89. Locksmiths

Summary

Summary of "Episode 89. Locksmiths" – The Economics of Everyday Things

Introduction In Episode 89 of The Economics of Everyday Things, hosted by Zachary Crockett from the Freakonomics Network, the spotlight shines on the locksmith profession—a trade that blends traditional craftsmanship with modern technological challenges. Through engaging interviews and insightful discussions, Crockett unravels the multifaceted world of locksmiths, highlighting both the artistry and economic dynamics of this essential service.

The Locksmith as an Artisan Zachary Crockett introduces listeners to Wayne Winton, owner of Tri County Locksmith Service in Glenwood Springs, Colorado. Winton's passion for locksmithing is palpable as he describes the profound satisfaction he derives from manipulating locks:

Wayne Winton [01:16]: "When you have this chunk of metal specifically engineered by hundreds of years of security technology and some of the greatest minds in the world to keep people out, and I can open that, it's indescribable. I would put it on par as your first kiss with your soulmate."

Winton, one of approximately 15,000 locksmiths in the United States, operates his business with a focus on mobility and versatility. His daily tasks range from unlocking high-end vehicles to securing homes for victims of domestic violence, showcasing the diverse applications of locksmith skills.

Economic Landscape of the Locksmith Industry Locksmithing in America is predominantly composed of small, independent businesses. While national franchises like Papa Lock boast over 450 locations, most locksmiths operate solo or with minimal staff:

Wayne Winton [03:24]: "It is consistent of mostly small, independent, one or two person and van and a lot of mobile shops. If you can buy a van and equipment and you get the knowledge, you can be a locksmith tomorrow."

The initial investment for equipment and a reliable vehicle is substantial, with Winton estimating:

Wayne Winton [04:23]: "I would say there's at least $30,000 worth of equipment in each vehicle and probably another $30,000 worth of equipment sitting in the storage unit."

Tools of the Trade The locksmith's toolkit is extensive, encompassing everything from lock picks and pin kits to advanced key-cutting machines:

Wayne Winton [05:14]: "I've got some basic key blanks. I've probably got $8,000 worth of drill bits, some basic electronic access stuff, fish tapes, stuff to run, wire inspection cameras, auto dialer that would basically run every single combination possible on a combination lock."

These tools enable locksmiths to handle a wide array of tasks, from simple key duplications to complex safe cracking, underscoring the technical expertise required in this profession.

Challenges: Digitalization and Scams The locksmith industry faces significant challenges from technological advancements and fraudulent practices. As locks become increasingly digitized, traditional locksmithing skills must evolve:

Wayne Winton [17:38]: "The only way that I can open my home before is with this specific key. ... If I take an electronic lock, what if you gave that code out?... It's convenience versus security. And convenience always wins."

Additionally, the rise of unlicensed operators exploiting online platforms has tarnished the industry's reputation. These scammers lure customers with deceptively low prices and subpar services, often resulting in damaged property and exorbitant charges:

Wayne Winton [09:04]: "They tell you that it's a high security lock. They drill it, they destroy it... and then they try and bully you into... paying them a ludicrous sum of money. 5, 6, $700 plus."

Such fraudulent activities not only harm consumers but also undermine legitimate locksmith businesses.

Regulatory and Trust Issues Currently, only 13 states mandate locksmiths to obtain a license, contributing to inconsistencies in service quality and trustworthiness:

Wayne Winton [10:26]: "When I unlock people's vehicles, one of my favorite one liner jokes is you have to have a license to drive your car. I do not have to have one to break into it."

To combat this, industry organizations like the Associated Locksmiths of America certify reputable businesses, although Crockett suggests that the best way to ensure trust is through personal interactions:

Zachary Crockett [10:37]: "Sometimes the best option to find a trustworthy locksmith is to walk into a shop on the street and talk to one in person."

The Future of Locksmithing Despite the hurdles, locksmiths like Winton remain optimistic about the industry's potential. The transition to electronic locks presents new opportunities for skilled professionals to upgrade and install advanced security systems:

Wayne Winton [18:18]: "We’re right in the transition. Almost every new building that's going up right now has low voltage electronic access wires being put into it... I see nothing but opportunity."

Furthermore, specialized tasks such as safe cracking remain lucrative and prestigious within the field, albeit demanding high levels of expertise:

Wayne Winton [19:17]: "There’s literally three or four Swiss type built watches in there for what’s called a time delay system... So there is a tremendous amount of moving parts that all have to harmonize... to open."

