I have these great little labels for my bags. I got them from etsy.com seller Custom Couture Label. They are very reasonably priced, and they iron or sew on. They are just printed on -- woven custom labels cost a ton.
The thing is, sometimes it takes a while to get the labels (and actually the store is on vacation right now) and I'm a cheapskate on top of it. So then, I found this awesome tutorial by Allyson Hill on how to make your own. You just go get printable fabric from JoAnn's and design them on your computer. I have already done that because I had to design it to send to the other label maker. I am going to give it a try!
The other bonus is being able to make them into different shapes. I like the square ones for my bags, but for the occasional scarf or garment, I prefer a rectangular one.