Making Labels. Any Suggestions!

I got some pretty good suggestions already via email (thank you!) and I am in the process of thoroughly researching all options. More ideas are still welcome. Once I have accumulated all the information I will post it, should anyone else have this dilemma.

Stumbled on this and have to ling it before I forget it FUTUREGIRL , and what a clever girl she is!

HELP!

If anybody passes by this way and has a suggestion please email me as I am now desperate.
I want to make my own labels for my items. The main reason is cost. I don't have $600 dollars for the smallest quantity of labels(500) which was the average quoted by local and major label makers.
If I had $600 I would buy an industrial machine so that it wouldn't take so long to produce 100 bags.

I am open to thinking outside the box as long as its feasible and looks good. It can be a flat sewn on label or a fold over that gets attached into seams. It can be something I haven't even fathomed before.

I have so far tried print at home labels on printable fabric. Good quality printable fabric too.
This is great as long as you don't wash the item. My items need to be wash eventually.
I don't mind tedious either. I am queen of tedious!

I hope some fabulous blogger passes by and knows the answer to my dilemma or can steer me to some one that does.
Until I figure out a solution I am at a standstill. Ahh the joys of creating nunde!
The funny thing is. This is my first true creating nunde post relating to nunde creations:)

Please feel free to email me melanie@nunde.com.au with your suggestions! Thank you:)