I just spoke with a client and I was having a hard time telling him about bleeds. Which is extra color that… well, if your color goes to the edge of the label… see? Bleed means simply that a color, image or whatever it is on your label goes past the die line (cut line). Also, most people who design their own label don’t know about the 1/16th of an inch from the die line. That’s so we don’t cut off important stuff on the label and everything looks symmetrical. Here’s an example:
Of course, this is a great label but it also applies to simple labels too! We like to also tell clients that we would like the fonts outlined or at least include them with the file you give us.