Every job in AI-Estimator is built from six cost buckets:
Substrate - paper, board, and other primary substrates
Other Material - ink, packaging material, and other consumables
Labor - labor costs during setup, printing, finishing work
Machine - press running time, make ready time
Delivery - freight and shipping costs
Outwork - subcontracted services
All costs are captured in these buckets. Markups can then be applied per bucket, and the system calculates the selling price using one of three pricing models that you have selected in the Product setup sheet.
Pricing Models Explained
VA% (Value-Added Percentage)
Formula: (Labor + Machine + Total Markups) ÷ Total Estimate
→ Shows what share of the total price comes from labor, machine, and all markups combined. Another way to look at it is: (Total Estimate - Outside Costs) / Total Estimate, where outside costs are the base costs of substrate, other material, delivery, and outwork.VA per Press Hour
Formula: (Labor + Machine + Total Markups) ÷ Total Press Time (hours)
→ Shows how much value-added portion is earned per hour of press run.GP% (Gross Profit Percentage)
Formula: Total Markups ÷ Total Estimate
→ Shows the gross profit margin as a percentage of the selling price.
Example
Step 1: Base Costs
Substrate = €200Other Material = €100
Labor = €150
Machine = €100
Delivery = €50
Outwork = €100
Total Base Cost = €700
Step 2: Apply Markups
Substrate +20% → €40Other Material +20% → €20
Labor +20% → €30
Machine +50% → €50
Delivery +10% → €5
Outwork +0% → €0
Total Markups = €145
Total Estimate = €845
Step 3: Identify Outside Costs and Value-Added Portion
Outside costs (base only) = Substrate + Other Material + Delivery + Outwork = €200 + €100 + €50 + €100 = €450Value-added portion = (Total Estimate - Outside Costs) = 845 - 450 = €395
Step 4: Calculate Pricing Model Values
VA% = (Total Estimate - Outside Costs) ÷ Total Estimate
= (845 - 450) ÷ 845 = 47%
→ 47% of the total price comes from labor, machine, and all markups (the value-added portion).
VA per Press Hour = (Total Estimate - Outside Costs) ÷ Total Press TimeAssuming Press time = 3 hours
= (845 - 450) ÷ 3 = €132 per hour
→ The job adds €132 of value per hour of press time.
GP% = Total Markups ÷ Total Estimate
= 145 ÷ 845 = 17%
→ The overall gross profit margin on the selling price is 17%.
Using the Price Adjustment Model
The price model calculations don't change the estimate automatically - instead, they provide reference values for VA per press hour, VA% or Gross Profit %. These values are shown directly on the estimate page and can be adjusted easily.
Price Breakdown
Every estimate also includes a "Price Breakdown" view, where you can see in detail:
The base costs in each bucket
The markups applied to each bucket
The resulting VA%, VA/hour, and GP% based on the selected model
Adjusting the Price
From these outputs, you can:
Directly adjust the reference values (VA%, VA per press hour, or GP%) to reach your target price.
Apply pricing rules (e.g., "For customer X, apply VA% of Y%").
When pricing rules affect the calculation, the Price Breakdown will clearly show:
The rule-adjusted output
The specific rules applied, listed at the bottom of the breakdown
You can also do granular markup editing per cost bucket in the advanced Price adjustment view as explained here