It almost seems like price fixing. We have 5 or 6 LQS here. I was looking for a specific fabric to match something I was doing. All asked the same price, $9.98. Maybe their supplier sets the price, I am not sure. The same item (and quality) went from $3.98 to 7.98 at various fabric dealers on line. If I can buy it from them at that price, so can LQS's. There is a lot of competition here, but it does not seem to make much difference.
Hobby Lobby locally has a lot of some of those fabrics at a lower price and offers a 30% in addition. They also have coupons once every other week for fabric, etc. I have purchased fabrics for pillow cases from an LQS. then found the identical item with the same markings on the fabric for almost half. Granted, they probably buy in larger quantities, so it pays to really look around if you have the time.