I can see it not being profitable in a store to precut.
But offering it as an on-demand service for a fee seems to have less risk.
As a shop, you aren't going to get stuck with cut up kits that don't sell.
As an individual (or shop), someone else selected and bought the fabric so just charge an amount for the labor cutting the pieces.
How long would it take you to cut a YBR lap size quilt?
30 minutes? More? Less?
And just like a LA-er, you've got a menu.
Pre-wash and iron? They wash, you iron?
And charge accordingly.
I've always been fascinated by the listings on eBay.
There are a few sellers that have been doing fussy cuts for quilts block - selling for years.
Quite the cottage industry.
Like this:
http://www.ebay.com/itm/NEW-12-Kalei...item19c9008c80
http://www.ebay.com/itm/12-block-PRE...item3a6a84dd4e
How do you think that breaks down between material and labor?