budget for this project, right? So, we have to qualify the customer, and then we have to make sure that they actually have the budget to deal with it.”

Because there is often a gap between what a customer wants and what they have in their budget, Winton recommends having tiered options for them to choose from.

“Don't just give one option – always give a good, better, best option, right? And that includes the quality of the hardware. You know, we'll offer mid-grade hardware, something kind of in the middle, a very high-end hardware, like Von Duprin, and then we'll offer something a little lower end, and budget conscious as well.”

Winton adds that many of these multifamily projects and budgets are getting approved by homeowner’s association boards, for example, a step “that's going to have multiple people who are going to want opinions and weigh in on that, so I always make myself available in that conversation. When we're putting one of these projects together, I will always give my personal cell phone number and ask them to include me in their next board meeting. I can come by or I can drop in virtually, by Zoom, whatever they need to, or even just a direct phone call on speakerphone and have them bring those questions up that the board has and ask them directly so that I can answer them in an intelligent fashion.”

He continues, “And if you can do that, you will win the majority of the bids because they're already looking to you as the industry professional. You are the one answering the questions. It’s a jungle out there and sometimes we even have a hard time cutting through the crap in the advertising as to what actually works and what works long-term and is user-friendly and reliable. And those are the key things that your client is looking for. So, if we can clear the jungle for them and give them three options that are going to suit their needs, because you know you've implemented these systems before, that you know it's just going to work and it's going to work well for them, you'll be very successful with winning these bids.”

Winton notes that locksmiths should avoid the urge to try and be the cheapest option, which is why providing multiple options is a key to his success.

“When you do that good, better, best option, if money is the main driving factor, well, you have a competitive bid,” he explains. “If features and installation and quality are the premium features that they want, then you'll have something that covers that as well.”