How do scammy locksmiths operate?

Sources:

Scammy locksmiths often operate by exploiting emergency situations and employing deceptive marketing and pricing strategies. Here’s how they typically operate:

  1. Centralized Marketing and Lead Generation:

    • Scammy locksmith operations often control multiple business listings under different names to dominate search results and create a semblance of competition, while actually funneling all customers to the same business. They use centralized marketing to continuously supply their various fronts with new customers 1.
  2. Deceptive Pricing:

    • They commonly list one price on the phone or online to attract customers, but upon arrival, they assess the situation and significantly increase the charges, often exploiting the urgency and distress of the situation 2.
  3. Ownership and Employee Exploitation:

    • The operations are sometimes structured to exploit their employees as well. Owners might use tactics similar to indentured servitude with workers, particularly those from the same country of origin, binding them to work for a certain period under unfair conditions 2.
  4. Lacks Transparency and Ethics:

    • These businesses tend not to engage in ethical business practices, often including unnecessary charges and fees. For instance, a locksmith might charge additional fees for nonsensical reasons, such as the presence of "studs" in a house or other trivial factors 2.

The operation generally thrives on a lack of transparency, exploiting both the customers' immediate needs and the workers' labor conditions.

Scammy Locksmiths

Sam shares a story about his friends in Nashville who ran a scam in the locksmith industry. They would rank easily in search results, not disclose prices, and charge exorbitant fees. It turns out this practice is more common than you might think.

My First Million

My First Million - February 19, 2020
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