Locksmith Business Overview

A locksmith provides security solutions for residential and commercial customers, including installing, repairing, and maintaining locks and security systems. These professionals also provide emergency services like unlocking doors and replacing lost keys. To operate legally, locksmiths also need state-required licenses and must pass background checks.

The most common business models for locksmiths include:

• Mobile Service Provider: Operates from a vehicle to provide on-site locksmith services at customer locations
• Retail Store Operation: Maintains a physical shop offering key cutting, lock sales, and security consultations
• Commercial Security Specialist: Focuses exclusively on business clients needing complex security system installations
• Emergency Service Provider: Specializes in 24/7 emergency lockout assistance and urgent security needs

Related: Checklist To Start A Business

How Do Locksmiths Make Money?

Locksmiths’ primary income source is providing security services and solutions. Customers pay for professional expertise in lock installation, repair, key cutting, and emergency access services.

Industry Statistics

Locksmiths operate under NAICS code 561622, Locksmiths. From small mobile operators to established retail locations, these businesses provide lock installation, repair, and security system services. Here are some notable statistics about the locksmith industry:

Locksmith Industry Size & Growth: The locksmith industry generated $3.0 billion in revenue last year. Over the past five years, the industry experienced a 0.4% average yearly growth rate. The industry is expected to see a 2.0% average yearly increase over the next five years due to rising housing starts, increasing home sales, and steady commercial construction activity. (IBISWorld)

Number of Locksmiths: There are 26,332 locksmith businesses operating across residential and commercial markets. The industry consists primarily of small independent operators, with no single company controlling a significant portion of the market. Most businesses are locally owned and operated, serving their immediate geographic areas. (IBISWorld)

Locksmith Profit Margin: Locksmith businesses typically see profit margins between 10% and 20% after accounting for operating expenses, labor costs, and equipment investments.

Also See: Ideas for Naming a Locksmith Business

Costs To Start a Locksmith Business

Starting a locksmith business typically costs between $10,000 and $15,000 for basic equipment, tools, and initial inventory. A reliable service vehicle will add another $15,000 to $30,000 to the startup costs.

There are several expenses to consider when starting a locksmith business. Here are some of the more expensive items:

Tools and Equipment: Professional locksmith tools, key cutting machines, programming devices, and diagnostic equipment range from $5,000 to $8,000. This includes manual and electronic tools for both traditional locks and modern security systems.

Inventory: Initial stock of locks, keys, security hardware, and replacement parts typically costs $3,000 to $5,000. This covers common lock types, key blanks, and basic security hardware needed for regular service calls.

Training and Licensing: Professional locksmith training programs and required licensing fees generally cost between $2,000 and $3,000. This includes technical courses, certification fees, and background check expenses.

These estimates are approximate, and actual costs will vary based on location and business model choice.

Resources:
Associated Locksmiths of America
Master Locksmiths Association
Society of Professional Locksmiths