LOGIC:A pure SaaS model for 'Syd-Pet vault' offers a compelling gross margin of circa 80% once recurring revenue stabilizes, covering server costs and baseline customer support. However, Sydney's brutal cost environment for the 2026-2028 period will decimate this. Key cost drivers include: (1) **Labor:** Highly skilled developers (critical for complex API integrations with legacy vet systems) demand AUD $130,000 - $180,000+ annually, while sales/customer success staff average AUD $70,000 - $100,000+. (2) **Office Space:** Even flexible co-working solutions in professional areas like Surry Hills or Pyrmont can cost AUD $700 - $1,200 per person per month. (3) **Integration Overhead:** The upfront engineering effort (and thus, salary cost) to custom-integrate each disparate vet clinic's PIMS is substantial and non-recurring per clinic, but recurring across the network. This 'hidden' cost per integration point acts as a massive drag on scalability, making early customer acquisition disproportionately expensive and impacting cash flow severely. The Pet Insurance Australia discount (10%) will also directly reduce effective revenue per user, demanding higher volume to maintain profitability amidst these high fixed local costs.