# why are key fobs so expensive?



## llagebs (Feb 24, 2014)

Just your basic 2 button residential key fob. These probably cost a dollar or two to make, but stratas charge $100+ for replacements. Who's pocketing the profits here? Is the strata just price gouging, or is it the manufacturers who gouge? Kinda frustrating to be on the receiving end.

/rant


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## carverman (Nov 8, 2010)

llagebs said:


> Just your basic *2 button residential key fob*. These probably cost a dollar or two to make, but stratas charge $100+ for replacements. Who's pocketing the profits here? Is the strata just price gouging, or is it the manufacturers who gouge? Kinda frustrating to be on the receiving end.
> 
> /rant


Because they can. :biggrin:

When you buy a specialized device like a keyless entry door fob that uses a special frequency and programming that maybe other security door locks don't use or offer and installed by locksmiths, it costs more. The inventor,patent rights, royalties on the product back to the patent holder, the fabricator (usually in China), the marketer in North America, and the 40% profit margin at the store or locksmith where you bought it.

This is a more or less exclusive security product which only certain dealers sell, so you pay the going rate..even if
it costs a buck or two to make. 



> Companies lock their doors for good reason. To keep out a former employee who didn't leave on good terms. To lock up equipment in a storage closet. To prevent unauthorized entry. Problems arise when you need immediate access, and can't locate the keys. You might even have the keys on you and not even know it — we've heard our share of embarrasing stories! If you're not a fan of going on long searches for a missing key, invest a portion of this month's profits in our lock.
> 
> Going on two decades of dependability with leading schools, airports, and hospitals, this lock eases the burden on keeping doors locked, while providing authorized, quick access to those who need it. One of the best features of this lock is its scheduling feature. We get calls all the time from store managers, and owners wanting to know what they can do to keep certain individuals from getting in at specified times. This lock can do it easily, whereas with keys, you can't. Well, unless someone loses them!


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## Just a Guy (Mar 27, 2012)

You're free to buy them yourself from China, minimum lot order is in the 1000's, add to that the programming machine, the code, the expertise needed to write the code,etc.

I've got a buddy who works in electronics, does it all the time...only costs him a couple of bucks each...not so good for the person who only needs one mind you.

Basically the same as any other one off product, it costs more,


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## Rusty O'Toole (Feb 1, 2012)

Wait till you lose a chip key for your car. Replacements over $300 from the dealer. Or $7 off Ebay. You can program them yourself if you still have the 2 original keys. Otherwise you have to pay to have them programmed.


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## Cal (Jun 17, 2009)

I have seen condo corp's charge between $30 and $100 here in Toronto. Quite a range.


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## kcowan (Jul 1, 2010)

We have separate ones for the condo and the parking garage. My beef is why not supply 4 per condo and one per car?


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## Karen (Jul 24, 2010)

I wanted an extra key for my car a few years ago and was shocked to find the dealer was going to charge me well over $300. So when I bought a new car from the same dealer a year ago, I waited until we had finished our negotiations and then told them that I had one more condition - I wanted a third key for my new car. I got it.


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## SpIcEz (Jan 8, 2013)

First off, the keyfob you posted is a specialty 4 button keyfob with SD slot and a spy camera.
Hopefully, you just posted the first keyfob you found on the net and not the actual one you are using.

You are right, it probably costs 2-5$ to fabricate those. However you do need to pay for R&D and other things.

I work in electronic security. Average price for keyfobs from my distributors is between 18$ to 30$ (depending on technology and if it has an internal RFID chip that works on the door readers or not). I would usually sell it at a 35-40% margin, so 30$ to 50$.

Condo assosiattions might tack on an extra charge, however I think that is wrong.

If you are paying 100$ for a keyfob, my guess is the Security Integrator is gauging the strata or the strata is gouging you. And the next condo meeting I would ask why and where the money is going.
Also, if its not the strata, have them take 10 mins and phone around for a price next time they buy a batch instead of buying from one of the condo owners brothers sisters uncle.


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## heyjude (May 16, 2009)

Condo board member here. You are not purchasing just the fob, but the security system. My condo complex has quite a few rentals, and we have had problems with former tenants "forgetting" to return their fobs on departure, potentially allowing them to enter the building and parkade. As well, we recently had a car broken into and the fob was stolen. The security system allows us to deactivate such fobs. The potential loss to the owners of a security breach is far more than the cost charged for providing a new, programmed fob. The money raised through selling fobs is trivial compared to our budget. The principal reason we charge a meaningful fee for fob replacement is to send a message that this is a security key which comes with responsibilities. Don't leave your fob in your car, don't allow others to use it, and don't lose it if possible.

Edit: we charge $50 for a new fob.


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## SpIcEz (Jan 8, 2013)

heyjude

Though I agree with your premise that its an incentive to pay attention and not lose your fob, 50$ is honnestly incentive enough. 100$ is just ludicrous.

About purchasing the security system, I have done dozens of condo projects, and those systems where either paid:
- On financing, which was added to each tenants monthly condo fees;
- One time special project sum (i.e. 500$ per tenant);
- Using the reserve funds.

Never ever have I seen them try to finance it through sales of the fobs.

Also, if someone needs a fob to enter the parking garage and lose it, they will, I would hope, report it quickly as they need another one for access.
Disabling a fob takes SECONDS on the security terminal. Also, any time someone moves ALL fobs for that unit should be immediately deactivated and new fobs or used one from rotation should be given to new tenants.


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