Master Your Auto Repair Shop’s Financial Future

Would you take the job you're offering your own technicians? Could a candidate's spouse be the real decision maker in your next hire, and do you know what she needs to hear?

Hunt Demarest sits down with Sam Freeman and Lisa Coyle from Promotive, the recruiting firm that places technicians, service advisors, and shop managers across the country, to talk about why so many good candidates never make it past the first ninety days, and why so many good shops can't fill a seat no matter how much they raise pay. Lisa and Sam walk through the data points that predict a bad hire before it happens, why flat rate is becoming a harder sell with both technicians and consumers, and why one in three shops is losing candidates over a benefits package that just isn't competitive. They also dig into the stat driving a lot of the industry's anxiety right now: seventy percent of people who take their first automotive job leave the trade within twelve months and never come back.

Whether you're struggling to fill a single bay or running a shop with a full crew, this episode is a reality check on what candidates are actually evaluating when they walk through your door, and what you can control when the market itself is working against you.

*What You'll Learn...*
00:10 Meet Sam and Lisa from Promotive
02:40 The 58% red flag before day one
04:02 The three-benefit tipping point
07:16 The case for hybrid pay over flat rate
11:16 What top techs ask before they say yes
16:53 Why 70% quit the trade and never look back
22:29 Everybody wants an A-tech, nobody wants to build one
26:23 The licensing trap costing shops candidates
32:46 Building the bench before you need it
40:33 Inside Promotive's portal, pricing, and guarantee
47:31 Your team is your best billboard

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Do you actually know your break-even point, or just a number that feels close enough? And if you hit it, would you even know why?

This week's episode started with a phone call. Hunt Demarest, CPA with Paar Melis & Associates, was walking a client through his numbers through July when he realized something: most shop owners can eyeball their break-even point, but almost none of them understand what's actually driving it. Hunt breaks down the fastest way to find your break-even using your own monthly financials, why a sales target is really just a stand-in for what you actually need (gross profit), and how to turn that number into real targets for cars, hours, and average repair order that your team can actually use. He also tackles the messy middle ground of cost of goods sold versus overhead, and why the math works out the same either way as long as you're consistent.

Whether you've never once run this calculation for your shop or you set your break-even years ago and haven't touched it since, this episode is a practical field guide to knowing the one number that tells you if your shop is actually working.

*What You'll Learn…*
(00:00) Intro
(00:44) Housekeeping: the book, the sponsors, and how to ask Hunt anything
(02:48) The client call that inspired this episode
(03:14) The fastest way to find your break-even: your own monthly numbers
(04:43) The reality check: making sure it's a true break-even month
(05:53) Sales targets vs. what your team actually needs to hear
(07:33) Cost of goods sold vs. overhead: the literal breakdown
(11:21) Building your gross profit target from three financial categories
(16:25) The margin math: why 50% gross profit beats 30%, every time
(17:45) The revolving cycle: why this number needs regular updates

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Are you accidentally paying taxes on money you're never actually going to collect? Could the way you're deleting a bad ticket in your shop management software be costing you more than the deadbeat customer ever did?

This week's episode started as a text message. Hunt Demarest, CPA with Paar Melis & Associates, answers a question from fellow podcaster Chris Cotton of AutoFix Shop Coaching and The Weekly Blitz: how should shops actually handle bad debt? Hunt breaks it down from the ground up, what bad debt is, how cash versus accrual accounting changes the math, and why deleting or discounting a ticket instead of writing it off properly can quietly inflate your tax bill and hide real problems in your production numbers. He walks through the exact steps for building a "bad debt" payment type into your shop management software, how to automate the accounting through Back Office and Accounting Link (or handle it manually with a journal entry), and where chargebacks, bartering, and shop vehicles fit into the picture.

Whether you've never had a customer stiff you or you're staring down an invoice right now that you know you'll never collect, this episode is a practical field guide to keeping your books, and your tax bill, accurate.

*What You'll Learn…*
(00:00) Intro: Chris Cotton's bad debt question kicks off the episode
(00:46) Housekeeping: the book, the sponsors, and how to ask Hunt anything
(03:11) The four part question: where it goes, how it's recorded, and chargebacks
(05:28) What actually is bad debt: cash basis versus accrual, explained
(07:58) The tax trap: why ignoring bad debt means overpaying the IRS
(08:50) PSA: your AR is only as accurate as your shop management software
(12:21) The correct way to book a loss: sales, cost, and the bad debt line
(13:51) Why deleting the ticket hides your real production story
(16:54) The nuts and bolts: creating a bad debt payment type
(19:03) Automate it: Back Office, Accounting Link, and manual journal entries
(21:03) Chargebacks, bartering, and shop vehicles: same rules or different?
(23:10) Closing thoughts and how to reach Hunt

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Are you chasing being rich, or are you actually building wealth? Could the shop owner making $150,000 a year retire with more freedom than the one clearing $800,000? Hunt Demarest has seen both, and the answer might surprise you.

