Master Your Auto Repair Shop’s Financial Future

Why is a shop charging $300 an hour in Texas still taking home less profit than a shop in Maine charging $30 less? Does where you're located actually decide how much money ends up in your pocket — or is something else driving the gap?
In the final installment of a three-part dive into the 2026 Auto Shop Benchmark Report, Hunt Demarest, CPA, breaks down the regional, size, and vehicle-type trends separating the most profitable shops in the country from everyone else. From the Southeast's 17% margins to the Southwest's labor-rate paradox, Hunt unpacks why charging more doesn't always mean keeping more — and why "your shop is no different" is only half true.
Hunt also dives into the numbers behind general repair, diesel, and European shops, explains why bigger isn't always better, and closes with a sobering look at the technician shortage now threatening the entire industry. Whether you're running a one-bay diesel shop in the Midwest or a multi-bay European specialty shop in the Northeast, this episode is your roadmap to benchmarking against the right peers — not just the averages.
*What You'll Learn*
00:00 Intro
03:34 Kicking off Part 3 of the 2026 Benchmark Report series — this week, regional trends
05:40 Why productivity — not location — is the real leading indicator of profit
07:34 Where the top shops actually are (hint: the South didn't make the list)
08:36 The Southwest's labor-rate paradox — highest rates, lowest profit
12:40 "Your shop is no different" — the half-truth every owner needs to hear
14:28 The $1.4M myth — why bigger shops aren't necessarily more profitable
19:23 General repair vs. diesel vs. European — which type actually pays best
22:06 Parts margin vs. labor margin — where each vehicle type wins and loses
24:27 Percentages vs. dollars — why a diesel shop can out-earn a general shop
28:06 The 37,000-tech shortfall, and why 67% of techs quit before year one
30:00 Aging fleets, deferred maintenance, and the hybrid boom shops can't ignore
If you're ready to stop benchmarking against the wrong shops, start understanding which numbers actually predict profit, and finally see where your region, size, and specialty really stack up — this episode is essential listening.

*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/

Is your shop growing in revenue but shrinking in profit? Are you convinced that raising your labor rate is the fastest path to the bottom line — only to discover that your highest-charging competitors are losing money? And what if the real difference between a shop that keeps 35 cents of every dollar and one that loses money has nothing to do with location, specialty, or size?
In this solo deep-dive, Hunt Demarest, CPA at Paar Melis & Associates, walks through the 2026 Auto Shop Benchmark Report — specifically, what separates the top 10% of shops from the bottom 10%. It's about the metrics that actually matter: how much of every sales dollar ends up in the owner's pocket, why overhead is silently eating 42 cents on every dollar in struggling shops, and why the shops doing the most are almost always doing it with the fewest people. Hunt strips the report down to what you need to know — and what to do about it.
Whether you're a two-bay shop trying to crack profitability or a multi-location owner wondering why growth keeps outrunning your margins — this episode is essential listening.

*What You'll Learn*
00:00 Intro
00:01 Why Part 2 shifts from industry trends to what separates winners from losers
04:01 How Paar Melis defines a "top shop" — and why net profit alone doesn't tell the whole story
07:37 The sales volume surprise — why bigger isn't always better, and smaller isn't always a disadvantage
10:56 The metric top shops don't even know they're winning — gross profit per square foot
14:56 Why the Midwest lost all its top shops this year — and who's to blame
19:31 The labor rate myth, debunked — bottom shops charge more per hour and still lose
23:16 The 12-point overhead gap that explains almost every difference in profitability
26:18 Service advisor output — the $18,000-per-month performance gap you probably aren't measuring
26:18 The one fix that moves shops from the bottom 10% to the top — and most already know what it is

If you're ready to stop chasing sales volume as a substitute for profit, understand why the shop charging less per hour is likely the one making more money, and finally see the 12-point overhead gap that separates top shops from everyone else — this episode is essential listening.

*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/

Your technicians got more productive in 2025. Your labor rate went up. Your parts margins improved. So why is the average shop owner keeping almost exactly the same percentage of every dollar as they did the year before?

The answer is hiding in your effective labor rate — and most shop owners haven't looked at it once.

