So your boss has asked you to source the cheapest solution for printing the company address labels, easy!  Buy the cheapest printer recommended for address label printing right?  You now need to ask yourself, what about the cost of the labels?
There are specialist printers on the market for printing address labels that are cheap and cheerful, such as the Dymo LabelWriter series.  These printers may start at around the £80 mark, however the labels for these printers are massively expensive.
For example, for 260 labels for a Dymo LabelWriter printer you are looking at an approximate cost of £15.29 However with AM Labels Direct Thermal Labels and Direct Thermal printer such as the Zebra GK420d or Zebra LP2844, you can buy 10,000 labels for £48.60.
Cost per 1000
Dymo - £58.80 (based on 89 x 36mm label)
AM Labels - £4.86 (based on 101mm x 51mm label)
Comparison
AM Labels

Product Price
Zebra GK420d £195.00
10,000 Direct Thermal Labels £48.60
   

Total: £243.60

Dymo

Product Price
Dymo LabelWriter 450 printer £79.99
10,000 Dymo Address Labels £588.00
   

Total: £667.99

Pricing valid as of December 2009, please call sales for a quote. Prices exclude VAT