If you have finally gotten down your ingredients for your products right and production figured out, the next thing you need to think about is labels. Labels will give a face, so to speak, to your products. They will help to differentiate it from the other products on the shelf and give it a unique identity so you need to be careful to get it right. Premium labels are a cut above the rest, and the elevation that your product needs.
All files must incorporate a 1/8" bleed on all four sides.
"Bleed" is a printing term used to indicate the area that will be trimmed off after the job is printed and cut down to the finished size. Since the bleed extends 1/8" all around the card, your document set-up should be 1/4" taller (1/8" on top and 1/8" on the bottom) and 1/4" wider (1/8" on the left and 1/8" on the right) than the finished size of the card. The chart below indicates what the document set-up should be for a particular finished size.