You can make a wide variety of inexpensive crafts for craft fairs. Usually, smaller items are less expensive to make and you can produce them faster. Do your homework and find out what items will sell well at your particular craft fair. For example, ribbon hair circlets may sell better at Renaissance fairs than at juried craft fairs. Keep in mind that while inexpensive crafts are easier to sell, you have to sell more of them to cover costs and make a profit. The lower price point, however, can bring in customers who may also buy higher-priced items.
Jewellery can be inexpensive to make. For example, make earrings with beads. You can purchase a box of earring wires at craft stores and it takes very few beads strung on a pin and attached to the wire to make nice earrings. Most knit and crochet jewellery patterns work up quickly using inexpensive materials. Crochet lacy earrings with cotton thread, or knit or crochet other jewellery items, like necklaces, using wire.
Christmas ornaments are always a good choice for holiday craft fairs. Many free crochet patterns for Christmas ornaments are available on the Internet. Crochet a cute ice skate ornament that uses large paper clips for the blades. Or crochet lacy stitches with thread to cover round glass ornaments. Another option is to decorate unadorned round glass ornaments by painting them.
Bookmarks are inexpensive to make and also can be good sellers. Many books and Internet sites have crocheted bookmark patterns. Choose a knit or crochet stitch that you like and make a repeat of the stitch about 2 inches wide and 6 to 7 inches long. Add a little tassel and maybe some starch. You could also make simple bookmarks with a few pretty beads strung on each end of a cord and knotted to stay in place.
Children often have their own money to spend and might be interested in buying knitted or crocheted finger puppets. Crocheted finger puppets can be fast and easy to make with a few inexpensive materials. You could crochet a small circle with yarn and then crochet one stitch in each stitch until it forms a tube long enough to fit a child's finger. Embroider eyes and add a few bits of fringe for hair.
Scarves take a bit more time, but if you use big needles or hooks, you can knit or crochet really nice, lacy scarves using only one ball of yarn each. If you crochet fast and use a Q crochet hook, you can make a scarf in less than two hours. You also can make scarves from old sweaters by felting them, cutting the felted fabric into squares and sewing them together. Decorate with flowers cut from other felted material.