At $2/yd for sure people will pick out the LQS fabric & that will fly out no problem. The question is whether people would pay that for JAF fabric when you can buy it in the store new for under $3 (depending on the brand -- of course, if you buy Kona cotton at JAF, it is going to be more like $4-5/yd on sale.
I agree with those who've suggested pricing by the pound. I've seen people walk away because they were waiting in line for 30+ minutes while a single person cut yard after yard of fabric for someone who picked out 30 different fabrics. You also want to consider posting minimum amount per order & if you can manage it, try bundling together fabrics ahead of time so you can be sure to get rid of both your high end & your big box fabrics. If they're priced identically & sold separately, most quilters will choose the high end stuff first unless they really need a particular color/pattern.