The bottom line is our average gross profit is up approximately 10% to 15% and is still growing.
Las Vegas, NV (PRWEB) May 07, 2012
MPi (http://www.mpiworldclass.com), a leading provider of revenue and retention solutions for automotive dealership service departments, today announced that Infiniti of South Atlanta has increased its service department average gross profit by approximately 10-15% since implementing EDGE WorldClass™, a proven solution that powers automotive dealerships with the knowledge to increase their parts and labor gross profits by creating a well organized, practiced and consistent vehicle inspection program.
“Since inception, we have seen consistent improvement in our service sales, respective gross profit and CSI. One of the best results is retaining client’s service business long term and return service visits on declined service,” stated John Abate, Infiniti of South Atlanta President/Owner. “The program identifies client’s immediate needs, near future needs, in addition to no parts and service needs. The key to our success has been the near future needs that encourage the client to return in 30-60 days to have work completed. This is a very important process for us as our clientele demographic is one that doesn’t have excess disposable income. The bottom line is our average gross profit is up approximately 10% to 15% and is still growing.”
Infiniti of South Atlanta is the smallest dealership of 5 in Atlanta, and being the most Southern, is also challenged by less population.
According to Service and Parts Director David Lass, EDGE WorldClass has helped the dealership be more competitive. “Our dollars per RO and hours per hour have grown considerably and we feel we have made a huge advance. When we started the EDGE program in September 2011, our hours per RO were 1.56 and we averaged $263 dollars per RO. Then, in October, our first full month on the program, we jumped to 1.9 hours and $316 dollars per RO. Now, we are maintaining an average of 2.1 hours per RO and $324 dollars per RO.”
Before installing MPi the dealership used a carbon two part handwritten inspection that was attached to the RO and handed to the customer when they left. Some were more legible than others, and it was not unusual for there to be an oil smear on the sheet. They were also not very self explanatory. With EDGE WorldClass™, the customer is presented with a highly professional full color Know Your Vehicle Report that stimulates return visits.
“MPi’s Know Your Vehicle Report enables us to better explain service needs to our customers. A high percentage of recommendations have pictures and explanations as to why the parts are needed so the customer can read and better interpret what they may need now, and will need in the future. They can prioritize work need today and 3-6 months from now. Approximately 12% of our customers return within 30 days of the original inspection to have work completed, which is a good source of additional profit for us,” Lass explained.
EDGE WorldClass™, also enables the dealership to better track results and note any deficiencies so that they can be quickly remedied, “Not only can we track our success but also the areas that need improvement. You can’t coach what you can’t monitor. If we have deficiencies with a tech or a service consultant, such as difficulty with upsells or multi point inspections, we are able coach in those categories as we can clearly see what level they are at compared to others,” said Lass. The training is also second to none. Most vendors make the sale, install, shake your hand and you never see them again. MPi is the only company I have ever worked with that continues to call on us to make sure we are getting the most out of the system,” said Lass.
For more information visit: http://www.MPiWorldClass.com