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What you will learn:
• Key programming/security system service is a profitable business move
• Anyone with a VSP License and tooling can perform security system repairs/programming
• Advertise to to the motoring public and to other shops in your locale, to maximize profitability
In the two recent decades that have passed, and my years spent in multiple automotive dealerships, I've witnessed countless keys and key fobs being programmed. Of course, the dealership was the only one in town with that capability.
Scan tool and programming capability
Part of the reason why was because the dealership service departments were the only ones in possession of the appropriate scan tool capabilities required often to carry out that process. At the time automotive facilities in my area didn’t typically have their own handheld factory scan tool like the dealerships did.
Early on, when a customer needed a key (or key fob), many times it was a matter of pairing the fob to the car with a series of simple button-pushes. When the job was more involved it was usually sublet out to the local dealer. That might mean simply having a key cut/programmed and then shipped to the original shop. Sometimes it could mean driving the customer's vehicle to the dealership. And in the worst-case scenario, it meant towing the vehicle to the dealer (as certain functions may have had to be carried out with the vehicle present).
Key cutting capability
The second half of that equation is the ability to physically create a key to match the vehicle’s lock cylinders. I recall in years past, having to recode the lock cylinder’s tumblers to match the new key that was offered. That was a real pain in the neck; especially when the customer wanted one key for every functional lock assembly:
- Driver’s door
- Passenger’s door
- Ignition switch
- Trunk
- Glove box
It was either that, or the customer would have multiple keys to operate different lock assemblies. Not many were ever too fond of the latter. But then came along the mobile locksmith; this certainly made life a bit easier. The locksmith had the tools and capabilities to both generate a key but also carry out the security routines necessary to make that key function with the vehicle. The fact that he or she was mobile made it extremely convenient as well.
As much of an improvement as this was, it wasn't without its own set of headaches. For one, you had to wait for their availability. After all, being the only "mobile" locksmith in town kept them quite busy. The second reason was that there wasn’t much room for profit margin. Being "the shop," you were paying the locksmith for their tools, their talent, and the convenience. That doesn't come cheap. Yes, the cost was being passed down to the shop’s customers but the amount of profit that specific operation yielded wasn’t always impressive.
The ‘independents’
Technology is a wonderful commodity. We can see it everywhere in every industry in existence. And near the top of the list is the automotive industry. Currently, the ability to generate/program keys and fobs are relatively simple, fairly inexpensive to get into, always in demand, and can be tremendously profitable.
With liaisons like the National Automotive Service Task Force (NASTF), gaining temporary access to factory service information/security information/tooling and training is a few clicks away. Any legitimate automotive business personnel that meets the criteria can license as a "Vehicle Security Professional;" allowing him or her access to the above to carry out programming. Many of these functions can be carried out through J2534 programming and don't require an expensive factory tool for each make. It's all accessible through NASTFs affiliate website (OEM1stop).
There are other options for the independents as well. Especially since the widespread application of push-to-start systems, without the need for a traditional key. Some of the aftermarket standalone scan tools (which the shop may already own) possess a similar capability as described with the OEM scan tools.
For instance, the Autel IM608 scan tool is capable of key programming and immobilizer functions on more than 80 make and models. It offers guided automated key learning and can even read PIN codes (Figure 1). Additionally, the Autel KM100 key generation and program solution offers 99 percent coverage of cars and light-duty trucks on the road today. This, coupled with the Autel iKEYS (Figure 2), offers an almost universal approach to key generation and programming. With options like this available, finally, the power to profit is back in the independent’s hands. The KM100 is designed specifically for key programming and immobilizer functions, making the return on investment very rapid.
So, how profitable can this arena be? Well, I suggest you look at this from a different angle. Many of us think about “return on investment” head-on. But if you see it from a different viewpoint, the fruit appears much more abundant.
Not only will there be a need for key generation/programming for obvious situations (like a lost key fob), or when a car has been recovered after being stolen. But less obvious situations can be the largest source of potential profit.
Consider how many vehicles visit the shop weekly. Then consider how many of those customers hand you keys/fobs in terrible condition (taped up, glued, or even fastened back together with screws). Rarely, do those customers reach out for a replacement. Even if they did, the conversation typically ends quickly when they learn the cost of replacement may exceed $400 and require a second visit (or extended visit) to remedy. Many keys now are order-only, and some must be sent over from Europe if you can even source one. It’s no wonder that these customers are still driving around with keys/fobs in shambles.
Now, what if you could offer that same key and service in-house, for about one-third of the price, and in a very short time (usually just minutes). I now look at potential “return on investment” like this:
- How many key/fobs/programming can I upsell this week?
- What if I market the shop for hire throughout the community, for other shops to utilize?
- Maybe I can put a vehicle on the road and offer a mobile service?
Although this would all require careful preparation and it isn’t as simple as it sounded above, it’s all possible.
There are other options available from many manufacturers of key cutting and programming solutions equipment. Companies like Launch, OBD Innovations, TOPDON and XTool. Not every manufacturer may offer 100 percent coverage, and I’m confident that some offer strengths where others are weak (and vice versa). But do your research. Key cutting and programming is an area to profit in. Don’t be so quick to give it away.
