South Carolina used to have a jillion places you could buy fabric by the pound...and I loved them! But...they all phased out about the same time (20 or so years ago) and we only have a place or two left that sells like that now. And they're not close to where I live and, as far as I know, don't have an Internet presence. So that tells me that maybe that idea has been gone long enough to be re-surfacing again, maybe? I think your idea is a good one; but you do have some competition in NC, particularly through Mary Jo's in ?Gastonia...do your research carefully, you may be on to something.
Good luck!