Don't make it a big sign, just make is something that they see when the look a the example of the kit.  

No, I definitely wouldn't make it too obvious - but again, not really sure how it would do.

Why not assemble kits while you are there. It would be giving some what of a demonstration and you would be getting work done at the same time. I had a TV at the market when I was selling and always kept a video playing. A lot of people would stop just to watch............ which gave me time to strike up a conversation.
I would sell the patterns separately as well as the kits.

Billy D.

Funnily enough I had another, slightly similar thought: I was planning on trying to run some muppet building classes towards the end of the year, and if I had a basic 'floor model' kit (ie. eyes, noses, pattern, etc), maybe I could take deposits/bookings for those classes. I can have a half-made puppet with me and build between (hopefully) sales, and that should entice people to sign up for the classes. Sound good? - Plus, maybe some packs of eyes and noses and patterns just in case.

I sold at a few fairs and I found success in only selling one or two types of puppets and performed with them to grab attention.  I purchased an inexpensive outdoor craft tent.  I put a few out for people to play with because I found that the more people touched/played with the puppets, the more willing they were to buy it.  I kept my prices the same as my online store for buyers who later wanted to buy but didn't have the cash at the fair so be sure to have your card out and ready to give to people.  I like your idea of doing a class type thing.  I would keep it very simple.  I like how scrapbook stores attract new buyers by making free make and take items to showcase their products.  If you are selling patterns and supplies, this might be good to come up with a very inexpensive demo.  I just did a free make and take at a scrapbook store over the weekend.  They were offering potential buyers to make a free tag.  I made the tag and ended up buying over $100 worth of products in the shop....lol.  This marketing ploy worked on me.  I always fall for this kind of stuff.  The problem with me with selling at fairs is that I would inevitably spend all of my profits on OTHER seller's things.  I have quite the shopping habit.  But it IS fun! 

GOOD LUCK with the fair.  You are going to be great.  Take lots and lots of pictures.

Thanks for the advice Nikole, it really helps.

I think I will keep my puppets the same price as online, so as not to confuse people if they visit and see a price difference (there's already confusion in that online everything I sell has to be in US dollars, thanks to the fact that etsy, etc. all default to US).

In the end, I have decided on the following: selling my shadow puppets, some 'puppet bags' (ie decorated bags with furry features, but possibly - hopefully - can also double as a puppet), perhaps sock puppets (or some recycled-toy puppets, I haven't decided), plus a display of a kit or class that I'll offer later in the year.

My sister has also decided to get involved and will be selling her own handicrafts along with me, which should be fun!

Thanks for the encouragement guys; as always, the best place for advice!