Conclusion: The Unsung Heroes Ultimately, the episode underscores the vital role locksmiths play in everyday life, offering not just technical services but also peace of mind:

Wayne Winton [22:22]: "What I sell is peace of mind, and you can't really put a price on that."

Through their expertise and dedication, locksmiths navigate the delicate balance between tradition and innovation, ensuring security and accessibility in an ever-evolving landscape.

Key Takeaways

• Diverse Skill Set: Modern locksmiths perform a wide range of tasks, from key duplication to high-security safe cracking.
• Economic Viability: While predominantly small businesses, the locksmith industry offers significant earning potential, especially with the adoption of electronic systems.
• Challenges from Technology and Scams: The shift to digital locks and the rise of fraudulent operators pose significant threats to legitimate locksmiths.
• Importance of Trust and Regulation: Licensing and industry certifications are crucial for maintaining service quality and consumer trust.
• Future Opportunities: The ongoing integration of electronic and smart lock systems presents new avenues for locksmiths to expand their services.

Episode Credits: This episode was produced by Zachary Crockett and Sarah Lilly, mixed by Jeremy Johnston, with assistance from Daniel Moritz Rapson.

Transcript

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[Zachary Crockett]

For most of us, getting locked out of our house or our car is a pretty miserable experience. But for Wayne Winton, a lock without a key is a thing of beauty.

[Wayne Winton]

When you pick your first lock, that's one huge dopamine rush. The second is when you open your first car than when you open your first safe and when you open your first bank vault. When you have this chunk of metal specifically engineered by hundreds of years of security technology and some of the greatest minds in the world to keep people out, and I can open that, it's undescribable. I would put it on par as your first kiss with your soulmate. That's about the level of joy I get.

[Zachary Crockett]

Winton is one of around 15,000 locksmiths in America that make up a multi billion dollar industry. In his line of work, every day looks a little different.

[Wayne Winton]

Oh, I love it. I love it. I want to be able to go unlock a Jaguar that nobody else can open and then go crack an antique safe and then go rekey a home for a domestic violence victim. I've just had so many interesting different advent.

[Zachary Crockett]

A locksmith never knows what tomorrow might bring. And the same thing is true for the profession as a whole. Locks are increasingly being digitized. Keys are being replaced by numeric codes. And the real product that locksmiths sell, trust is under siege by technologically savvy scammers.

[Philip Mordolaro Jr.]

These guys show up, it's a whole song and dance. Oh, we're gonna have to drill out your lock. And they say, oh, we need New lock and it's going to be, you know, $1,500 to $2,000 for the Freakonomics radio network.

[Zachary Crockett]

This is the economics of everyday things. I'm Zachary Crockett. Today, locksmiths in any given town, it's likely that you'll find at least one locksmith nearby. The industry has a few national players like Papa Lock, a franchise with more than 450 locations in North America. But most locksmithing operations are small businesses.

[Wayne Winton]

Locksmiths are very strong willed people who don't like to be told what to do. So the corporate concept is very difficult.

[Zachary Crockett]

Again, that's Wayne Winton.

[Wayne Winton]

It is consistent of mostly small, independent, one or two person and van and a lot of mobile shops. If you can buy a van and equipment and you get the knowledge, you can be a locksmith tomorrow.

[Zachary Crockett]

Winton operates Tri County Locksmith service in Glenwood Springs, Colorado. It's a small operation, Winton and one employee each working out of their own truck. Some locksmiths maintain a physical shop where they make keys and repair locks on site. Winton, like many younger locksmiths, prefers to be mobile. His office is a Ford F350 with 250,000 miles on it, and he keeps his extra gear in a storage unit.

[Wayne Winton]

I would say there's at least $30,000 worth of equipment in each vehicle and probably another $30,000 worth of equipment sitting in the storage unit.

[Zachary Crockett]

The locksmith business is multifaceted. In a given week, you might duplicate a bunch of keys, respond to residential and auto lockouts, replace deadbolts in a commercial building, and break into an old safe or bank vault at the behest of a client. To do all of that, you need a hefty stable of tools. Lock picks, pin kits, door boring jigs, spanner wrenches, dremels, drills, jigsaws, lubricant. You'll need a variety of new locks and installation hardware. And you'll also need key cutting and duplication machines that can run hundreds or even thousands of dollars.

[Wayne Winton]

I've got a Triton key machine that does just about all my key cutting. I've got some basic key blanks. I've probably got $8,000 worth of drill bits, some basic electronic access stuff, fish tapes, stuff to run, wire inspection cameras, auto dialer that would basically run every single combination possible on a combination lock. I've got some other little black magic boxes that do stuff that I can't really talk about, but, you know, just.

