Master Your Auto Repair Shop’s Financial Future

Are you leaving money on the table every time a parts price goes up — without ever realizing it? Most shop owners focus relentlessly on labor rates and rightfully so. But the slow, silent erosion happening inside your parts matrix may be quietly bleeding your gross profit month after month, even while your top-line sales are climbing. Hunt Demarest, CPA at Paar Melis & Associates, breaks down exactly how inflation has shifted your parts pricing into lower-margin brackets — and how one shop owner's savvy negotiating deal actually cost him more than it saved.
This week Hunt walks through two real-world case studies: the bracket-shift trap that moves your best-selling parts into lower markup tiers as prices rise, and a Midwest shop owner who locked in a 15% rebate from his parts vendor, watched his costs drop by $8,000, and still lost $13,000 in gross profit in a single month. Whether you've been selling parts for two years or twenty, this episode will change the way you look at your shop management software — and send you straight to your parts matrix to find out if it's still built for a world that no longer exists.
*What You'll Learn*
00:00 Intro
00:14 Intro, sponsor shoutouts, and what's on tap this week
02:31 Why not raising your labor rate is actually a pay cut
04:47 Rising parts costs: why higher prices usually mean more profit
08:46 The bracket shift trap — how inflation quietly kills your parts margin
12:47 Sales are up but margin is down: how to spot the erosion
15:00 How to audit your parts matrix and reset it for 2026
19:30 The 15% rebate deal that cost one shop $13,000 in a single month
27:00 The McDonald's rule — and why you should never pass savings to the customer

If you've ever assumed that rising parts costs are working in your favor, never thought to question whether your parts matrix still reflects the world you're actually operating in, and want to understand how one shop owner's smartest business move turned into a $13,000 loss — this episode is essential listening.
Resources Mentioned
Promotive — Find your next great hire: gopromotive.com
Wicked File — Back office and parts reconciliation: wickedfile.com
Hunt's Book — Beyond the Bays: A Financial Playbook for Auto Repair Shop
Automotive Repair Podcast Network — Full show library and app: https://automotiverepairpodcastnetwork.com/app/

Text Hunt: Have you ever negotiated lower parts costs — and did the savings actually show up in your profit?
Text PAAR MELIS at 301-307-5413 or email podcast@paarmelis.com
Connect with Hunt:
Aftermarket Radio Network
https://aftermarketradionetwork.com
Paar, Melis & Associates
https://paarmelis.com/

What if the biggest fraud threat to your shop isn't a dishonest employee or a shady vendor — but your own customers? What if the payment you accepted last week could be reversed today, and there's nothing the police will do about it? And what if four shops across the country just got hit with the same scam, and yours could be next?
In this solo episode, Hunt Demarest, CPA at Paar Melis & Associates, breaks down a wave of customer scams that hit shops from Colorado to Florida in a single week — all targeting one vulnerability most owners have completely overlooked. From a $15,000 BMW driven off without payment to a 28-tire credit card fraud scheme, Hunt unpacks the real math behind what a scam costs your shop, why theft of services is a civil issue the police won't touch, and how the shift to card-not-present payments has quietly handed fraudsters the upper hand. He covers chargebacks, payment types, extended warranty clawbacks, and closes with a concrete action plan to lock down your process before it happens to you. Whether you're a seasoned shop owner who's never had a chargeback or someone who just got burned and isn't sure what went wrong — this episode is essential listening.
*What You'll Learn*

00:00 Intro, sponsor shoutouts, and what's on tap this week
03:57 Why fraud is probably already happening at your shop
07:13 One scam, three jobs: the real math behind what you lose
10:52 No cash, no car — the cardinal rule of vehicle release
11:53 Theft of services is civil, not criminal — why police won't help
18:00 Venmo, Zelle, and credit cards: what's reversible and what isn't
19:28 Card present vs. not present: the chargeback risk you're missing
21:54 Real tire fraud stories and the after-hours pickup scheme
28:53 The action plan: paperwork, signatures, and testing your team

If you're ready to stop trusting that your payment process is airtight, start recognizing the scams already targeting shops like yours, and finally understand why one lost chargeback costs you three jobs to recover — this episode is essential listening.

