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Bailey discusses how to get free 4x6 inch labels for a thermal printer, which can be a cost-effective alternative to buying labels. He explains that he was initially hesitant to purchase a thermal printer due to the expense of labels but found a way to get them for free. By utilizing these free labels, Bailey believes that investing in a thermal printer is worthwhile in the long run. The 4x6 inch labels have adhesive on the back, making them easy to apply to packages.