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Berland's stars as David of tools vs.
home-improvement Goliaths
By Mark Le Bien, Daily Herald Business
Writer
At the Berland's House of Tools stores
in Lombard and Palatine, building contractors' vans
and trucks begin pulling into the parking lots at 6
a.m.
The two stores open early to accommodate
local building tradesmen, carpenters, brick layers,
tile setters, drywall experts and so on, who make a
quick stop at Berland's for a spare tool or replacement
part before heading to their job sites.
"We're here for the guy who uses
tools to make his living or is a serious hobbyist,"
says Dwight Sherman, 43, president of the business that
has been in his family for nearly 30 years. "This
is candy land for those people."
Sherman says the goal at Berland's
is simple: Carry virtually everything the professional
tradesman needs.
That covers a whole lot of tools. Cordless
drills. Circular saws. Angle grinders. Rotary hammers.
Belt sanders. Mitre saws. Heat guns. Brick trowels.
Needle scalers.
And there's the heavy duty stuff: Pavement
breakers. Table saws. Air heaters. Compressors. Generators.
Says Sherman, "If we don't have
it, you don't need it."
Berland's headquarters and flagship store,
with 31,500 square feet, are at 600 Oak Creek Drive
in Lombard. The second store, with about 18,000 square
feet, is at 20254 N. Rand Road in Palatine.
The company employs about 50 people and
has annual revenues of $10 million.
These are brutal times to be in the tool
business. Home improvement store giants such as Home
Depot and Builders Square, who stock plenty of tools,
have put the squeeze on smaller, mom-and-pop type stores,
says Sherman. But he says Berland's is holding its own
in the marketplace by offering a huge selection of nothing
but tools and informed salesmen who are current or former
tradesmen themselves.
"We've thrived because we have put
so much money into personnel," Sherman says, adding
that his stores have 20 experienced sales people.
Also, the Lombard store has a service
center, with seven certified mechanics, who can repair
anything the company sells.
About 85 percent of Berland's business
comes from professional tradesmen. The rest comes from
hobbyists and do-it-yourselfers.
"He's unique," Rick Carr, Chicago-area
sales representative for tool maker Porter-Cable Corp.,
says of Sherman. "He sells a retail concept. That's
unusual in this business. And his people are very well-trained
and knowledgeable."
The Berland name and tools have gone
together since the 1940s. The company was started by
Joe Berland, a Chicago taxi driver who made money on
the side by picking up and delivering tools for riders
who worked in the construction business.
Berland opened a store in the city and
it stayed in his family until 1969, when it was sold
to Dwight Sherman's father, Dave. The Sherman family
already had been in the local tool business for three
generations, running a socket tool company and wholesale
distribution business.
Dave Sherman moved the Berland's store
to Broadview and then Downers Grove in the mid-'70s.
The family opened a second store in Palatine in 1989.
The Downers Grove store was moved to Lombard five years
ago.
Dwight Sherman, who studied sociology
and criminology at the University of Illinois at Chicago,
seemed headed for a career outside the family business.
But, following several jobs after graduation, he went
to work at the Downers Grove store.
"He's really built up the business,"
said father Dave, who retired last year.
Although president of the company, Dwight
Sherman eschews a tie and executive office and prefers
to spend as much time as possible with customers in
the two stores.
"I'm on the floor a minimum of 20
hours a week, working with customers, shoulder-to-shoulder
with employees," he says.
These days, Sherman's also on the radio
and television. He's a regular guest on Jonathon Brandmeir's
program on WLUP 97.9-FM, playing a game called "Name
That Tool" in which they rev electric drills and
other equipment next to a microphone and listeners call
in and try to identify it.
Sherman also has bought half-hour slots
of time on local television channels and hosted a "Tools
for the Trades" program where he demonstrates and
discusses various power tools.
"We're bringing excitement to a
traditionally very stodgy business," Sherman explains.
"We're always trying to do things differently.
Our thinking is, don't copy, let's innovate."
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