# Parts Matrix Problems: How Inflation Is Quietly Eroding Your Gross Profit [E220]

Page: https://stenobird.com/podcast/business-by-the-numbers-5045738/parts-matrix-problems-how-inflation-is-quietly-eroding-your-gross-profit-e220
Text version: https://stenobird.com/podcast/business-by-the-numbers-5045738/parts-matrix-problems-how-inflation-is-quietly-eroding-your-gross-profit-e220.md
Podcast: [Business By The Numbers](https://stenobird.com/podcast/business-by-the-numbers-5045738)
Published: 2026-04-30T04:15:00+00:00
Episode link: https://automotiverepairpodcastnetwork.com/parts-matrix-problems-how-inflation-is-quietly-eroding-your-gross-profit-e220
Audio file: https://episodes.captivate.fm/episode/311c3ecb-dd45-4efb-9f84-8333eb44a0c4.mp3
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Duration seconds: 1616

## Resource

Thanks to our partners Promotive, WickedFile, Maverick Shop Owners, and Overdryve Are you leaving money on the table every time a parts price goes up — without ever realizing it? Most shop owners focus relentlessly on labor rates and rightfully so. But the slow, silent erosion happening inside your parts matrix may be quietly bleeding your gross profit month after month, even while your top-line sales are climbing. Hunt Demarest, CPA at Paar Melis & Associates, breaks down exactly how inflation has shifted your parts pricing into lower-margin brackets — and how one shop owner's savvy negotiating deal actually cost him more than it saved. This week, Hunt walks through two real-world case studies: the bracket-shift trap that moves your best-selling parts into lower markup tiers as prices rise, and a Midwest shop owner who locked in a 15% rebate from his parts vendor, watched his costs drop by $8,000, and still lost $13,000 in gross profit in a single month. Whether you've been selling parts for two years or twenty, this episode will change the way you look at your shop management software — and send you straight to your parts matrix to find out if it's still built for a world that no longer exists. What You'll Learn... (00:14) Intro, sponsor shoutouts, and what's on tap this week (02:49) Why not raising your labor rate is actually a pay cut (05:32) Rising parts costs: why higher prices usually mean more profit (07:55) The bracket shift trap — how inflation quietly kills your parts margin (15:28) How to audit your parts matrix and reset it for 2026 (20:10) The 15% rebate deal that cost one shop $13,000 in a single month (25:08) The McDonald's rule — and why you should never pass savings to the customer If you've ever assumed that rising parts costs are working in your…

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## Transcript

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