Master Your Auto Repair Shop’s Financial Future

*Text Hunt: Got a question about ERTC or taxes?
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com*

What if the biggest problems facing auto repair shops today aren’t what you think they are?
And what if the future of the industry is being shaped right now, quietly, behind the scenes, by the conversations shop owners aren’t having?
In this episode, Hunt Demarest sits down with Chris Jones, the editorial force behind Ratchet+Wrench and several of the industry’s most influential publications. From talent shortages to tech adoption, from mental health to multi-shop growth, Jones offers a clear-eyed look at where the automotive repair world is heading, and where shop owners should be refocusing their energy.
This conversation cuts through the noise and gets real about the pressures, opportunities, and evolving expectations shaping today’s shop environment.
Whether you’re struggling to hire, trying to improve efficiency, or simply looking for clarity in a rapidly changing industry, this episode will help you understand what today’s shop owners must prioritize — and how to build a healthier, more resilient business.

*What you’ll discover*
00:00 Intro
02:25 Why shops are finally catching up to retail-style convenience and technology
03:40 The mindset difference that sets high-performing shop owners apart
05:25 The MSO lesson that surprised everyone — and why process beats everything
07:45 The efficiency challenges shop owners can’t stop talking about
08:50 Why technician shortages aren’t unique to auto repair — and what must change
10:25 The shocking reality of six-figure tech jobs no one is filling
12:20 What 2025 really looked like for shops — and what 2026 may bring
15:10 How understanding neurodivergence can transform shop culture and performance
17:55 What customers actually want now: speed, communication, and clear expectations
21:25 Chris’s best advice for shop owners navigating today’s challenges

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

#autorepairshop #automotivebusiness #business

*Text Hunt: Got a question about ERTC or taxes?
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com*

How much does it really cost your shop to win a new customer, and is it worth it?
Most shop owners don’t realize they’re spending hundreds, sometimes thousands of dollars just to bring in a single new face, and in some cases, they’re losing money on every “win.”
In this episode, Hunt Demarest, CPA with Paar, Melis, and Associates, breaks down the real cost of customer acquisition and why understanding Customer Acquisition Cost (CAC) and Lifetime Customer Value (LTV) can make or break your business.
Hunt exposes the hidden math behind flashy ad campaigns that fail to pay off, showing how every dollar spent should be tied to measurable, long-term value.
Whether you’re trying to grow your car count or cut wasted marketing spend, this episode will help you see what your customers are truly worth and how to make every one count.

*What you’ll discover*
00:00 Intro
00:15 Why CAC and LTV are key to making sense of your marketing spend
02:30 Why percentage-based ad budgets often fail auto repair shops
05:05 What happens when you expect your ads to “pay off in one visit”
07:10 How to calculate Customer Acquisition Cost
11:15 Understanding Lifetime Customer Value
16:20 Analyzing CAC and LTV for smarter business decisions
20:20 Proven strategies to improve CAC and LTV in your shop
24:35 Why word-of-mouth shops can have zero acquisition cost and massive lifetime value

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

#customeracquisition #autorepairshop #lifetimecustomervalue

*Text Hunt: Got a question about ERTC or taxes?
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com*

“How much should I actually spend on advertising?”
In this week’s episode of Business by the Numbers, Hunt Demarest, CPA with Parmelis & Associates, tackles one of the most misunderstood questions in the auto repair world.


You’ve probably heard the “3–6% rule” a hundred times, but Hunt pulls back the curtain on why that simple percentage can mislead shop owners. Whether you’re a small shop trying to grow or an established business struggling to see ROI from your marketing spend, this episode helps you rethink the way you budget, measure, and analyze your advertising dollars.

From Google Ads to billboards, Hunt explains why advertising isn’t a one-size-fits-all formula — and why your shop’s biggest problem might not be marketing at all, but a broken funnel.

