I'm not sure where the greatest profit is for quilt shops is; fabric, classes, machine repair or machine sales. Another thing that might factor in to the equation is the business experience of the owner. A love of quilting doesn't necessarily mean a person can successfully run a business. Several quilt shops have either closed or downsized in my area. One the person retired and could not find a buyer for her shop. Another closed I think in large part because of lack of profit. Many of my quilting friends and I didn't shop there because of poor customer service, cancelled classes and such. If I'm going to pay more for fabric I want the person waiting on me to be knowledgeable, excited that I'm there and excited and helpful about my project. It must also be difficult for shop owners to anticipate what fabric people want. Successful shops have great business savvy, good customer service and being in the right place at the right time. The economy certainly factors into this but good businesses can survive through tough times.