AUTO LOCKSMITHS
Frequent questions and some answers …
By Vic Southern
» I TRY TO LOOK AT AS MANY LOCKSMITHS ’ forums as possible so as to keep in touch with industry trends . I answer some of the questions that are put but mostly I steer away from the specialised technical queries - mainly because I don ’ t know - but also because they are usually answered quickly by someone who does . BUT , there are some very common questions that I can and do reply to …
What price should be charged for this job ?
Quite simply you should be charging the price that makes it worthwhile for you . Any idea that you can grab your tools , get in the van , struggle through traffic , work for a half-hour and supply some material and get £ 60 is plain daft . Really you should be looking at £ 60 per hour from leaving to job finished , 50p a mile plus the materials used with a 50 % mark-up on those . You may be underquoted but you should always allow your competitor to have the worst jobs . Don ’ t believe me ? Get a plumber or electrician in and see how much you get for £ 60 .
My competitor advertises in a way that makes me look bad or too expensive . How should I deal with this ?
Really you should not be involved in a war of words with your competitor . It is not helpful to anyone and drags you down . Be aware of how they charge and what they can do – that ’ s OK and wise . Get on with your own business ; that is what pays the rent and keeps food on the table .
‘ quite simply you should be charging the price that makes it worthwhile for you ’
How do I deal with rogue locksmiths who charge exorbitant fees for simple jobs ?
We see these stories all the time and it is pretty shameful how they get away with it . But it is not your problem to deal with . Join the MLA or the ALA , the recognised trade bodies . Ensure that your van , your leaflets , your invoices show clearly that you are a member . Apart from that the MLA offers you a free portal to gather enquiries in your area – that will not be available to the rogue . They will expect from you that you follow a continuous programme of professional development and award points towards that for every course you attend and pass . The ALA ( in normal times ) holds two meetings a year at which the latest technical information is exchanged freely and companies that sell locksmith supplies attend with good discount offers – also a periodical technical journal at no charge . Just beware ! Every now and then we see that you can join some new “ Society of Professional Locksmiths ” or the like . Mostly those are simply set up to get some cash out of you with the promise of all sorts of training , discounts and guaranteed leads . Well , it won ’ t happen and after a year or so they disappear .
Should I be a sole trader or register a limited company ?
Having a company costs some money and time but it will offer you quite different tax benefits and ways of paying yourself , quite legally . Very noticeably such companies came better out of the lockdowns and compensation than did most sole traders . The very cheap Bounce-Back loans were only available to what is described as structured businesses . And now the Chancellor has introduced a super investment tax benefit of 130 % off your tax when you buy productive equipment . It is not yet clear to me that vans would be covered but your accountant will advise you as also as to how you should pay yourself out of the company . Those super investment allowances are also only available to “ structured businesses ”. Sole traders won ’ t be able to claim . So , if you buy a machine for £ 5000 you will be able to claim £ 6500 off your taxable income . At the basic rate of 20 % that is worth £ 1300 rebate to you .
Lastly for now – the endless organisations that set-up to offer services with your labour . Some of these are bona fide , act professionally and pay you promptly . Others are basically rip-off merchants . You will get £ 120 while they get £ 400 from the customer . And some will pay you very , very slowly . Ask around , be sure of what you are in for . Those forums help .
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74
MAR / APR 2021
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