Some here print out the colored labels onto prewashed fabric, (no fabric softener) and then hand embroider over the letters. This is permanent and less expensive.
You iron the prewashed and pressed fabric onto freezer paper, cutting the paper and fabric 1/2" larger. Once the fabric is ironed onto the paper, trim to 8 1/2" X 11". This keeps the edges nice and clean, no fraying to get caught in the printer :D:D:D