[Zachary Crockett]

A lot of cool stuff in the right hands. All of these Tools can be a great investment.

[Wayne Winton]

If I have a full eight to ten hour day, I can make anywhere from, you know, 1200, 2,400 to $5,000 in one day.

[Zachary Crockett]

Locksmiths generally charge a flat fee to show up for a job, and once they're on site, they bill an hourly rate to fix the issue. Helping people with lockouts is a big part of the job, and it requires a deep level of knowledge about many different locks.

[Wayne Winton]

When something new hits the market, I will literally go to the hardware store and buy it, to reverse engineer it and figure out how to defeat it and be the first person to come up with that new knowledge.

[Zachary Crockett]

Winton says the most familiar lock is the classic pin tumbler that's found on front doors of typical houses and apartments. Inside one of these locks, there's a series of vertical pins of differing heights connected to springs. When you put the correct key into the lock, its unique ridges push those pins up in just the right alignment to allow you to turn the bolt and unlock the door. But in the event that you forget your key, a locksmith has another way in a technique called lock picking.

[Wayne Winton]

What lock picking is, is taking advantage of the microscopic imperfections in that lock or toler in that lock to open it without the actual key.

[Zachary Crockett]

A skilled locksmith can exploit this by applying tension to the lock and using picks that look like little dental plaque scrapers to push the pins up individually. There's a lot of mystique around this process. On YouTube, lock picking videos have millions of views. How easy is it really to pick a lock?

[Unknown]

Super, super easy to pick this lock. This is a no brainer.

[Philip Mordolaro Jr.]

I'm a profess bad guy and today I'm going to show you how I pick locks.

[Wayne Winton]

How to pick a lock with a paperclip.

[Zachary Crockett]

Okay. But these social media experiments are often done on brand new locks. It's a lot harder to pick one out in the wild.

[Wayne Winton]

It's dirty, it's gritty. People have sprayed graphite and WD40 and made concrete inside of that lock. If I'm picking a lock and I haven't got it after 10 minutes, we'll just drill it and I will replace it on my time and dime and I will only charge you the lockout fee.

[Zachary Crockett]

Not all locksmiths are so considerate. When you search for locksmith on the Internet in your city or town, it's likely that some of the top results are unlicensed operators who use local keyword advertising to get to the top of listings.

[Wayne Winton]

You're in a panic Right. You're going to click on the first solution presented to you. You usually see a low price in $19.99 or at $29.99 or some ridiculously low price that nobody could work off of and survive. So that's a big, giant red flag. I don't even put my pants on for less than $100.

[Zachary Crockett]

These scammers will often create listings for multiple fake businesses with different names. When you dial the phone number they provide, the calls all route to a central operator who dispatches someone from a network.

[Wayne Winton]

Somebody shows up in an unmarked car with no uniform, with a basic paper invoice that doesn't have any company information on it. They tell you that it's a high security lock. They drill it, they destroy it, or damage your vehicle or damage your home lock because they're not skilled. And then they try and bully you into going to the ATM and getting cash or paying them a ludicrous sum of money. 5, 6, $700 plus.

[Zachary Crockett]

So these guys, their game is to basically offer you a really low price and then just drill out your lock and upsell you on the hardware, bait and switch. Winton says these scammers are taking a big toll on the locksmithing business. For every nefarious listing that gets boosted in search results, a legitimate operator is losing business.

[Wayne Winton]

Anybody who knows how to manipulate Google can rise to the top of the Google ladder. And that is probably the single biggest problem in the industry today. A lot of the older guys out there that have shops, they simply don't know how to operate that stuff. And you've made it a technological game that is basically set up for us to fail.

[Zachary Crockett]

A lack of technical knowledge isn't the only thing to blame for these problems. Only 13 states require locksmiths to have a license.

[Wayne Winton]

When I unlock people's vehicles, one of my favorite one liner jokes is you have to have a license to drive your car. I do not have to have one to break into it.

[Zachary Crockett]

The industry has created its own mechanisms of trust. The Associated Locksmiths of America certifies businesses they deem to be reputable. But sometimes the best option to find a trustworthy locksmith is to walk into a shop on the street and talk to one in person.

[Philip Mordolaro Sr.]

The outside is covered in keys. The door is covered in keys. I have a chair that I made out of keys, which is in here right now. And the inside, there are hundreds of thousands of keys. This is the key temple. This is Ki Meka.

