Business By The Numbers

Automotive Repair Podcast
  • 5.0 (27)
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Hunt Demarest, CPA has consistently provided his financial business acumen to help move the industry toward greater heights of success and profitability. Hunt was recently referred to as a "terrific advocate of the aftermarket." He is the author of the book, Your Perfect Shop: How to Start, Run & Sell a Profitable Shop. In this book, he compiled some of the best practices for auto repair shop owners, whether they are just starting or have been in the business for years. Hunt's podcast will provide a core understanding of the financial aspects of running an auto repair shop.

  1. What Your Technician Pay Plan Is Really Telling You [E210]

    4D AGO

    What Your Technician Pay Plan Is Really Telling You [E210]

    Thanks to our partners Promotive and Wicked File What if the pay plan you've been debating isn't actually the problem? In this solo episode, Hunt Demarest tackles one of the most argued topics in the auto repair industry: how to pay your technicians. After seeing it debated online once too often, Hunt pulls from hundreds of real shop benchmarks to cut through the noise — and his answer might surprise you. Hunt breaks down the three main structures — flat rate, hourly/salary, and hybrid — explaining what each one actually incentivizes, where each one breaks down, and why half of his top-performing shops use flat rate while the other half don't. The takeaway: no pay plan alone will fix a production problem. From the classic flat rate with no minimums to California flat rate, tiered hourly structures, and spiff-based systems, Hunt walks through the real-world mechanics of each — including the overtime trap that catches shop owners off guard when non-discretionary bonuses are in play. This episode also covers team-based vs. individual pay plans, with a detailed real-world example of a six-tech shop that saw production climb for six months after switching to a team bonus structure — then slide consistently for the next 18. Hunt explains exactly why it happened and what the senior tech said that made it all make sense. The bottom line: if you change the pay plan without changing how you manage, communicate, and operate, you're just changing the numbers on a piece of paper. Hunt also previews next week's episode on manager and advisor pay plans, and announces that Reed Melis of Paar Melis & Associates will be teaching a class on shop pay plans at Vision in Kansas City. What you'll learn… (00:08) Why Hunt dedicated a full episode to tech pay plans (01:30) Why half of top benchmark shops are flat rate — and half aren't (02:59) Understanding flat rate: the core appeal for money-motivated players (06:46) Can flat rate mask a bad manager — and can hourly survive one? (09:00) The downsides of flat rate: comebacks, culture, and sick time (12:00) California flat rate explained (14:38) Hourly and salary: the easiest pay plan — and its one massive drawback (17:00) The awkward conversation every hourly shop owner eventually has to have (19:30) The compliance issue most shops don't know they have (21:00) The most important rule of any pay plan: if they can't understand it, it won't work (22:05) Hybrid and tiered rate structures: how they work and who they work for (24:00) Spiff systems: how a simple $100 bonus can drive a 10% production increase (25:30) Team-based vs. individual pay plans: the theory, the appeal, and the culture risk (27:30) Why a team bonus structure boosted production then quietly tanked it (30:00) Pay plans as a forever-moving target: why honest conversations matter more than the structure itself Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive...

    31 min
  2. From MBA to the Bays: Why the Next Generation Isn't Taking Over Family Shops (And What One Second-Gen Owner Did Differently) [E209]

    FEB 12

    From MBA to the Bays: Why the Next Generation Isn't Taking Over Family Shops (And What One Second-Gen Owner Did Differently) [E209]

    Thanks to our partners Promotive and Wicked File What 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 businesses Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download a Copy of My Books Here: span...

    53 min
  3. Everything You Need to Know About Life Insurance for Your Shop (Without the Sales Pitch) [E208]

    FEB 5

    Everything You Need to Know About Life Insurance for Your Shop (Without the Sales Pitch) [E208]

    Thanks to our partners Promotive and Wicked File Should your shop carry life insurance on a key employee? What if one employee's unexpected death could cost you hundreds of thousands of dollars? In this episode, Hunt Demarest tackles everything you need to know about life insurance for auto repair shop owners and their teams — covering key person insurance, term vs. whole life policies, tax implications, and how much coverage actually makes sense for your situation. Unlike most conversations about life insurance, this one comes with zero sales agenda. Hunt breaks down the real economics of life insurance, why it's almost never tax-deductible (and why that's actually a good thing), and the five critical questions every shop owner should ask before buying a policy. Drawing on real client situations, from key employee coverage to bank-required policies, this episode explains when life insurance is essential protection versus when it's an unnecessary expense, and how to think through coverage amounts based on debt, dependents, and the true cost of losing critical team members. What you’ll learn… (02:20) Why shop owners are suddenly asking about life insurance (03:00) What key person life insurance actually is and whether you need employee permission to buy it (06:20) The real cost of losing a key employee: calculating the financial impact of a technician, manager, or yourself (11:55) Term life vs. whole life vs. universal life: the real differences explained without the sales pitch (14:35) Why term life insurance is the better choice for 99% of shop owners and when it isn't (18:50) Can you write off life insurance premiums? The non-deductible expense rule explained (19:40) Why writing off life insurance premiums is a terrible deal, even though you technically can (22:55) The five questions to ask yourself before buying life insurance: debt, dependents, goals, and money (24:15) Why life insurance is statistically a bad deal and why you should probably have it anyway Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download a Copy of My Books Here: Wrenches to Write-OffsYour Perfect Shop a href="https://automotiverepairpodcastnetwork.com/" rel="noopener noreferrer"...

