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While this isn't AS/400-specific, it may have bearing.

Years ago, when we still did a lot of mailings (and were ruining laser
printer cartridges by repeatedly running partially-used sheets of laser
labels for one-offs), we looked into a dedicated label printer, but (given
my very low opinion of direct thermal printing for anything other than
very-low-traffic FAX machines) dismissed the idea, opting instead for a
cheap 9" carriage pull-tractor (or maybe it's dual-tractor?) dot-matrix
line printer. One-up label stock for those things is slightly cheaper than
dirt, and if you add alignment marks, it's easy enough to roll the label
up enough to peel it off, then roll it back down.

--
JHHL



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