You increase retail sales without discounting by selling on value at the point of contact. A trained associate builds rapport, uncovers what the customer actually came in for, and shows why the product is worth full price. Discounts train customers to wait for the next markdown and quietly destroy margin. Stores that raise conversion and units per transaction through selling skill grow revenue on the same inventory without ever touching price.
Kate Tanner proved it. While forty other toy stores in her area closed, her store Kidstop grew, sold at full price, and eventually sold to one of her own customers. Here are nine lessons from how she did it.
What does it take to be a successful independent retailer? I visited Kidstop's owner, Kate Tanner, to get her insights. As a two-time winner of the "Best of Phoenix" award, Tanner’s retail management experience holds valuable lessons for aspiring and established retail store owners. You can watch the full interview below.
Below are the key points contributing to Tanner's success. Whether you are starting a small business or have been doing this for a while, you can apply these skills to your retail business.
1. Be Open to New Ideas
One of Tanner's most crucial lessons is to be open-minded, even to ideas that might initially seem counterintuitive. This openness can lead to unexpected successes and help retailers stay ahead of the curve.
She illustrated this point with a personal anecdote:
"I saw these little crowns in a pretty box at a gift show. I passed on them. Forty dollars, and you take a picture with your newborn. Now, it's adorable, but $40 for one picture? I walked out of the booth. I'm having dinner that night, and a grandmother says, 'You take this, and you take the picture. Then it goes on all their birthday cakes, then it goes on their sweet sixteen cake, and then you create their wedding bouquet around the crown.' I bought them all. I've reordered twice now."
Once she determined the vision for how someone could use what seemed like a one-time purchase, she saw the possibility of storytelling in her store. Of course, she had to train her crew with that story, or the crowns would have collected dust.
Key takeaways:
- Listen to your customers – they often have valuable insights
- Be willing to reconsider your initial judgments
- Look for products with multiple uses
2. Prioritize Quality and Longevity
In a world where cheap, disposable products from Temu and Shein are abundant, Tanner emphasized the importance of offering high-quality items that last. This approach ensured customer satisfaction and built trust and loyalty, which added to the bottom line.
Tanner explains her philosophy of quality products while demonstrating a high-end furniture chest:
"I went for the best: Formaldehyde-free, toxic-free, solid beechwood. We live in the desert. So if it's not made out of solid or good wood, it won't last. I can’t take your money if I can't put a product in your home that will last."
This commitment to quality extends beyond just the materials used.
Key takeaways:
- Invest in high-quality products that suit your local environment
- Focus on features that add real value for customers
- Don't compromise on quality for short-term profits
3. Curate Your Selection
While offering a wide variety of merchandise to cater to every possible customer preference might be tempting, Tanner built her shop on a targeted approach. By carefully curating her selection, she was able to have a more cohesive brand identity and simplify the decision-making process for her customers: If Kate has it, you can trust it.
Tanner explains her strategy:
"There's so many things out there on the internet scaring all of our new moms. I want to think Kidstop's a haven because when you come in here, there's just a couple lines of furniture, not twenty."
When questioned about the potential drawbacks of a higher quality approach, Tanner responds:
"Who wants to be number two and three in their house? I want number one. When it comes to my kids, I want number one."
This philosophy of offering only the best aligns with the growing trend of consumers seeking out premium products, especially regarding items for their children.
Key takeaways:
- Carefully curate your product selection
- Focus on offering the best rather than the most options
- Create a haven for customers overwhelmed by too many choices
4. Know Your Product Inside and Out
You must know everything a consumer should notice when selecting your merchandise. This will help you provide better customer service, make informed purchasing decisions, and show shoppers the value of your products.
Tanner emphasizes the importance of product knowledge:
"You need to study your product, be open-minded, and go after the best. Don't settle for what had [worked] for years. It doesn't work."
By thoroughly understanding your products, you can:
- Provide expert advice to customers
- Make informed decisions about inventory
- Identify unique selling points that set your products apart
5. Be Passionate and Shameless About Your Business
"You have to be shameless about what you do. You have to be passionate, and you have to believe in what you do," Tanner said.
