Why Dont You Make Car Keys?

It is perhaps one of the most common questions I get these days.

For a great many years, I worked with companies that offered automotive locksmithing service works. I managed one companies busiest automotive locksmithing service department. I wore myself out making keys to vehicles, rekeying vehicles, repairing worn or damaged locking mechanisms.

In the late eighties, the automobile manufacturers were forced by insurers through government lobbying to increase the security of all vehicles. Insurers were inundated with regular claims from motorists to replace their stolen vehicles. The insurance companies found this to be a huge and increasing cost to them and were preventing them from making greater profits.

When Texas Instruments produced some new intelligent and inexpensive electronic components, the insurance companies jumped all over the new technology and saw it as their best chance to reduce the payouts they were having to make.

The transponder industry grew from that time and this resulted in the stolen vehicle statistics dropping like a rock. The insurance companies were all of a sudden, saving billions of dollars by reducing claims for stolen vehicles.

This is because it has become virtually impossible to move a vehicle equipped with modern transponder "Chip Key" technology, unless the correctly programmed "Chip Key" is recognized by the vehicles on board computer.

I was talking to the fellow to whom I refer my automotive calls today. He told me that business is brisk, but he is continually pumping money into the latest machinery and diagnostic equipment, in order to be able to continue to offer the services. His latest spend is for <$10,000 for equipment especially designed to produce keys for Volkswagen, Porsche, Mercedes vehicles. These modern vehicle manufacturers, regularly change their onboard vehicle transponder technologies and service companies are consequently forced to update their equipment, to be able to provide customer services.

If I wanted to be able to offer automobile keys, as a part of my locksmith business, I would be forced to spend approximately $20,000.00 just to get set up initially. That is for machinery only. I would still be required to purchase inventory of keyblanks and chips. Then there is the required diagnostic equipment necessary to program all the different makes of cars.

Add to this the ongoing cost of purchasing the updates for new vehicles and the costs soar.

When costs soar, this directly implies that the retail price (the price the customer has to pay for their key) increases accordingly.

It is common for some charges to be upward of $500 - $700 to make new keys for some cars,

It is common for duplicate car keys to cost as little as $75, but the greater majority cost between $100 - $150 for each key.

It is awkward and sometimes embarassing when a potential customer calls me wanting new or additional keys for their new jalopy, expecting that "every locksmith" can make keys to anything. I have worked in this industry for close to 30 years and it pains me to have to say "NO". My customers usually understand when I explain the facts to them, but I cringe because it is business that I know I am missing out on and the other business that comes from it too.

When a customer calls up and asks how much to cut my car key? If I were to quote a "very high" price, just to give the impression that I do that sort of work, with the hope that the customer simply refuses to pay my prices, I believe I am doing a monumental disservice to them and to myself.

Then what happens when a client calls me on it? (they are prepared to pay my price) - The egg on my face is not worth the trouble.

This is Why I Do Not Make Car Keys!