Have an old pillow that you no longer use? Make a dog (or cat) bed out of it!
I chose fabric that coordinated with the rest of the room. Use a pillow case as a pattern to cut two pieces. Baste one edge with right sides together to add a zipper. Sew the rest of the sides, trimming the excess fabric so it's a tight fit. Dog and cat approved.
LLBean's dog beds range from $49-$199.
Cost for mine: $4.