*Resources Mentioned*
*Promotive* — Find your next great hire: gopromotive.com
*Wicked File* — Back office and parts reconciliation: wickedfile.com
*Maverick Shop Owners* — Free access to the 24-video Blueprint course: maverickshopowners.com/blueprint
*Overdrive Marketing* — Automotive shop marketing: goverdrive.com
*Hunt's Book* — Beyond the Bays: A Financial Playbook for Auto Repair Shop

*Text Hunt:* Have you ever lost a chargeback dispute, and if so, did it change how you accept payments?
T*ext PAAR MELIS* at 301-307-5413 or email podcast@paarmelis.com
*Connect with Hunt:*
Aftermarket Radio Network
https://aftermarketradionetwork.com
Paar, Melis & Associates
https://paarmelis.com/

What does the COO of the most widely adopted shop management software in the industry actually see when she looks at your data? In this episode, Hunt Demarest sits down with Lauren Langston, Chief Operating Officer of Tekmetric, for a candid, numbers-driven conversation about where the auto repair industry stands today — and where it's heading fast.
Lauren brings a rare combination of investment banking, venture capital, and operating experience to one of the most trusted names in shop management software. She breaks down the four metrics that separate high-performing shops from the rest, explains why AI is coming to your dashboard in a very deliberate (and actually useful) way, and shares what private equity buyers look for when they're evaluating your business for acquisition.
If you run a shop and you're serious about your finances, this one is essential listening.

*What You'll Learn*
00:00 Intro
01:00 From startup to 70% market share: how Tekmetric got here
02:08 Investment banking to auto repair: how Lauren landed at Tekmetric
04:20 The trust gap: why auto repair has a customer confidence problem
07:24 The four results behind every Tekmetric product decision
10:39 TUG, adoption data, and support tickets: how Tekmetric listens
13:19 Convenience, insights, and agents: Tekmetric's three-part AI roadmap
17:11 Why cheaper code doesn't mean custom software
22:14 PE, consolidation, and the jump from 20 shops to 50
24:42 150 cars. $550 ARO. The benchmarks — and what top shops do instead
27:26 Why skipping DVIs puts you in the order-taking business
30:28 The 80/20 problem: working on the business vs. in it
32:50 The MSO Suite: the bird's-eye view for multi-location owners
35:32 Tectonic: Tekmetric's first conference — built for techs and advisors too

If you're ready to stop flying blind on your KPIs, understand what your data is actually telling you, and see exactly where AI is taking shop management software — this episode is essential listening.

*Resources Mentioned*
Tekmetric — tekmetric.com
Tectonic Conference (April 2025) — Visit Tekmetric's website for registration details
Tekmetric User Group (TUG) — Search "Tekmetric User Group" on Facebook
Paar Melis & Associates — paarmelis.com

Text Hunt: Got a question about your shop's numbers or scaling your operation?
Text PAAR MELIS at 301-307-5413 or email podcast@paarmelis.com

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

*Thanks to our partners Promotive, WickedFile, Maverick Shop Owners, and Overdryve*

