Lessons From An Iconic, Hispanic-Owned Business In Phoenix
The Del Sol Furniture Team
The Phoenix area is home to about 80,000 Hispanic-owned businesses, according to 2022 statistics cited by the Phoenix Business Journal. Local First Arizona Coalition member, Del Sol Furniture, is one of them.
Starting in the late 90s with a single location, Del Sol has since grown to include four stores across the Valley. CEO Alex Macias grew up in his parents' business and witnessed the company’s transformation first-hand. Through the years, he learned two crucial lessons that he now passes on to other entrepreneurs.
“I always focus on two things: Owning your own real estate and understanding your own finances to get Small Business Administration (SBA) loans,” Macias said.
Del Sol Furniture Founder, Rosas Macias with son and CEO Alex Macias
Both focal points loomed large for his parents in the early days of Del Sol, when furniture was crammed on top of furniture in an efficient but overstuffed rented location at 21st Street and McDowell. Macias said the landlord would mistake the abundance of furniture for their volume of furniture sales and predictably raise the rent.
“They realized they needed to own something,” Macias said.
So they found land at 32nd Street and Thomas and they built a plaza that would accommodate Del Sol as well as other businesses. They knew tenants had to be part of their financial equation.
“In hindsight, I’m incredibly in awe of what my parents were able to accomplish,” Macias said. “They didn’t really know the language or the culture. And a lot of people wouldn’t take that risk. I think what helped is that my mom was fearless but calculated, because she’s an accountant. As long as the numbers made sense, it was going to be ok.”
Macias said his parents had a unique immigration story. Both were college-educated before leaving Mexico for the U.S. His mom was the first person in her family to attend college, and his dad was the second in his family. They immigrated because they realized, even with degrees, that Mexico would not provide the life they wanted for Macias and his sister.
“It wasn’t going to cut it for them,” he said.
Macias ultimately carried on the family’s collegiate tradition, earning a degree at ASU. After graduation, he was asked to help the family business as it stabilized following the purchase of their biggest asset — a warehouse in 2007, just ahead of the Great Recession.
“We were heading into a slowdown without even realizing it,” Macias said. “The important part for local Arizona businesses is you have to understand the cyclical curve of your business and be prepared for it and understand that it can always go up and sometimes it will go down. It’s critical to staying in business.”
Over the company’s more than 25 years in business, Del Sol has certainly weathered different economic cycles, including COVID. That presented a different kind of strain that included higher demand and unique logistical challenges.“A lot of people were stuck at home and needed furniture,” he said of the COVID-era demand. “But, we were able to maneuver through it.”
While the overwhelming majority of Del Sol’s customers are Hispanic, Macias said they’re also generational. He’s seen grandparents who have purchased with Del Sol return with their grandkids who are ready to get furniture for their own place. The relationships they’ve built with the community over the years have kept people coming back, sometimes with dessert.
“I have one salesperson who got a cake from a customer six months later,” he said. “We’ve tried to create that culture because we know that for most people, it’s not just about price.”
For Del Sol customers, it’s about in-house financing, selection and relationships. And Macias said his family has appreciated the community support, some of which comes from the environment that Local First Arizona is fostering.
“Everything about what local first does just completely gels with who we are and what we believe in,” he said. “We’re so lucky to be in a state like Arizona with an organization like Local First.”
