Early on I was involved in a fabric square exchange, and was incensed that people said, "No chain store fabric." I didn't realize the difference in quality between the big chain stores' fabric and the fabric in LQS...but wow, I certainly understand it now! The chain stores' fabric, at low prices, is harsher to touch, and much, much thinner than the LQS fabric. While I wait for special sales when I can, I do think it's worth the LQS prices for fabric. Our LQS had all 44" fabric at $6/yd last Black Friday from 6am to 7am...I bought a lot then!! And other local quilt stores give 30% off on the 30th, or a 20% discount on your birthday...
Notions--rulers, needles, etc.--I'll get with coupons at the chain stores. Thread: used to go Coates and Clark, but am gradually changing to Mettler, Gutterman, King Tut because those seem to tangle less, break less, and create much less lint. I bought cheap cone thread once...gave it away. That was awful stuff.