Business owners who openly talk about wanting to be profitable are often misjudged. Some people assume that aiming for profit means being greedy or putting money ahead of people. Ron Saharyan argues the opposite: only profitable shops can put people first. Profit pays debts, funds generosity, and improves life for owners and employees alike.
In episode 90 of Maximum Octane, Ron, co-founder and managing director of Profit First Professionals, returns to talk with Kim Hickey about being proud to be profitable, profit as a retention tool, his “most expensive popcorn in the world” story, and why profit first really means people first.
What You Will Learn
- What it means to be proud to be profitable
- Who are those who don’t “want” to be profitable
- Profit is a retention tool
- The most expensive popcorn in the world and Ron’s bragging rights
- How everyone spends their money is no one’s business
- Profit first = people first
Proud to Be Profitable
Ron opens with what it means to be proud to be profitable. Many shop owners feel uncomfortable talking about profit, as if it means they are taking advantage of customers. Ron reframes profit as the reward for running a healthy business and the fuel for everything good the business can do.
ATI’s How to Put More Profit in Your Pocket and Top 5 Profit Eaters of Auto Repair Shops are practical companions.
Profit is often misunderstood. Some people associate it with greed or exploitation. In reality, profit is what allows a business to survive downturns, invest in improvements, reward employees, and contribute to its community. A business that does not make a profit eventually cannot serve anyone. Owners who embrace profit as a healthy goal can make better decisions about pricing, spending, and growth.
Who Does Not Want to Be Profitable?
Around the 9 minute mark, Ron discusses the people who say they do not “want” to be profitable. Often, this reflects limiting beliefs about money rather than a true preference. Owners who believe profit is wrong tend to underprice, overwork, and struggle financially.
Limiting beliefs about money often come from upbringing, culture, or past experiences. Someone raised to believe that wealthy people are dishonest may feel uncomfortable earning a healthy profit. Recognizing these beliefs, and questioning whether they are true, can free owners to price fairly and build financially stable businesses.
Profit Is a Retention Tool
Ron explains why profit is a retention tool. A profitable shop can pay competitive wages, offer benefits, invest in training and equipment, and weather slow periods without layoffs. Employees feel more secure and more valued. An unprofitable shop cannot offer any of that consistently.
Employees notice when a business is struggling financially. Delayed raises, outdated equipment, and cost-cutting create anxiety and push people to look elsewhere. A profitable business can offer stability, competitive pay, and investment in tools and training, all of which encourage employees to stay.
Profit also gives owners the ability to plan ahead for their people. A shop with healthy margins can budget for raises before employees have to ask, schedule training without worrying whether the month can absorb it, and replace aging equipment before it becomes a daily frustration for technicians. Those decisions send a message that the business is stable and that the owner is investing in the team’s future. In a shop that is barely breaking even, every one of those choices becomes a painful tradeoff, and employees feel the strain. Seen this way, a profit plan is also a people plan, because it determines what the shop can realistically offer the team.
The Most Expensive Popcorn in the World
Around the 18 minute mark, Ron shares the story of the most expensive popcorn in the world and his “bragging rights.” Listen for the full story. It illustrates how Ron thinks about spending, value, and enjoying the rewards of success.
Stories like Ron’s illustrate that financial success can include enjoying life’s experiences. Earning a healthy profit gives owners the freedom to make choices that reflect their values, whether that means travel, family experiences, or generosity.
How Others Spend Their Money Is No One’s Business
Ron makes the point that how anyone spends their money is no one else’s business. Owners who have built profitable businesses should not feel guilty about enjoying the results. At the same time, he distinguishes between seeking profit and living above your means. Profit gives you options. Overspending takes them away.
Bruce Spencer makes a similar case for enjoying your business in Don’t Be Cheap! Pay Your Freedom Tax.
Owners sometimes feel judged for spending money on themselves. Ron’s view is that a profitable business owner who pays employees fairly and runs the business responsibly has earned the right to enjoy the rewards. What matters is that the business remains healthy and that spending decisions are made with care.
