I'm well aware of LuLu -- hell, I worked on a
charity project [with Shadowrun content!] -- that was published via LuLu. We've run the numbers, talked to other people who use LuLu, and it's not a viable option for Catalyst to make money. The per-unit cost is too high to sell the books into distribution, and so we're looking at direct sales only, which frankly aren't high enough to make the projects profitable enough.
I'm not saying they couldn't "make money" -- but there are things that we should be working on that will make "more money." Frankly, it makes more sense to wait 8 months, see how the PDFs sold, see how they were received, and then look into releasing a compilation book, as opposed to putting all of the Missions out via LuLu.
LuLu rocks if you're working on a small scale or personal project -- heck, I'm working on a non-Catalyst series of books that very likely will end up on LuLu if I ever make the time to finish them -- but when you're trying to generate enough money to cover salaries and the like, it's just not cost effective.
There are other printers that use similar technology to do short run printing [under 500 copies or so] at much more competitive prices that LuLu, but then you have to add in all the other expenses that are invisible or not-present with LuLu [up front payment for print order, shipping those books to your warehouse, warehousing them, shipping them out to customers/distributors, etc.] and some of the other trials and tribulations that would come with these products [retailers don't particularly like slim products being a prime one] and ... well, we looked at it, and we're not doing it.