Realities of the Tire Business With Hunt Demarest of Paar, Melis & Associates

Hunt Demarest is Senior Accountant at Paar, Melis & Associates, an accounting and tax firm specializing in automotive repair shops. Hunt is a seasoned CPA with a passion for optimizing team management and development, empowering shop owners with financial insights that drive greater success for their businesses. Armed with an economics degree from Penn State and an accreditation in business valuation, Hunt shares his wealth of knowledge as host of the podcast Business by the Numbers, where he provides valuable insights into the world of finance and accounting. Leveraging his expertise, Hunt authored the book Wrenches to Write Off's, guiding shop owners through the intricacies of tax season preparation and execution.

In this episode…

In the fast-paced world of auto services, understanding the nuanced differences between tire shops and traditional repair establishments is not just a matter of industry insight — it's a key to financial success. The commonly-drawn parallels between the two often overlook significant differences.

According to Hunt Demarest of Paar, Melis & Associates, tire shops are often compared to traditional auto repair shops without accounting for the significant variations in their revenue streams and profit margins. He explains that understanding the fundamental distinction between the two is crucial for realistic financial expectations. While a classical repair shop might achieve a 20% net income target, tire shops face a more challenging goal due to lower profit margins on tire sales. Hunt argues that a rule of thumb is that it may take about double the sales for a tire shop to achieve the same net income as a traditional repair shop.

On this episode of Gain Traction, Hunt and host Mike Edge unravel the intricacies of the automotive industry. Hunt's unconventional journey from an engineering major to an accountant sets the stage for a dynamic conversation. They explore the challenges of running an auto repair business, emphasizing the crucial role tires can play. Hunt's expertise shines as he provides practical insights into setting realistic financial targets and highlights the significance of analyzing gross profit in dollars per hour.

Here’s a glimpse of what you’ll learn:

• Hunt Demarest shares what he learned when he was a snack bar employee
• Why experience working with the general public can be valuable
• What attracted Hunt to become an accountant?
• How Hunt’s accounting expertise can benefit auto shops
• Valuable business advice and observations from Hunt on multiple facets of tire and auto repair
• The best movie Hunt has seen in the past year
• Why you shouldn’t hire your brother-in-law as your accountant

Resources mentioned in this episode:

• Hunt Demarest on LinkedIn
• Paar, Melis & Associates
• Todd Hayes on LinkedIn
• Joe Adams on LinkedIn
• Glenn Piccolo on LinkedIn
• Adams Automotive
• AutoShop Answers
• Mike Edge on LinkedIn
• Tread Partners

Sponsor for this episode...

This episode is brought to you by Tread Partners.

At Tread Partners, we provide digital marketing for multi-location tire dealers and auto repair shops.

By using our strategy, branding, and marketing services, we help shops sell more tires and put more cars in bays.

We’ve helped companies like Action Gator Tire, Colony Tire and Service, and Ulmer’s Auto Care Center bring extreme growth in paid leads, ROI, and searches.

So, what are you waiting for?

Visit www.treadpartners.com or email info@treadpartners.com to learn more.