One of my favorite ways to save money on children's clothes and toys, is by shopping at consignment sales. If your area is anything like the area that I live in, there is probably a consignment sale at least once every year. We are so lucky as to have four sales every year, two in the fall and two in the spring. I have been able to find tons of great things at these sales.
Many times at the end of the sale, there will be a discount day. These are the days that you can really rack up, but you do take your chances. If you wait until the last day, all of the good stuff may already be gone.
My strategy is to visit the sale when it first opens, and check everything out. If there is something that we really need, and I see it at a good price, I will go ahead and pick it up. I don't like to chance it, if it is a good deal. However, if there are things that I would really LIKE to get (notice I said like and not need) then I will wait until the discount day and if they are still there, pick them up then.
One other interesting thing I have found, you would be surprised to see how many items are new in the box, or still have tags on them at these sales.
So, check your local paper, or google consignment sale and your city to see what comes up. Good Luck!!