What if the reason your car count is down has nothing to do with your marketing — and everything to do with your people? And if you don't know who your ideal customer actually is before you spend a single dollar on advertising, are you really marketing, or just hoping?
Hunt Demarest sits down with Mike DelaCruz, founder of Overdryve Marketing and a 15-year veteran of the automotive aftermarket. Mike's path through DemandForce, Kukui, and Velo gave him a front-row seat to what works across thousands of shops. In 2023 he launched Overdryvee as a fractional CMO service for independent repair shops — and in under three years built an 11-person team.
This episode covers the full marketing picture: building a customer avatar using USPS carrier routes and census data before a campaign launches, diagnosing whether a slow shop has a retention problem or an acquisition problem, and why the "$79 oil change" mentality is costing shops tens of thousands in lifetime revenue. Mike also pulls back the curtain on Overdryve.OS — their AI-powered platform that integrates with Tekmetric and sends real-time alerts when your lead count starts to slip — and gives a straight answer on the Google vs. AI question: 50/50 today, shifting hard toward AI over the next two to five years.
Whether you're tired of panic-marketing every slow January, or you've never thought seriously about lifetime customer value, this conversation will change how you think about the front door of your business.

*What You'll Learn*
00:00 Intro
01:57 Throwing a Hail Mary: how Overdryve Marketing was born.
07:38 Why "I need more cars" is the wrong place to start.
09:00 USPS routes, DMV data, and census reports: know your customer before you spend a dollar.
11:20 The customers you haven't seen in 10 months — and why they're your lowest-hanging fruit.
20:34 Overdryve.OS: the AI tool catching campaign drops before they hurt you.
25:37 The "$79 oil change" customer who's actually worth $30,000.
30:34 $500, a slow calendar, and what to do next.
33:28 Google vs. AI: where to put your money now — and in five years.

If you're ready to stop guessing on marketing, start spending smarter, and understand exactly what AI is about to do to the advertising landscape — this episode is essential listening.

*Thanks to our partner, Promotive*
Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
*Thanks to our partner, WickedFile*
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
*Thanks to our partner, Maverick Shop Owners*
You're working on growing a more profitable shop - that's critical. That's exactly what the 24-video Blueprint course by Maverick Shop Owners addresses - customers, sales, profit, people, systems, and freedom. Get free access for our listeners only at https://maverickshopowners.com/blueprint
*Thanks to our partner, Overdryve*
Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Visit https://overdryvemarketing.com/

*Download a Copy of My Books Here:*
Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
https://a.co/d/07G3V8cN
Wrenches to Write-Offs
https://info.paarmelis.com/wrenches-to-write-offs
Your Perfect Shop
https://paarmelis.com/your-perfect-shop-book-download/

The Automotive Repair Podcast Network:
https://automotiverepairpodcastnetwork.com/
*Remarkable Results Radio Podcast with Carm Capriotto:* Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion
*Diagnosing the Aftermarket A to Z with Matt Fanslow:* From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.
*The Weekly Blitz with Chris Cotton:* Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.
*Speak Up! Effective Communication with Craig O'Neill:* Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size.
*Business by the Numbers with Hunt Demarest:* Understand the Numbers of Your Business with CPA Hunt Demarest.
*The Auto Repair Marketing Podcast with Kim and Brian Walker:* Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.

Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Text Hunt: Got a question about marketing or growing your car count?
Text PAAR MELIS at 301-307-5413 or email podcast@paarmelis.com

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

You know comeback work costs money, but do you know how much?
Most shop owners look at what they paid their technician and stop there. Hunt Demarest shows why that number is almost always the smallest part of the loss.
In this episode, Hunt breaks down the real math on a client's comeback situation — where a perceived $500 problem was actually closer to $5,000. He explains why labor inventory evaporates every single day, how parts inventory works differently, and why non-paying work that never hits your shop management system means you'll never truly understand your numbers.
Whether you're dealing with chronic comeback issues, a technician whose mistakes keep slipping through, or you just want to finally put a real number on what non-paying work is costing you — this one is worth your time.

