Business By The Numbers

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. Customer Acquisition Cost vs. Lifetime Value: The Math That Decides If Your Shop Will Survive [E196]

    قبل ٤ أيام

    Customer Acquisition Cost vs. Lifetime Value: The Math That Decides If Your Shop Will Survive [E196]

    Thanks to our partners Promotive and Wicked File How much does it really cost your shop to win a new customer, and is it worth it? Most shop owners don’t realize they’re spending hundreds, sometimes thousands of dollars just to bring in a single new face, and in some cases, they’re losing money on every “win.” In this episode, Hunt Demarest, CPA with Paar Melis and Associates, breaks down the real cost of customer acquisition and why understanding Customer Acquisition Cost (CAC) and Lifetime Customer Value (LTV) can make or break your business. Hunt exposes the hidden math behind flashy ad campaigns that fail to pay off, showing how every dollar spent should be tied to measurable, long-term value.  Whether you’re trying to grow your car count or cut wasted marketing spend, this episode will help you see what your customers are truly worth and how to make every one count. What you’ll discover… (00:15) Why CAC and LTV are key to making sense of your marketing spend (02:30) Why percentage-based ad budgets often fail auto repair shops (05:05) What happens when you expect your ads to “pay off in one visit” (07:10) How to calculate Customer Acquisition Cost  (11:15) Understanding Lifetime Customer Value  (16:20) Analyzing CAC and LTV for smarter business decisions (20:20) Proven strategies to improve CAC and LTV in your shop (24:35) Why word-of-mouth shops can have zero acquisition cost and massive lifetime value 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 Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on...

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  2. Stop Guessing Your Ad Budget! Why Most Auto Shops Overspend and Undergrow [E195]

    ٦ نوفمبر

    Stop Guessing Your Ad Budget! Why Most Auto Shops Overspend and Undergrow [E195]

    Thanks to our partners Promotive and Wicked File “How much should I actually spend on advertising?” In this week’s episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, tackles one of the most misunderstood questions in the auto repair world. You’ve probably heard the “3–6% rule” a hundred times, but Hunt pulls back the curtain on why that simple percentage can mislead shop owners. Whether you’re a small shop trying to grow or an established business struggling to see ROI from your marketing spend, this episode helps you rethink the way you budget, measure, and analyze your advertising dollars. From Google Ads to billboards, Hunt explains why advertising isn’t a one-size-fits-all formula — and why your shop’s biggest problem might not be marketing at all, but a broken funnel. What you’ll discover… (00:11) How to calculate an effective advertising budget for your auto repair shop. (02:24) Why the “3–6% Rule” doesn’t fit every business. (04:49) Why early-stage shops must break the “percentage of sales” mindset. (06:58) The hidden problem: when production is your real bottleneck, not car count.  (09:22) The importance of setting specific car-count goals and measurable expectations. (11:39) How to judge ROI beyond percentages  (14:01) Customer lifetime value and acquisition costs (16:19) Translating advertising into car count — and why tracking your leads properly can reveal your real ROI. (18:45) When to cut or double down (21:06) Stop relying on your marketing company’s numbers (23:17) Why location, reputation, and repeat customers change everything  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...

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  3. Your $200 Labor Rate Means Nothing: What Really Matters in Auto Shop Profitability [E194]

    ٣٠ أكتوبر

    Your $200 Labor Rate Means Nothing: What Really Matters in Auto Shop Profitability [E194]

    Thanks to our partners Promotive and Wicked File In this episode of Business by the Numbers, Hunt Demarest of Paarmelis & Associates breaks down one of the most misunderstood metrics in the automotive repair world: effective labor rate. Many shop owners chase “higher door rates,” but as Hunt reveals, that number often has little to do with your actual profit. From oil changes to state inspections, he explains how small pricing decisions can quietly eat away at your margins—and how to fix them. If you’ve ever asked, “What percentage should my effective labor rate be compared to my door rate?”—this episode is your wake-up call. Hunt also shares how two shops charging wildly different rates can end up with the same revenue, why discounting can destroy profitability, and what you should really track to make more money without working harder. What you’ll learn (01:20) “What’s a good percentage for effective labor rate?” (02:10) Why a 75% effective rate isn’t always bad—and why 100% isn’t always good. (03:40) Real-world variance of top-performing shops  (04:50) Understanding how door rate differs from effective labor rate. (05:40) The $75 oil change that’s secretly earning you just $30/hour. (07:15) How two shops can charge the same customer price but get different profit outcomes. (11:30) Working smarter, not harder. (13:00) Why chasing “door rate” vanity metrics is a trap. (16:10) Pricing and productivity—and which one you’re probably ignoring. (17:40) How ignoring effective rates hides true performance. (18:50) Real client case study: Texas shop struggling with low effective rate due to state inspections. (20:00) Action steps: How to spot your low-performing categories and limit the downside. 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