She would regularly go out into the community, proud that she was a retailer. You couldn't have a conversation with her without the name of her business coming up multiple times—not in a "look at me " manner but in a confident manner drawing upon her experiences in the store. This passion translates into a commitment to excellence that customers can sense and appreciate. It also fuels the drive to innovate within your business.
Key takeaways:
- Let your passion for your business shine through
- Don't be afraid to celebrate your successes
- Use your enthusiasm to drive continuous improvement
6. Create a Unique Shopping Experience
Brick-and-mortar stores must offer something unique to attract customers. Tanner's approach at Kidstop focuses on creating a welcoming environment that addresses her target customers' needs and concerns.
By positioning Kidstop as a "haven" for new parents, she's created a great value proposition that sets her store apart from online and big-box retailers. She knows the difference between age-appropriate items on the box and what actually works with kids of that age.
To create a unique shopping experience:
- Understand the specific needs and pain points of your target customers
- Design your store layout and atmosphere to address these needs
- Offer expertise and personalized service that can't be replicated online
7. Adapt to Changing Consumer Preferences
Tanner's success is partly due to her ability to recognize and adapt to changing consumer preferences. She notes the growing demand for organic and high-quality products, especially when it comes to items for children:
"When it comes to my kids, I want number one. When it comes to food, I want organic."
Tanner has stayed relevant and continued attracting customers in a competitive market.
To stay ahead of your changing consumer preferences:
- Regularly research market trends and consumer behavior
- Be willing to update your product offerings
- Seek feedback from your customers about their changing needs and wants
8. Invest in Continuous Learning and Mentorship
Tanner acknowledged the value of mentorship in her journey as a retailer and appreciated my mentoring along the way.
To foster continuous learning:
- Seek out mentorship opportunities within your industry (I have a coaching program😊)
- Attend retail conferences and workshops
- Stay updated on industry news and best practices
9. Avoid the Race to the Bottom
While many retailers are tripping over themselves to offer low-priced versions of their products or offer endless promotions to attract discount shoppers, Tanner's approach shows that this differs from where profitable retailing is heading. Her philosophy challenges the common mindsets that plague many retailers:
- The "we've always done it this way" approach to product mix
- The assumption that they know what will and won't work, often based on their own wallet
- The belief that customers only want the cheapest options
Tanner and her team have proven that these assumptions are flawed. The proof? While forty other toy stores in her area have closed over the past few years, Kidstop continues to grow and expand.
Retail is saturated with too many "same-old, me-too" shops, which are being squeezed out daily.
Common Questions About Selling Without Discounting
Why is discounting hurting my margins?
Every discount comes straight off the bottom line and trains customers to wait for the next markdown. It resets expectations so full price feels like a penalty. Tanner's competitors raced to the bottom on price; forty of them closed while she grew at full price.
How do you sell at full price in a promotional market?
Curate quality merchandise you can stand behind, know it inside and out, and train your team to tell its story. When Tanner bought those $40 crowns, they only sold because her crew could explain why one crown becomes a birthday tradition, a sweet sixteen, and a wedding bouquet. Without that story, they collect dust at any price.
How do you get associates to sell value instead of price?
Train them on the product and on the customer. An associate who understands what a shopper actually came in for can show why the product is worth full price. That is a trained skill, built through practice and role-play, not a memo.
What should an associate say when a customer asks for a discount?
Acknowledge the request, then return to value: what the product does for them, why it lasts, and what they lose by choosing less. A confident associate who understands the customer rarely needs price to close.
The Best Part
The ultimate testament to Tanner's retail acumen is the recent sale of Kidstop to one of her customers. This shows the deep connection she forged with her customers and demonstrates the value she created in her business.
It's a powerful reminder that you create something truly valuable when you build a retail brand on a foundation of quality, customer understanding, and passion.
Success in retail is about more than racing to the bottom with discounts and cheaper products. It's about creating an experience that resonates with your customers, offering quality products, and continuously adapting to meet changing consumer needs.
How do you measure up to these nine principles? When you strive for excellence, you can also create a thriving business.
