Most owners of a locksmith business know roughly how busy they are. Far fewer know whether they are actually making money on each job, where profit is leaking, or which part of the business is growing. Key performance indicators, or KPIs, answer those questions in a few numbers you can check every month.
This guide covers the 7 KPIs that matter most for a locksmith business, how to calculate each one, and what to do when a number moves the wrong way.
Why KPIs matter more than turnover
Turnover tells you how much came in. It does not tell you whether prices cover costs, whether time is being used well, or whether cash will be there next month. A locksmith business can grow turnover and still make less profit if costs grow faster. KPIs show you the drivers behind the result, early enough to act.
The 7 KPIs for a locksmith business
1. Average job value
How to calculate it: Revenue ÷ jobs
Rises with upgrades and commercial work.
2. Labour hours sold
How to calculate it: Hours charged
Your capacity.
3. Parts and locks billed
How to calculate it: Parts charged to customers
Parts margin is a key profit source.
4. Labour margin
How to calculate it: (Labour revenue − labour cost) ÷ labour revenue
Whether rates cover your time.
5. Out-of-hours share
How to calculate it: Out-of-hours revenue ÷ revenue
Higher-margin work.
6. First-time fix rate
How to calculate it: Jobs finished on the first visit ÷ jobs
Van stock drives this.
7. Upgrade rate
How to calculate it: Visits with extra security work ÷ visits
Easy added value.
Interpreting these measures in practice
Split call-outs by standard, emergency and commercial work, then compare average invoice with parts margin, travel and time on site. Track first-time completion and callbacks together; fast completion is not useful if the repair fails. Include after-hours availability and the time spent answering calls when measuring revenue per working hour. Review lead source and conversion alongside marketing spend, and avoid setting a target that rewards unnecessary parts or work.
Start with the profit basics
Alongside the industry KPIs above, every owner should check four headline figures each month:
- Total income for the month and year to date
- Total costs, split into direct costs and overheads
- Net profit and operating margin
- Lowest cash balance in the next 12 weeks, from a cash flow forecast
If net profit is falling while turnover rises, look at the cost KPIs first. If cash is tight while profit looks fine, look at unpaid invoices.
An example month (illustrative figures)
Say a locksmith business takes £5,500 in a month and spends £1,800 on the direct costs of delivering the work. Gross profit is £3,700, a gross margin of 67%. If last month the margin was several points higher on similar turnover, something has changed in prices, costs or the mix of work, and the KPIs above show where to look. These figures are illustrations only: use your own.
What to do when the numbers slip
- Carrying common cylinders and mechanisms to finish jobs first time
- Letting agent and landlord accounts
- Security upgrades during every visit
- Pricing out-of-hours work properly
Pick one action at a time, so you can see what made the difference. If you are asking what the business could pay you, read how much a locksmith earns in the UK.
How to review your KPIs every month
1. Update your records for the month: jobs, sales, costs and invoices. 2. Compare each KPI with last month and the same month last year, so seasonal swings do not mislead you. 3. Pick the one number that moved most in the wrong direction and find out why. 4. Decide one action for next month, such as a price change, a rota change or chasing a debtor. 5. Check the result at the next review.
Fifteen minutes a month on this routine is enough to catch most problems while they are still small.
Common mistakes with KPIs
Tracking too many numbers. Pick the handful that drive your profit and review them consistently.
Looking at one month in isolation. Trends matter more than single results.
Not acting on what you find. A KPI that never changes a decision is just a number.
Keeping figures in your head. Write them down, or let a spreadsheet calculate them, so nothing is guessed.
Run the numbers on your own business
The **Locksmith Business Management System** tracks every job, cost, invoice and VAT return, and works out your profit, margin and key figures automatically on a one-page dashboard. It costs £15 once, with no subscription. Before you open, work out your start-up costs with our free locksmith start-up calculator. For the full start-up walkthrough, read our guide on how to start a locksmith business.
Frequently asked questions
What is the most important KPI for a locksmith business? Gross margin, because it shows whether your prices cover the direct cost of each job. If it is wrong, growth only makes things worse.
Which KPIs should a new locksmith business track first? Start with average job value, labour hours sold and parts and locks billed. They are quick to work out and show straight away whether your pricing and capacity are right.
Can KPIs help me set prices? Yes. If your margin or rate per job is below target, your prices are too low for your costs, however busy you are.
What is a good gross margin for a locksmith business? There is no single benchmark, because margins depend on your mix of work, location and whether you pay staff. The useful test is your own trend: a margin that holds steady or rises as you grow is healthy, and a falling one needs action on price or costs.
How often should I check my KPIs? Monthly for most figures, and weekly for cash and unpaid invoices.
Do I need software to track KPIs? No. A spreadsheet that calculates the figures from your records works well for most small businesses and avoids monthly fees.