*What You'll Learn*
00:00 Intro
02:40 Understanding opportunity costs
06:00 The true impact of comeback jobs
08:50 Applying opportunity cost thinking to unproductive technicians
12:10 Goodwill work isn't free — how to quantify what you're giving away
15:10 Why shop owners undervalue parts inventory — and how to reframe it
18:00 Quantifying Non-Paying Work
20:50 Setting up a warranty/comeback credit card in your shop management software
23:00 How Backoffice and accounting link automate non-paying work tracking


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

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@paarmelis.com*
What if the reason your team isn't hitting your numbers is simply that they don't know what the numbers are?
How do you go from being the guy fixing the cars to the guy running the business — and what does it cost you if you never make that mental switch?
Hunt Demarest sits down with Brian Rooney, a client, shop owner in Iowa, and author of Protecting Outcomes. Brian's story is one that will resonate with many listeners: a technician who took over the shop he worked in, figured out the financial side on the fly, and built a business he's proud of. He found Hunt through Your Perfect Shop, cold-emailed Paar Melis & Associates from the plane ride home, and has been a client ever since. Now, he's turned his hard-won lessons into a book of his own.
This episode covers the full journey — from not knowing what gross profit was to tracking GP percentage, GP dollars, and effective labor rate as his top daily KPIs. Brian shares how going all-hourly works for his team, how he tackled the DVI rollout, and how his shop went from an $85 labor rate in 2019 to $186.70 today. Most importantly, he talks about the single biggest change he'd make if he could go back to day one: communicate your targets to your team from the start.
Whether you're a technician thinking about ownership, a newer shop owner still finding your footing with the numbers, or a seasoned operator looking to get better buy-in from your crew, this one is worth your time.

*What You'll Learn*
00:00 Intro
03:40 How Hunt and Brian met and more about Vision.
05:25 How Brian grew into mastering the numbers side of the business
07:25 The story behind Brian's book, Protecting Outcomes
09:50 Why communication is at the root of every shop problem
13:10 How Brian built his metrics knowledge one step at a time
18:55 Why Brian runs an all-hourly team — and how he handles the productivity conversation
21:50 Brian's top three daily KPIs and how he improved his effective labor rate
26:00 The one thing Brian would change if he could go back to day one


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

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@paarmelis.com*
What if that empty bay in your shop is costing you $175,000 a year?
What happens when your best technician walks in on Friday afternoon and says they're not coming back Monday?
In this episode, Hunt Demarest welcomes back Chris Lawson from Technician Find — the first returning guest on Business by the Numbers. Chris tackles the question shop owners struggle with most: can you really afford to invest in recruiting when money is tight? Drawing on real shop data, Hunt and Chris break down the hidden cost of empty bays ($175,000 per year in lost gross profit for the average shop) and why treating recruiting as an optional expense is costing shops far more than any recruiting service ever could.
Chris explains why recruiting is fundamentally different from advertising — you're not looking for people actively searching for jobs, you're reaching employed technicians who need a compelling reason to take the risk of leaving where they are. This requires completely different messaging, targeting strategies, and an understanding that ChatGPT-written ads on Indeed all look identical because they're copying each other. The conversation covers everything from why shops get 10+ applicants per opening while others get zero, to the emerging concept of "bench building" — maintaining relationships with potential hires before you desperately need them.
This episode also dives into compensation strategy, the importance of running competitive salary surveys, and why the trades are positioned for continued wage growth as AI threatens white-collar careers but can't turn a wrench. Whether you're fully staffed and looking to build insurance against turnover, or scrambling to fill an empty bay, this conversation provides a framework for thinking about recruiting as an investment rather than an expense — and why waiting until you're desperate is the most expensive strategy of all.

*What you'll learn*
00:00 Intro
03:05 The real cost of empty bays: $2,000 per day vs. the cost of recruiting
05:00 Why recruiting is viewed as a vendor expense instead of an investment
05:30 The Indeed problem: Why every automotive technician job posting looks identical
07:10 How to write ads for employed technicians vs. people actively looking for work
09:00 Why good techs aren't on job boards — and where to find them instead
12:05 The evolution of technician recruitment
15:00 Optimizing the hiring process
18:00 Building a strong reputation
21:00 The essential role of interviews in recruitment
24:30 Understanding technician recruitment challenges
30:15 The importance of communication in recruitment
35:00 Leveraging AI in recruitment strategies
40:00 Future trends in technician wages and industry perceptions


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

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@paarmelis.com.*
Would you swap out wiper blades for $500? Probably yes. Would you replace an entire engine for $500? Absolutely not.