In this episode, Hunt Demarest breaks down the headline findings from Paar Melis & Associates' 2026 Auto Shop Benchmark Report — the largest study of its kind, built from more than 200 real shop locations across the country. From average repair order trends to technician productivity, overhead creep, benefits adoption, pay structure breakdowns, shop management software rankings, and the labor rate shame list nobody wants to be on, this is the financial state-of-the-industry episode you didn't know you needed. And it's only Part One.


*What You’ll Learn*

(00:00) Intro — the 2026 Benchmark Report is live and how to get your free copy
(03:16) Who made this report possible — methodology, participation, and what Paar Melis clients get that nobody else does
(05:30) How to read benchmark numbers without misleading yourself — context, outliers, and the ARO trap
(13:15) Sales are up 10-11% — but how much of that is real production vs. a labor rate increase you already gave yourself?
(16:20) Productivity jumped from 47% to 55% — so why didn't net profit follow?
(18:30) Effective labor rate: the silent margin killer hiding in plain sight in 2025
(27:30) Benefits adoption hits an all-time high: 73% of shops now offer health insurance
(29:30) Retirement plans, tool reimbursement, Trump Accounts, and the fringe benefits arms race
(30:45) Four-day work weeks and non-cash comp — how shops are winning the talent war without raising base pay
(34:30) Good management makes money, not good pay plans
(36:30) 83% of shops are doing digital vehicle inspections — Hunt thought it would be closer to 100%
(37:30) Shop management software rankings: Tekmetric at 56%, Mitchell likely on the way out, Shopware and Protractor tied for third
(40:30) The labor rate shame list — 11% of shops haven't raised their rate in 18 months or more


If you're ready to stop guessing where your numbers stand, start benchmarking against 200+ real shops across the country, and finally understand why doing more work doesn't always mean making more money — this episode is essential listening.


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/

What if the government — and a few well-known billionaires — were offering to deposit cash directly into an account for your child or grandchild, no strings attached, starting July 4th? Would you sign up?
In this solo episode, Hunt Demarest, CPA at Paar Melis & Associates, breaks down everything currently known about the newly announced Trump Accounts — officially called 530A plans — before they go live. Hunt cuts through the political noise to answer the only question that matters for shop owners and their families: is this worth your time, and how do you get your share of the free money on the table?
From the $1,000 Treasury Department seed deposit for children born between 2025 and 2028, to the $250 Dell family contribution available in qualifying zip codes, to how self-employed shop owners can structure employer contributions for a legitimate tax deduction — Hunt walks through what we know, what's still uncertain, and how these accounts stack up against the 529 plans and Roth IRAs you're probably already using.
Whether you're a shop owner with young kids, a grandparent looking for a smarter savings vehicle, or a business owner thinking about a new fringe benefit for your team — this episode is essential listening.

*What You'll Learn...*
00:00 Intro
02:26 What a Trump Account actually is — and why the 530A plan isn't as new as it sounds
05:44 The $1,000 government seed deposit — who qualifies and why Hunt says everyone eligible should sign up immediately
07:34 The Dell family's $250 zip code contribution — why Hunt says don't risk missing it, just sign up
09:57 Contribution limits, employer deductions, and the fringe benefit opportunity for your employees
11:41 Withdrawal rules — why the money is locked until the child turns 18, and what it can be spent on
13:06 Using a Trump Account to buy a first home or start a business — and the creative opportunities that creates
15:26 Trump Accounts vs. 529 plans — the key differences that actually matter for your family
19:26 Trump Accounts vs. Roth IRAs — the side-by-side comparison for shop owners who pay their kids through the business
23:11 Hunt's honest take on what he's actually doing for his own kids — and why the employer deduction changes everything
If you're ready to stop letting politics get in the way of free money, understand exactly how these new accounts fit alongside the strategies you're already running, and find out whether July 4th is a deadline you actually need to worry about — this episode is essential listening.