*What you’ll discover*
00:00 Intro
01:11 How to calculate an effective advertising budget for your auto repair shop.
02:24 Why the “3–6% Rule” doesn’t fit every business.
04:49 Why early-stage shops must break the “percentage of sales” mindset.
06:58 The hidden problem: when production is your real bottleneck, not car count.
09:22 The importance of setting specific car-count goals and measurable expectations.
11:39 How to judge ROI beyond percentages
14:01 Customer lifetime value and acquisition costs
16:19 Translating advertising into car count — and why tracking your leads properly can reveal your real ROI.
18:45 When to cut or double down
21:06 Stop relying on your marketing company’s numbers
23:17 Why location, reputation, and repeat customers change everything
Text Hunt: Got a question about ERTC or taxes?

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

#adbudget #autorepairshop #advertising

*Text Hunt: Got a question about ERTC or taxes?
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com*

In this episode of Business by the Numbers, Hunt Demarest of Parmelis & Associates breaks down one of the most misunderstood metrics in the automotive repair world: effective labor rate.
Many shop owners chase “higher door rates,” but as Hunt reveals, that number often has little to do with your actual profit. From oil changes to state inspections, he explains how small pricing decisions can quietly eat away at your margins—and how to fix them.
If you’ve ever asked, “What percentage should my effective labor rate be compared to my door rate?”—this episode is your wake-up call.
Hunt also shares how two shops charging wildly different rates can end up with the same revenue, why discounting can destroy profitability, and what you should really track to make more money without working harder.

*What you’ll learn*
00:00 Intro
01:20 “What’s a good percentage for effective labor rate?”
02:10 Why a 75% effective rate isn’t always bad—and why 100% isn’t always good.
03:40 Real-world variance of top-performing shops
04:50 Understanding how door rate differs from effective labor rate.
05:40 The $75 oil change that’s secretly earning you just $30/hour.
07:15 How two shops can charge the same customer price but get different profit outcomes.
11:30 Working smarter, not harder.
13:00 Why chasing “door rate” vanity metrics is a trap.
16:10 Pricing and productivity—and which one you’re probably ignoring.
17:40 How ignoring effective rates hides true performance.
18:50 Real client case study: Texas shop struggling with low effective rate due to state inspections.
20:00 Action steps: How to spot your low-performing categories and limit the downside.
21:30 Practical takeaway
23:10 Closing thoughts

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

#labor #rate #workingsmart

After years of waiting, many shop owners are discovering that their long-anticipated Employee Retention Tax Credit (ERTC) checks may never come — and worse, some are facing IRS audits they didn’t see coming. In this week’s episode of Business by the Numbers, Hunt Demerist, CPA at Paar, Melis & Associates, breaks down the chaos behind the ERTC delays, what triggers an audit, and what every business owner should be doing right now to protect themselves.
This Week, Hunt takes listeners inside the IRS’s renewed crackdown on ERTC claims. From delayed payments and disappearing credit firms to official audit questionnaires, Hunt shares real client examples, reveals the riskiest filing groups, and explains why quarter three of 2021 has become the IRS’s favorite target. He also offers actionable advice on what to do if you’re still waiting for your refund—or worse, if you’ve received an audit letter.

*In This Conversation:*
00:00 Intro
04:10 The truth about ERTC payment delays and why checks have slowed since mid-2024
08:35 Why the IRS is focusing on third quarter 2021 claims
13:40 How credit firms and PEO companies like BBSI became audit magnets
18:55 What the official IRS audit questionnaire looks like — and how to prepare
23:22 Key warning signs your ERTC claim could be flagged
27:10 Why smaller, direct filers are less likely to face audits
31:00 What to do (and not do) if you haven’t received your ERTC payment
35:45 Hunt’s cautious outlook for 2025 and what it means for shop finances


If you’re ready to protect your shop from ERTC chaos and stay informed on what the IRS is really doing behind the scenes, this episode is essential listening.
Resources Mentioned
IRS Official ERTC Audit Questionnaire
Ratchet + Wrench Magazine
Promotive – Full-Service Staffing for Auto Repair Shops (GoPromotive.com)
Wicked File – AI for Auto Repair Shops (WickedFile.com)


