Friday, February 20, 2009

Is Russ Darrow Recession-Proof?

The job fair held by Wisconsin car dealership The Russ Darrow Group made national news this week. It seemed amazing, with the auto industry in a downward spiral and the overall economy shedding jobs, that a car dealership would be hiring. The Russ Darrow Group's management painted an optimistic picture of having plenty of cars to sell and money to lend, and of never laying off a successful salesperson.

It's a brilliant marketing strategy. Salespeople are paid mostly on commission. Most companies have a 30-day waiting period before employees become eligible for benefits like health insurance. By that time, those new salespeople will have guilted any friends and relatives who might be thinking of buying a car into buying one from Russ Darrow. Once they've exhausted their own personal sales prospects, most of those new employees will not be successful salespeople, and Russ Darrow will have to regretfully let them go. The additional short-term sales they bring in will more than cover the costs of their brief employment.

If their business is really booming, why is Russ Darrow trying to sell the real estate that currently hosts its Wauwatosa Kia/Misubishi dealership?


Anonymous said...

Plus, they probably let a lot of salespeople go BEFORE winter, when business is slow. They normally hire salespeople for the "spring market" anyway. If the media checks, they'll discover they laid off a lot of people last fall, including sales and office administrative help. This "job fair" was just a PR tactic.

Anonymous said...

What Office? They have laid off the entire office staff since last fall. Its all corporate based office.

Anonymous said...

They have been using this tactic for years. They use a training company to screen these people and the gullible ones are recruited for the training course and the sales floor. Then they turn them lose on their relatives and friends.