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

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

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 Aftermarket Radio Network app:*
https://aftermarketradionetwork.com

Is your shop management system telling you one number while QuickBooks says something else entirely? Are parts credits going unclaimed? And if someone were quietly skimming off the top, would your current process ever actually catch it?
In this episode, Hunt Demarest, CPA at Paar Melis & Associates, sits down with Alex from Wicked File — the AI-powered back office reconciliation platform built for auto repair shops. From the employee who snuck through ceiling tiles to steal cash, to the eight-location shop that cut back office workload by fifty percent overnight, Hunt and Alex break down what's leaking out of your business, why your team can't catch it manually, and how technology has made a once-unsolvable problem into a morning coffee routine.
Whether you're a single-location shop hemorrhaging credits you didn't know you were owed or a multi-location owner who's quietly accepted that being remote means accepting losses — this episode is essential listening.
*What You'll Learn*
00:00
03:01 What Wicked File actually does — and why the gap between your shop management system and your accounting software is exactly where the money disappears
06:02 The #1 cause of theft is confidence — why 100% of owners who've been stolen from said it would never happen to them
07:38 Theft stories from the field — Mission Impossible through the ceiling tiles and $2,000 a month in soda nobody ordered
11:58 From 200 invoices to 20 — how 80–90% of parts reconciliation gets automated and what your team can do with the time back
20:09 The 2–3% burn — at $1M in sales that's up to $30,000 walking out the door, and why most owners don't treat it that way
22:36 Why treating your financials as a final score is costing you — and what watching your business like game film actually looks like
28:19 Why the right employees will love this tool — and what resistance to it tells you about your culture
35:16 Bad data makes bad decisions — why it all starts with clean numbers at the invoice level

If you're ready to stop assuming your vendor credits are being processed, understand why the confidence that "it doesn't happen here" is exactly what makes it happen here, and finally know what's actually leaking out of your back office before it becomes a six-figure problem — this episode is essential listening.
*Resources Mentioned*
*Promotive* — Find your next great hire: gopromotive.com
*Wicked File* — Get your back office under control: wickedfile.com
*Hunt's Book* — Beyond the Bays: A Financial Playbook for Auto Repair Shop
*Text Hunt:* If you're reconciling parts invoices manually — or not reconciling them at all — do you actually know how much profit walked out the door last month?
*Text PAAR MELIS* at 301-307-5413 or email podcast@paarmelis.com
*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

Is your advertising budget working for you, or quietly draining you? Are you paying a credit card processing premium you didn't even know existed? When did insurance stop being a routine expense and start becoming one of your biggest threats? And is that rent number on your P&L actually telling you the truth?
In this solo episode, Hunt Demarest, CPA at Paar Melis & Associates, breaks down the four overhead categories that show up most often in his firm's annual benchmark report — and the ones where shop owners are most likely throwing money away without realizing it. From the 3% advertising rule to why the cheapest insurance policy might be the most expensive decision you ever make, Hunt walks through real numbers, real client stories, and a framework for getting your overhead under control without kneejerk cost-cutting that tanks your business.
Whether you're a two-bay shop trying to understand your first P&L or a multi-location owner wondering why your margins keep shrinking despite steady revenue — this episode is essential listening.

*What You'll Learn*
00:00 Intro
02:45 The overhead mindset reset — why cutting costs isn't always the answer when profit is down
04:38 How to benchmark without lying to yourself — why comparing the wrong shop misleads you
05:52 The 3% advertising benchmark — what it means and when it actually matters
08:40 The one overhead expense where spending more makes it relatively cheaper
11:34 Credit card fees decoded — the 2.5% benchmark and why your card mix matters more than your rate
13:53 When paying more for integrated processing is the right call — and when it isn't
20:25 Why insurance is a relationship, not a commodity — and the two-shop fire story every owner needs to hear
24:09 The 6–9% rent rule — and why renting from yourself is distorting your numbers before you sell

If you're ready to stop confusing "reviewing overhead" with "cutting overhead," understand why a cheaper insurance policy could put you out of business faster than any slow month, and finally know what your rent is actually costing you before you try to sell — this episode is essential listening.
*Resources Mentioned*
*Promotive* — Find your next great hire: gopromotive.com
*Wicked File* — Get your back office under control: wickedfile.com
*Hunt's Book* — Beyond the Bays: A Financial Playbook for Auto Repair Shop
*Text Hunt:* If you own your building and charge yourself rent, do you actually know what the fair market rate should be — and could it be hurting the value of your shop when you go to sell?
Text *PAAR MELIS* at 301-307-5413 or email podcast@paarmelis.com

