In 1946, having just returned from World War II, Armour Anderson was keen to start a business, but wasn’t sure on exactly what. He canvassed some friends and his community about their needs and was presented with a diverse set of products—everything from Bic pens to pantyhose. He duly sourced those products and began selling them from the trunk of his car.
Armour’s market research paid dividends. Sales took off and the business grew and opened a brick-and-mortar location in downtown Twin Falls and continued to expand its product offering. In 1975, after years working in sales, Armour’s son John took over as general manager.
Today, the company has two locations in Twin Falls, plus one in the state capital, Boise, one in Pocatello and one in Elko, northern Nevada. John’s three sons have been at the helm since his retirement in 2015.
“As kids, John, Travis and I would watch how my dad ran the business,” recalls Ryan Anderson. “He made it seem magical. He’d do things like drive up to the house, honking the horn when he bought a new delivery truck. We also got to see behind the scenes; and we saw how he knew all his employees by name and made each one of them feel like part of the family. This is why all three of us wanted to follow in his footsteps and go into the business. It is also why we have so many longtime employees; one sales rep retired on his 50th anniversary. Some dealers say their biggest asset is their customers, but our biggest asset by far is our employees.”
To ensure this longevity, Gem State needed to tweak its culture. “People need to like their work and have a good time doing it,” Ryan explains. “If they don’t enjoy what they do, it’s not worth it. When I started with the company about 10 years ago, it was a good work environment, but somewhat stiffer, with a more nose-to-the-grindstone mentality. We realized we needed to make it more flexible so our employees could have a good work-life balance. It was a huge change; unfortunately, we had to let the naysayers go, as negativity can be infectious and bring down morale. The employees appreciate it and we’ve found it creates even more loyalty: they work even harder to ensure our great customer service.”
Building on this strong culture and loyalty, Ryan highlights Gem State’s stellar customer service as another key to its success: “We don’t sell floor cleaner; we sell clean floors. We don’t sell products; we sell solutions. We don’t just deliver packages; we put them where customers want them. We even take inventory for some, so they don’t have to be bothered.”
Staying current is also crucial, he suggests: “As expensive as it can be, we keep up with new technology. We track inventory, procurement and customer purchases. With five locations, we recently invested in an app that lets customers and reps see their location, view inventory at the nearest store and order with a few clicks.”
Looking forward, Ryan reports that expansion is off the cards. “We’re not concerned with expanding our territory,” he says. “A lot of people dream of growing large and making more money, but our concern is losing control of the company, so our goal is to grow by offering more to our existing customers.”
For other independent dealers looking to thrive, Ryan counsels: “Stress a more flexible culture. I know it’s hard for some seasoned employees who see the greater flexibility as unproductive, but a good work-life balance develops employees with greater dedication and loyalty.”
Headquarters: Twin Falls, Idaho
Top management: Ryan Anderson, president; John Anderson, vice president sales; Travis Anderson, vice president service
Number of employees: 72
Annual sales: $26 million
Sales breakdown by category: 40% janitorial; 25% food service; 20% office products; 10% packaging; 5% furniture