Thinking Globally

July 2, 2019

Twenty years ago Joey Dalessio wrote an article for Locksmith Ledger in which he described how the Internet was affecting the locksmith industry. Basically, before the internet, hardware distribution was completed at a local level. Local distributors sold to local locksmiths who then sold to local customers. Sales channels were well defined. Distributors staked out their own sales regions and locksmiths did the same. It was the simplest of times.

Mr. Dalessio then proceeded to describe changes during the late 90's affected by the emergence of both big box stores and internet sales. Large companies could order in huge quantities at highly discounted prices. In order to sell this merchandise they began bypassing normal channels and selling direct to end-users. In his article Joey Dalessio suggested that locksmiths should form their own buying groups to achieve equal pricing with the big box stores. This idea never gained traction.

This sales evolution has only grown stronger during the ensuing years. There is not a hardware product or locksmith tool that is not for sale on the internet. Amazon stocks most locksmith products often with free delivery. At least in the Chicago area Amazon has its own fleet of delivery trucks.

Perhaps it is time for plan B. Most people entering the locksmith business only expect to depend on their local surrounding population base for sales and service. At the same time wholesalers and manufacturers who once sold only to the trade now have websites offering their products globally.

Many locksmith have already taken the plunge. One locksmith friend in California is selling safes on the internet and doing quite well. Selling keys by code is big business on Ebay. One locksmith selling on Ebay has a counter showing how many key by code he has sold. At last count he had sold over 5000 keys by code. At $9.95 each he has sold almost $50,000 just by cutting keys. The profit margin is probably close to 90%.

Almost every tool box, RV lock and electric switch has a code number stamped on it and that coding information can be found in CodesExpress. If you are interested in making an extra $50,000 this year then let the world know what you can offer. We are here with the support you need.