Business By The Numbers

Thanks to our partners Promotive, WickedFile, and Overdryve

Should the employee who helped grow your shop pay the same price as a stranger? If profits double because the owner hired a new marketing company, who gets the credit? And what happens when the agreed price triples the day an attorney looks at it?

Recorded live at AAPEX in Las Vegas, Hunt Demarest, CPA with Paar Melis & Associates, sits down with Matt Fanslow, diagnostic specialist, shop manager and host of Automotive Field Theory, to talk about sweat equity and selling a shop to a key employee. Fourteen years ago, Matt joined a three-person shop and begged the owner for one month running the front counter. That month changed the business. He later told his boss he worried about building a shop he could never afford to buy. Today, that question is on the table.

Hunt explains why handshake succession deals go wrong: nothing gets written down, and each side pictures a deal the other never agreed to. He covers why a fair deal leaves both people a little unhappy and why fewer key employees are buying shops as outside buyers pay more. He also shows why payment terms matter more than price. If the shop brings in $60,000 and the payment is $50,000, the deal works. At $30,000, no price will fix it. Paying a retiring parent a salary sends a big share of the money to payroll taxes, and a better structure can cut the buyer’s cost in half. Matt closes with the parable of two sisters and an orange: ask what the other person needs, and a 50/50 split can give both sides everything they came for.

Whether you’re the owner planning your exit or the right-hand person who helped build the place, this episode will help you start the conversation before it gets harder to have.

What You'll Learn…

00:00 Intro

03:05 Insider price vs. outsider price

05:32 Why handshake deals fall apart

06:32 One month to prove it

11:07 Why a fair deal feels unfair

16:40 Fewer key employees are buying

23:26 Who earned the growth?

25:23 The attorney who tripled the price

26:53 The cash flow test

31:06 Why paying dad a salary backfires

33:50 Two sisters and an orange

35:02 Why 53/47 beats 50/50

If you’re ready to find out what your key employee really expects, test whether your shop’s cash flow can support a buyout, and have the succession talk before it turns into a standoff, this episode is essential listening.

Matt Fanslow, Diagnostic Specialist and Shop Manager at Riverside Automotive, Red Wing, MN (https://www.riverside-automotive.com/)

Podcast Name: Automotive Field Theory

Website: https://mattfanslow.captivate.fm/

YouTube: https://www.youtube.com/@automotivefieldtheory

Facebook: https://www.facebook.com/AutomotiveFieldTheory/

Spotify: https://open.spotify.com/show/0asT3Cu6Df5hCbkuabVXLu

Apple: https://podcasts.apple.com/us/podcast/automotive-field-theory/id1591616103

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve AI

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

Do you know what you’ll owe the IRS this spring, or are you hoping the number shrinks on its own? Are you planning to grow from $1.5 million to $1.8 million next year with the same labor rate and the same crew? And if your overhead goes up 5% whether you like it or not, what happens to a shop that keeps its prices flat?

In this solo episode, Hunt Demarest, CPA with Paar Melis & Associates, explains why November is the easiest month of the year to review your books. Once October closes, you have ten months of real numbers and only two left to estimate. That makes now the right time for a tax estimate. But the estimate is only as good as the books behind it. Unbooked interest, missing leases, inflated inventory and overstated receivables can all throw off the result, and you still have time to fix them.

Next, Hunt walks through building a 2027 budget step by step. Sales growth has to come from a higher labor rate, more production, or both. A 20% jump with flat prices and the same team won’t add up. He shares how one client’s projections caught a pay plan that would have doubled a general manager’s pay on a 20% sales increase, while it was still an easy conversation. He explains why overhead should rise no more than 5%, and why skipping a labor rate increase means you take home less even when sales hold steady. He ends with his favorite November shortcut: divide your year-to-date numbers by ten, and the months that ran high stand out right away.

Whether your books are spotless or you haven’t opened a P&L since spring, this episode gives you a clear plan for the last two months of the year.