The distinction between enjoying profit and living above your means is worth taking seriously. An owner who pulls cash out of the business faster than it earns it may look successful from the outside while the shop quietly falls behind on taxes, vendor bills, or equipment. Systems like Profit First address this by setting aside fixed percentages for profit, owner pay, and taxes before operating expenses are paid. That structure makes it clear how much is truly available to spend. Within those limits, owners can make whatever personal choices they want without guilt, knowing the business and the team are protected.
Profit First Equals People First
Ron closes with the idea that profit first equals people first. Profit enables generosity, legacy, and a better life for everyone connected to the business. It allows owners to give back to their communities and build something that lasts.
ATI members can access certified Profit First consulting, as described in ATI Partners With Profit First Professionals.
Profit enables generosity. Profitable businesses can sponsor community events, donate to charities, offer bonuses, and support employees through difficult times. Without profit, these acts of generosity are impossible. Ron’s message reframes profit as a tool for doing good.
Building a Profitable Shop Step by Step
Becoming more profitable usually involves several steps: understanding true costs, pricing appropriately, controlling expenses, improving efficiency, and setting aside profit consistently. Systems like Profit First provide structure for the last step, while coaching and training help with the others.
Small improvements in each area can add up to significant changes in profitability. Owners who commit to these steps often find that their businesses become more stable, their teams more engaged, and their own lives less stressful.
Common Profit Mistakes Shop Owners Make
One of the most common mistakes is pricing based on what competitors charge instead of what the shop needs to cover its costs and earn a profit. Owners who never calculate their true costs, including payroll taxes, benefits, equipment, training, and overhead, often discover that some jobs lose money every time they are performed. Knowing your numbers is the foundation for pricing confidently.
Another mistake is treating profit as whatever is left over at the end of the month. When profit comes last, expenses tend to grow to consume all available cash. A third mistake is assuming that more sales will automatically fix profitability. If margins are thin, higher volume can simply mean more work for the same result. Finally, some owners avoid looking at their financial statements because the numbers feel stressful. Reviewing them monthly, ideally with a CPA or coach, turns profit from a source of anxiety into something the owner can manage deliberately.
Profit Mindset Questions
- How do you feel when you talk about your shop’s profit?
- What would you do for your team if your profit doubled?
- Are you setting aside profit before paying expenses?
- Where might you be living above your business’s means?
Ron’s first episode, Bringing Balance in Our Finances’ Force, explains the Profit First method. Mike Michalowicz, the author of Profit First, appears in Building a Team of Owners.
Frequently Asked Questions
What is the Profit First method for auto repair shops?
Profit First is a cash management system created by author Mike Michalowicz. Instead of treating profit as whatever remains after expenses, the business sets aside a percentage of every deposit for profit first, along with set percentages for owner pay and taxes, and runs operations on what remains. Separate bank accounts make the allocations visible. For shop owners, the method creates discipline around spending and ensures profit is built into the business rather than hoped for at the end of the year.
Is it wrong for a repair shop to focus on profit?
No. Profit is what allows a shop to pay competitive wages, invest in training and equipment, survive slow seasons, and support its community. A shop that is not profitable cannot sustain good service or good jobs over time. The goal is to earn a healthy profit by charging fairly for skilled work and running efficiently, not by cutting corners. Owners who are comfortable talking about profit tend to make clearer decisions about pricing, spending, and growth.
How does profitability help retain auto technicians?
Technicians want stability, fair pay, good tools, and opportunities to grow. A profitable shop can provide all of those consistently. It can offer raises and benefits, invest in modern equipment and training, and keep everyone working through slow periods. When a business struggles financially, employees notice delayed raises and aging equipment and may start looking elsewhere. Profit gives owners the resources to build a workplace people want to stay in.
How can I tell if my shop is priced correctly?
Start by calculating your true costs, including technician pay, payroll taxes, benefits, facility costs, equipment, software, and training. Then compare your effective labor rate and parts margins to the amounts needed to cover those costs and earn a target profit. Review your financial statements monthly to see whether gross profit and net profit are where they should be. A CPA, coach, or industry peer group can help you interpret the numbers and identify where pricing needs adjustment.