*Text Hunt: Got a question about ERTC or taxes? *
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com
*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

Every shop owner knows the feeling — the harder you work, the less time you seem to have. But what if you could have both? In this week’s Business by the Numbers, Hunt Demerast, CPA, explores the hidden link between profit and time — and why the goal isn’t working harder, but working smarter. From understanding your “hourly rate” as an owner to identifying the difference between working in versus on your business, Hunt breaks down the real math behind sustainable success.
This week, Hunt Demerast dives into one of the toughest balancing acts in business: choosing between profit and free time. Drawing on real-world examples from shop owners, Hunt reveals how to calculate your true hourly worth, where to stop trading hours for dollars, and how to reclaim your freedom without losing financial ground.
*In this conversation, you’ll learn:*

00:00 The myth of “profit versus time”
02:20 Why owner mindset still mirrors employee logic
04:45 How to measure profit in context — sales, time, and effort
07:05 The missing metric: how long it takes to make your profit
09:25 Poor people buy things, rich people buy time
11:45 How to calculate your real hourly rate
16:25 Tracking your time: the game-changer for owners
18:40 The “work smarter, not harder” equation
21:01 Working in vs. on your business
23:23 The $10 million question: what is your time really worth?


*Resources Mentioned:*
Promotive – GoPromotive.com
Wicked File – WickedFile.com


*Text Hunt*
Have a question or want your topic covered on the show?
Email podcast@parmelis.com or text 301-307-5413.
Connect with Hunt Demerast
Find all episodes of Business by the Numbers on AftermarketRadioNetwork.com.

Ever been charged for someone else’s part? Or failed to get a credit on a return you were sure you’d handled? You’re not alone—and those small leaks could be costing your auto shop thousands each month. This week, Hunt Demerast breaks down how to uncover where your money is really going, how to reconcile your parts purchases with your accounting, and the systems that will save your sanity (and your margins).
This week, Hunt tackles one of the most overlooked financial drains in auto repair: parts reconciliation. He explains why even the most organized shops are losing money on parts they never installed, how to calculate your “materiality threshold,” and how to spot errors before they hit your books. Whether you’re doing this manually or with a tool like Wicked File, Hunt gives you the framework to finally take control of your true parts costs.


If you’ve ever wondered why your parts bill doesn’t match your management report, this episode is your roadmap. Hunt shares:
Why every shop, no matter how tight their systems, is losing money somewhere
How to identify when a discrepancy is worth investigating
The most common (and costly) causes of mismatched reports
A step-by-step way to reconcile parts by vendor—and stop the losses for good


What You’ll Learn in This Episode*
00:00 Intro
00:50 The real cost of missing or miscredited parts
03:45 Why you might need to sell a part three times to make up for one mistake
07:00 How to find your “materiality level” and stop wasting time chasing pennies
10:20 When it’s worth digging into discrepancies—and when it’s not
13:58 The biggest reporting and accounting errors shops make
16:40 How personal use and “side projects” distort your financials
18:40 Spotting red flags: theft, double billing, and incomplete tickets
21:20 Setting up systems and procedures that prevent lost profit
22:50 Why Wicked File’s AI helps you catch issues in real time


*Resources Mentioned*
https://www.gopromotive.com
https://www.wickedfile.com

*Text Hunt*
Got a question you want answered on the show? Email podcast@parmelis.com or text 301-307-5413.
Website: Aftermarket Radio Network

