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In addition to what NatashasNovember said, also try Oriental Trading Company. I just got their wedding edition of the catalog and they had a ton of paper lanterns in there.
Also try the Weddingbee Classifieds.
Thank you for all of the input and I've looked and looked and it seems a dollar or more is the going rate. :( boo but I guess its not bad seeing as how I only need about 2 dozen.
I got mine on clearance at Target after Christmas, 90 cents for 2, 6.5inch lanterns. Small but our venue has low ceilings. Keep an eye out after Valentine's day maybe.
I got mine from Oriental Trading Company as well, but that is because I wanted bigger ones (like 20inch, 16, 14.)
But seriously, check every other day on craigslist. I sold mine on CL after my wedding & that same day had multiple people interested - they go fast!
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Does anyone know where I can get paper lanterns cheap! I found them at a dollar a piece but that doesn't seem like a deal at all !!