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  4. ERTC Audits Are Here: What Every Shop Owner Needs to Know in 2025 [E193]

    ٢٣ أكتوبر

    ERTC Audits Are Here: What Every Shop Owner Needs to Know in 2025 [E193]

    Thanks to our partners Promotive and Wicked File After years of waiting, many shop owners are discovering that their long-anticipated Employee Retention Tax Credit (ERTC) checks may never come — and worse, some are facing IRS audits they didn’t see coming. In this week’s episode of Business by the Numbers, Hunt Demarest, CPA at Paar Melis & Associates, breaks down the chaos behind the ERTC delays, what triggers an audit, and what every business owner should be doing right now to protect themselves. This Week, Hunt takes listeners inside the IRS’s renewed crackdown on ERTC claims. From delayed payments and disappearing credit firms to official audit questionnaires, Hunt shares real client examples, reveals the riskiest filing groups, and explains why quarter three of 2021 has become the IRS’s favorite target. He also offers actionable advice on what to do if you’re still waiting for your refund—or worse, if you’ve received an audit letter. In This Conversation: (04:10) The truth about ERTC payment delays and why checks have slowed since mid-2024 (08:35) Why the IRS is focusing on third quarter 2021 claims (13:40) How credit firms and PEO companies like BBSI became audit magnets (18:55) What the official IRS audit questionnaire looks like — and how to prepare (23:22) Key warning signs your ERTC claim could be flagged(27:10) Why smaller, direct filers are less likely to face audits (31:00) What to do (and not do) if you haven’t received your ERTC payment (35:45) Hunt’s cautious outlook for 2025 and what it means for shop finances If you’re ready to protect your shop from ERTC chaos and stay informed on what the IRS is really doing behind the scenes, this episode is essential listening. IRS Official ERTC Audit Questionnaire: https://info.paarmelis.com/hubfs/Employer%20Response%20to%20IRS%20Document%20Request%20Form.docx 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...

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  5. Profit or Time? The Tradeoff Every Shop Owner Gets Wrong [E192]

    ١٦ أكتوبر

    Profit or Time? The Tradeoff Every Shop Owner Gets Wrong [E192]

    Thanks to our partners Promotive and Wicked File Every shop owner knows the feeling — the harder you work, the less time you seem to have. But what if you could have both? In this week’s Business by the Numbers, Hunt Demerast, CPA, explores the hidden link between profit and time — and why the goal isn’t working harder, but working smarter. From understanding your “hourly rate” as an owner to identifying the difference between working in versus on your business, Hunt breaks down the real math behind sustainable success. This week, Hunt Demerast dives into one of the toughest balancing acts in business: choosing between profit and free time. Drawing on real-world examples from shop owners, Hunt reveals how to calculate your true hourly worth, where to stop trading hours for dollars, and how to reclaim your freedom without losing financial ground. In this conversation, you’ll learn: (00:00) The myth of “profit versus time”(02:20) Why owner mindset still mirrors employee logic(04:45) How to measure profit in context — sales, time, and effort(07:05) The missing metric: how long it takes to make your profit(09:25) Poor people buy things, rich people buy time(11:45) How to calculate your real hourly rate(16:25) Tracking your time: the game-changer for owners(18:40) The “work smarter, not harder” equation(21:01) Working in vs. on your business (23:23) The $10 million question: what is your time really worth? 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 Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica

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  6. The $5,000 Parts Problem: Why Every Auto Shop Loses Money Without Knowing It [E191]

    ٩ أكتوبر

    The $5,000 Parts Problem: Why Every Auto Shop Loses Money Without Knowing It [E191]

    Thanks to our partners Promotive and Wicked File Ever been charged for someone else’s part? Or failed to get a credit on a return you were sure you’d handled? You’re not alone—and those small leaks could be costing your auto shop thousands each month. This week, Hunt Demerast breaks down how to uncover where your money is really going, how to reconcile your parts purchases with your accounting, and the systems that will save your sanity (and your margins). Hunt tackles one of the most overlooked financial drains in auto repair: parts reconciliation. He explains why even the most organized shops are losing money on parts they never installed, how to calculate your “materiality threshold,” and how to spot errors before they hit your books. Whether you’re doing this manually or with a tool like Wicked File, Hunt gives you the framework to finally take control of your true parts costs. In This Conversation If you’ve ever wondered why your parts bill doesn’t match your management report, this episode is your roadmap. Hunt shares: Why every shop, no matter how tight their systems, is losing money somewhereHow to identify when a discrepancy is worth investigatingThe most common (and costly) causes of mismatched reportsA step-by-step way to reconcile parts by vendor—and stop the losses for good What You’ll Learn in This Episode (00:50) The real cost of missing or miscredited parts(03:45) Why you might need to sell a part three times to make up for one mistake(07:00) How to find your “materiality level” and stop wasting time chasing pennies(10:20) When it’s worth digging into discrepancies—and when it’s not(13:58) The biggest reporting and accounting errors shops make(16:40) How personal use and “side projects” distort your financials(18:40) Spotting red flags: theft, double billing, and incomplete tickets(21:20) Setting up systems and procedures that prevent lost profit(22:50) Why Wicked File’s AI helps you catch issues in real time 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...

