Killer Growth
In Episode 61, Samuel sits down with Tim Hillebrand — president of Don's Appliance in Pittsburgh, Pennsylvania, and someone Sam calls a genuine mentor from his years running Charlie's Appliance in Kansas. This one has a different feel than most episodes: it's two guys who've been in the same industry at very different scales, catching up on what the business actually looks like when you build it to $100 million and beyond. Tim started at Don's in 1988, right out of college, loading up at the bottom while learning from his father who founded the company in 1971. When his dad wouldn't expand, Tim and his brothers went and built Hillman Appliance from scratch about 30 miles north of Pittsburgh, grew it into a real business, and eventually merged it back with Don's in 2010. From there, Don's went from 4 stores to 12 locations across Pittsburgh, Morgantown, and Erie. In September 2023, they sold to Kodiak Building Products. Tim stayed on as president, and after a PE split and restructure, Don's is now a standalone business inside a 5-company appliance group with more acquisitions on the horizon. The operations conversation alone is worth the listen. Don's runs 25 service trucks and 33 to 35 delivery trucks every single day, hitting somewhere between 400 and 500 homes. Tim talks through the logistics of running a single distribution hub out of Pittsburgh, how next-day delivery actually works at that scale, and where a second hub becomes necessary as they look to expand into Ohio. He gets into the technology stack too: PackageAI for delivery tracking and crew efficiency, AI-assisted pre-diagnosis tools that pull from their service history to send techs out with the right parts the first time, and how remote service specialists in New England and Illinois review transcripts of calls to flag what part is probably failing before the truck ever rolls. Sam and Tim also dig into the independent appliance industry itself: what BrandSource actually is and why $6 billion in buying power matters against Home Depot and Lowe's, why appliance service is a money loser that everyone has to run anyway, what the Midea-Electrolux joint venture might mean for a manufacturing landscape that's already consolidated down to 4 or 5 players, and what Tim would tell someone thinking about getting into the business today. His answer on starting capital ($100k, plus a line of credit, plus a seller willing to hold the paper) is more specific and useful than most advice you'll hear. Learn more at https://killergrowth.com
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