Episode Details

Thanks to our partners Promotive, WickedFile, Maverick Shop Owners, and Overdryve

Why is a shop charging $300 an hour in Texas still taking home less profit than a shop in Maine charging $30 less? Does where you're located actually decide how much money ends up in your pocket — or is something else driving the gap?

In the final installment of a three-part dive into the 2026 Auto Shop Benchmark Report, Hunt Demarest, CPA, breaks down the regional, size, and vehicle-type trends separating the most profitable shops in the country from everyone else. From the Southeast's 17% margins to the Southwest's labor-rate paradox, Hunt unpacks why charging more doesn't always mean keeping more — and why "your shop is no different" is only half true.

Hunt also dives into the numbers behind general repair, diesel, and European shops, explains why bigger isn't always better, and closes with a sobering look at the technician shortage now threatening the entire industry. Whether you're running a one-bay diesel shop in the Midwest or a multi-bay European specialty shop in the Northeast, this episode is your roadmap to benchmarking against the right peers — not just the averages.

What You'll Learn...

(00:00) Intro

(03:34) Kicking off Part 3 of the 2026 Benchmark Report series — this week, regional trends

(05:40) Why productivity — not location — is the real leading indicator of profit

(07:34) Where the top shops actually are (hint: the South didn't make the list)

(08:36) The Southwest's labor-rate paradox — highest rates, lowest profit

(12:40) "Your shop is no different" — the half-truth every owner needs to hear

(14:28) The $1.4M myth — why bigger shops aren't necessarily more profitable

(19:23) General repair vs. diesel vs. European — which type actually pays best

(22:06) Parts margin vs. labor margin — where each vehicle type wins and loses

(24:27) Percentages vs. dollars — why a diesel shop can out-earn a general shop

(28:06) The 37,000-tech shortfall, and why 67% of techs quit before year one

(30:00) Aging fleets, deferred maintenance, and the hybrid boom shops can't ignore

If you're ready to stop benchmarking against the wrong shops, start understanding which numbers actually predict profit, and finally see where your region, size, and specialty really stack up — this episode is essential listening.

Get the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0

Part 1: Auto Shop Benchmarks: Biggest Changes, Key KPI's and Trends [E226] https://huntdemarest.captivate.fm/episode/hunt226/

Part 2: What the Top 10% of Auto Repair Shops Are Doing Differently — And What the Bottom 10% Refuse to Fix [E227] https://huntdemarest.captivate.fm/episode/hunt226/

Thanks to our partner, Promotive

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/

Thanks to our partner, Maverick Shop Owners

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