Check out your local Pound Shop, Yellowmoon.org.uk (or Baker Ross), Hawkins Bazzar, Woolworths, sale sections everywhere etc.
I'm always on the look out for bargains but it takes time and effort to dig them out.
My local Tesco's were giving away selling a set of 3 mini felt pens or a four colour biro pen thingy for 10p each last week. I bought 10 of each to save for later! Usual Tesco price 49p.
I got a set containing 10 party bags, 10 invitations and a length of matching bunting at poundstretcher last year all for £1. Those got put away for a later date.
And pound shop have sets of ten pencils, note pads etc all reasonably priced. But you have to go in and check what they have regularly to know if somethings a good deal and decent quality.
So yes if you have the time and the inclination and can shop around then you can do a really decent party bag for around £1.
If you haven't got the time then you will pay a little more and probably have plastic toot in it. Or pay a lot more to have something worth having!
I usually spend around £2 and stuff them too full, but then I love making up party bags
Think about what you want to include and then price it out. I usually have something like:
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Cake (You can get a 'block' cake cheaper if you have lots of party bags)
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Couple of balloons or punchball/rocket balloon and/or party poppers
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Stickers (buy a pack of sticker rolls and then cut them up - £3 for 9 rolls at woolies)
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lollypop (cheap packs at pound shop)
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Choc bar (such as frogger)
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pencil pen/notebook (from poundshop)
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'toy' - whatever you can get cheaply (whistle, bouncy ball, bubbles, car, bugs etc - yes I have ds!). Aim to spend no more than 25p.
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Don't forget to cost in the price of the bags and napkins to wrap the cake in. Your reasonably priced part bag can suddenly go through the roof otherwise!
Gilly