Fingerprinting Business Overview
Fingerprinting businesses serve a wide range of clients who need fingerprint identification for employment, licensing, immigration, adoption, or security clearances. These services collect digital or ink fingerprints and submit them to agencies like the FBI, state police departments, and other authorized organizations that maintain fingerprint databases. Most fingerprinting providers use specialized electronic scanning equipment that meets FBI standards, though some still offer traditional ink-based fingerprinting. The fingerprinting process includes verifying customer identity, capturing prints, quality checking the images, and securely transmitting them to the appropriate agencies.
- Fixed Location Services: Operating from permanent retail locations where customers come for fingerprinting services
- Mobile Services: Traveling to client locations to provide on-site fingerprinting using portable equipment
- Integrated Security Provider: Offering fingerprinting as part of a broader range of identity verification and security services
Related: Checklist To Start A Business
How Do Fingerprinting Businesses Make Money?
The primary revenue stream for fingerprinting businesses comes from per-person service fees ranging from $40 to $100 per customer. These fees cover the entire fingerprinting process, including identity verification, fingerprint capture, quality assurance, and submission to required agencies. The exact pricing often depends on factors such as the type of fingerprinting method used (digital vs. ink), the number of receiving agencies, and local market rates. Most fingerprinting businesses operate on a cash or prepaid basis, collecting payment before providing services.
Additional revenue sources for fingerprinting businesses include:
- Mobile service fees: Extra charges for traveling to client locations to provide fingerprinting services
- Rush processing: Premium fees for expedited fingerprint processing and results
- Identity verification: Supplemental charges for additional identity verification services like photo ID validation
- Background screening: Fees for conducting basic background checks alongside fingerprinting
- Document handling: Charges for managing paperwork and submitting prints to multiple agencies
Industry Statistics
Fingerprinting services operate within the Background Check Services industry under NAICS code 561611 – Investigation Services. Here are some statistics about the industry:
Fingerprinting Industry Size & Growth: The background check services market, which includes fingerprinting services, generates $4.5 billion in annual revenue. The industry has grown at an average rate of 2.8% annually over the past five years. Growth projections remain positive as increased emphasis on security measures and employment verification continue to drive demand for fingerprinting services. (IBISWorld)
Fingerprinting Profit Margin: Background check and fingerprinting service providers typically maintain gross profit margins between 15% and 25%.
Startup Stories
Costs To Start a Fingerprinting Business
Starting a mobile fingerprinting business typically costs between $8,000 and $15,000 for a single-operator setup. There are several expenses to consider when starting a fingerprinting business, but here are some of the larger costs:
Equipment and Technology: A portable digital fingerprinting scanner system costs between $5,000 and $10,000. This includes an FBI-certified mobile live scan device, laptop computer, portable printer, and software for processing and transmitting fingerprint data.
Insurance: Professional liability insurance and general business coverage usually cost between $1,500 and $3,000 annually. These protect against errors in fingerprint collection or transmission and general business liability.
Training and Certification: Initial training programs and required certifications for fingerprinting technicians generally cost between $1,000 and $2,000. This covers FBI-approved training courses and state-specific certifications.
These estimates are approximate, and final costs will vary based on location and equipment choices.
How Profitable is a Fingerprinting Business?
A fingerprinting business owner’s profit varies based on several factors, such as location, competition, pricing strategy, and more.
One common formula used in the fingerprinting industry to estimate profit is calculating the profit margin. The profit margin is the ratio of profit to revenue and is expressed as a percentage.
Let’s consider an example calculation:
Revenue: The cost of fingerprinting varies depending on the type of service, the state, and the agency. A standard live scan fingerprinting fee is typically between $10 and $35. In this example, suppose the average price charged per fingerprinting service is $20, and the business conducts ten sessions per day over 50 weeks, totaling 2,500 fingerprinting sessions in a year.
Revenue = Price per Service x Number of Sessions
Revenue = $20 x 2,500
Revenue = $50,000
Expenses: Assume the total annual operating expenses, including rent, utilities, marketing, insurance, software, and miscellaneous expenses, amounting to $10,000.
Profit: To calculate the profit, we subtract the total expenses from the revenue.
Profit = Revenue – Expenses
Profit = $50,000 – $10,000
Profit = $40,000
In this example, the fingerprinting business owner achieved a profit of $40,000, but it’s important to note that this is a simplified calculation, and actual profit margins can vary significantly depending on individual business circumstances. Factors such as fluctuating expenses, seasonality, market demand, and competitive pricing can affect the profitability of a fingerprinting business.