Hi Mark. I agree with everything you said. Most of the things I make are quite quick to churn out but people like what i produce. My number 1 seller is a set of 3 penguins and my second best seller is name signs, I have about a dozen on display and take orders but because a lot of people are quite thick I have to put signs up for everything, like "orders taken," I did some animal jigsaws and weeks went by without selling many, as soon as I put a sign by them saying, ANIMAL JIGSAWS, they sold a lot quicker. Don't hand write signs, it cheapens the products, print them out on the computer on cream coloured card and also print your prices out the same way, you can put a price by each item very easily and always end the price with 95, like £5-95 or £7-95, to the customer its £7 but to you its an extra quid in your pocket.
I would be careful with free hand routing, its not as easy as it looks. In your shoes I would make a template you can fix the the wood and follow it round with a guide bush on the bottom of the router, you can produce a lot of things quite quickly this way.
I know people that do it full time but they have other people behind them making the stuff, I am a one man band, i do the designing, the cutting, the finishing and the selling. I even make the tea. We are going through a hard time Mark and although people like what they see its either spend £10 with me or put food on the table or pay a bill. There are of course people with spare cash and thats where I make most of the money.
I will give you a good tip Mark when you are doing craft fairs. When people are standing at your stall looking at what you have made you have to break the ice, you need to have a way of putting potential customers at ease and the easiest way is if they are looking at a particular item on your table is to tell them what sort of wood its made from or something like, "everyone loves loves," straight away you have put the customer at ease and this gives them the confidence to buy. Also have raised displays, you can go 3 or 4 feet above the table if you like, people like to be in eye contact with what they are looking at and the more variety you have the more you will sell. If you want some simple patterns i can e-mail you some and I can show you some of my displays to give you an idea.