Business By The Numbers

Thanks to our partners Promotive, WickedFile, and OverdryveShould 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 Intro03:05 Insider price vs. outsider price05:32 Why handshake deals fall apart06:32 One month to prove it11:07 Why a fair deal feels unfair16:40 Fewer key employees are buying23:26 Who earned the growth?25:23 The attorney who tripled the price26:53 The cash flow test31:06 Why paying dad a salary backfires33:50 Two sisters and an orange35:02 Why 53/47 beats 50/50If 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 TheoryWebsite: https://mattfanslow.captivate.fm/YouTube: https://www.youtube.com/@automotivefieldtheoryFacebook: https://www.facebook.com/AutomotiveFieldTheory/Spotify: https://open.spotify.com/show/0asT3Cu6Df5hCbkuabVXLuApple: https://podcasts.apple.com/us/podcast/automotive-field-theory/id1591616103Thanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, Overdryve AIOverdryve 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/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 DiscussionAutomotive 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 OverdryveDo 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 Intro04:46 Why November tax estimates work05:33 Which camp are your books in?07:53 Plan for your tax bill09:47 Build your 2027 budget13:38 Where 20% growth comes from15:36 Plan three scenarios16:15 The pay plan that almost backfired17:44 Forecast your hiring path19:13 Outrun your overhead21:15 The divide-by-ten shortcut22:43 Spot the outlier monthIf 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 & PasscodeLink:https://us02web.zoom.us/rec/share/gZP3uNIB5RJ_rzZLFsRdA4JGxNlCvSQ21IQlAl8TFqIOk8CJ-Z207y8gjrxMdduC.zVYBqo-YbX-60FPJPasscode: L03+q93FThanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, Overdryve AIOverdryve 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/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 DiscussionAutomotive 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 OverdryveWhy 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 Intro03:00 Free AI tools: where to start06:17 Security rules for AI agents08:38 Why your parts costs don’t match11:50 A 3-minute fix for a $6,000 gap15:30 The $20-a-day theft you’d never catch18:18 Finding a missing $1,400 in 20 seconds20:28 Why AI firms want your shop data22:07 Which parts to stop selling23:54 Do you know your customer attrition?24:47 Visit frequency as a sales forecast27:24 Your free data analystThanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, Overdryve AIOverdryve 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/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 DiscussionAutomotive 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 OverdryveDid 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 Intro04:20 Why premiums keep climbing07:13 Why young techs skip coverage08:55 The 50% rule for group plans09:44 Can you reimburse exchange plans?13:13 Why business plans cost more14:21 The tax math on group plans16:02 Same job, same benefits18:23 High deductible plan plus HSA19:09 When a PEO pays off19:58 QSEHRAs for small shops21:00 Don’t switch on price aloneThanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit info.gopromotive.com/hunt Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, Overdryve AIOverdryve 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/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 DiscussionAutomotive 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 OverdryveWhat 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 Intro03:52 Does it really run without you?05:15 $400K easy, $800K hard06:48 Camry shop, Ferrari price10:36 Three buyers, three prices12:12 Family and key employees13:38 Why family deals go wrong14:33 The 10% sweat equity rule19:22 Your buyer is already in your Rolodex23:50 When to call a broker25:51 What private equity wants29:41 The hub and spoke modelIf you plan to sell someday, the time to figure out who’s buying is now. This episode is essential listening.Thanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, Overdryve AIOverdryve 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 RepairVisit us Online: www.paarmelis.comEmail Hunt: [email protected] the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/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 DiscussionAutomotive 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.