From the Ground Up
One distributor proves that drive and motivation can help a new business flourish
By Laura Thill
Starting a business "from the ground up" generally suggests starting with very few resources. But, opening one’s doors with no product lines? That’s a risk few are willing to take.
When Rob Cherkas opened shop in 1975 in an 800-square-foot former dental office in northeastern Philadelphia, Pa., the fact that he had no direct manufacturer line was not enough to deter him. The son of a prominent Philadelphia orthodontist, he had been interested in a career in the dental field for a long time. "I was always motivated by my entrepreneurial spirit and felt that the dental industry would provide a very rewarding future," he says.
Immediately following his college graduation, Cherkas joined national dental distributor Litton Dental’s Bryn Mawr, Pa., store. "I was hired by the late Butch Brendle as a sales trainee," he recalls. "I started out in the receiving and stock rooms, and after five months, I was promoted to a field rep position." Within three years, he had joined the ranks of Litton’s leading sales reps, he adds. But, Cherkas had always wanted to own his own business and, in spite of his success at Litton, after four years with the company, the timing was right to venture off on his own.
A sure beginning
Never mind that Cherkas opened his distributorship with nothing to sell. He had the drive, smarts and self-confidence to make a go of it. "When I started Parkway Dental, there was only myself," he notes. "Because I had no direct manufacturer lines, I was forced to buy products from other retail dental distributors. They would invoice my company as I placed my orders from their inventory. Then, I would load the merchandise into my station wagon and drive it to the Parkway Dental store."
Similarly, Cherkas would invoice his customers as he filled their orders, which he would deliver the next day. Once at the customer’s office, he would inevitably sell additional merchandise as well. "My goal was to consistently maintain a two-week cycle," he explains. And, it worked. Within a year, he merged his business with that of his brother, Paul, who owned an orthodontic lab outside of Philadelphia. "Soon after, we realized there was a lot of potential in dental distribution, so Paul learned the supply end of the business. He became my partner and vice president of Parkway Dental and today he heads the supply division."
Currently, Paul Cherkas oversees purchasing, customer service, inventory control, manufacturer promotions, supplier-manufacturer relationships, and shipping and receiving. Meanwhile, as president, Rob Cherkas focuses on equipment, service and the company’s strategic planning. "I still maintain a territory, which is extremely gratifying in that it enables me to keep my finger on the pulse of the industry," he points out.
Meeting the challenge
Although Parkway Dental has expanded over the years, its mission has remained the same. "Parkway Dental’s mission has always been to deliver excellent value, together with informed and precise service and a strong sense of enthusiasm and passion," he continues. "This has not changed over the years. We are cognizant of the importance of relationship-marketing and impeccable personal service. We stress the necessity of listening to our customers and picking up on all of their non-verbal cues."
In its early years, the company serviced pockets of southern New Jersey, Philadelphia and the surrounding suburbs and northern Delaware. Today, its territory includes the entire state of New Jersey, most of Delaware and eastern Pennsylvania, as well as a number of supply customers across the country.
And, while the company’s journey has been a successful one, Parkway Dental has met many of the same challenges facing a lot of independent distributors. For instance, long past are the days when Cherkas operated without any direct manufacturer lines. Nevertheless, as with all independent distributors, Parkway Dental must brace itself against the possibility of losing a major manufacturer’s line. "I am especially proud of our sales team for doing such an outstanding job of overcoming losing [one major line]," says Cherkas. "Through excellent manufacturer support and our entire team’s topnotch sales skills, we have done a remarkable job of increasing our penetration of alternate high quality manufacturer products."
In part, Parkway Dental has met these challenges by becoming an active member of the ADC/NDC co-op. "As a member, we can collaborate with the other dealers and share problems, solutions and private label branding," says Cherkas. In addition, the Cherkas brothers have relied on their connections with other ADC members to take advantage of co-op marketing, online ordering, manufacturer campaigns, bulk supplies and equipment discounts. And, given today’s economy, this is more important than ever, he notes. "While we believe Parkway Dental’s basic philosophy and principles have stayed the same over the years, in the present economy, price has become a more sensitive issue," says Cherkas.
Family-valued
Looking back, Cherkas is confident that the Parkway Dental staff made many "fundamentally sound core decisions," enabling the company to enjoy nearly 35 years of success. "I’m relatively certain that other independent distributors practice many of the same fundamentals as we do (e.g., fast, reliable, value-added service)," he says. "But, we have achieved a niche by aligning Parkway Dental with many dental practices looking to work with a small family-run business rather than a large corporation. After all, most dental practices themselves are small businesses and can relate to a family distributor."
At the same time, practices are looking for a distributor that can offer top quality service - and Parkway Dental has focused on doing just that. "Parkway Dental has done an excellent job of introducing new products that are highly rated by Reality, Dental Advisor and Gordon J. Christensen Clinicians Report (formerly the CRA newsletter)," says Cherkas. "We are consistently educating our customers about new technology, and our staff keeps current on the newest benefits and features of the products we market. At the same time, our service department acquires the latest techniques through continuing education programs. We are very aware of the challenges we face in this economy, particularly as a small distributor, and, as such, we are always advancing our infrastructure."
For newcomers to the industry, Cherkas has this advice: "I think it would be prudent for new distributors to speak with many manufacturers and other smaller distributors to learn about the challenges they potentially face," he says. "It can be very difficult to obtain direct manufacturer lines today." That said, Cherkas wouldn’t want to be anywhere but the dental industry. "With the exception of this last year, the dental industry has been an excellent growth industry," he points out. "I am extremely grateful for my experience these past 34 years. We have an excellent staff that has been responsible for our success."
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