I shop at thrift stores and garage sales, and I purchase a lot of clothes for my toddler this way. Our local thrift store has fill-a-bag sales several times a month. I get her basic clothes, and Church dresses for around $5. This really helps a lot since she grows like a weed. I am also able to find a few things for my husband and myself while shopping these sales.
Last spring we hit a garage sale in a neighboring town. We managed to get most of my daughter's summer wardrobe for a quarter a piece, and they were name-brand clothes in nice condition.
You can find more than just clothes. We've purchased chairs, bookshelves, and various household items. You just need to be willing to look.