Andi's post on "Dispelling myths about Quilts of Valor" inspired me. She's right- when a topic reaches multiple pages many people don't read through everything before posting (totally understandable!) and therefore may miss valuable information.
Fabric prices are on the rise and I think all of us understand why, at least the basics. Drought, failed cotton crops, etc. all contribute to the skyrocketing price of fabric. The demand is there but the supply is not, and when that happens prices go up. Believe me, it is not in any manufacturer or retailer's plans to raise prices so high that no one will buy! They are literally forced into this position at this time.
I found a few good links explaining the rise in prices:
So what? you say. That doesn't mean my LQS should raise prices on existing stock. It didn't cost that much when they bought it! They're just price gouging!
Small retailers don't have the purchasing power of bigger retailers and are often on much stricter payment plans. Many now have to pay up-front for their inventory instead of 30 or 60 days. Add in rising fuel, energy costs, labor costs, import duties, and taxes. If they sell those old bolts at their original prices, they won't be able to afford new inventory as well as their overhead costs and will go out of business.
As with the manufacturers, it is not a quilt shop owner's desire to raise prices so high that customers won't buy! They don't want to go out of business, but they are literally forced into this position.
As polyman mentioned in the other thread: "Notice in these comments that all the stores that gave the good prices are no longer in business."
Hopefully this helps with understanding why a shop will raise prices on existing inventory as well as new.