[Zachary Crockett]

Okay, that's coming up. The economics of everyday Things is sponsored by acorns. April is Financial Literacy Month. That's right, they made a whole month reminding you to finally take control of your money. Good news is you don't need 30 days. Acorns makes it easy to start saving and investing for your future in just five minutes. You don't need to be an expert. Acorns will recommend a diversified portfolio that matches you and your money goals. You don't need to be rich. Acorns lets you get started with the spare money you have right now, even if all you've got is spare change. Sign up now and join over 14 million all time customers who have already saved and invested over $25 billion with Acorns. Head to acorns.com economics or download the Acorns app to get started. Paid non client endorsement compensation provides incentive to positively promote Acorns Tier 1 compensation provided investing involves risk. Acorns Advisors, LLC, an SEC registered investment advisor. View important [e-mail] Economics the economics of Everyday Things is sponsored by Rosetta Stone. Learn Naturally, Speak confidently Rosetta Stone helps you absorb a language the way you learned your first through real world context and conversation. No memorization, just practical skills you can use right away. Available on mobile and desktop, Rosetta Stone is designed to fully immerse you in your chosen language for a more natural and effective learning experience. Italian, German, Korean, Chinese with 30 years of experience, millions of users and 25 languages offered, Rosetta Stone is the Go to language Learning solution. Perfect your pronunciation with built in truaxcent speech recognition technology providing real time feedback to help you sound more natural. Unlock your learning potential today. The Economics of Everyday Things listeners can grab Rosetta Stone's lifetime membership for 50% off. That's unlimited access to 25 language courses for life. Visit RosettaStone.com economics to get started and claim your 50% off today. That's RosettaStone.com economics to start learning the Economics of Everyday Things is sponsored by the Best One yet podcast. Did you know that Netflix is borrowing a growth hack from Ludacris? Or that blondes showing their natural brunette hair is an early indicator of a recession? Or why hot take coming. Apple's next product should be an AI smart toilet, the iTushy. Every morning on the Best One yet, best friends and ex Wall street guys Nick and Jack find the top three most interesting stories at the intersection of business and pop culture. Their show, formerly known as Robinhood Snacks Daily, delivers takeaways and laughs in a digestible 20 minute episode to start your day. Whether you're aiming for that promotion, launching the next big thing, or just want to be the most interesting friend at brunch, the one who predicted the Apple Itushie. Start every morning with business news from the best one yet. So follow the best one yet wherever you get your podcasts. Along 7th Avenue south in New York City's Greenwich Village, you'll find the impossibly tiny storefront of Greenwich Locksmiths. It's owned by a father son duo, both named Phil.

[Philip Mordolaro Sr.]

My name is Philip Mortalero Senior and I'm the owner of Greenwich Locksmiths, along here with my son who when I kick the bucket, will get it.

[Philip Mordolaro Jr.]

I'm Philip Mordolaro Jr. And been a locksmith my whole life, studying and working under my father.

[Zachary Crockett]

Phil Sr. Got into the locksmithing trade back in the 1960s. He dropped out of school after the eighth grade, worked as an apprentice, and eventually bought a tiny building in Manhattan for $20,000 where he set up his own business. Today it's a neighborhood institution.

[Philip Mordolaro Sr.]

We do a lot of repairs on antique locks. There's two locks that are sitting here. They're from Grace Church, 1846, and I'm rebuilding them. Let's go put the key in the lock. That sounds good.

[Zachary Crockett]

Greenwich Locksmiths specializes in over the counter work. They cut and duplicate thousands of keys every week, most of them for $5 apiece. Inside the shop there are around $50,000 worth of machines for stamping, cutting and duplicating all kinds of keys. But the key making side of the locksmithing business has been under threat. In the past decade, a venture capital backed company called Qimi has rolled out a network of more than 6,000 digital kiosks all over the country. You can upload a photo of your house or car key and the machine can replicate it without the hand of a human locksmith.

[Philip Mordolaro Sr.]

The automatic machines are getting better and inevitably they're going to get better and better and better and they're going to take everybody's job.

[Zachary Crockett]

It's not just keys. Locks are changing too many traditional locks are being replaced by electronic locks controlled by keypads or even fingerprints. Phil Jr. Works with these keys frequently and he says the fancy components don't necessarily make a lock safer.

[Philip Mordolaro Jr.]

There's this illusion that the system's more secure. You know what it's better at? It's good at giving you audit trail control so you can see who goes in and out. But the entrance is not safer.

[Zachary Crockett]

Wayne Winton of Tri County Locksmith Service says electronic Locks can actually introduce more potential security breaches than a key operated lock.

