First rule of thumb, use what you can afford for the projects you want to make. When our Walmart had a fabric section I bought lots of fabric from the discount bin to make clothes for myself and the kids. It was what I could afford that the time.
I made rag quilts with denim on one side about 14 years ago. I approached a local thrift shop and asked them to set aside jeans that they could not sell. I got a huge box a couple months later. They would not give me a price, so I made a $15.00 donation.
Many people make wonderful quilts out of old shirts.
I live in Canada where fabric prices are much higher than in the USA.
I was at my LQS yesterday and bought fabrics ranging in price from $16.00 to $18.50 per metre (about 40 inches). The had a special of 20 % off everything in the store, plus a Valentines Day balloon pop. I got an extra 15% off with the balloon pop, so a total discount of 35%. I bought 8 metres of fabric.
The Batik specialty LQS charges closer to $20.00 per metre, but each month has a colourway that is 25% off, bringing the cost down to $15.00/m
However precuts are pretty much the same price in Canada as the USA, although I have never seen prices that match the Missouri Star Daily Deal.
I have bought and used precuts, especially when I love a line, or as I am somewhat colour challenged, it is great to have all co-ordinating from the start.
However I am making my son a red, white and black quilt. I bought yardage, even though the pattern Jungle Fever, calls for precuts. I wanted lots and lots of variety in the prints I am using. I just cut my own 10 inch squares for this project.
For this project I wanted to use the best quality of fabric I could afford. I shopped for over a year, trying my best to shop sale bins at the LQS. This is his graduation quilt, so I am happy to spend a bit extra on it.
I buy fabric at my LQS, and quilt shows. Our local fabric chain store Fabricland, has quilting fabrics, but they are coarser than the LQS fabrics. Interestingly there is a LQS in the Fabricland and they sell quality brand name quilt fabrics.
I will be in Seattle next month and hope to be able to check out a quilt store, but as I will be traveling with my non sewing friend, I am not sure that I will have a chance.