I would cut your scrap strips in the largest strip you can if you really think you want to cut them. Or just but the pieces of scraps into zip lock bags and put a price on them. Scrap bags are very popular. Its not really neccessary to cut them in order to sell them. People can always cut them down. Pre - priced bundles of yardage colors or coordinates would be efficent for you to sell.
As for pricing.... I'm inclinded to think $4.00 per yard is a fair price.... but do have a final hours discount to ensure you can sell as much as possible. It can be alot of work to sell off a stash .