[Wayne Winton]

The only way that I can open my home before is with this specific key. And you could pick that lock. There's the only two ways in. Now if I take an electronic lock, what if you gave that code out? What if you stored that code in your phone? What if you sent an email with that code? All of those are opportunities for somebody to get access. It's convenience versus security. And convenience always wins.

[Zachary Crockett]

Despite their flaws, Winton feels optimistic about his trade's ability to capitalize on electronic locks. All those houses, apartments and office buildings that are going keyless present a tantalizing business opportunity.

[Wayne Winton]

This is not only the golden age, I would say this is the platinum age of the locksmith to be able to upgrade existing systems and homes to, to electronics. We're right in the transition. Almost every new building that's going up right now has low voltage electronic access wires being put into it. Schools are upgrading to electronic locks so they can do a massive lockdown in the event of an emergency. So I see nothing but opportunity. Somebody in this industry now could quite literally be more well off financially than an attorney or a doctor. In the next 10 years, installing new.

[Zachary Crockett]

Systems, making keys, and changing and picking locks may be the bread and butter of the locksmith's business, but the most prized jobs tend to be cracking safes and bank vaults. Winton has done safe work for high security jewelers and banks all over the Southwest and Midwest.

[Wayne Winton]

Usually my policy is, here's my price, I need 50% up front. I guarantee the work. If I don't complete the job and I can't open it, you don't pay. And they haven't made a container on this planet that I haven't been able to open yet.

[Zachary Crockett]

Winton often charges several thousand dollars for a single safe cracking job. But it's not easy work. A bank vault is one of the most secure devices on the planet.

[Wayne Winton]

There's literally three or four Swiss type built watches in there for what's called a time delay system or a time lock that all have to function correctly at the same time. And there's two very highly precision made mechanical locks as well. So there is a tremendous amount of moving parts that all have to harmonize and synchronize in a very, very orderly, specific fashion in order for that vault to open. And if one of those things is off, the door remains locked and you are stuck on the other side of between 6, 812 inches, 24 inches of steel, concrete, glass, barrier materials just Some of the craziest things the human mind can put together to keep people out.

[Zachary Crockett]

Some safecrackers use a technique called manipulation. They'll press an amplifier or stethoscope like device up against the metal and listen for tiny clicks inside the safe as they turn the dials. Someone with an intimate knowledge of safe mechanics can pick up on slight variations in sound and feel and record readings to identify likely combinations. Others might try to get blueprints from a safe's manufacturer that tell a locksmith where to strategically drill through the steel. But if the drill goes in at the wrong angle, it could shatter a glass layer, triggering extra locking mechanisms inside the safe.

[Wayne Winton]

It's an intimate understanding of how the container functions mechanically that allows you to pinpoint a certain location to where it all comes to a head.

[Zachary Crockett]

Winton says that all of this work rarely yields a satisfying result for a client.

[Wayne Winton]

90% of the time, even more than 90% of the time, people think there's going to be a bunch of cool stuff in a safe. And normally there's not. My joke is that there's going to be nothing but rubber bands and paper clips in there.

[Zachary Crockett]

That's not always the case. A few years ago, Winton cracked an old safe at a newspaper office in Colorado and found long lost photos of the serial killer, Ted Bundy.

[Wayne Winton]

It was like a time capsule. The last time this thing was opened was literally with the photo negatives of Ted Bundy as they were rearresting him.

[Zachary Crockett]

Jobs like this are glamorous, but Winton says the true glory comes from the everyday services. Helping a couple get back in their car in a gas station parking lot or changing the locks on a house for a victim of domestic violence, this.

[Wayne Winton]

Is not a job. This is a privilege. I get to save the day. I get to be a hero. What I sell is peace of mind, and you can't really put a price on that.

[Zachary Crockett]

Have you ever locked yourself out?

[Wayne Winton]

Yes, I left my key inside the truck, but I did get myself back into it. I wouldn't dare let another locksmith have the clout to have let me back into my vehicle. I would have broken a window first.

[Zachary Crockett]

For the Economics of Everyday Things, I'm Zachary Creative Crockett. This episode was produced by me and Sarah Lilly and mixed by Jeremy Johnston. We had help from Daniel Moritz Rapson. You guys could probably make killing as burglars if you wanted to.

[Philip Mordolaro Sr.]

I make a killing the other way. It's okay.

[Zachary Crockett]

The Freakonomics Radio Network the Hidden side.

[Wayne Winton]

Of Everything.

[Zachary Crockett]

Stitcher.

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[Philip Mordolaro Jr.]

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