I've been told the same thing at 3 different Hobby Lobby stores: Any item that is on sale can be sold at regular price minus 40% with the coupon. The savings of that extra 10% on the cotton fabric is usually less than a dollar per yard, so unless I'm buying a large piece of fabric, or it's particularly expensive (such as the decorator fabrics), I usually prefer to use the 40% coupon on a more costly item. Another thing worth noting, if you live close enough to go frequently, is the online coupon says "One per customer per day".