Use this article when you are configuring a custom finishing or binding step and need to choose how it should be priced. After this you will know which of the six step price models fits which kind of operation, what each one computes, and what numbers will appear in the price breakdown.
What a step price model is
A step price model is the cost formula for a single production step that does not ride on one of the built-in machine tabs (press, cut, fold, bind, laminate). It tells Estimator how to turn the spec on the quote — quantity, finished size, materials, time — into a base cost for that one step. The customer-facing surface lives under Finishing Machines or Binding Machines in Estimate Setup, in the Custom (Price Model) sub-menu. You pick one of six model types when you create the record, then fill in the rates that drive the formula.
The shop chooses the model that best matches how the work actually behaves. A flat per-copy add-on is not the same shape of cost as a machine-hour-driven hand-finishing station, and Estimator gives you a separate formula for each.
Where step price models sit in the calculation chain
The step price model produces the base cost for one step. Estimator runs the formula, splits the result across the cost buckets — Substrate, Other Material, Labor, Machine, Outwork, Delivery — and stores those bucket values on the step. After that, three more layers run on top:
Bucket markups apply to each bucket as a percentage uplift.
The price adjustment model rolls the marked-up buckets into the final selling price using either Value-Added percentage, Value-Added per press hour, or Gross Profit percentage. See the sibling Concept article on how price adjustment models work for the full method.
Pricing rules and rebates apply last, on top of the price adjustment result.
That ordering matters for picking a model. If a step belongs in the Machine bucket, the markup will be the Machine markup; choosing a model that routes its cost into Labor instead would mark it up with a different rate. Each model below describes which bucket its output lands in by default, and how a manual bucket override can move it.
The six step price models
Model 1: Setup + Per Unit
When to use. Simple add-ons with a fixed setup charge plus a flat unit rate. Northgate Press configures this for 19 Hole GBC Bind, 3 Ring Binding, Corner Rounding, Drilling, Scoring, Shrink Wrap, Rubber Band, Paper Band, and the per-job Artwork Check Fee.
The formula.
units = quantity, unless Cost Basis is Per Job (units = 1)
or Add-On Quantity is set (units = that number)
laborCost = setupCostLabor + units × costPerUnitLabor
machineCost = setupCostMachine + units × costPerUnitMachine
materialCost = units × costPerUnitMaterial
totalCost = laborCost + machineCost + materialCost
Worked example. A binding-line operator runs a job of 1,000 copies with setup labor €30, setup machine €20, per-unit labor €0.50, per-unit machine €0.30, per-unit material €1.20.
laborCost = 30 + (1,000 × 0.50) = €530.00
machineCost = 20 + (1,000 × 0.30) = €320.00
materialCost = 1,000 × 1.20 = €1,200.00
totalCost = 530 + 320 + 1,200 = €2,050.00
A Per-Job variant of the same shape (the Artwork Check Fee, with setup labor €25 and quantity ignored) prices the step at a flat €25 no matter how many copies are ordered.
What appears in the price breakdown. Three lines under the step: Labor, Machine, Other Material. Each lands in its matching bucket and gets that bucket's markup.
Model 2: Machine Labor Time
When to use. Time-driven steps where the operator and the machine run at a known speed. Northgate Press uses this for the Booklet Maker, Folding (Stahl), the Guillotine Cutter add-on, Saddle Stitching as a custom step, Die Cutting, and Collate Notepads.
The formula.
runTime = quantity / runningSpeed (hours, runningSpeed in units per hour) totalTime = setupTimeHours + runTime laborCost = totalTime × laborRatePerHour machineCost = totalTime × machineRatePerHour totalCost = laborCost + machineCost
Worked example. Setup time 2.0 h, running speed 500 units/hour, labor rate €50/h, machine rate €25/h, quantity 1,000.
runTime = 1,000 / 500 = 2.0 h
totalTime = 2.0 + 2.0 = 4.0 h
laborCost = 4.0 × 50 = €200.00
machineCost = 4.0 × 25 = €100.00
totalCost = 200 + 100 = €300.00
If a Cost basis of Per Job is selected, the run portion drops to a single unit. The same rates against quantity 100 would price runTime = 1/100 = 0.01 h, totalTime = 2.01 h, total cost €60.30 — a useful shape for one-off make-readies that should not scale with copy count.
What appears in the price breakdown. A Labor line and a Machine line under the step. A bucket override on the model can push the whole total into Other Material instead — for example, when the shop wants the time-based outsourced step to mark up at the material rate, not the labor rate.
Model 3: Time & Materials
When to use. Operations where both run time and a consumable matter. Northgate Press configures this for Digital Lamination, Mounting, Offline Coating, On-Press Coating, Ribbon, Polybagging, Tabbing, Mailing (not postage), TOPO Spot Varnish, Hard Cover Production, Envelope Printing, and Zünd G3 Cut.
