Newspaper costs are amazingly high. One publisher I know prints 1,000 of the 8 page paper. Printing and postage alone run $650 per issue. The issue price is 50 cents, a loss of 15 cents per copy that is made up with advertising. Even an annual subscription is $30, $2.50 below the actual printing and postage cost. The philosophy is raise prices and fewer subscribe or buy at the retail outlet, raising the cost. There is the set up on the 8 pages that is there whether they print 1, 1,000 or 10,000. Dividing set up charges by subscribers is the key. The more that buy, even at a loss, the better the chances you can sell the advertising to cover the loss and pay yourself a salary up to a point. So, if $200 of that $500 is set up, 1,000 copies is $500 but 2,000 is $800. 500 copies is $350 and 100 copies is $230.