What You'll Learn…

00:00 Intro

04:46 Why November tax estimates work

05:33 Which camp are your books in?

07:53 Plan for your tax bill

09:47 Build your 2027 budget

13:38 Where 20% growth comes from

15:36 Plan three scenarios

16:15 The pay plan that almost backfired

17:44 Forecast your hiring path

19:13 Outrun your overhead

21:15 The divide-by-ten shortcut

22:43 Spot the outlier month

If you’re ready to get an honest tax estimate before December, build a 2027 budget backed by real math, and catch the overhead line that ran hot in October, this episode is essential listening.

Webinar Link & Passcode

Link:

https://us02web.zoom.us/rec/share/gZP3uNIB5RJ_rzZLFsRdA4JGxNlCvSQ21IQlAl8TFqIOk8CJ-Z207y8gjrxMdduC.zVYBqo-YbX-60FPJ

Passcode: L03+q93F

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve AI

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

Why does QuickBooks show $40,000 in parts when your shop software shows $30,000? Would you notice if someone took $20 a day? And if AI companies are offering shop owners up to $2 million for their internal data, what’s sitting in yours?

Hunt Demarest, CPA with Paar Melis & Associates, walks through the free AI tools his firm uses with clients. He starts with the guardrails: begin with free versions, never give an AI agent the power to move money, and protect sensitive data. Then come the results. A parts mismatch his team budgeted two to three hours for took three minutes and turned out to be a $6,000 transmission billed in October. A client missing $1,400 out of roughly $400,000 in sales got an answer in 20 seconds, when the AI matched the amount to an unpaid internal ticket. A year ago, that search took six to eight hours.

Hunt then turns to the data shops already own: parts that cause comebacks, declined work, and how often customers visit. If they usually come twice a year and your rolling 12 months show 1.5, that gap says something about the months ahead. At 2.5 visits, you may be running hot and need about 20% more new customers to hold sales flat. He also explains why paid platforms like WickedFile and Shop Hero Dashboard still earn their cost.

Whether you’ve never opened a chatbot or use one daily, this episode gives you three practical ways to put your numbers to work this week.

What You'll Learn…

00:00 Intro

03:00 Free AI tools: where to start

06:17 Security rules for AI agents

08:38 Why your parts costs don’t match

11:50 A 3-minute fix for a $6,000 gap

15:30 The $20-a-day theft you’d never catch

18:18 Finding a missing $1,400 in 20 seconds

20:28 Why AI firms want your shop data

22:07 Which parts to stop selling

23:54 Do you know your customer attrition?

24:47 Visit frequency as a sales forecast

27:24 Your free data analyst

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve AI

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

Did your health insurance renewal just land with another double-digit increase? Paying $800 a month for a group plan your techs could buy themselves for $500? Why can’t you just hand them the difference? Stephanie from Five Creek Automotive asked Hunt that question.

Hunt Demarest, CPA with Paar Melis & Associates, opens his own books. His premiums are up about 10% again, and covering one middle-aged employee in Maryland runs roughly $900 a month. He explains why rates keep climbing, and why a healthy 26-year-old tech will skip a $10,000-a-year policy. He also explains why a plan you won’t help pay for can cost your team more than the exchange. His rule of thumb: if you can’t cover at least half of single coverage, don’t offer it.

Then come the rules that trip owners up. You can’t reimburse employees for plans they buy themselves, which is why business plans often cost up to 25% more. A group plan through payroll turns a $1,000 premium into about $250 in tax savings and lets employees pay their share pre-tax. Hunt covers how to help a long-time tech without breaking anti-discrimination rules. He finishes with four options for when costs get out of hand: a raise in place of benefits, a high-deductible plan with an HSA, a PEO for larger shops, and a QSEHRA for smaller ones.

Whether you’ve offered a group plan for years or are pricing your first, this episode shows what the IRS will actually let you do.

What You'll Learn…

00:00 Intro

04:20 Why premiums keep climbing

07:13 Why young techs skip coverage

08:55 The 50% rule for group plans

09:44 Can you reimburse exchange plans?

