when you own a store, customer service should be your number one concern. In this economy you really want all the $$ you can get and happy people spend more money and come back to spend more.
I would have left the fabric and told her why. $1.00 to cut the fabric thats insane.
I think giving an extra inch should be standard-Im so sick of getting fabric that is screwed up.
Well :p on them, save your cash for a shop that deserves it.