How to drill into very hard wood?

So frustrated with this should-have-been-easy project I tackled this past weekend! I was making a simple wall mounted coat hanger from an old pallet; got everything cut, sanded, stained...then started to drill pilot holes to add the cute hooks...and came to a grinding halt!! No matter what I tried, I could barely penetrate the wood!!! A neighbor said its birch...no idea if that's correct. I broke 1 drill bit already so if anybody can offer advice, I'd really appreciate it. I've been using my B&D cordless drill and have tried various wood drill bits. Thanks!

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