From reading the comments, I'm getting the impression that some shops have classes to 'up sell' materials for the classes and others have the classes to build a customer base, still others have classes that cater to current clients.
I would say look at the motivations behind teaching the classes and define the purpose. Once you do that, you can frame your strategy going forward. Do you have basics classes? For example, intro to machine sewing, or intro to quilting?
I'm one of those 'younger' quilters (at least I like to think so
) and I'm 32. Of course I know how much I can get from youtube and I definitely utilize that resource, but I have also taken classes at the City Quilter and I love it. Many times I've gone to a class and not purchased anything, the times I do buy something, they offer a discount if you are there for a class. They also send out instructions on what we will need before class in case we want to bring everything ourselves. They have sewing machines there, but are happy to make room if you want to bring your own (although nobody ever does). If I was required to buy materials from the shop for every class, I personally would boycott them.
I think it might help if you start to look at you classes as community building events.
Here is a link to the class schedule at the city quilter. Most of these classes are repeated every few months, but there is always something new as well.
http://www.cityquilter.com/City-Quil...s-Schedule.pdf