The formula.
runTime = quantity / runningSpeed totalTime = setupTimeHours + runTime laborCost = totalTime × laborRatePerHour machineCost = totalTime × machineRatePerHour baseMaterial = quantity × materialPrice[selectedMaterial] wastage = baseMaterial × (wastagePercent / 100) materialCost = baseMaterial + wastage totalCost = laborCost + machineCost + materialCost
Worked example. A 200-copy job through a lamination step: setup time 1.0 h, running speed 100/h, labor €40/h, machine €20/h, wastage 10%, material price €2.00 per copy.
runTime = 200 / 100 = 2.0 h
totalTime = 1.0 + 2.0 = 3.0 h
laborCost = 3.0 × 40 = €120.00
machineCost = 3.0 × 20 = €60.00
baseMaterial = 200 × 2.0 = €400.00
wastage = 400 × 0.10 = €40.00
materialCost = 400 + 40 = €440.00
totalCost = 120 + 60 + 440 = €620.00
A Per Sheet cost basis switches the multiplier from quantity to press-sheet count and lets the model price the consumable by sheet area, optionally adjusted by a coverage percent (the ink-coverage feel — 50% coverage halves the material draw). That is how Northgate Press' Offline Coating step prices coating fluid against the press-sheet area while still tracking labor and machine time on the run.
What appears in the price breakdown. Labor, Machine, and Other Material lines. The wastage is rolled into the material line, not shown as a separate row.
Model 4: Tiered Rate
When to use. Outsourced or volume-priced steps where the unit rate steps down (or up) as quantity grows. Northgate Press configures Hard Cover Binding and Carriage this way. This is the only step price model that exposes a quantity-tiered table.
The formula.
For each row in the tier table (sorted by minQuantity): if minQuantity <= quantity <= maxQuantity → use this row else if quantity is above every maxQuantity → use the highest row units = quantity, unless Cost Basis is Per Job (units = 1) totalCost = fixedCost + (units / 1000) × ratePerThousand
Worked example. A two-row table for a cutting step:
Quantity range | Fixed cost | Rate per 1,000 |
1–1,000 | €100 | €50 |
1,001–1,500 | €0 | €80 |
For a quantity of 1,800 copies, the value exceeds the top row's max, so Estimator stays on the highest row (rate €80) and computes:
totalCost = 0 + (1,800 / 1,000) × 80 = €144.00
For a quantity of 5,000 copies on a Per-Job row (fixed €100, rate €50 per 1,000), the units value forces to 1 and the cost becomes 100 + (1/1000) × 50 = €100.05 — a flat per-job tier with a tiny per-unit nudge.
What appears in the price breakdown. A single Outwork line by default — this model presumes outsourced work — though a bucket override lets the model land in Machine, Labor, or Other Material when the tiered step is actually in-house.
Model 5: Perimeter + Unit Based
When to use. Cost that follows the finished piece's edge length, or a counted add-on the operator enters on the quote. Northgate Press configures this for Banner Hemming, Pole Pocket (Top & Bottom), Edge Tape, and Grommets. The model has two cost-basis modes that drive the variable cost differently.
The formula — Per Unit Added.
units = quantity (or AddOn Quantity × quantity when set per copy) variableCost = costPerUnitAdded × units totalCost = setupCost + variableCost
The formula — Per Unit Length.
perimeter = 2 × (finishedWidth + finishedHeight) (mm or in, per shop unit) perimeterMeters = perimeter / 1000 (metric) variableCost = costPerUnitLength × perimeterUnit × quantity totalCost = setupCost + variableCost
Worked example — Per Unit Added (grommets). Setup €50, cost per unit added €10, the operator enters 4 grommets per piece, run of 100 posters.
variableCost = 10 × 4 × 100 = €4,000.00
totalCost = 50 + 4,000 = €4,050.00
Worked example — Per Unit Length (banner hemming). Setup €25, cost per unit length €2.50, finished size 300 mm × 400 mm, quantity 10.
perimeter = 2 × (300 + 400) = 1,400 mm = 1.4 m
variableCost = 2.5 × 1.4 × 10 = €35.00
totalCost = 25 + 35 = €60.00
What appears in the price breakdown. A single Other Material line by default — the model treats edge-applied finishing as a material cost. The setup portion is captured but does not show as a separate row.
Model 6: Length & Speed
When to use. Length-driven production where running speed depends on the substrate or material profile. Northgate Press does not configure this as a standalone in the seeded snapshot — the Zünd G3 Cut entry lives under Time & Materials with a per-substrate speed table — but the model is the right shape for CNC knife cutters, routers, and laser tables when speed varies by material code (acrylic 5 mm vs Foamex 3 mm vs Correx 6 mm).
