So, here's the thing. If you are just making ornaments that get taken out once a year, it's fine to buy the cheap craft felt. That way you can get a whole bunch of colors and patterns for not much money. But if you do alot of one color (I use loads of black and off white) buy it on sale by the yard. You can usually find it on sale for 40-50% off or clip those newspaper coupons! You can also layer the felt. The little Scotties have the patterned felt stitched to two layers of black felt. The beards and hats are two layers. It gives the ornament structure and stability. And if you are sewing by machine, try using machine quilting thread. It's heavier and stronger.
See ya soon, my friends. Have a good evening!