In this solo episode, Hunt Demarest, CPA with Paar Melis & Associates, steps away from the usual business valuation talk to tackle something he says matters even more to a shop owner's future: personal finances. Drawing from a four hour class he taught at the STX Conference, Hunt breaks down why so many disciplined, profitable shop owners still end up with disorganized personal finances, and why that gap, not their business's sales or profit, is the real predictor of a happy retirement. He walks through the difference between being rich and being wealthy, tells two real client stories with opposite outcomes, and unpacks the habits, from unchecked debt to keeping up with the Joneses, that quietly derail decades of hard work.

Whether you're chasing a bigger number on your P&L or wondering why your bank account never seems to reflect it, this episode is a mirror check on the financial decisions that actually determine your future.

*What You'll Learn…*
(00:00) Intro: STX Conference recap and a preview of this week's topic
(03:04) Why chasing business value misses the real retirement risk
(06:11) Rich versus wealthy: the distinction most shop owners get wrong
(08:01) The client who went broke rich, and the one who quietly built wealth
(09:29) How consistent saving beat a six figure income, a paid off real estate story
(15:07) Why the market has zero interest in educating you about your money
(16:47) The rat race: keeping up with the Joneses, personally and in the shop
(17:40) The one number most owners can name for their business but not their life
(21:08) Debt is easier than ever: the $2 million sale that couldn't cover the bills
(23:11) Mortgaging your future: what really keeps shop owners working past retirement age
(23:43) Closing thoughts and how to reach Hunt

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Why do two auto repair shops with virtually identical profit sell for wildly different amounts, one at a nine time multiple and another at three? And if you're not planning to sell anytime soon, does any of this even apply to you?

Recording a preview of the class he's teaching live at the STX World Pac Conference in DC, Hunt Demarest breaks down the factors that quietly decide what your shop is actually worth when a buyer sits down at the table. Hunt walks through why timing your exit three to five years out changes everything, why one client's prized fleet contract almost killed his sale, and why buyers pay for a business that runs without you, not a high paying job with your name on it. Along the way, he covers the optics of clean financials, how far you can push ad backs before a bank or a buyer walks, and why new equipment won't add a dollar to your sale price even though old equipment will cost you one.

Whether you're planning to sell next year or you never plan to sell at all, this episode lays out the groundwork every shop owner needs long before a buyer ever walks through the door.

*What You'll Learn…*
(00:00) Intro
(00:12) Why Hunt is previewing his STX class on maximizing shop value
(03:46) The World Pac Conference and why this class exists
(03:58) Why identical shops sell for wildly different multiples
(06:13) Timing: the 3 to 5 year rule before you sell
(07:32) Your shop is your retirement plan whether you planned it that way or not
(10:16) Customer concentration: the fleet account red flag buyers watch for
(10:38) The ambulance contract that nearly killed a client's sale
(15:50) Continuity: buyers pay for a business, not a job
(18:39) Clean financials: why optics matter as much as the bottom line
(20:29) Ad backs: how much "creative" bookkeeping a buyer or a bank will accept
(21:53) Equipment: the double edged sword of new gear

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


Got questions or feedback, connect with Hunt Demarest at:
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

Why are less than 10% of shops operating within even 40% of what they're actually capable of? And if throwing more money at your technicians won't fix your productivity problem, what will?

Hunt Demarest sits down with Chris Cotton of AutoFix Shop Coaching, fellow multi-shop owner and host of The Weekly Blitz, to translate this year's Auto Shop Benchmark Report into real, actionable advice. Chris breaks down the three real barriers to productivity, the technician, the environment, and leadership, and walks through the shop floor fixes that took one client from $180,000 a month to $350,000, and another from under $200,000 to nearly $400,000. Along the way, Hunt and Chris dig into why fewer than 20% of technicians today are actually money motivated, why flat rate isn't the productivity silver bullet most owners assume it is, and why the fastest way to fix a struggling shop is almost never to yell at the guys in the back.

Whether you're staring at a productivity number you don't understand or you already suspect your shop is leaving money on the table, this episode is a practical field guide to turning benchmark data into a better bottom line.

