Master Your Auto Repair Shop’s Financial Future

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What would it take to double your shop’s success? I.e., 200% of your current sales, gross profit, and net profit?

In this special 200th episode of Business by the Numbers, Hunt Demarest, CPA at Paar, Melis & Associates, breaks down the math, mindset, and milestones behind scaling your shop’s numbers without burning out your team or outgrowing your facility too soon.

From practical examples to real-world projections, Hunt shows you how to build a realistic roadmap for growth. Whether it’s raising your labor rate, boosting productivity, or understanding how small compounding changes translate to massive results, you’ll see that doubling your profit doesn’t always mean doubling your workload.

By the end, you’ll know how to forecast, plan, and execute your own “Road to 200” — step by step.

Ideal for shop owners and managers who are ready to scale their business with data-driven, sustainable growth strategies.


*What you’ll discover…*
00:00 Intro
02:30) The difference between doubling your numbers and a “200% increase.”
04:20 Increase your prices or increase your production?
06:15 What happens when you try to double sales purely through pricing?
07:15 How to plan realistic, incremental labor rate increases year over year
15:25 When your shop’s size, staffing, and space become limiting factors in growth
18:15 The hidden compounding effect between pricing and productivity
19:10 Why gross profit is more important than sales (and how to double it)
21:30 How doubling sales can more than double your profit if your team is efficient
28:45 Why cutting expenses rarely doubles profit (and what to do instead)
34:00 The compounding math behind raising prices and productivity together

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

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

Should you lease or buy your next vehicle or piece of shop equipment?
In this episode, Hunt Demarest, CPA with Paar, Melis and Associates, walks through the real-world math behind leases and loans, from tax deductions to depreciation traps, so you can make decisions based on dollars and sense, not dealer pressure.
Using simple examples (from a $25 K Corolla loaner car to a five-year alignment machine lease), Hunt explains why some “deals” only look good on paper and when a lease actually protects your shop from risk.
If you’ve ever wondered whether you’re saving money or just deferring pain, this episode will give you the clarity you need before you sign.
Auto shop owners, bookkeepers, and anyone making equipment or vehicle purchase decisions for their business will find this episode especially valuable.*What you’ll discover…*
00:00 Intro
02:00 The two big purchases every shop faces and why they’re treated differently
04:25 Why buying often wins on tax deductions (and what leasing actually writes off)
06:30 When a lease really does make sense
09:30 Luxury vehicles vs daily drivers: How depreciation changes the math
14:10 What equipment leases and copier contracts have in common
14:50 The difference between operating and capital leases and why only one builds equity
16:05 The benefits of a bank loan
16:30 The real cost of leases and why you can’t save by paying them off early
17:50 Why people choose leases
18:31 Why a loan almost always beats a lease for your bottom line

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

*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/