“you have server and compute you have like 100 bucks per month and then for all the AI so we use a lot of LLM of course so we pay like 1.5K because we actually offer uh five AI images for every free user so that scales pretty much... I think the sweet spot will be between 70% and 80% margin”

Hit 70-80 Percent SaaS Margins On $100 Infra Plus $1,500 Of AI Passthrough

Loick's cost structure is brutally lean: ~$100/month infra, ~$1,500/month AI (driven by giving free users five AI images as a top-of-funnel hook), and the rest is ad/creator spend. Mania ran at 80% margin; Drop Magic sits a touch lower only because they're aggressively testing. Bootstrapped SaaS economics still survive heavy LLM usage if you cap free-tier generations.