Cascade Auto Group Increases Service Department's Bottom Line with MPi's EDGE™ Solution

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MPi's World Class Inspection™ program tracks vehicle inspections and service recommendations, improving accountability and billable service income for Auto Dealers

The fact is many customers value the report and they hold onto it for weeks, or sometimes months. This tells me it helped them make the decision to have the work done.

Las Vegas, NV--April 26, 2010-- While many auto dealers are still trying to kick start the road to economic recovery, others are implementing successful programs that continue to increase profitability in their service departments. Cascade Auto Group in Klamath Falls, Oregon is a GM, Honda and Subaru dealership that has been using MPi's World Class Inspection™ program for more than two years. The system has greatly increased their vehicle inspections and service recommendations, resulting in more than $30,000 of additional service sales income per month.

"We always had a mandate that every vehicle should receive an inspection," said Brian Lepley, Service Manager for Cascade Auto, "but we were challenged because there was no way for us to verify if the inspections were happening or not, other than thumbing through every Repair Order (RO)," an onerous task for a large service department that repairs 1,500 vehicles per month. Since implementing MPi's customized EDGE™ solution, Cascade Auto Group's vehicle inspection request rate has increased to 96%. "As soon as the system went in, everyone became accountable because we had the ability to track and manage what they were doing," said Lepley.

A direct result of the EDGE reporting metrics is that they provide Lepley insight into what his service team is actually doing on a daily basis. Lepley says he is now able to validate that more vehicle inspections performed results in more service recommendations, which lead to more upsells and a corresponding increase in service hours logged. "Before we started this inspection system, we averaged 1.5 hours of work per RO," said Lepley. "Now we average 3.5 hours or more per RO, and that's directly attributable to the EDGE system."
The MPi EDGE solution enables the dealer and service manager to access detailed measurement reports that provide performance data from the overall service department down to the individual. Lepley reviews the technicians' and service advisors' reports at a minimum of three times per week. With just a few clicks the reports reveal the number of inspections requested, what the completion rate is, the number of recommendations per RO, total value of inspections, closing rate on upsells, and more. "If the numbers aren't where they should be, I can go talk to each individual and find out why," said Lepley.

The EDGE system is also helping the service department improve customer service and retention rates. When vehicle recommendations are made, the service advisor provides the customer a Know Your Vehicle™ report. The report provides easy-to-understand explanations of what needs to be done and why; as well as colorful pictures and diagrams illustrating good parts/bad parts. For example, if a customer is told their brakes are at 3mm, as opposed to 6mm, the report visually shows the difference. The customer feels more knowledgeable and thus more empowered to make a buying decision based on impartial information, rather than just what the service advisor is telling them. "It definitely builds a trust factor between the customer and the service advisor," said Lepley. "As a service manager it's gratifying when we see our customers return to our service department for work that needs to be performed. Especially when they have a Know Your Vehicle report in hand that they received from a previous visit," Lepley continued. "The fact is many customers value the report and they hold onto it for weeks, or sometimes months. This tells me it helped them make the decision to have the work done."

Cascade Auto Group is among a growing number of dealerships using the MPi EDGE solution to improve fixed operation profitability and performance. MPi is an industry leader in delivering processes, metrics and software solutions that enable automotive dealerships to achieve World Class™ results in their service departments. Dealerships using the MPi World Class Inspection program consistently see increases in profits, efficiencies and customer loyalty. For more information on MPi, visit http://www.mpifix.com

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SARA CALLAHAN
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