    27 min
  4. The Tax Mistakes That Get Auto Shops in Trouble (and How to Avoid Them) [E207]

    JAN 29

    The Tax Mistakes That Get Auto Shops in Trouble (and How to Avoid Them) [E207]

    Thanks to our partners Promotive and Wicked File Are 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 audits Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download 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 Discussion a href="https://mattfanslow.captivate.fm/"

    31 min
  5. The New Tax Rules That Could Save (or Cost) Your Shop Thousands in 2026 [E206]

    JAN 22

    The New Tax Rules That Could Save (or Cost) Your Shop Thousands in 2026 [E206]

    Thanks to our partners Promotive and Wicked File Are you sure you’re capturing every tax deduction your shop — and your employees — are entitled to this year? What if missing one small detail hands more money to the IRS than necessary? In this episode, Hunt Demarest kicks off the new tax season by breaking down the most important tax rule changes shop owners need to understand for 2026, and just as importantly, who actually qualifies for them. From overtime deductions and tip taxation to the surprisingly nuanced rules around car loan interest and a new senior tax break, Hunt explains what’s real, what’s misunderstood, and where shop owners should (and should not) be taking action. Using real-world payroll examples and clear math, this episode cuts through the headlines to show how these changes affect employees, owners, and families differently — and why failing to understand the details could mean leaving thousands of dollars on the table or creating unnecessary IRS risk. What you’ll discover… (02:00) The four major tax changes affecting auto repair businesses this year (04:49) Why most auto repair shops do not qualify for tip deductions (07:15) How overtime deductions actually work — and what “qualified overtime” really means (09:55) How state overtime rules can complicate federal tax deductions (14:55) Why owners, spouses, and many family members do not qualify for overtime deductions (16:55) The new car loan interest deduction — and why most shop owners won’t qualify (18:00) The hidden rules that eliminate many vehicles from the car loan write-off (22:05) Why “made in the USA” matters more than brand name (23:10) When buying a new car might make more sense than a used car financially (25:25) The new senior tax deduction and who benefits most from it Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download a Copy of My Books Here: Wrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: a href="https://automotiverepairpodcastnetwork.com/" rel="noopener noreferrer"...

    29 min
  6. Why Your Sales Goal Might Be Leading You Toward Disaster [E205]

    JAN 15

    Why Your Sales Goal Might Be Leading You Toward Disaster [E205]

    Thanks to our partners Promotive and Wicked File Are 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 resources Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download 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...

    29 min
  7. 2025 Wrap-Up: Interest Rates, ERTC, Overtime, and What Shop Owners Need to Know for 2026 [E204]

    JAN 8

    2025 Wrap-Up: Interest Rates, ERTC, Overtime, and What Shop Owners Need to Know for 2026 [E204]

    Thanks to our partners Promotive and Wicked File Are you making end-of-year tax decisions that truly save you money, or just creating future headaches? What if the moves you think are smart tax strategies are quietly costing you more than they save? In this episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, walks shop owners through the most important end-of-year financial and tax considerations — and the costly misconceptions that show up every December. Hunt breaks down which deductions actually move the needle, why retirement contributions can generate cash instead of draining it, and how poor inventory, receivables, and payroll timing can inflate your tax bill without you realizing it. Ideal for auto repair shop owners, managers, and operators who want a clear, realistic financial outlook for 2026 — without hype, political spin, or costly misconceptions. What you’ll discover… (2:23) What the BOI report was, why it disappeared, and why you can forget about it (04:00) How interest rates actually moved from 2023–2025 and what shop owners are really seeing (9:40) Why slowing inflation doesn’t mean prices are coming down (13:30) The affordability problem facing consumers — and how it affects your customers (16:30) Stock market realities, AI concentration, and what precious metals signal (21:45) The truth about ERTC payments, audits, and why “fast-track” offers are scams (24:50) No tax on tips: what changed, what didn’t, and who actually qualifies (27:45) No tax on overtime — what “overtime premium” really means for employees (29:50) What employers should share with their teams about overtime reporting Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download a Copy of My Books Here: Wrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio...

    33 min
  8. Health Insurance Shakeup for 2026: ACA Subsidies, Association Plans, and the HRA Strategy Shop Owners Need to Know [E203]

    JAN 1

    Health Insurance Shakeup for 2026: ACA Subsidies, Association Plans, and the HRA Strategy Shop Owners Need to Know [E203]

    Thanks to our partners Promotive and Wicked File Health 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 businesses Thanks to our partner Promotive It’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 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/ Paar Melis and Associates – Accountants Specializing in Automotive Repair Visit us Online: www.paarmelis.com Email Hunt: podcast@paarmelis.com Text Paar Melis @ 301-307-5413 Download a Copy of My Books Here: Wrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: a href="https://automotiverepairpodcastnetwork.com/" rel="noopener noreferrer"...

    28 min
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5
out of 5
27 Ratings

About

Hunt Demarest, CPA has consistently provided his financial business acumen to help move the industry toward greater heights of success and profitability. Hunt was recently referred to as a "terrific advocate of the aftermarket." He is the author of the book, Your Perfect Shop: How to Start, Run & Sell a Profitable Shop. In this book, he compiled some of the best practices for auto repair shop owners, whether they are just starting or have been in the business for years. Hunt's podcast will provide a core understanding of the financial aspects of running an auto repair shop.

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