Business By The Numbers

Thanks to our partners Promotive, WickedFile, Maverick Shop Owners, and OverdryveIs 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.wondering why growth keeps outrunning your margins — this episode is essential listening.What You'll Learn...(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 isIf 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.Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Part 1: Auto Shop Benchmarks: Biggest Changes, Key KPI's and Trends [E226] https://huntdemarest.captivate.fm/episode/hunt226/Thanks to our partner, PromotivePromotive 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, WickedFileTurn 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 OwnersYou'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/blueprintThanks to our partner, OverdryveOverdryve 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.

Thanks to our partners Promotive and Wicked FileYou 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:(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.Thanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. 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 WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.

Thanks to our partners Promotive and Wicked FileWhat if you left college with an engineering degree and an MBA, only to realize your best opportunity was back home in the family auto shop?In this episode, Hunt Demarest sits down with Brad Templin of Scott's U-Save, a fourth-generation automotive professional and second-generation owner running multiple locations across the Midwest. Brad shares the real story of what it's like to return to a family business after pursuing a corporate career, work alongside your mom, and navigate the challenges of succession planning in an era when private equity is knocking on every door.Drawing on his own journey from aerospace engineering to MBA to tire tech, Brad explains why he spent his first six months working in the bays, how he and his mom built mutual respect through honest communication, and what it takes to grow a business when you're competing against both private equity buyers and the temptation of a comfortable corporate salary.This episode tackles the hard conversations every family business faces: working with parents, handling disagreements when personal relationships are on the line, deciding between private equity offers and building something on your own, and why succession planning doesn't have to mean selling to the next generation or selling out completely.Brad also shares practical advice on how to maintain family relationships when business tensions run high, and why honesty — even when uncomfortable is the foundation of making it work.What you'll learn…(03:15) How a fourth-generation automotive family built and rebuilt across 100 years(04:35) Why Brad's great-grandfather invented the hub-and-spoke model in the 1920s—the same strategy private equity uses today(08:50) The influence of education on career paths(12:00) Cultural shifts in the automotive industry(15:33) Building trust and respect in a family business(18:15) Why Brad spent six months as a tire tech before taking on leadership(24:50) Investigating family dynamics in business(28:59) Navigating growth and trust: Separating business disagreements from personal relationships(30:00) Why Brad admits he's not the 'bootstrap entrepreneur' — and why that's okay(34:15) Private equity: How Brad and his mom decided whether to sell or keep building(37:35) The real question: 'Are we still having fun?' — and why that matters more than the money(43:10) The future of the industry(48:30) Brad's advice for struggling family businessesThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. 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 WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.

Thanks to our partners Promotive and Wicked FileAre you unknowingly doing things that make the IRS take a closer look at your shop?What if one “small” filing mistake dramatically increases your audit risk this tax season?In this episode, Hunt Demarest walks through the most common tax mistakes that raise red flags with the IRS — and why many well-intentioned shop owners accidentally put themselves in the audit spotlight every year.Drawing on real audit cases from auto repair shops, Hunt explains how filing late, amending returns, underreporting income, and mismatched 1099 reporting can quickly escalate into full-blown audits, even when nothing dishonest was intended.This episode also breaks down why Schedule C amendments are especially dangerous, how credit card deposits and sales tax reporting can trigger IRS scrutiny, and what shop owners should do before filing to minimize risk, close the books cleanly, and move into the new year with confidence.What you’ll learn…(03:00) Understanding IRS audits and common mistakes(05:45) Hunt’s personal experience with being audited(06:40) How to prevent ever getting audited(09:00) What actually increases audit risk — and what doesn’t(11:50) Income reporting and its applications(15:05) The impact of K1’s and other income sources(17:55) High-risk income types and their audit potential(21:15) Losses and their effect on audit risk(24:00) Filing strategies to minimize audit risk(27:00) Final thoughts on tax preparation and auditsThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. 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 WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.

Thanks to our partners Promotive and Wicked FileAre you setting sales goals that actually make you more money — or just more tired?What if your biggest growth goal is quietly setting your shop up for failure?In this episode, Hunt Demarest breaks down one of the most common (and dangerous) mistakes shop owners make when planning for growth: setting sales targets without understanding the real constraints behind them.Building on the ideas introduced in Episode 200, Hunt walks through how to set profit-driven goals instead of vanity sales numbers — and how to pressure-test those goals against your people, pricing, productivity, and physical space before they turn into stress, burnout, or shrinking margins.Using real shop examples and simple math, this episode shows how to reverse-engineer a sales target from profit, identify your true limiting factors, and decide whether growth should come from pricing, car count, ARO, staffing, or capacity — not guesswork.What you’ll learn…(00:01) Why every shop owner needs a growth goal — and why the wrong one can lead to disaster(03:00) Setting sales goals vs profit goals(05:10) How to work backward from profit into gross profit and sales(06:35) Why sustained 30–50% growth is unrealistic for most auto repair shops(08:25) The danger of planning future years before fixing today’s constraints(10:40) Calculating sales targets for profit(13:30) Why labor rate is often the biggest lever — not car count(18:00) How to identify limiting factors in business growth(19:55) Using ARO versus car count to find the least painful path to growth(24:40) How to maximize profitability and resourcesThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. 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 WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.

Thanks to our partners Promotive and Wicked FileHealth insurance premiums keep climbing — but 2026 could bring the biggest shakeup in years.In this episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, breaks down what’s happening in the small-business health insurance landscape after recent ACA subsidy changes — and why a new Republican-backed House bill could change how shop owners buy coverage and support their teams.Hunt explains the economics behind rising premiums, who’s actually affected by the loss of ACA subsidies, and why shop owners may see new opportunities if association health plans and expanded health reimbursement accounts (HRAs) become available.Whether you already offer health insurance or you’re considering it in 2026, this episode will help you understand what’s real, what’s political, and what’s worth watching.Ideal for shop owners and managers who want clarity on benefits costs, recruiting strategy, and what changes may be coming in the next open enrollment cycle.What you’ll discover…(02:00) The current state of small business health insurance — and why premiums keep rising 10–20% a year(05:40) How the ACA reshaped the market(06:30) What the new House bill is, why it’s being debated now, and the January 31 deadline looming in the background(08:00) Who the loss of ACA subsidies impacts most — and why many shops may see little direct effect(16:10) Association health plans: how small businesses could join buying groups like big employers (and why that could lower premiums)(19:25) Health Reimbursement Accounts (HRAs): the tax advantage shop owners may finally be able to use more flexibly(23:45) What to do now: when it’s smart to wait, when it’s not, and why open enrollment timing matters(25:00) The future of health insurance for small businessesThanks to our partner PromotiveIt’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. 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 WickedFileTurn 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/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comText Paar Melis @ 301-307-5413Download a Copy of My Books Here:Wrenches to Write-OffsYour Perfect Shop 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 DiscussionDiagnosing 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.