How does Connecting Thread sell so inexpensively?
 

I have bought from CT for some years now and I receive their magazine and I always wonder how they can sell everything for such a great price. I think they manufacture their own fabric, right? Do they also manufacture their thread? And what about all the books? They are such a great price!!!! Anyone knows about their pricing and how they can stay in business? I love them and use them always and know lots of you do too.

when a store is (large enough) they can order in bulk and get better deals---they may order 500 yds of something (where the lqs could only order 30 yds---they get a much better price than the quilt shop will get- same goes for books, notions ect-
the supply companies have different price ranges based on amount purchased- so if an lqs buys 5 of one book (or one of a book) they will pay almost as much as they sell it to us for- if the store can buy 20+ of the same title they get a much better price- and some pass that savings on to their customers- same reason the big-box stores can sell the same items for less- they buy larger lots of the items...get better prices.

This is just my personal opinion, but selling online is SO much cheaper than selling in a storefront. My guess it is a good marketing strategy to sell low and sell quantity. The online shops that try to sell at LQS prices undoubtedly sell much less unless it it free shipping. When you add shipping to the product you often pay more than at a local shop.

I don't know about their manufacturing their own, I think they just have their name put on the fabrics...perhaps they do some design work. It is like buying a generic brand at the grocery store...they don't make their own ketchup, some other company - often a name brand Co. will make it and label it for them.

By selling on line they can not only sell to the city they are in but all over the world. Their cost are down so they can pass that on even better than the warehouses do who sell to the public. They offer great customer service from what I hear so it helps keep their sales up. They can just meet supply and demand; buy in bulk and pass on the savings to us lucky customers. To be honest; I really don't care how they do it as long as they keep on doing it and the quality does it. I just wish alot more would jump on the band wagon and do it as well.

Couple of things to keep in mind. They do have their fabric line and threads manufactured for them, to they do not have to go through a warehouse/distributor to order those - one less markup. They probably also buy their books directly from the publisher - one less mark up. Quilt Shops are ordering Fabrics/Books/Notions, etc. from a Distributor therefore they are paying an additional markup that in itself is a HUGE difference.

An internet only shop does not have to pay for: Rent, utilities, liability insurance, employees, etc.
While you may (or may not) get a better price on items from internet only shops - you also do not get any of their expertise: Help with a pattern/fabric choices, nor can you go in an look around when you just need to get out of the house or have some adult company who understands your hobbies and can put you in a much better mood

"While you may (or may not) get a better price on items from internet only shops - you also do not get any of their expertise: Help with a pattern/fabric choices, nor can you go in an look around when you just need to get out of the house or have some adult company who understands your hobbies and can put you in a much better mood "

Very good points. My LQS knows me (at least by sight) and are not offended when I say I just need to look at fabric. They have been so helpful in finding co-ordinating fabric, etc.

As much as I like buying on line I made a vow to try to use my LQS as much as possible thisyear. I would hate for it to go out of business.

I don't know all the financials about how they can sell so inexpensively, I am just so glad that they can!!!

First off, I love CT and find myself buying more and more from them. They have their own designers and apparently deal directly with the fabric manufacturers to make fabrics to their specifications. The quality is good, but the designs are not as spectacular and color-rich as from some of the top fabric makers. They typically use few colors, often only two or three. I think we may be seeing a change in this soon, since they've signed Jody Houghton with the Sisterhood of Quilters line. (See my earlier post - http://www.quiltingboard.com/main-f1...c-t156878.html.) But the point is, they are paying less for their fabrics, partly because of simpler printing. Then they have cut out most of the chain of people who add to the cost, and they sell only online. I have several LQS to choose from, but they can't match the selection or the price that I can get online, and frankly I get more inspiration and help online (and from the guilds and quilt shows) than I do from the LQS. That's sad, but I guess it's a sign of the times.

CT has moved production of fabric out of the US, so that has kept costs down. I'm not particularly thrilled with the quality of fabric or thread, but you get what you pay for in that sense. Any business that doesn't have store fronts will be able to have lower costs than a brick and mortar establishment.

Buying in bulk and also having the whole world online to sell to unlike just locally with a few hundred or thousand potential customers. Online you literally have millions of potential customers.