13:13 Why business plans cost more

14:21 The tax math on group plans

16:02 Same job, same benefits

18:23 High deductible plan plus HSA

19:09 When a PEO pays off

19:58 QSEHRAs for small shops

21:00 Don’t switch on price alone

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve AI

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

What is your shop actually worth, and who will pay it? Two of Hunt’s clients want to sell someday, but neither knows who the buyer will be. As Hunt explains, that answer decides whether you retire today or three years from now.

Hunt Demarest, CPA with Paar Melis & Associates, explains why your shop’s value is a range, not a number. At $400,000, a good shop might draw 20 buyers. At $800,000, there may be one, if you can find him. He ranks three buyer groups from the lowest price to the highest: family and key employees, private parties, and private equity. He also covers how sweat equity works, why a 10% discount is the most common, and why the worst deals he sees are with family, where parents sometimes hand their retirement shortfall to the kids.

Then he gets practical. Ninety percent of his clients already know the person who ends up buying their shop. Hunt shares how to approach a likely buyer without looking desperate, why your tool truck and coaching group often know who’s buying, why an NDA “means nada,” and when a broker is worth the fee. For owners who want top dollar, he lays out what private equity looks for: size, bay count, location, the hub-and-spoke model, and, above all, a shop that truly runs without its owner.

Whether you plan to sell in five years or hand the keys to your service advisor, this episode shows how your choice of buyer shapes your price and your timeline.

What You'll Learn…

00:00 Intro

03:52 Does it really run without you?

05:15 $400K easy, $800K hard

06:48 Camry shop, Ferrari price

10:36 Three buyers, three prices

12:12 Family and key employees

13:38 Why family deals go wrong

14:33 The 10% sweat equity rule

19:22 Your buyer is already in your Rolodex

23:50 When to call a broker

25:51 What private equity wants

29:41 The hub and spoke model

If you plan to sell someday, the time to figure out who’s buying is now. This episode is essential listening.

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve AI

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

Thought interest rates had peaked? So did most of the country. So what happens when a customer needs a $10,000 repair, owns a home with hundreds of thousands in equity, and still can't pay?

Hunt Demarest, CPA with Paar Melis & Associates, returns to interest rates for the first time in over a year. He explains the Federal Reserve's quarter-point hike and why the relief expected in 2026 keeps slipping away. The Fed rate sits under every credit card, car note and mortgage your customers carry. Hunt shows why one good inflation report proves little when it's measured a new way, and how the K-shaped economy pays savers 4.5% while borrowers sink. He also says today's stock market looks like a shop that lives off three AI customers.

Then he looks at what this means for your customers. The 30-year mortgage is near 7.5%, up from 6.5% a year ago. Customers holding 3% mortgages can't or won't borrow against their homes to cover a big repair. Commercial loans written near 3% in 2021 are resetting around 9%, and some landlords locked into 10-year leases are telling their banks to take the building. Hunt explains why shops that own their buildings are better protected, why rising costs justify raising your prices, and why savers have rarely had it better.

Whether you're carrying a variable-rate loan, facing a commercial refinance, or watching customers turn down big repairs, this episode explains what's driving rates and how long they may stay high.

What You'll Learn…

00:00 Intro

02:17 Why the Fed rate sets yours

05:07 0% vs. 30% on the same truck

06:43 The inflation report that changed the math

09:00 The K-shaped economy

10:13 A stock market riding on three companies

12:14 Why 2026 didn't go to plan

16:37 The quarter-point hike and what's next

19:26 What high rates mean for your customers

21:04 Home equity customers can't touch

23:31 Commercial loans: 3% to 9%

25:29 Why landlords are handing back the keys

If you're ready to stop waiting for rates to fall and start planning your pricing, your debt and your cash around the rates we have now, this episode is essential listening.

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download and Listen on Our Mobile App: https://automotiverepairpodcastnetwork.com/app/

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, and Overdryve

Did you buy a truck last December just to shrink your tax bill? Is the year-end bonus you pay yourself actually handing the IRS more money?

