If you don't know Oriental Trading Co., let me introduce you. This is the company you go to when you want to buy personalized pencils for Sunday School, carnival supplies, theme party decorations, Christmas ornaments to give the kids who participate in your Christmas program, craft supplies, education resources for young kids, and many other things. They have a large Sunday School &VBS section as well as a Fun & Faith section.
One of the things they can provide are simple 14" hand puppets at a good price (8 puppets for only $36). They're machine washable and with a little creativity and velcro you can easily turn them into different Bible characters. They come in many different skin tones and can be used for a million different things from telling Bible stories to enacting life situations. Remember that young kids LOVE to interact with puppets!!