Brannon,
I just took a look into my 2009 Barlows Tackle supply catalog:
www.barlowstackle.com
They have full tanned rabbit skins, already dyed in a range of colors, for $5.95 each. Other suppliers sell them for about the same.
I'd not discourage anyone from 'doing it yourself'....but I'd think about he mess, effort, and cost of dyeing to save $2 before I did it (unless you need a LOT of one color, of course).
Buddy