In part two of his tax series, Hunt Demarest, CPA with Paar Melis & Associates, moves from tax planning to the part every shop owner wants to hear about: paying less. He walks through six strategies and flags where owners get each one wrong. A $6,000 compressor saves you $1,500 but leaves you $4,500 poorer, while a $6,000 IRA contribution saves the same $1,500 and you keep every dollar. Hunt also explains why a small 401(k) can cost you thousands a year in fees, how an HSA works like a second retirement account, and why an S corp owner who bonuses profit onto payroll pays more tax. He closes with entity structure, where one election saved a client $25,000 in a year, and a simple rule for equipment: decide what you need first, and let taxes decide only when you buy it.

Whether you've never opened a retirement account or you're wondering if your entity setup still fits a shop that has doubled in size, this episode gives you a clear list to take to your accountant before year-end.

What You'll Learn…

(00:00) Intro

(03:39) Hunt's money-back guarantee

(05:03) Why a $6,000 compressor is a weak deduction

(06:23) Retirement: time beats dollars

(07:32) When your 401(k) costs more than it saves

(09:11) HSA vs. FSA explained

(13:36) The S corp bonus mistake

(15:42) The $70K to $80K salary sweet spot

(16:59) Why gaming expense timing backfires

(18:21) Entity structure: the real found money

(20:18) Buying a truck to save taxes? Do the math

(21:40) When taxes should change your purchase timing

If you're ready to stop buying equipment just to dodge a tax bill and start paying yourself in a way that keeps more money out of the IRS's hands, this episode is essential listening.

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Overdryve

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/

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

Do you actually know what you'll owe the IRS next spring, or are you just hoping it works out? And if your accountant has been extending your taxes for years, is that actually saving you anything?

This week, Hunt Demarest, CPA with Paar Melis & Associates, kicks off a two-part series on taxes by tackling the piece most shop owners skip entirely: tax planning. Hunt draws the line between tax preparation (backward-looking, mandatory, and reactive) and tax planning (forward-looking, optional, and the thing that actually keeps you from getting blindsided). He walks through the exact five-minute math he uses to annualize a shop's net income from partial-year numbers, why extending your return "to lower audit risk" is a myth, and the personal-return landmines, like ACA marketplace credits and phased-out child tax credits, that catch shop owners off guard even when the business side looks fine.

Whether you've never run a tax estimate in your life or you just want to sanity-check what your accountant is telling you, this episode gives you the framework to stop being surprised every April.

What You'll Learn…

(02:29) Why this isn't the tax-saving episode you expected

(05:00) Tax prep vs. tax planning: it's about timing, not paperwork

(05:53) The financial-analysis cycle behind every good tax plan

(07:14) Why most shops never build a real tax plan

(09:08) Busting the "extending lowers my audit risk" myth

(09:57) When it's time to fire your accountant over extensions

(11:30) The annual tax planning calendar Hunt runs for clients

(15:04) How to annualize your own net income in five minutes

(17:09) Red flags: when your numbers swing too high or too low

(18:27) The 25% rule for ballparking what you'll owe

(19:53) Kids, credits, and the ACA surprise that blindsides shop owners

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Maverick Shop Owners

You're working on growing a more profitable shop - that's critical. That's exactly what the 24-video Blueprint course by Maverick Shop Owners addresses - customers, sales, profit, people, systems, and freedom. Get free access for our listeners only at https://maverickshopowners.com/blueprint

Thanks to our partner, Overdryve

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Visit https://overdryvemarketing.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download the ARPN APP for your smartphone and listen to all our network shows: arpn.app

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, Maverick Shop Owners, and Overdryve

Would you take the job you're offering your own technicians? Could a candidate's spouse be the real decision maker in your next hire, and do you know what she needs to hear?

