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Why Profit on a $40 Cabin Air Filter Can Beat a $600 Water Pump Job: Discover the Metric Your Shop Isn't Tracking [E212]
Episode 2125th March 2026 • Business By The Numbers • Hunt Demarest
00:00:00 00:23:18

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Thanks to our partners Promotive and Wicked File

Would you swap out wiper blades for $500? Probably yes. Would you replace an entire engine for $500? Absolutely not.

But here’s the real question: what if the math behind why you said yes to one and no to the other is the same math that’s silently costing your shop thousands of dollars every month? I

In this episode, Hunt Demarest breaks down one of the most powerful and most overlooked metrics in the auto repair business: gross profit dollars per hour sold.

Most shop owners track sales, gross profit, and hours. But very few ask the one question that ties them all together: how fast are you making that money? Inspired by the late Aaron Stokes of Shop Fix Academy, Hunt makes the case that the speed of your profitability, not just the size of it, is what separates thriving shops from ones that are always busy but never ahead.

Hunt walks through real examples that make this impossible to ignore — including why tire shops with terrible margins can still be wildly profitable, and how a $40 cabin air filter can outperform a $600 water pump job. Whether you're setting targets, pricing jobs, or wondering why a record sales month still left you short, this is the framework that explains it. And if you're already using Tekmetric or Shop-Ware, this metric is likely already on your end-of-day report; it's time to start using it.

What You’ll Learn

  1. (00:10) It's not how much you make, it's how fast you make it
  2. (02:14) A tribute to the late Aaron Stokes of Shop Fix Academy
  3. (03:05) Understanding gross profit dollars per hour
  4. (03:45) Hours open vs. hours sold — the two versions of GP$/hour explained
  5. (06:00) The importance of speed in profitability
  6. (06:45) Why tire shops with terrible margins can still be wildly profitable
  7. (08:50) Setting targets for success
  8. (09:15) Why chasing hours alone can leave you working harder and earning less
  9. (12:00) Calculating gross profit dollars per hour
  10. (14:54) Maximizing profitability through pricing and productivity
  11. (17:50) Real-world examples of profitability
  12. (20:50) Conclusion and key takeaways

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:

  1. Wrenches to Write-Offs
  2. Your Perfect Shop

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

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