I just had to respond to this. I bought flannel at my local quilt shop(paid a little more than what I wanted to spend for it) and made a beautiful rag quilt for my Grandson. I decided to make one for the other grandkids and went to JoAnns and bought cheaper flannel and not as costly. Well...I had the same problem you did with the cheaper flannel...PILLS!! After much research and investigation, I found out that there are different grades of flannel and it pays to buy the better stuff at your LQS. It also helps to quilt or embroider in each square of the quilt. You can just sew an X if you want. This little bit of stitching helps keep the flannel from pilling when it is agitated in the washer. Buy the best flannel you can afford. It is usually a heavy weight and most LQS carry the better fabric. Hope this helps.