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.