Hunt Demarest sits down with Sam Freeman and Lisa Coyle from Promotive, the recruiting firm that places technicians, service advisors, and shop managers across the country, to talk about why so many good candidates never make it past the first ninety days, and why so many good shops can't fill a seat no matter how much they raise pay. Lisa and Sam walk through the data points that predict a bad hire before it happens, why flat rate is becoming a harder sell with both technicians and consumers, and why one in three shops is losing candidates over a benefits package that just isn't competitive. They also dig into the stat driving a lot of the industry's anxiety right now: seventy percent of people who take their first automotive job leave the trade within twelve months and never come back.

Whether you're struggling to fill a single bay or running a shop with a full crew, this episode is a reality check on what candidates are actually evaluating when they walk through your door, and what you can control when the market itself is working against you.

What You'll Learn...

00:10 Meet Sam and Lisa from Promotive

02:40 The 58% red flag before day one

04:02 The three-benefit tipping point

07:16 The case for hybrid pay over flat rate

11:16 What top techs ask before they say yes

16:53 Why 70% quit the trade and never look back

22:29 Everybody wants an A-tech, nobody wants to build one

26:23 The licensing trap costing shops candidates

32:46 Building the bench before you need it

40:33 Inside Promotive's portal, pricing, and guarantee

47:31 Your team is your best billboard

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Maverick Shop Owners

You're working on growing a more profitable shop - that's critical. That's exactly what the 24-video Blueprint course by Maverick Shop Owners addresses - customers, sales, profit, people, systems, and freedom. Get free access for our listeners only at https://maverickshopowners.com/blueprint

Thanks to our partner, Overdryve

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Visit https://overdryvemarketing.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download the ARPN APP for your smartphone and listen to all our network shows: arpn.app

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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, WickedFile, Maverick Shop Owners, and Overdryve

Do you actually know your break-even point, or just a number that feels close enough? And if you hit it, would you even know why?

This week's episode started with a phone call. Hunt Demarest, CPA with Paar Melis & Associates, was walking a client through his numbers through July when he realized something: most shop owners can eyeball their break-even point, but almost none of them understand what's actually driving it. Hunt breaks down the fastest way to find your break-even using your own monthly financials, why a sales target is really just a stand-in for what you actually need (gross profit), and how to turn that number into real targets for cars, hours, and average repair order that your team can actually use. He also tackles the messy middle ground of cost of goods sold versus overhead, and why the math works out the same either way as long as you're consistent.

Whether you've never once run this calculation for your shop or you set your break-even years ago and haven't touched it since, this episode is a practical field guide to knowing the one number that tells you if your shop is actually working.

What You'll Learn…

(00:00) Intro

(00:44) Housekeeping: the book, the sponsors, and how to ask Hunt anything

(02:48) The client call that inspired this episode

(03:14) The fastest way to find your break-even: your own monthly numbers

(04:43) The reality check: making sure it's a true break-even month

(05:53) Sales targets vs. what your team actually needs to hear

(07:33) Cost of goods sold vs. overhead: the literal breakdown

(11:21) Building your gross profit target from three financial categories

(16:25) The margin math: why 50% gross profit beats 30%, every time

(17:45) The revolving cycle: why this number needs regular updates

Thanks to our partner, Promotive

Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/

Thanks to our partner, WickedFile

Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/

Thanks to our partner, Maverick Shop Owners

You're working on growing a more profitable shop - that's critical. That's exactly what the 24-video Blueprint course by Maverick Shop Owners addresses - customers, sales, profit, people, systems, and freedom. Get free access for our listeners only at https://maverickshopowners.com/blueprint

Thanks to our partner, Overdryve

Overdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Visit https://overdryvemarketing.com/

Paar Melis and Associates – Accountants Specializing in Automotive Repair

Visit us Online: www.paarmelis.com

Email Hunt: [email protected]

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Download a Copy of My Books Here:

• Beyond the Bays: A Financial Playbook for Auto Repair Shop Owners
• Wrenches to Write-Offs
• Your Perfect Shop

The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/

Download the ARPN APP for your smartphone and listen to all our network shows: arpn.app

Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion

Automotive Field Theory 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.