Yes…I frequently use black nail polish to cover branding on glasses & sunglasses! I just think it’s tacky in general
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I can tell you’re not a guy. All old towels find their way to my shop or my vehicles.
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Ditto on the small black makeup towels. A guest told us about them (available at Amazon) and ever since we started putting them in the bathrooms, the amount of weird stains on our white towels has been dramatically reduced.
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Those large floppy tags used to bother me too, then I noticed that if I took a moment to fold the tags up when the towels are folded into thirds lengthwise and then in half and in half again (as hotels do) the tags stay in place and never hang down. End of problem. And yes, guests can see they are using quality towels. But for tablecloths, I find the only solution is to carefully cut them out with scissors.
I have four beds in my listing - one king, one queen, and two twin beds. The king and twin beds have solid white sheets and the queen has sheets with a subtle white-on-white stripe. This makes it super easy to tell which sheets are which - the twin and king sheets are so different in size there is no way for me to mix them up, and the queen sheets have that stripe so I can spot them right away in the stack.
I’ve done the same thing with my white cotton blankets - the queen blanket is a slightly different pattern than the twin and king blankets so I can tell them apart at a glance.
Edit: I just realized that @RebeccaF said the same thing! Great minds…
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I’m very proud of my Royal Doulton bed linen, and the RD labels peeking out from the visible edgings. So no, don’t cut the labels off those. The big floppy ones on the towels? No I don’t bother cutting them off either. Just when I fold them for presentation, I ensure the label is deep inside the folding and not on a visible edge. I roll my face cloths and poke them into a vintage tub, and also ensure the labels are at the bottom, not visible. OCD yes but slightly less…
I also have colors, only a couple of white washcloths, but have run into problems with what I have finally determined to be facial cleansers for oily skin that bleach. And the one time I noticed makeup, they had used a white washcloth! 
In European Community countries, there are about 12 languages, so guess what? The labels are in all those languages. I counted 6 LARGE tags on gloves I just bought my husband. I cut my (mostly IKEA) labels off, only leaving the care instructions that also has info about the product.
I cut the labels off towels. They look MUCH nicer hanging there w/out labels sticking out.
Keep labels on all the bedding. I can review it when I need to replace them. They don’t stick out.
White sheets only. Any other color feels ‘yucky and unclean’ when you get into bed. Hard to tell if a colored sheet is actually clean.
Towels are different than sheets. White towels will show any stain. A friend who is head of housekeeping for a major hotel chain said that hotels can do white towels because they use a commercial bleach that will eat your hands off. Seriously. Not available to us normal folks. Dark grey towels look very nice, hide small stains. Black washcloths, labeled “makeup”. Dark grey washcloths work well too.
Do not go with black towels (other than makeup washcloths) because they show every tiny hair, lint, white spec…they always look dirty.
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@dpfromva thanks, I need to buy extra. they befriend my socks and god knows where they disappear.
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I always pull them because they always flop out when I’m staging. Time is of the essense and the details are everything
Any other color feels yucky and unclean to you. I’ve never used white sheets in my life, and it’s quite easy to tell if a sheet is clean, no matter what color it is. You are welcome to your preference, but it’s not some universal truth.
My guests have told me they love the colored sheets and patterened pillowcases I use.
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I don’t like white towels particularly but agree that something you can bleach is a necessity!!! But I think I will have to move to dark hand towels as the number of women who leave make-up stains is crazy and I get tired of bleaching the hand towels every time. (they wash out but often leave a small mark that wouldn’t show up on navy blue for example)
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My guests are mostly men. However lint is a big problem here! Just ordered a new washer and dryer…
I am driving myself crazy. It’s spot day today. The Dyson vac clone is acting up, so I am mopping the floor by hand. There’s a hidden spot on the hardwood that must be managed. So there’s damp rags everywhere. What can I say? It’s snowing out!
LOL. I must confess, I usually cut them out, but didn’t do so with the Laura Ashley linen (new year sale bargain … £40 down from £129)
I have never bothered to remove them and I buy a medium quality towel. Given my price point and the guests I’ve met since 2012, I doubt any are paying attention to the labels. I have three rooms and use different colored towels in each room. This works well for shared bath so that I know if a checked out guest has left a damp towel in the bathroom.