Did you know that 60% of shoppers say price is the biggest factor in their buying decisions?
That means how you price your products directly affects whether your customers buy from you or walk away.
So if your pricing isn’t working, your business probably isn’t either. And yet for many independent fabric shop owners, pricing is still a guessing game.
You might be sticking a label on a bolt based on gut instinct or old habits, hoping it’s enough to cover your costs and still move off the shelf. Maybe you haven’t raised prices in a while, or maybe you’ve tried to match the big chains just to stay competitive.
The right pricing strategy can help you attract loyal shoppers, move inventory more efficiently, and make sure you’re not leaving money on the table.
Let’s walk through why pricing matters in your fabric store — and explore some retail pricing strategies to help your business be more profitable.
The definition of pricing may seem plain and simple — the cost of an item.
But in retail, it’s also about how your customers perceive its value. Pricing sends a message about your brand, your expertise, and the kind of shopping experience you offer.
It also impacts how much you take home after covering everything it takes to keep your store running — from rent and utilities to payroll, shipping, and all the other pieces that keep your doors open.
Getting your retail pricing strategy right helps you:
In other words, your pricing lets you run your fabric store with intention, instead of constantly reacting or playing catch-up. And when you get it right, it’s one of the best ways to grow sustainably.
Related Read: Are Fabric Stores Profitable? 7 Factors To Consider
Pricing isn’t always straightforward, and even seasoned shop owners can slip up. Here are a few common pricing mistakes to watch out for.
Many fabric stores use a flat markup — doubling the wholesale cost, for example — across the board. That’s a good starting point, but it typically leaves out the full cost of doing business.
Shipping, shop supplies, employee hours, markdowns — they all cut into your profit.
If you’re not tracking those costs closely, you may be underpricing your inventory without even realizing it.
Lowering your prices to match chain stores can seem like the only way to survive. But trying to compete with big-box stores on price alone usually ends up hurting small shops.
Instead, lean into what makes your store different — a curated selection, personal service, in-store expertise, and a strong sense of community.
Some fabrics are high volume and price-sensitive, like basics and solids. Others have a smaller audience but higher perceived value, like imported linens, designer prints, and seasonal novelties.
They should be priced differently. If you’re applying the same markup across the board, you’re likely leaving profit on the table.
Wholesale prices change. Freight costs get more expensive. Rent goes up. But if your prices stay the same month after month, your margins slowly shrink.
It’s easy to forget to revisit your pricing, especially when you’re busy. Still, it’s important to do so if you want to keep your store profitable.
Now let’s talk about what does work. These strategies were designed with real fabric store owners in mind, and most are easy to put into action — especially with the help of a solid point of sale (POS) system.
Keystone pricing (doubling your wholesale cost) is a helpful benchmark, but don’t stop there.
You can and should adjust your markup based on the type of product and how it sells:
Use your store’s data to guide you. Your POS system can show you which products deserve a higher margin and which ones are better priced to move quickly.
Not only are kits, fat quarter packs, and seasonal project bundles convenient for your customers, they also help you move multiple items in a single sale.
Bundling gives you a chance to pair slower-moving inventory with bestsellers, so you can clear your shelves while still offering a great experience. The key is to price your bundles just below their total retail value. That way, shoppers feel like they’re getting a deal, and you still protect your margins.
Your loyal customers are the heart of your business. Why not give them a reason to keep coming back?
A loyalty program is a meaningful gesture to thank them for choosing you over big-box stores or online retailers.
Something as easy as earning points for every dollar spent or getting $5 off for every $100 you spend can go a long way.
With a POS system made specifically for fabric stores, you can track it all automatically. Research shows that when customers are enrolled in a loyalty program, they shop more often, spend a little more, and tend to stick around for the long haul.
Got a few bolts that have been sitting untouched for months? Every store has some slow movers, but you can use your pricing strategy to help clear space and keep your inventory fresh.
Tap into data from your POS system to find out what’s not moving. From there, decide whether to mark those items down, bundle them with popular products, or toss them into a fun mystery scrap-bag bin. The goal is to make room for the fabrics your customers do want.
Related Read: 4 Inventory Management Best Practices for Quilt and Sewing Stores
There’s a reason so many prices end in .99 or .95 — customers tend to perceive them as lower, even if the difference is just a penny. Don’t be afraid to test small changes, like $14.99 instead of $15, or $4.50 instead of $5 — especially on high-volume items.
Timing matters.
Think ahead to school breaks, quilt show season, and holiday crafting rushes. Running targeted sales during those windows helps you ride the wave of demand without having to deeply discount just to get attention.
Set aside time each month to look at your POS data. A quick monthly review of your margin reports can show you:
This helps you avoid overordering, underpricing, and other hidden profit killers.
If you’re still managing your pricing manually, you know that doing it all by hand can be overwhelming.
That’s where Like Sew, a POS system built specifically for fabric stores, comes in.
With our all-in-one POS solution, you can:
Want to know how it works? Schedule a demo today to see how managing pricing (and the rest of your business) gets easier when your tools are tailored to your fabric store.