But here’s the real question: what if the math behind why you said yes to one and no to the other is the same math that’s silently costing your shop thousands of dollars every month? I

In this episode, Hunt Demarest breaks down one of the most powerful and most overlooked metrics in the auto repair business: gross profit dollars per hour sold.

Most shop owners track sales, gross profit, and hours. But very few ask the one question that ties them all together: how fast are you making that money? Inspired by the late Aaron Stokes of Shop Fix Academy, Hunt makes the case that the speed of your profitability — not just the size of it — is what separates thriving shops from ones that are always busy but never ahead.

Hunt walks through real examples that make this impossible to ignore — including why tire shops with terrible margins can still be wildly profitable, and how a $40 cabin air filter can outperform a $600 water pump job. Whether you're setting targets, pricing jobs, or wondering why a record sales month still left you short, this is the framework that explains it. And if you're already using Tekmetric or Shop-Ware, this metric is likely already on your end-of-day report — it's time to start using it.

*What You’ll Learn*
00:00 Intro
00:10 It's not how much you make, it's how fast you make it
02:14 A tribute to the late Aaron Stokes of Shop Fix Academy
03:05 Understanding gross profit dollars per hour
03:45 Hours open vs. hours sold — the two versions of GP$/hour explained
06:00 The importance of speed in profitability
06:45 Why tire shops with terrible margins can still be wildly profitable
08:50 Setting targets for success
09:15 Why chasing hours alone can leave you working harder and earning less
12:00 Calculating gross profit dollars per hour
14:54 Maximizing profitability through pricing and productivity
17:50 Real-world examples of profitability
20:50 Conclusion and key takeaways

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

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@paarmelis.com.*
You already know how to pay your technicians — but what about everyone else? Your service advisors, your counter staff, your shop manager... how do you build a pay plan that actually motivates them to perform?

In this follow-up to last week's technician pay plan episode, Hunt Demarest walks through the three most common commission structures for front-office and management staff: paying off total sales, paying off gross profit, and paying off net income. Using a real client example — a shop owner who wants to reward his son for growing the business from $2 million to $2.5 million in annual sales — Hunt breaks down exactly how to calculate each structure, what percentage makes sense, and how to stress-test the plan before you hand it to your employee.

The big theme running through all three structures is: only reward people for what they can actually control. Paying a manager based on net income sounds fair in theory, but what happens when you buy a $30,000 side-by-side for the shop and write it off?

Hunt explains why net income plans almost never work in practice, why gross profit plans are more aligned but more complex, and why a simple percentage of sales, with a few key guardrails around gross profit floors, is often the most transparent and motivating option for most shops.

Whether you're building a plan from scratch or rethinking one that isn't driving the behavior you want, this episode gives you a clear, repeatable framework — and a reminder that none of it matters unless your employee actually understands the plan and knows how their daily actions will move the needle.

*What you'll learn in this episode:*
00:00 Intro
03:15 The benchmark that might surprise you about flat salaries
05:15 The rule every pay plan must follow relating to compensation and penalization. (08:30) A real case study and step-by-step instructions on building a payment plan.
10:20 The base pay ratio that makes or breaks a commission plan
12:00 How to protect yourself from a sales-based plan backfiring (including gross profit floors and percentage-of-increase structures)
17:40 Sales vs. gross profit plans
19:50 Shop management software vs. QuickBooks: why Hunt is adamant you should only use one of them to calculate commissions
23:40 The $30,000 side-by-side problem: why paying a manager off net income almost always ends in resentment and what to do instead.


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