*What You'll Learn…*
00:00 Intro
03:49 Track it, measure it, fix it, why coaching outperforms data alone
06:44 The three real barriers to productivity: tech, environment, leadership
08:24 The diesel shop step-counter experiment
12:28 The Rochester shop that went from $180K to $350K a month
17:04 The $90 consultation fee that stopped diag from bleeding money
21:57 Why fewer than 10% of shops hit 40% of their real capacity
26:43 Why 50% of top shops are hourly, not flat rate, and pay isn't everything
30:22 The flexibility that keeps a top tech loyal without a raise
33:45 Car counts, layoffs, and the hard call every owner eventually faces
36:38 How to get a free 30-minute shop consultation with Chris

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


Got questions or feedback, connect with Hunt Demarest at:
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

Download the Automotive Repair Podcast Network App: https://automotiverepairpodcastnetwork.com/

This video is private.

Is your new LLC actually protecting you, or just quietly draining your bank account? Before you file paperwork for that second location, that self rental, or that "clever" loaner car company, there are three questions you need to answer first.

In this solo episode, Hunt Demarest, CPA with Paar Melis & Associates, breaks down the real decision making framework behind one of the most common questions he gets from shop owners: should I create a new entity for that? Hunt walks through four real world scenarios, opening a second location, renting your building to yourself, running a loaner car fleet, and building out a management company for multi location groups, and exposes exactly where shop owners get legal protection wrong, waste money on unnecessary tax complexity, or set themselves up for a self dealing problem they didn't see coming. Whether you're eyeing a second bay across town or you're already juggling five locations and a maze of S corps, this episode is the entity structuring gut check every shop owner needs before signing anything.

*What You'll Learn...*
00:00 Intro
00:16 Should you create a new entity? The real question behind it
02:51 The 3-question test — legal liability, tax implications, and overall cost
04:50 Scenario 1 — Opening a new location
05:09 Ownership structure — the deciding factor that changes everything
06:48 Same entity vs. separate entity — the litigation reality
09:14 What a second entity really costs (and when it's worth it)
10:18 Hunt's rule of thumb — shared customers vs. separate markets
13:46 Scenario 2 — Should your building be in its own LLC?
16:17 Scenario 2.5 — The loaner car fleet trap
18:08 Avoiding self-dealing with your rental car LLC
18:37 Scenario 3 — Management companies for multi-location shops
20:51 C-corp management companies and the benefits strategy behind them

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


*Got questions or feedback, connect with Hunt Demarest at:*
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/

You need money. Maybe it's to cover payroll this week, maybe it's to buy the alignment rack you've been eyeing for a year. Either way, Hunt Demarest, CPA, says the loan you should get depends entirely on two questions banks are already asking about you: do you have cash flow, and do you have collateral?

In this solo follow-up to his cash reserves series, Hunt breaks down every borrowing option available to auto repair shop owners and ranks them from cheapest to most dangerous. He walks through real client scenarios — equity in your building, financing new equipment, strong profits with nothing to put up as collateral — and explains exactly what to say (and not say) when you sit down with a bank. He closes with a hard look at credit card advance loans: why they're marketed as easy money, why the interest rate isn't actually what traps shop owners, and why the repayment period is the real killer.

Whether you're planning a purchase a year out or you need cash this month, this episode gives you the vocabulary and the game plan to borrow smarter.

*What You'll Learn...*
00:00 Intro: wrapping up the cash conversation with how to actually get the money
03:46 Secured vs. unsecured debt, and why one always beats the other on rate
06:10 The two things every bank is really looking for: cash flow and collateral
07:12 Scenario: You're out of cash, but your building has equity
07:57 Refinance or borrow against it? How to decide, and why today's rates change the math
13:26 Scenario: You're out of cash and need new equipment: financing vs. leasing
15:40 Scenario: Strong profits, no collateral, the situation most bootstrapped shops face
17:25 How to frame your ask so the bank says yes (the tire business pitch)
18:46 Last resort: credit card advance loans explained, and how they actually get repaid
20:48 Why the interest rate isn't what kills you: it's the repayment period
23:34 Wrap-up: share the show and send in your questions

*Resources Mentioned*
Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0
Get Hunt's Book: Beyond the Bays, on Amazon: https://a.co/d/0iQ3UuOL


Got questions or feedback, connect with Hunt Demarest at:
Email: podcast@paarmelis.com
Website: https://www.paarmelis.com


*More Info on BBTN Sponsors:*
Promotive — To find and hire great techs, visit: https://info.gopromotive.com/hunt
WickedFile — Find missing profit in your paperwork, visit: https://www.wickedfile.com
Overdryve — Get AI powered marketing solutions, visit: https://www.overdryvemarketing.com
Maverick — Grow your shop with auto shop coaching, visit: https://www.maverickshopowners.com

*Download the Automotive Repair Podcast Network App:* https://automotiverepairpodcastnetwork.com/