1. Would you be more likely to buy a paper pattern with good instructions or 9 - 12" already printed blocks?
Paper
2. If you chose the paper, would you want it to be for painting or for applique?
I'd offer both, because you are going to have those that love the idea, but can't applique, but maybe they are painters or colored pen crafter's. There also might be a market for embroidery.
3. No matter which you chose, what would you expect the cost to be?
10.00 for applique
15.00 for paint and applique.