Originally Posted by
NikkiLu
A local quilt shop just went out of business - they started out at 30% off - then 40% off and then 50% off. I bought some fabric at every discount. The last time that I went (50% off) I heard the owner tell a relative that he was now at COST. So, if the fabric is $10 a yard - that means that it cost them $5 a yard. A $5 a yard profit seems excessive to me.
That's not the actual profit though. From that $5 bucks a yard subtract building rent, heating and cooling, phone, multiple taxes, insurance, advertising, internet access, web site hosting, employee wages if you have any, etc, etc. After you subtract all your expenses then you find out what your actual profit or loss is.
One of my friends had a quilt store. Her first year income was about $70,000.00. She lost $1200.00. And she did not take a dime in wages nor did she have outside employees.