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?