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In this video tutorial, Bailey discusses how to obtain free 4x6 inch labels for thermal printers. He explains that previously, he was hesitant to purchase a thermal printer due to the cost of the labels, but found a way to get them for free. By getting the labels for free, he decided to invest in a thermal printer because it would be more cost-effective in the long run. The 4x6 inch labels have adhesive backing, making them easy to apply to packages.