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

Are your PTO policies scaring off the technicians you actually want? Could a $100-a-week tool allowance or a reimbursed truck payment beat a $10,000 raise — and cost you less? In today's tight labor market, the shops winning top talent aren't always paying the most. They're being the smartest.
Recorded live at the Vision Hi-Tech Training & Expo in Kansas City, Hunt Demarest sits down with Lisa and Sam from Promotive — the auto industry's leading recruiting firm — to break down the real reasons shops are losing candidates before the first interview ends. From outdated PTO structures to tone-deaf job ads, Lisa and Sam pull back the curtain on what technicians are actually looking for, what's working in 2026, and how shop owners can compete with Rivian, Tesla, and municipalities without blowing up their payroll. Whether you're running two bays or twenty, this episode is a field guide to building a shop people choose — and stay at.
*What You'll Learn*
00:00 Intro
03:03 PTO reality check — why one week after year one is a dealbreaker in 2026
06:58 How flat-rate shops should actually calculate paid time off
10:38 Why shops are their own worst enemy when it comes to hiring timelines
14:37 The A-tech unicorn problem — and the better hire you're walking past
15:44 The training model the industry has backwards — and the fix that grows your whole team
16:39 Always be recruiting — why two weeks notice is not enough runway
36:34 The 3-day interview rule and why speed is the only hiring strategy that matters
40:22 Creative comp that wins top techs without blowing up payroll
43:25 The fringe benefit rules every shop owner needs to know before getting creative
51:37 Job hopping — tech problem or shop problem? The answer might surprise you

If you're ready to stop losing top techs to shops with smarter benefit packages, start competing with Tesla and Rivian on PTO without blowing up your payroll, and finally understand why the candidate who applied Sunday is already hired somewhere else by Thursday — this episode is essential listening.
*Resources Mentioned*
*Promotive* — Find your next great hire: gopromotive.com
*Hunt's Book* — Beyond the Bays: A Financial Playbook for Auto Repair Shop
*Text Hunt*: Have you ever lost a great technician to a competitor, and if so, did you ever find out what actually made them choose the other shop?
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/

You bought a slower machine to save money. You kept the cheap tech to avoid risk. You sent the customer home with the cheaper repair to do right by them. What if every one of those decisions quietly cost you more than the thing you were trying to avoid?
In this solo episode, Hunt Demarest, CPA at Paar Melis & Associates, breaks down three real conversations with auto repair shop owners — each one a different version of the same costly mistake: confusing what something costs with what it's actually worth. From a sluggish alignment rack to an underperforming technician to a parts decision that looked smart on paper and cost $45,000 in lost production, Hunt walks through the math behind each scenario with blunt clarity.
Whether you're staring down a lease payment you think you can't afford, debating whether to upgrade a technician, or choosing between a $4,000 and $6,000 parts ticket — this episode reframes how you look at time, labor, and money in a way that will change how you run your shop.
*What You'll Learn*
00:00 Intro, sponsor roll, and the week's theme: time and money are inseparable
02:53 Equipment: why a $2,500/month alignment rack lease would pay for itself
10:12 The takeaway: time is the only thing auto shops are truly selling
14:09 People: why spending $400 more on a better tech generated more profit
21:08 Parts: the cheaper job that cost the shop $45,000 in lost production
26:45 Buy once, cry once — quality in equipment, people, and parts always connects

If you've ever kept old equipment running to avoid the expense, convinced yourself that the cheap tech is better than no tech, or assumed you were doing a customer a favor by choosing the lower-cost repair — 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* — Shop coaching and direction
*Overdrive Marketing* — Put your marketing into overdrive
*Automotive Repair Podcast Network* — Full show library and app: https://automotiverepairpodcastnetwork.com/app/
*Hunt's Book* — Beyond the Bays: A Financial Playbook for Auto Repair Shop

*Text Hunt*: Have you ever held off on a major equipment upgrade or a better-paid technician — and did the savings actually cost you more in the long run?
*Text PAARMELIS* at 301-307-5413 or email podcast@paarmelis.com
*Connect with Hunt:*
Aftermarket Radio Network
https://aftermarketradionetwork.com
Paar, Melis & Associates
https://paarmelis.com/

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/