Originally Posted by Txmamabear4
When I worked at a fabric store I was told that the profit was in the last 3" of a yard. Rent,salaries,utilities, warehouse,etc cost the first 33". We gave a thumb's width extra.
I suppose only a fabric store owner would be able to tell you the truth to this. The only thing we can figure is markup because "profit" is subjective. You can "waste" profit by having employees clocked in and not working, or ordering things not needed but yet they count as expenses on the expense sheet.
So, IMO, "so called 'profit'" is subjective. One may have more profit if they don't have such fancy stores since they have less invested in equipment, fancy machines, huge warehouses, or just plain better management.
In Poland, the difference between wholesale and retail fabric appears to be like this. What they pay 2 zl/meter for they sell for 6 zl/meter (something like batting). If they pay 12 zl/meter, they charge 36 zl/meter, etc. What the owner chooses to spend on the bells and whistles of their store is completely up to them.
Years ago my DH's mom owned a fabric store in an area where there were no chain stores. She did well--40-50K a year in the early 80's. That was what she made. But she sold before Joann's came to town.