I have not worked in the
publishing business, but I do have experience in the
mailing business. In addition to the points mentioned by Bruce above, magazine binding & mail preparation is a changing frontier, and publishers that hope to survive need to be on top of that as well.
For instance, one way to save postage money is to combine mailing/palletization of your publication with other publications, including those from
outside your company. The USPS offers lower postage rates for those pieces that are sorted to a finer degree appropriate for route delivery, and commingling multiple publications into the same pallet can save money for all parties involved. More on that here:
[
www.magazine.org]
Of course, if you establish an arrangement like this, then miss print windows because your staff is disorganized (or you can't rustle up the ca$h in a timely manner for the print/mail bill), then your ultimate postage bill will be
higher as your publication may have to mail as a standalone mailing.