A cost, margin, and pricing breakdown built on your live Bunny Stream account (Library 698905, "Displayee"). The takeaway: price on value, not cost — because your cost rounds to zero.
Straight from your Bunny billing page. Over the whole trial so far, hosting and streaming 11 branded client videos has cost you a grand total of 33 cents — and 100% of that was one-time encoding, not delivery.
That $0.33 was the optional Premium encoding tier — Bunny's standard encoding is free. So even encoding can go to zero. Delivery is the only thing that scales with usage, and on Bunny that's $0.005–$0.01/GB — a fraction of a cent per view. Your marginal cost to serve a video forever is effectively nothing.
Modeling a realistic client (like Rhoads Law Group): ~10 branded videos, embedded on their site, getting a healthy 2,000 views/month. Even generous, unoptimized assumptions land nowhere near $1.
| Cost component | Assumption | Monthly cost |
|---|---|---|
| Encoding | 10 videos, one-time (amortized) | ~$0.03 |
| Storage | ~0.6 GB of video | ~$0.006 |
| Bandwidth | 2,000 views × ~10 MB = 20 GB | ~$0.20 |
| All-in per client | even doubled for headroom | < $1 / mo |
Note: your current source files are ~3× oversized (~18 Mbps). Optimizing them to ~5 Mbps roughly halves the bandwidth line again — but at these numbers it barely matters to cost. It matters more for load speed on client sites.
Because your cost is ~$2/month per client, pricing is a value decision. The right question isn't "cost plus margin" — it's "what is a branded, QR-coded, lead-generating attorney video worth to a law firm?" Here's the market you're anchored against:
| What firms pay elsewhere | Typical price | Your equivalent |
|---|---|---|
| Agency video production (per video) | $1,000 – $5,000 | Generated from a Displayee template |
| Done-for-you attorney video marketing | $300 – $1,500 / mo | Bundled in your subscription |
| Managed video hosting (Vimeo Business) | $50 – $100 / mo (DIY) | Included + you host & display it |
Law firms don't buy video — they buy cases. A single signed injury case is worth thousands to tens of thousands in fees. If your videos + QR codes generate even one lead a quarter, your service pays for itself many times over. That's the number you're really selling against — not your $2 Bunny bill.
A setup fee (production) plus a monthly subscription (hosting, display, refreshes). This anchors the value up front and creates recurring revenue at near-100% margin.
Anchor most firms at Growth ($199/mo + $997 setup). It's a trivial line item for a law firm and it's your sweet spot for margin and perceived value.
With an all-in cost of roughly $2/month per client, essentially the entire subscription is profit.
| Monthly price | Bunny cost | Gross margin | Margin % | Annual profit / client |
|---|---|---|---|---|
| $99 | ~$2 | $97 | 98% | $1,164 |
| $199 recommended | ~$2 | $197 | 99% | $2,364 |
| $299 | ~$2 | $297 | 99.3% | $3,564 |
| $399 | ~$2 | $397 | 99.5% | $4,764 |
Setup fees ($497–$997) are on top of this and are also near-pure margin, since videos are template-generated in Displayee.
Recurring revenue at $199/mo per client, against a Bunny bill that stays in the pocket-change range no matter how many firms you add.
| Clients | MRR @ $199 | Annual revenue | Annual Bunny cost | Annual profit |
|---|---|---|---|---|
| 5 firms | $995 | $11,940 | ~$120 | ~$11,820 |
| 10 firms | $1,990 | $23,880 | ~$240 | ~$23,640 |
| 25 firms | $4,975 | $59,700 | ~$600 | ~$59,100 |
| 50 firms | $9,950 | $119,400 | ~$1,200 | ~$118,200 |
Add setup fees on top: 25 firms × $997 setup = ~$24,900 in one-time revenue as you onboard them.