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  7. The Gray Area of Write-Offs: How to Save on Taxes Without Sinking Your Business [E190]

    ٢ أكتوبر

    The Gray Area of Write-Offs: How to Save on Taxes Without Sinking Your Business [E190]

    Thanks to our partners Promotive and Wicked File Every fall, tax season brings the same loaded question: “Can I write that off?” From flat-screen TVs to four-wheelers, the temptation to blur the line between personal and business expenses is real. But where’s the line between smart tax strategy and a dangerous gray area? This week, Hunt Demarest, CPA at Paar Melis & Associates, breaks down the myths and realities of tax write-offs. With humor, clarity, and two decades of experience, he explains what the IRS actually looks for, why “ordinary and necessary” matters more than anything, and how going too far can distort your books, risk an audit, or even tank your business valuation. In this conversation, you’ll learn how to confidently identify legitimate deductions, when to play it safe, and how to document expenses that will stand up in an audit. Whether you’re debating a truck purchase, deducting meals, or mixing vacation with a conference, Hunt shows you how to maximize tax benefits—without losing sight of the bigger financial picture. If you’re ready to stop guessing and start using the tax code to your advantage, this episode will sharpen your perspective on every business expense you make. What You’ll Learn in This Episode (00:00) The infamous question: “Can I write that off?”(02:18) Why “ordinary and necessary” are the IRS’s two magic words.(04:43) The peer problem: when shop-owner advice becomes risky.(06:54) The flat-screen and four-wheeler test—how intent changes everything.(09:11) Why write-offs save more than taxes—they protect cash flow.(11:17) Vehicles in your business: the registration rule that matters most.(15:41) Paying yourself back—how to legally reimburse tools and trucks.(17:57) Meals vs. meetings: the 50% vs. 100% deduction debate.(20:10) Turning vacations into business trips (the right way).(22:20) The dark side of deductions: audit risk and distorted books.(24:42) Why overdoing write-offs lowers your business valuation. 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  Aftermarket Radio Network a...

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  8. Flat Rate vs. Hourly: The Hidden Productivity Trap Killing Auto Shop Margins  [E189]

    ٢٥ سبتمبر

    Flat Rate vs. Hourly: The Hidden Productivity Trap Killing Auto Shop Margins [E189]

    Thanks to our partners Promotive and Wicked File Auto shops aren’t going broke because they charge too little—they’re going broke because they’re measuring wrong. In this episode, CPA and host Hunt Demerest unpacks the gap between what your shop management system tells you and what your financials know to be true. From the hidden drag of switching techs from flat rate to hourly to the simple tweak that makes your software reflect real costs, Hunt shows you how to surface the problem (productivity vs. pricing) and correct course—before your margins get cut in half. What you’ll learn: 02:20 – Expectation vs. reality: SMS shows 75% gross profit—but QuickBooks shows ~50%.04:38 – The pivot that broke the math: moving techs from flat rate to hourly + production drop.06:52 – Why unchecked hourly pay halves margins—and why it’s so hard to fix later.09:12 – “Productivity” isn’t just techs: counter, invoicing, parts, layout, communication.13:55 – Pricing sanity check: book time vs. your actual time; efficiency vs. productivity.16:04 – The core software issue: SMS assumes techs are only paid when you’re paid.18:23 – The fix: compare SMS “expected” labor cost to QuickBooks actuals and adjust: set a shop-wide uplift % or per-tech rates, include benefits, vacation, unpaid work, bonuses, aim to slightly overstate costs (~5%) so you’re pleasantly surprised at month-end.32:16 – Wrap: Most shops have a productivity and pricing problem—use SMS truthing to see it sooner. Key takeaways Flat rate manages downside; hourly requires management. If hourly productivity slides from ~40 flagged hours to ~20, your margin vanishes.Don’t let software mask reality. If SMS says 75% gross profit but financials show ~50%, trust the books and recalibrate SMS.Blend the cure. You rarely fix a major productivity problem only with pricing—and you can’t price your way out of operational drag.Make SMS reflect true cost. Start shop-wide: if SMS shows $10k labor cost but QuickBooks shows $12k, increase internal tech rates by +20% (then refine per-tech if needed).Target “conservative accuracy.” Slightly overstating cost protects your bottom line morebthan rosy math ever will. 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...

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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.

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