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