To add a bit to this, you could try beating this guy at his own shtick. He's "making" belts in front of people by adding a buckle to some unfinished, poorly dyed leather.
Have some unfinished projects that you can work on at your stand in front of people to explain how you do things, why they make a difference, and shows the quality of your work. You should also have samples of the different types and thicknesses of leather you work with, samples of dyed leather to show the color options, thread samples, and the various hardware you use. With all of this, you can walk a person through "designing" their own product. Your finished products will give them ideas of the patterns you can do and they can take part in the process by choosing colors, textures, and making some small customizations. If you do carving, have examples of different patterns and you could even offer to do a pattern the customer comes up with. Stamping names would also be a great addition.