The formula.
perimeter = 2 × (finishedWidth + finishedHeight) (mm per piece) totalPerimeter = perimeter × quantity (mm) runSpeed = runningSpeed[materialCode] (mm per second) runTimeSeconds = totalPerimeter / runSpeed runTimeHours = runTimeSeconds / 3600 totalTime = setupTimeHours + runTimeHours laborCost = totalTime × laborRatePerHour machineCost = totalTime × machineRatePerHour totalCost = laborCost + machineCost
Worked example. Setup time 1.0 h, running speed 100 mm/s for material code "code_1", labor €40/h, machine €20/h. Finished size 1,000 mm × 500 mm, quantity 10.
perimeter = 2 × (1,000 + 500) = 3,000 mm per piece
totalPerimeter = 3,000 × 10 = 30,000 mm
runTimeSeconds = 30,000 / 100 = 300 s → 0.0833 h
totalTime = 1.0 + 0.0833 = 1.0833 h
laborCost = 1.0833 × 40 = €43.33
machineCost = 1.0833 × 20 = €21.67
totalCost = 43.33 + 21.67 = €65.00
If running speed is set to 0 for an unsupported material code, the run portion drops to zero and only the setup time is charged — a useful guard against a missing speed row producing a wrong-by-omission total.
What appears in the price breakdown. Labor and Machine lines, identical in shape to Model 2 but with the time derived from edge length instead of copy count.
Which model to pick
Use this table to map an operation to a model. The right-hand column captures the one fact that drives the choice.
If the step is… | Pick model… | Because |
A flat per-copy or per-job labor add-on with an optional setup fee | Model 1: Setup + Per Unit | Setup + Per Unit handles fixed setup plus a flat per-unit charge, in any of the cost bases. |
A time-driven station on dedicated equipment with no consumable | Model 2: Machine Labor Time | Cost is driven by hours, not unit count; speed converts quantity to time. |
The same time-driven station, plus a consumable that grows with quantity or area | Model 3: Time & Materials | Adds a material line with optional wastage on top of the Machine + Labor formula. |
An outsourced step or in-house operation with quantity volume breaks | Model 4: Tiered Rate | This is the only model that exposes a quantity-tiered rate table. |
Banner-style finishing whose cost scales with the edge length of the finished piece | Model 5 — Per Unit Length | The perimeter is computed from finished size and multiplied against a length rate. |
A counted add-on (grommets, drilled holes, pole pockets) the operator enters on the quote | Model 5 — Per Unit Added | The Add-On Quantity field on the quote drives variable cost without touching length. |
Length-driven cutting or routing where running speed varies by material profile | Model 6: Length & Speed | The running-speed field accepts a per-material-code speed table. |
A common pitfall: Model 5 — Per Unit Length is not the same as the perimeter pretrim choice on a built-in Cut machine. Pretrim choices govern how many guillotine passes the cutter counts on a sheet; Model 5 prices a custom edge-applied finishing step that does not run on the cutter at all.
A worked example: choosing the model for grommets
Northgate Press needs to add a grommets step for large-format posters. The shop charges €50 setup plus €10 per grommet placed, regardless of poster size. The estimator enters the grommet count on each quote.
Operation shape: counted add-on, set on the quote.
Model: Model 5: Perimeter + Unit Based, with Cost basis = Per Unit Added.
Inputs: setup cost 50, cost per unit added 10.
On a 100-poster quote with 4 grommets each: setup €50 + (4 × 100 × €10) = €4,050.00 before bucket markups.
A second example for contrast: the same shop runs a length-based banner hemming step that charges €25 setup plus €2.50 per linear metre. The model is the same (Model 5) but the cost basis is Per Unit Length, and the variable cost depends on the perimeter of each piece — not on a hand-entered count.
What this affects
Bucket assignment. The model chooses which of the six cost buckets each part of the step cost lands in: Labor and Machine for time-based models; Other Material for materials-bearing models; Outwork by default for Tiered Rate.
The price breakdown. Every step that uses a price model shows its own row in the breakdown with the cost split by bucket and time when applicable.
The route comparison. Two alternate routes (offset vs digital, for example) can pass through different finishing paths, so different price models may price the same physical operation differently on each route. The Estimator-recommended route is the one whose total — including price-model output — is cheapest.
What this does not affect
Bucket markup percentages. Picking a different model does not change the Substrate, Other Material, Labor, Machine, Outwork, or Delivery markup rates set on the product category.
Customer rebates. Rebates apply on the price adjustment result, after every step has been priced.
Pricing-rule overrides. Per-customer, per-product, or per-quantity pricing rules apply on top of the price-model output. The model decides base cost; the rule decides whether a final override applies.
Manual adjustments on the quote. The estimator can still nudge the final price up or down on the quote screen; that adjustment sits above every model.