Originally Posted by
AUQuilter
... LQS buys fabric at $5 a yd and then marks it up 60% then it is selling for $8 a yd. But then same LQS runs a sale of 25% everything in the store and now it is selling at $6 a yd-not much of a profit margin. Hope this provides some figures for thought.
Actually, I wouldn’t call that $1/yd a “profit margin”. All of the overhead costs to run the LQS has to come out of that dollar before there’s any profit, which, I doubt that there will be in most cases.
CD in Oklahoma