Originally Posted by Quilting_inthe_Rain
Does anyone have an idea how much it costs to buy fabric wholesale?
Remember the general rule in retailing, that the cost of an item is doubled to get the retail price. Then go do some research. Look at any LQS's in your area, to see what their prices are. DON'T USE THE CHAIN STORES as references for pricing. They buy in such huge quantities that they get special price deals that are out of reach for "the little guys". Also do research online. Look at the big established websites such as EQuilter, Virginia Quilter, Hancocks of Paducah. These sites carry new lines, which of course will be the highest priced. You will get a good idea of the actual cost by looking at their prices and dividing by 2.
There is also the option of not carrying new lines, but rather discontinued / last season goods. You'll pay less for those. But you won't necessarily be able to put together wonderful coordinated groupings, because the fabrics will be "picked over" already before you even see them.
One thing that's easily overlooked is that you do have to pay to get the wonderful fabrics delivered! Depending on how far they have to travel, plan on adding as much as 30 cents per yard to your cost.
And... it's not all about the fabric, either. Do you like record-keeping? Are you disciplined and detail-oriented enough to keep up with that part of the job? You can't have a business without paperwork.
Buying fabric and paying by credit card? A good idea, especially if you get a reward card (1% back is always nice) but to make this work best for you, pay in full and on time each month. Wholesale vendors will often extend terms, says 60 days, and if you're lucky you will have some of that fabric sold by the time the bill comes due.
Other expenses you'll need to keep in mind are rent and insurance, and phone costs. Plus supplies (bags, signs). And equipment: shelves, tables, cash register, credit card terminal. If you take credit cards (and you definitely should) keep in mind that the banks will keep 2.5% - 3% of each sale. That's a significant bite out of your profits.
I bet you can find some older threads on this forum that discuss this issue further. If you decide that you're serious about going into business, it would be a good idea to discuss it with an accountant, who can tell you what your tax liabilities would be.