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-Offs
• Your Perfect Shop 

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

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