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Twenty years ago, Jim Danaher considered starting an oil brokerage business in Houston, Texas, the oil capital of the U.S. His partner, Doug Greenfield, said such a move seemed like "common sense." But in the end, the quest for eternal wisdom won out over common sense. The two decided to start their business in Fairfield and support Maharishi Mahesh Yogi's plan to establish a community here, dedicated to creating world peace.
They made the right move. Today, Danaher Oil, is celebrating its 20th year in business. From humble roots in a small house on Stone Street in 1981, Danaher Oil has become the top oil brokerage firm in the Midwest, facilitating the sale and purchase of over 150 million barrels of petroleum products each year. Danaher's customers include all the major oil companies: Exxon-Mobil, Citgo, Amoco, and Texaco; airlines: United, American, and Northwest; and railroads, such as Burlington Northern.
"From the Seat of our Pants"
If a book were ever written about how to create a successful entrepreneurial business in Fairfield, Danaher Oil would be the ideal case study. The company combined all the necessary elements for success--a strong niche market, a valuable service, visionary leadership, talented employees, a harmonious family atmosphere, and, most importantly, a long-term view to customers, employees, and community. But it wasn't easy.
Danaher, the company's chairman, started the business to link buyers and sellers of petroleum products. Oil companies sell excess oil into common carrier pipelines, which carry it to different regions of the nation. This network of pipelines is "as complex as a roadmap," according to Greenfield. In the Midwest, pipelines run from Houston to Chicago and New York, from Tulsa, Oklahoma, to Minnesota and North Dakota, and from Chicago to other Midwestern states. At one point, Danaher drove to Iowa City to see what one of the pipelines looks like.
Greenfield says the early days were exciting. "It was really fun when we began to negotiate deals," he says. They learned as they went along, sometimes stumbling. "We learned the business from the seat of our pants," he says. They worked from the small house on Stone Street using a folding table and directors' chairs.
Their biggest challenge was winning the trust of major oil company executives. "It was a challenge breaking into a high level of business from a small Iowa town," says Ed Malloy, president and managing partner, who joined the company in 1982. "People weren't sure what we could do for them."
But over time, a combination of skill, friendliness, persistence, and good fortune "turned their opinion 180 degrees," says Malloy.
Today, their customers rely on Danaher's timely market information, including its twice daily report, the Hawkeye Cash Market Watch.
Ed's younger brother, Ken, who has been with the company since 1986, says, "The relationships we've established with our clients, their trust in our market experience, and our ability to perform have been keys to our success."
Danaher Oil's growth has been a gradual upward trajectory. In fact, the company's most successful year was 2000, its 20th in business.
Jim Danaher attributes the employees' participation in the TM-Sidhi program in the golden domes as the basis for success. "It gave us great momentum to overcome the challenges of getting into the oil business from Iowa," he says. Greenfield and Malloy both say their customers respect the company's commitment to TM.
Family Atmosphere
When visiting a broker at Danaher's offices, expect to be interrupted by phone calls. During an interview for this article, Ed Malloy received several calls and completed a deal within about 10 minutes. An oil refiner wanted to sell 25,000 barrels of oil. He and the buyer were one-quarter of a cent apart in the selling price. Several minutes later, after a broker checked other prices, the buyer accepted the refiner's offer. Twenty-five thousand barrels of oil just passed through Danaher Oil.
Each day, Danaher brokers an average of 500,000 barrels of oil per day, valued at over $700,000. Brokering such huge volumes each day is demanding and requires a high level of skill. "The markets are fast moving and it can be very intense," says Bruce Plaut, a broker since 1983. Brokers spend much of their time calling potential suppliers or buyers to link them. They must provide the right information at the right time.
In a high turnover profession, Danaher's brokers are unique in their depth of experience. Ed and Ken Malloy and Plaut have worked for the company for over 15 years. Andy Josephs is the relative newcomer, with five years' experience. The four work well together. "A tremendous degree of coherence has built up among us," says Plaut.
"In almost every way imaginable, the five and a half years that I've been with Danaher Oil have been the most productive of my life," he says.
Despite the intensity, the atmosphere at Danaher seems relaxed. The brokers work in a large room with several tables and desks arranged in a line in the middle. Five computer monitors sit on the desks. Telephones are everywhere. On the wall are a map of the world, whiteboards, and a Kansas City Chiefs calendar. "Everything that I have ever wanted to learn about sports I have learned at Danaher Oil," jokes Cheryl Rogers, office manager and another long-time employee.
Employees value the harmonious atmosphere. "It's hard to believe that in such an intense business, our work environment could be so pleasant," says Cora Lee Burns, an administrative assistant.
"This is a great small company with wonderful caring people," says Angie Pope, administrative assistant.
As always, Jim Danaher ties his company's success back to Maharishi's knowledge. "Our success has been based on getting the benefits of transcending every day," he says.
Serving the Community
Danaher Oil extends its philosophy of service and culturing long-term relationships to the Fairfield community. The company is a benefactor of both MUM and the Maharishi School. It sponsors a Little League baseball team. Ed Malloy served on the city council for eight years and was appointed to the Governor's Strategic Planning Council.
While growing their business, Danaher, Malloy, and Greenfield remain dedicated to the reason they chose to stay in Fairfield 20 years ago. "We are committed to the strength of Fairfield, to employing people, and supporting the development of the super radiance community," says Malloy.
