Well here's my 2 cents...
I can understand a yarn shop being a business, and I know some people do take advantage in general of businesses. I can understand wanting to only have yarn purchased in a shop in classes.
What I can't understand:
Needles being purchased there- seriously? I have an Options set already. Why would I spend more money to buy tools I had before I ever knew there was a yarn store there? Yarn you're going to buy again and again- needles- not so much unless they break. I am also quicker working with what I am used to.
Not being direct and posting the policy- something simple like "We're proud of our yarn and we ask that you purchase all project yarn for this class in our store" or even better "Materials included in the fee" (and not offering an option for students to buy the materials somewhere else- anyone wanting that option would have to ask. Substituting other store yarn could also be figured up on a case by case basis. The teacher & the store already have an agreement- splitting up that fee into the teacher's portion for their time and the shop portion for the utilities, space and supplies seems reasonable.) That way Katusha would not have ordered a ton of yarn without realizing what the policy was!
Instead- what seems to happen is you need to somehow figure out the "rules" of the club on your own. If you do bring your own yarn without realizing what you are supposed to do (I would think paying $95 would more than have me covered there) then you're either talked about behind everyone's back in a hush hush way or called out & embarrassed about it. If people had clear communication on what was expected, fair enough- but that's rarely the case with a lot of things, isn't it?
OTN: - Tree of Life afghan, socks, afghan for Dad, Tura Maeve baby dress, alpaca Winter Mountains scarf, Frida poncho
Recently FO- Quinn cabled bag, Evangeline fingerless gloves (2 pairs), Topknot baby hats, pompom & earflap hats, 8 pairs of socks, Baby Folkwear Caftan, Debbie Bliss Baby Shawl (blanket)
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