Every fall, tax season brings the same loaded question: “Can I write that off?” From flat-screen TVs to four-wheelers, the temptation to blur the line between personal and business expenses is real. But where’s the line between smart tax strategy and a dangerous gray area?
This week, Hunt Demerast, CPA at Paar Melis & Associates, breaks down the myths and realities of tax write-offs. With humor, clarity, and two decades of experience, he explains what the IRS actually looks for, why “ordinary and necessary” matters more than anything, and how going too far can distort your books, risk an audit, or even tank your business valuation.
In this conversation, you’ll learn how to confidently identify legitimate deductions, when to play it safe, and how to document expenses that will stand up in an audit. Whether you’re debating a truck purchase, deducting meals, or mixing vacation with a conference, Hunt shows you how to maximize tax benefits—without losing sight of the bigger financial picture.
If you’re ready to stop guessing and start using the tax code to your advantage, this episode will sharpen your perspective on every business expense you make.
*What You’ll Learn in This Episode*
00:00 The infamous question: “Can I write that off?”
02:18 Why “ordinary and necessary” are the IRS’s two magic words.
04:43 The peer problem: when shop-owner advice becomes risky.
(06:54 The flat-screen and four-wheeler test—how intent changes everything.
09:11 Why write-offs save more than taxes—they protect cash flow.
11:17 Vehicles in your business: the registration rule that matters most.
15:41 Paying yourself back—how to legally reimburse tools and trucks.
17:57 Meals vs. meetings: the 50% vs. 100% deduction debate.
20:10 Turning vacations into business trips (the right way).
22:20 The dark side of deductions: audit risk and distorted books.
24:42 Why overdoing write-offs lowers your business valuation.


*Resources Mentioned*
Promotive: Automotive staffing solution — gopromotive.com
Wicked File: AI software to recover lost profits — wickedfile.com


📱 Text your questions to 301-307-5413 or email podcast@parmelis.com
🎧 Connect with Hunt and explore more shows at AftermarketRadioNetwork.com

Auto shops aren’t going broke because they charge too little—they’re going broke because they’re measuring wrong. In this episode, CPA and host Hunt Demerest unpacks the gap between what your shop management system tells you and what your financials know to be true. From the hidden drag of switching techs from flat rate to hourly to the simple tweak that makes your software reflect real costs, Hunt shows you how to surface the problem (productivity vs. pricing) and correct course—before your margins get cut in half.
*What you’ll learn:*
00:00 Intro
02:20 – Expectation vs. reality: SMS shows 75% gross profit—but QuickBooks shows ~50%.
04:38 – The pivot that broke the math: moving techs from flat rate to hourly + production drop.
06:52 – Why unchecked hourly pay halves margins—and why it’s so hard to fix later.
09:12 – “Productivity” isn’t just techs: counter, invoicing, parts, layout, communication.
13:55 – Pricing sanity check: book time vs. your actual time; efficiency vs. productivity.
16:04 – The core software issue: SMS assumes techs are only paid when you’re paid.
18:23 – The fix: compare SMS “expected” labor cost to QuickBooks actuals and adjust—
• set a shop-wide uplift % or per-tech rates,
• include benefits, vacation, unpaid work, bonuses,
• aim to slightly overstate costs (~5%) so you’re pleasantly surprised at month-end.
32:16 – Wrap: Most shops have a productivity and pricing problem—use SMS truthing to see it sooner.
*Key takeaways*
Flat rate manages downside; hourly requires management. If hourly productivity slides from ~40 flagged hours to ~20, your margin vanishes.
Don’t let software mask reality. If SMS says 75% gross profit but financials show ~50%, trust the books and recalibrate SMS.
Blend the cure. You rarely fix a major productivity problem only with pricing—and you can’t price your way out of operational drag.
Make SMS reflect true cost. Start shop-wide: if SMS shows $10k labor cost but QuickBooks shows $12k, increase internal tech rates by +20% (then refine per-tech if needed).
Target “conservative accuracy.” Slightly overstating cost protects your bottom line more than rosy math ever will.


*Resources & contacts*
Questions for Hunt: podcast@parmelas.com
Accounting & tax for your shop (text): 301-307-5413
Sponsors: gopromotive.com · wickedfile.com